Pakistan is all set to launch green bonds next week to raise $500 million in a bid to fund its hydropower projects.

As per the Bloomberg report, the Water and Power Development Authority (WAPDA) aims to sell a 10-year note this month, informed the authority chairperson Muzammil Hussain. He said that the organization is also keen to offer more environmentally-friendly debt over the next two years.

The WAPDA chief said that the funds generated from the issuance of the green bonds will be used to fund the Diamer Basha and Mohmand dams in Pakistan. “We are taking a lead against fossil fuel,” he said by phone.

Days ago, Special Assistant to Prime Minister on Climate Change Malik Amin Aslam while talking about the introduction of 500 million ‘Green Euro Bond, said that during the pandemic, the country made a bold announcement to shift away from a coal-based pathway towards renewable energy by announcing a target of achieving 60 percent clean energy mix by 2030.

Then, Pakistan quickly followed up this announcement by shelving 2600MW of imported coal projects and replacing them with 3700MW of hydroelectric projects, he highlighted.

“Sensing a growing appetite for green and low-carbon investments in the international capital markets, Pakistan is all set to launch its first “Green Euro Bond” for $500 million this month,” he said, hoping it would harbinger the country’s entry into an expanding and eco-conscious marketplace.

The PM’s aide stressed, “This nature-positive pathway to rebuild the economy and stimulate sustainable growth, while employing young people, is a pressing need and will allow the country to not only come out of the economic recession but also build back better and build back green.”