Ayesha Saba
Pakistan’s commitment to greening CPEC offers a crucial opportunity to align its economic growth with environmental sustainability.
“Redirecting investments toward renewable energy and green infrastructure will enhance climate resilience and position Pakistan as a global leader in sustainable development,” said Dr Abid Qaiyum Suleri, a prominent voice in environmental policy and executive director of Sustainable Development Policy Institute (SDPI). Talking to WealthPK, he said Pakistan is charting a path toward a sustainable future by integrating green investment strategies into the CPEC framework.
He emphasised the urgent need to transition CPEC-related investments toward cleaner energy projects, particularly in light of Pakistan’s acute vulnerability to climate change. “This shift aligns with the country’s broader ambitions to foster a green growth economy through decarbonisation and climate resilience.” He stressed that Pakistan’s transition to green development requires a capital-intensive approach.
“The country aims to bolster its access to international climate financing, which is crucial for implementing decarbonisation measures and meeting commitments under the Paris Agreement.” “Pakistan has expressed its intent to adopt mechanisms outlined in Article 6 of the agreement, which provides instruments to support carbon reduction initiatives.
These measures aim to redirect Chinese investments under CPEC from emission-intensive projects, such as coal-fired power plants, toward renewable energy sources, including wind, solar and hydropower,” Suleri said. In the second phase of CPEC, the development of Special Economic Zones (SEZs) is expected to play a pivotal role in driving economic growth. These SEZs provide an excellent foundation for transitioning to eco-industrial development.
However, Suleri emphasised that their success hinges on strategic planning, regulatory frameworks, and investment incentives, along with policies encouraging cleaner technologies and energy efficiency. He also emphasised that Pakistan faces several challenges in realising its green investment goals. He noted that green financing remains a residual policy rather than a mainstream economic priority.
“This lack of liquidity hinders investments in renewable energy projects. Addressing these barriers requires a cohesive strategy to integrate green policies into the national economic framework.” The SDPI executive director said that Pakistan must develop comprehensive rules to manage the environmental and social risks associated with CPEC investments.
“Establishing a green investment roadmap will not only mitigate adverse environmental impacts but also ensure that CPEC contributes to sustainable development. By prioritising renewable energy projects and enforcing environmental regulations, Pakistan can leverage CPEC as a vehicle for economic growth that is both inclusive and environmentally sustainable.”
Credit: INP-WealthPk