Mustafa Hyder Sayed Stresses Importance of Green Financing in CPEC Phase 2 at Renewable Energy Summit
ISLAMABAD – Aug 20 (APP): In a recent summit dedicated to exploring renewable energy financing opportunities under the China-Pakistan Economic Corridor (CPEC), speakers emphasized the pivotal role of green and sustainable investments in the upcoming phase of CPEC. Mustafa Hyder Sayed, Executive Director of the Pakistan China Institute (PCI), highlighted that the second phase of CPEC would focus on eco-friendly projects, urging Pakistan to collaborate with private sectors and partners to attract green Chinese investments.
The summit, co-hosted by the Sustainable Development Policy Institute (SDPI) and PCI, focused on “Renewable Energy Development Under CPEC: Financing Opportunities for Chinese Private Sector.” During the event, Dr. Vaqar Ahmed, Joint Executive Director of SDPI, underscored China's significant stakes in global renewable energy investments. He emphasized that Pakistan needs approximately $115 billion to meet its renewable energy goals, with substantial investments required for transitioning from coal, implementing wind power, rolling out electric transport, and enhancing energy efficiency.
Dr. Ahmed urged the engagement of the private sector to secure green investments that align with Pakistan’s green energy objectives. He noted that the focus of CPEC 2.0 over the next few years would be on green development, drawing lessons from the initial phase of CPEC and applying them to the broader Belt and Road Initiative (BRI).
Mustafa Hyder Sayed stressed the urgency of institutionalizing the green transition through a joint working group between China and Pakistan. He pointed out that while high-income countries receive green investments from China, developing nations often get carbon-intensive investments. He emphasized the need for proactive engagement with regulators like NEPRA and the State Bank of Pakistan and called for exploring untapped private capital in various Chinese provinces to support CPEC 2.0’s market-based approach.
During a panel discussion, Dr. Hassan Daud Butt, Senior Advisor at Energy China, highlighted the changing global economic landscape and the critical need for pragmatic leadership and innovation to address the challenges posed by the green energy transition. He urged alignment with Chinese development models to fully leverage the green energy shift.
Muhammad Badar Alam, CEO of the Policy Research Institute for Equitable Development (PRIED), stressed the importance of land and environmental impact assessments (EIA) in energy projects, calling for the devolution of power-related functions to provincial governments for better project ownership.
In another panel, N.A. Zuberi, Senior Advisor at China Three Gorges South Asia Investment Ltd, discussed the potential for growth in the renewable energy sector within Special Economic Zones (SEZs) under CPEC. He highlighted the opportunities for Chinese and Pakistani investors, including abundant raw materials, cost-effective labor, and attractive incentives provided by SEZs.
Zuberi urged the Pakistani government to promote the incentives offered by SEZs more aggressively, emphasizing tax holidays, customs exemptions, and simplified investment procedures to attract Chinese investment in the renewable energy sector.