Investment cooperation in green development: Pakistan, China may sign three-year pact

ISLAMABAD: Pakistan and China are likely to sign a three-year pact on promotion of investment cooperation in green development, well informed sources told Business Recorder.

The MoU will be inked with Ministry of Commerce China which is actively implementing China’s commitment to be carbon neutral by 2060. The Ministry is also carrying out China’s 14th Five-year plan (2021-2025) for National Economic and Social Development and long-range objectives though the year 2035.

The MoU is based on the goodwill and needs of businesses of both countries and the practical foundation for strengthening cooperation in the field of green development.

According to the proposed draft MoU, the parties will adhere to the green consensus and promote green development. They will take the global energy transition as an opportunity to stimulate new growth drives in green development, deepen exchanges and cooperation in green economy and clean energy, and promote high quality development of bilateral investment cooperation.

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The parties will enhance synergy between green development strategies and policies, encourage local governments, industrial organisations, financial institutions and businesses to enhance coordination, tap the potential of green development cooperation and jointly create the momentum of cooperation for the future.

The parties will encourage businesses to conduct investment cooperation in green development, including clean energy such as photovoltaic, wind power, nuclear, hydrogen and biomass energy, new energy vehicle industry such as power battery, smart charging pile production service and battery disposal and recycling, as well as, green finance and green infrastructure construction.

The parties will encourage businesses to, in compliance with the requirements of the United Nations Framework Convention on Climate Change, the Convention on Biological Diversity and the carbon-neutral commitment targets, fulfil environmental obligations, promote green design, green procurement, green construction, green production and green operation, and facilitate the coordinated development of the local economy, society and the ecological environment.

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The parties will encourage businesses to accelerate green transformation, increase investment in green technology, jointly promote green technology innovation and carry out high-level joint research through the establishment of scientific and technological innovation platforms such as R&D centres, innovation centres, laboratories and incubators.

The parties will agree to give full play to the leading role of the investment cooperation working group under the mechanism of China- Pakistan Joint Commission (or mixed committee) on Economic and Trade Cooperation(or the parties agree to give full play to the leading role of China- Pakistan Joint Commission(or mixed committee) on Economic and Trade Cooperation if there is no Working Group), with the Department of Outward Investment and Economic Cooperation of the Ministry of Commerce of China and Department of Executing Agencies of this Memorandum, to step up policy exchanges, implement the work set out in this Memorandum, and build a pragmatic and efficient platform for green development cooperation.

This Memorandum will come into effect on the date of signature and remain in effect for three years.

Copyright Business Recorder, 2021