Experts Discuss Renewable Energy Potential at CPEC Green Finance Guidelines Workshop

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ISLAMABAD: China’s potential for renewable energy generation can lead to a massive change in Pakistan’s energy sector. It could also serve as a viable solution to Pakistan’s energy crisis which has worsened over the years. Experts from the energy and development sector said so during a capacity building workshop on “Green Financing Guidelines for CPEC Energy Projects”, organized by the Sustainable Development Policy Institute (SDPI).

The Managing Director of the Private Power and Infrastructure Board, Mr. Shahjahan Mirza, pointed out that currently 400 MW of electricity is generated in Pakistan through rooftop solar panels. Soon, 9 off-grid districts in Balochistan will be solarized through public-private partnerships. He informed the participants that the AEBD is also working on the capitalization of wind corridors in Pakistan,” he said while adding that a 1000 MW solar park is under construction in Cholistan.

Dr. Hasan Daud Butt, CEO of Khyber Pakhtunkhwa Board of Investment & Trade (KP-BOIT) was of the view that CPEC can boost Pakistan’s economic growth. This could be done by developing infrastructure, improving intra-national connectivity and creating investment and employment opportunities. However, the country’s youth face low skills development and low productivity challenge, which lowers their job prospects in CPEC projects, he pointed out.

Dr. Vaqar Ahmed, Joint Executive Director of SDPI, described the green finance guidelines as extremely essential in designing a pathway to achieve Pakistan’s nationally determined contribution targets.

“There is a need to design a predictable and certain fiscal policy to increase international investments, especially under CPEC,” Dr. Ahmed said and suggested that private banks should introduce innovative financing models and financing mechanisms. rating to secure loans for greener initiatives.

Dr. Sajid Amin, Deputy Executive Director of SDPI, suggested that environmental closures should be bolstered by green reporting and dialogue and active private sector engagement to minimize the risks associated with CPEC’s green financing.

Dr. Christoph Nedophil Wang, representing Fudan University, China, informed the participants that the regulatory and commercial sector in China is mandated to maintain the national commitment to green finance through the CPEC project. Dr. Hina Aslam of SDPI explained earlier that SDPI in partnership with Pakistan China Initiative aims to build capacity through dialogues and deliberations with various stakeholders.

Ms. Najia Ubaid, Additional Director of the Securities and Exchange Commission of Pakistan (SECP) pointed out that the SECP provides green bonds for any project with an environmental cause, including sanitation, waste management and renewable energy, and that any asset can be split to finance such projects. Dr. Sajid Amin, Deputy Executive Director, SDPI, highlighted that the SECP could play a critical role in supporting this transition to sustainable green finance through green bonds and green equities.

Mr. Muhammad Irfan, representing the State Bank of Pakistan (SBP), pointed out that so far, 1500 projects have been financed by SBP under its renewable energy program and discussions are already underway. courses for the extension of this program. Also sharing their views on various aspects of the topic during the workshop. Dr Hina Aslam from SDPI led the workshop at the local hotel today.

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