A pivotal panel discussion on “Industrial Decarbonization and Climate Finance,” moderated by Dr. Khalid Walid of the Sustainable Development Policy Institute (SDPI), was held at the Pakistan Pavilion during COP29.
The session brought together key stakeholders from government, private industry, and international organizations to discuss the urgent need for decarbonization in Pakistan’s industrial sector and the critical role of climate finance.
Bilal Anwar, CEO of the National Disaster Risk Management Fund (NDRMF), emphasized that decarbonization presents a significant challenge, particularly for small and medium-sized enterprises (SMEs) in Pakistan. He highlighted that SMEs face considerable barriers in financing the necessary innovation for a transition to green technologies. Anwar called for the creation of supportive mechanisms to help SMEs access the resources required to decarbonize, noting the vast potential in the industrial sector to adopt green technologies and reduce emissions.
Nadia Rehman, Member of the Ministry of Planning, Development, and Special Initiatives, underscored that decarbonization is not just an environmental necessity but also a pathway to economic modernization. As global industries pivot to greener technologies, Rehman stressed that Pakistan risks losing out on green job opportunities if it fails to decarbonize its industries. She also discussed the potential for carbon credits, particularly green hydrogen investments, which could protect agriculture, industry, and other key sectors.
Dr. Abid Qaiyum Suleri, Executive Director of SDPI, raised the issue of international trade pressures, specifically the European Union’s Carbon Border Adjustment Mechanism (CBAM) and the potential imposition of a similar mechanism by the U.S. under the Trump administration. He emphasized that to remain competitive, Pakistan must focus on improving emissions reduction mechanisms across all sectors of the supply chain. Suleri also called for energy companies to invest in carbon sequestration and reduction technologies to reduce overall emissions.
Andrew Bailey, Managing Director of BASF, shared insights on the critical role of the private sector in driving innovation and facilitating technology transfer to manage decarbonization. He highlighted the significance of private sector partnerships in clean development, noting that the Overseas Investors Chamber of Commerce & Industry (OICCI), which represents over 200 multinational companies, has committed to reducing carbon emissions by 30% by 2030. Bailey also pointed out the growing importance of sectors such as electric vehicles (EVs) and water recycling in the region’s decarbonization strategy.
Ahmed Lak from Oil and Gas Development Company Limited (OGDCL) discussed the company’s efforts to introduce cleaner technologies in the energy sector. He highlighted ongoing geothermal technology initiatives as part of OGDCL’s broader green strategy to diversify operations and reduce environmental impacts.
The panel discussion shed light on the importance of both government and private sector cooperation to drive the necessary transformation towards a low-carbon economy. The speakers called for a multi-level approach to decarbonization, stressing the importance of innovation, policy support, and international collaboration to tackle climate change and unlock new economic opportunities for Pakistan
