Green investment in the power and transport sectors can help Pakistan reduce carbon emissions and hefty oil import bills with the help of public-private investment, reports WealthPK. Dr. Iftikhar Ahmed, an environmental expert at the Pakistan Institute of Development Economics (PIDE), told WealthPK that green investment could prevent further escalation in pollution by reducing carbon emissions, adding that public-private partnerships (PPPs) will contribute towards transforming our growing economy into a low-carbon emission economy. He said green finance is both directly and indirectly related to various sustainable development goals.

The aims of sustainable development, net zero-emissions, and sustainable production and consumption can not be achieved unless the private sector is included. According to Iftikhar, PPPs (public-private partnerships) are important because the government mostly introduces regulations to ensure the welfare of the people and faces budget deficiencies to pump money into many projects. The private sector can play its role in this scenario by making investments. Iftikhar said, with PPPs, the pathway for sustainable development can be achieved. With PPPs, the energy and transport sectors are major emitters of carbon dioxide.

According to the OCAC (Oil Company Advisory Council) data, the transport and energy sectors are the major consumers of oil. During the first 11 months of Fiscal Year 2021-22, the transportation sector consumed 75% of total oil consumption, while the power sector consumed 15%.Iftikhar said the transport sector is a major source of air pollution due to the higher number of vehicles on the road that emit toxic materials into the atmosphere. He said investment in hybrid technology and renewable energy will assist the country in reducing emissions of greenhouse gases and will generate employment.

Investment in hybrid technology and renewable energy will also provide investors with lucrative profits while also helping to save the world's depleting foreign reserves by reducing reliance on oil imports.Iftikhar said Pakistan has great potential to produce green energy by using renewable energy sources (wind, solar, thermal, and hydel) because of its geographic location. He suggested the following imperative steps to increase investment in green energy.

Firstly, soft loans should be provided to investors for green financing.Secondly, the government should provide incentives to private and foreign investors in the form of low taxes on profit to encourage investment. Thirdly, apart from the implementation of emission and fuel quality norms, steps must be taken to scrap old vehicles, and certificates should be issued to vehicles producing less pollution. High-polluting vehicles should not be allowed on the road. And lastly, the government should cooperate with the private sector and encourage them to invest in environmentally friendly products to fight climate change.

Credit:
Independent News Pakistan-INP