ISLAMABAD-Just energy transition partnerships are key to phase out coal and mobilize investments towards renewable energy (RE) in Pakistan. This was the crux of a symposium on “Just energy transition in Pakistan” organized by Sustainable Development Policy Institute (SDPI) and Network for Clean Energy Transition in Pakistan: Research and Advocacy. Dr. Vaqar Ahmed, Joint Executive Director, SDPI highlighted that the current challenges slugging rapid offtake of renewable energy in Pakistan arise from inadequacy of infrastructure and grid stability. He stressed innovative decentralized energy models, micro-grids, encouraging development of local RE industry and building storage capacity to address these challenges.
Michael Waldron, Economic Affairs Officer, United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) emphasized the need to increase energy sector investments by 3-4 folds to meet SDGs. He highlighted that “Just Energy Transition Partnerships” (JETP) can play key role by providing low-cost finance to Renewable Energy (RE), promote investment-grade domestic policies to phase out fossil fuels, and support just transition for affected workers. He further stressed prioritizing halting coal power development and retirement of existing plants and considering solutions for repurposing of coal power plants and incentivize RE solutions. Dr. Khalid Waleed, Lead Researcher, SDPI highlighted that Asian Development Bank’s Energy Transition Mechanism (ETM) can provide technical assistance, policy support, capacity building, and financing mechanisms. He highlighted various factors which must be considered for effective implementation of the ETM. These include analyzing the long-term sustainability and accumulation of debt, conducting comprehensive research and data collection, establishing monitoring and evaluation frameworks, promoting knowledge sharing and learning from other countries experiences, adapting the approach to the local context, building capacity, raising public awareness, and engaging stakeholders.
Fiza Qureshi, Manager Program, Indus Consortium, expressed that ADB’s Energy Transition Mechanism (ETM) lacks a direct communication line for all stakeholders to air their concerns. Stakeholder mapping does not consider the broader communities that are impacted by these power plants and there is no indication of carrying out an assessment for compensating broader communities and areas that are adversely impacted due to polluting assets. Data disclosures, transparency and openness in the ETM process are essential to take all stakeholders’ concerns on board. Syaharani, Researcher, Indonesian Center for Environmental Law (ICEL), urged for data disclosure by ADB and other stakeholders in implementation of JETP for effective monitoring of the process. A supporting policy and framework is needed to manage the workforce transition as there is still a huge gap when it comes to the socio-economic aspects of the transition. Asad Mahmood, renewable energy expert, mentioned that revisiting ambitious NDC targets can demonstrate Pakistan’s readiness for climate action when UNFCCC’s “Enhanced Transparency Framework” comes into action and states have to report NDC tracking activities and the tools (ETM and JETPs).
Matthew Gray, CEO, Transition Zero mentioned that effective implementation of Just Energy Transition Partnerships requires energy planning tools, which typically come from large electricity systems models to inform long-term power development plans. Most of the tools and plans for developing and emerging economies are inaccessible. He also mentioned that Transition Zero is working to reduce the barriers where policy and decision makers can make and run their own scenarios without having in-depth knowledge of modeling tools. Muhammad Mustafa, Program Officer, Renewables First said that amid current financial crisis, Pakistan is unable to generate required finance for the energy transition, and a well-designed JETP with actionable commitments and targets can enable Pakistan to accelerate RE financing by providing signals to the market to incentivize such financing. A comprehensive investment plan can also delink energy and politics in Pakistan and provide the right environmental stability that many investors desire. 

Afia Malik, Senior Research Economist, PIDE mentioned that Pakistan’s existing coal capacity will slow down transition to renewable energy as coal projects under CPEC have long term agreements of 30 years or so with sovereign guarantees. 

She further said that logistic issues exacerbated by Russia-Ukraine conflict and Covid-19 have inflated global gas prices. Coupled with depleting gas reserves Pakistan’s reliance on coal for generating power has increased.
Ubaid ur Rehman Zia, Senior Researcher Associate, SDPI highlighted that Pakistan lacks financial stability, and technical infrastructure to drive RE shift and emphasized on mobilizing finances towards climate change mitigation and adaptation. For the energy sector, effective implementation of JETPs such as ADBs energy transition mechanism can bridge the financing gap, he said.