KARACHI: Economists and experts have urged the government to have more focus on renewable energy projects under the CPEC to overcome the current energy crisis.
Addressing to “Green Financing, CPEC and Industry” session of the 2nd International Conference on CPEC, organized by the Economics and Management Sciences Department (EMD) at NED University, State Bank of Pakistan’s Director SME, Housing and Sustainable Financing Dr Mian Farooq Haq said that despite of Pakistan’s contribution of less than one percent in greenhouse gases emissions, one-third of the country came under flood waters due to climate change.
He said that the State Bank had issued voluntary Green Banking Guidelines in 2017, and the central bank was going to engage two banks; one small and another major bank for the implementation of the Environmental and Social Risk Management (ESRM) framework to make them model banks. Later on, other banks will also replicate it.
He said that under renewable energy financing through commercial banks, 2,300 projects with 1,600 MW were underway but the financing was also available to individual consumers at a discounted rate of 6 percent.
CEO Younus Energy Limited Abdul Sattar Jumani said that the wind corridor in Jhimpir had provided benefits to the local population, where 100 percent population was employed and provided solar panels.
CEO Petroleum Institute of Pakistan, Shehryar Omar, said Pakistan’s peak energy demand in winter was 12,000 MW, which increased to 30,000 MW because of air conditioning only. He said CNG was a huge mistake and there would not be any indigenous gas in 8 to 10 years. Any pipeline gas import would not work as well, as it happened in the case of Europe.
CEO of Indus Consortium and co-organizers of the session, Hussain Jarwar, said despite 4 months passed on to monsoon rains, 3 to 4 feet of water was still standing in several areas of Sindh while 75,000 pregnant women, who did not contribute to greenhouse gases, suffered during the floods and were still standing at the flood relief camps.
He said that just before the monsoon there was a water shortage of up to 70 percent in the province.
“There will be either floods or droughts under climate change,” he said.
Mirza Faizan Ahmed, a research associate at the NED University, presenting findings on “In-depth analysis of GBG” said that 18 commercial banks out of 33 commercial banks had taken some initiative to follow the GBGs.
He said around 21 projects in CPEC were energy focused with 5,000 MW projects based on coal.
Copyright Business Recorder, 2022