ISLAMABAD: The government is all set to prepare a comprehensive action plan and policy for developing/ producing Green Hydrogen in Pakistan in consultation with all the stakeholders as the United Nations Industrial Development Organisation (UNIDO) has shown willingness to extend $14 million funding for clean hydrogen, well-informed sources in the Ministry of Foreign Affairs (MoFA) told Business Recorder.
Sharing the details, sources said, Pakistan Ambassador in Vienna has conveyed that in response to the Pakistan Embassy in Austria’s persistent engagement with the UNIDO for introducing new technologies in industry and energy transition, with Green Hydrogen being at the core of these discussions, the UNIDO has now responded positively and prepared a draft project proposal worth $14 million titled, “accelerating de-carbonisation in the industrial sector of Pakistan for sustainable energy transition through innovative technologies”.
As per Pakistan’s Mission in Vienna production of green/ clean hydrogen and ammonia in Pakistan is the main feature of this project. Some other elements of this project include the following: (i) finance of $ 04 million expected through Global Environment Facility (GEF) and co-financing of $ 10 million from other sources; (ii) 48 months duration of project; (iii) focus on developing green/ clean hydrogen and ammonia; (iv) provision of technical assistance by UNIDO besides support for promoting green investments aimed at de-carbonisation in the industrial sector; (v) implementation of the project through UNIDO, Ministry of Climate Change, Ministry of Industries and private sector; and (vi) UNIDO intends approaching World Bank and Asian Development Bank for the purposes of large-scale infrastructure development projects, if needed.
Punjab CM grants approval for green hydrogen project
As per Pakistan’s Mission in Vienna, some other key elements in the context of the proposal include inter-alia implementation of the energy management system; strengthening special technology cell at SMEDA; technical support on achieving net-zero, establishment of an all-Women Forum for the purposes of engaging women in activities related to de-carbonisation; comprehensive training programme; and support for financial institutes for developing pilot market-based financing mechanisms.
In this context, Pakistan Mission in Vienna has now recommended the following: (i) formulation of a comprehensive action plan and policy for developing/ producing green hydrogen in Pakistan in consultation with all the stakeholders; (ii) assistance of UNIDO may be sought for policy formulation, as well as, regulatory and institutional framework for developing green hydrogen in the country; developing necessary infrastructure for the production, storage, transport and export of green hydrogen/ammonia; policy advice for attracting FDI in green hydrogen area collaboration for approaching development institutions as well as climate finance institutions; and focus on large-scale infrastructure development projects; (iii) formulation of an incentive package in collaboration with Special Investment Facilitation Council (SIFC) for attracting Foreign Direct Investment (FDI) in the areas of green hydrogen; and (iv) arrangement of an Inter-Ministerial meeting followed by a webinar by Mission in Vienna with UNIDO for streamlining country program as well as attracting FDI in the field of ammonia/ green hydrogen.
Copyright Business Recorder, 2024
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