JETP a good solution for Pakistan to move away from coal, Experts

ISLAMABAD, Jan. 12, (Gwadar Pro)-"Just Energy Transition Partnerships (JETPs) could be a good solution for Pakistan to move away from coal and can help with investments in renewables,” said Dr. Daniele Malerba, Senior Researcher at the German Institute of Development & Sustainability.

During a webinar on "Scoping the feasibility of early retirement of coal power plants under CPEC" on Thursday, she emphasized the importance of understanding how JETPs are constructed, as they rely on a level of political engagement.

JETPs aim to bridge the gap between developed and developing nations in transitioning towards clean energy. South Africa, Indonesia, and Vietnam are the first three countries to receive funding. Pakistan is exploring JETPs to accelerate decarbonization while mitigating social costs.

In a webinar organized by the Sustainable Development Policy Institute (SDPI) under the clean energy transition program, panelists discussed various financing mechanisms like JETPs, Energy Transition Mechanisms (ETMs), and other coal transition mechanisms.

Mustafa Hyder Sayed, Executive Director of Pakistan China Institute (PCI), emphasized the need to move beyond theory and create a bankable case acceptable to investors and financially sustainable.

Dr. Khalid Waleed presented the feasibility of early retirement of coal power plants under CPEC through a multi-perspective approach.

Shuang Liu, Senior Associate, China Finance Lead at the World Resource Institute, highlighted the necessity of understanding investor motivations and constraints on the early retirement of coal.

Julia Skorupska, Head of Secretariat at Powering Past Coal Alliance, emphasized that the social benefits of coal retirement outweigh the social costs.

Dr. Christoph Nedopil shared concluding remarks and thoughts on the feasibility of early retirement of coal power plants under CPEC, emphasizing insightful discussions on transitioning, sustainability, and the future of energy in the region.

Experts believe that the 3rd Belt and Road Forum and COP28 have underscored the significance of energy transition in addressing climate change. Global trends and decreasing costs of renewable energy have made it not only environmentally but also economically viable.

Participants also stressed the need for comprehensive consideration of the social and economic impacts of coal retirement to ensure a just transition for local communities dependent on coal.

For Pakistan, a country consistently ranked in the top ten at the highest risk of climate change but emitting less than 1% of global greenhouse gas emissions, climate change poses an existential threat.

The question of Energy Security is, of course, a question of economic growth. Pakistan, as the fifth most populous country globally, needs a pathway to sustainable development, contingent on a reliable, affordable, and sustainable energy supply—the classic energy trilemma.

Therefore, future research should focus on specific financial mechanisms for coal retirement and address political, social, and economic barriers in developing countries with coal plants. Experts also identified the need for progress in developing decarbonization incentives in emerging markets still heavily reliant on coal.