Pakistan hosts the first Asia Energy Transition Summit 2024 at LUMS
Lahore: Federal Planning and Development Minister Ahsan Iqbal emphasized Pakistan's vast potential to generate 300,000 megawatts of renewable energy from wind and solar power. "However, mobilizing both private and public finance is essential to realizing this potential," he stated during the second day of the Asia Energy Transition Summit 2024, held at the Lahore University of Management Sciences (LUMS).
The two-day summit, organized by the LUMS Energy Institute (LEI) in collaboration with the Pakistan Renewable Energy Coalition (PREC), the Sustainable Development Policy Institute (SDPI), Pakistan Research Institute for Equitable Development (PRIED) and Renewable First aimed to address the challenges and opportunities in transitioning from fossil fuels to renewable energy. PREC is a consortium of research institutions, civil society organizations, and energy transition advocates.
Speaking as a special guest, Mr. Iqbal highlighted the federal government's focus on five pillars for Pakistan's energy transition: innovation frameworks, technology-driven solutions, mobilizing new financial sources—such as the proposed Asia Energy Transition Fund—policy harmonization within Pakistan and across Asia, regional collaboration, and ensuring a just energy transition.
Senator Sherry Rehman, addressing the summit, stressed the need for financing solutions to combat climate change and facilitate energy transition. Reflecting on her tenure as Federal Minister for Climate Change, she discussed the challenges and opportunities for Pakistan in securing international financial support.
In a session on energy policy, Sher Ali Arbab, Co-Convener of the Parliamentary Forum on Energy and Economy, highlighted the opportunities presented by the devolution of power to the provinces under the 18th Amendment and encouraged further decentralization to enhance efficiency and inclusivity in Pakistan's energy policy.
Key speakers, including Dr. Fiaz Chaudhry, Chairman NTDC and Senior Advisor at the LUMS Energy Institute, Shahjahan Mirza, the head of Private Power and Infrastructure Board (PPIB), and several local and international experts, contributed insights on the financial and technical aspects of the energy transition.
Federal Power Minister Awais Ahmed Khan Laghari stressed the need for innovative financial solutions to drive Pakistan's energy transition. Speaking at the close of the summit's first day, Mr. Laghari proposed leveraging Chinese expertise in renewable energy, focusing on knowledge transfer, infrastructure development, and technical training. He also recommended exploring Chinese financial instruments, including RMB-based bonds, and positioning Pakistan within the supply chain for critical green metals.
The summit commenced with welcome addresses by LUMS Rector Mr. Shahid Husain and Vice Chancellor Dr. Ali Cheema. Dr. Cheema stressed the importance of a swift and efficient energy transition to address Pakistan's energy and climate crises.
The Governor of the State Bank of Pakistan, in his inaugural address, called attention to the financial challenges facing countries like Pakistan that are highly vulnerable to climate change but lack the necessary resources for energy transition. He pledged the SBP's commitment to developing a climate-driven banking framework to support renewable energy financing.
In another session, Dr. Nafisa Shah, Co-Convener of the Parliamentary Forum on Energy and Economy, emphasized the link between Pakistan's energy and economic crises, advocating for transparent, open, and participatory policymaking processes.
Sindh Energy Minister Nasir Hussain Shah and Former Minister of State for Environment, Malik Amin Aslam also shared their perspectives on provincial decentralization and integrating climate-resilient policies respectively.
The event concluded with a note of thanks from Dr. Tariq Jadoon, Provost of LUMS and Dr. Naveed Arshad, Director of LUMS Energy Institute, recognizing the contributions of participants and experts.