Researchers propose mechanism for just energy transition in Pakistan

Griffith Asia Institute have partnered with Green Finance & Development Center, Climate Smart Ventures and Pakistan-China Institute to release a policy brief proposing a mechanism for a just and low-carbon energy transition in Pakistan, leveraging the China-Pakistan Economic Corridor (CPEC).

The brief, authored by researchers Christoph Nedopil, Lawrence Ang, and Mustafa Hyde outlines how Pakistan, with its strong commitment to early coal phase-down and alignment with global efforts, can serve as a pilot for China's support in achieving its low-carbon energy transition ambitions.

Key highlights include Pakistan's participation in the Asian Development Bank's Energy Transition Mechanism, recent global initiatives accelerating coal phase-down, and the potential for significant increase in enterprise value of Chinese-sponsored coal-fired power plants in Pakistan.

The proposed mechanisms, including refinancing and managed transition vehicles, offer pathways to simultaneously phase-down coal assets and invest in green energy, providing economic stability and new job opportunities.

This initiative not only aligns with global climate and development goals but also presents strategic opportunities for China to support Pakistan's energy transition while enhancing its own green BRI ambitions.

The policy brief addresses critical issues such as Pakistan's sovereign debt challenges, China's position in supporting coal phase-down, and financing instruments for accelerated green energy transition.

For further information, see the policy brief "Managed transition vehicle: Financing mechanism for early phase-down of Chinese-sponsored coal plants."

Provided by Griffith University