Coal phase-out.
As Pakistan grapples with the formidable challenge of transitioning away from coal, the recently published UN report 'Phasing-Down the Use of Coal in Pakistan' offers a comprehensive roadmap through the complex terrain of economic, environmental and social considerations. The urgency of phasing down coal power plants is undeniable, yet the intricacies embedded in existing agreements and geopolitical factors call for a delicate balance.
CPEC looms large in this narrative, with long-term agreements and capacity payments complicating the immediate shutdown of coal plants. The geopolitical ripples from the Russia-Ukraine conflict and Covid-related disruptions further tighten the knot, propelling a higher reliance on coal for power generation due to spiking natural gas prices. However, amidst these challenges, the report highlights a pivotal opportunity arising from China's decision to cease investments in coal-fired projects abroad after 2021. This presents Pakistan with a unique chance to pivot towards a greener future, aligning with global trends and aspirations. The transition, the report...
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