Daily Times

In times of despair and multifaceted global crisis, the Belt and Road Initiative (BRI) stands tall as a beacon of hope; illuminating pathways towards collaboration and development, fostering connectivity, economic growth and shared prosperity. BRI’s vision of shared prosperity across nations is a glimmer of optimism in the face of multifaceted global challenges, constructing a landscape of opportunities and resilience for an interconnected and collaborative future. BRI primarily revolves around the infrastructural investments and promoting economic development. In the past ten years, the BRI has achieved a significant milestone by surpassing USD 1 trillion mark in cumulative investment.

To discuss the advancement of BRI in past ten years in Pakistan, a podium discussion was organized on “10 years of BRI: Lessons Learnt and Charting a Way Forward for Green Development” during the 26th Annual Sustainable Development Conference (SDC) (21st to 23rd November 2023) organized by Sustainable Development Policy Institute (SDPI) in collaboration with Pakistan China Institute (PCI) and Asian Institute of Eco-civilization, Research, and Development (AIERD) in Islamabad. This discussion was joined by experts from China and Pakistan. The Executive Director of BRI Green Development Institute (BRIGDI), China Dr. Zhang Jianyu in his keynote address highlighted the need of green development and sustainable practice. It was acknowledged that ten years of BRI signifies a decade of transformative global cooperation and development. An array of invaluable experiences and insights gathered over the past decade, particularly through flagship projects like China Pakistan Economic Corridor (CPEC).

BRI’s vision of shared prosperity across nations is a glimmer of optimism in the face of multifaceted global challenges.

In its transformative journey, CPEC has emerged as a pivotal driver of not only investment, but has also provided an effective mechanism for technology transfer, knowledge sharing, capacity building, and skills development. As a result of collaborations under CPEC, Pakistan has received about USD 23.1 billion in energy investments and USD 17.1 billion in transport investments under CPEC, with an overall cumulative investment of USD 62 billion pledged. In addition to this cumulative investment, CPEC has created around 75,000 skilled and unskilled jobs in Pakistan.

Now, in wake of recent global transition towards green and low carbon technologies and development, in 2021, China’s President Xi Jinping announced a coal moratorium on overseas investment and enhanced support for green and low-carbon energy in developing countries at the United Nations General Assembly. In Pakistan, majority of the power plants under CPEC are coal based power plants, accounting for 80.3 % of the total electricity generation capacity under the CPEC portfolio. Now the focus is shifted towards phasing down coal and greening of the investments under CPEC. Green development is an integral part of China’s 2030 agenda for sustainable development as well as its “Global Development Initiative (GDI)”. China is supporting the timely achievement of all 17 Sustainable Development Goals (SDGs) by revitalizing global development partnerships, and promoting stronger, greener, and healthier global development.

Amid the ongoing geopolitical and economic crisis, Pakistan is striving to shift from fossil fuels to green and low carbon fuels. It also announced coal moratorium in 2020. Pakistan has pledged to reduce its carbon emissions by 50 % by 2030 (conditional- if secured international financing) and by 15 % by using its own resources. For developing countries like Pakistan, a conducive environment is needed for sustainable and green growth.

Pakistan and China, both aspire to shift towards green and low-carbon fuels. Their ambitious goals and targets shows the eagerness and potential for green cooperation. The global atmosphere for such cooperation is, indeed, propitious. For instance, financing initiatives for a sustainable energy transition are shaping up exponentially all over the world in the form of greening financing mechanisms such as bonds, concessional financing, Just Energy Transition Partnerships (JETPs), Energy Transition Mechanism (ETM), etc. COP28 Presidency Announces US $4.5 Billion UAE Finance Initiative to Unlock Africa’s Clean Energy Potential and Kenya Spearheads Landmark Renewable Energy Initiative at Africa Climate Summit.

To accelerate and promote the transition towards low-carbon development under CPEC, SDPI, PCI and Fudan University established the “Green CPEC Alliance”. This alliance has been working with support from government representatives, investors, developers and civil society both within China and Pakistan. This alliance aims to engage and support different stakeholders to exchange information and research on opportunities for common sustainability goals and to facilitate constructive dialogue between the two governments and investors to lead and support the development of green CPEC as a means to achieve the SDGs, climate targets and socio-economic development within Pakistan.

In line with the recent trend of BRI investments turning into green energy with the first half year of 2023 marked as the “greenest” in terms of project type since its start, opportunities for this cooperation are immense. Now it depends on Pakistan, that how it designs its roadmap for green transition. To achieve the bounties of global partnerships e.g. BRI, Just Energy Transition Partnerships (JETPs) etc, Pakistan needs to overcome its vulnerabilities i.e. political instability, weak economy and governance, and lack of transparency in public decision making. The ongoing political uncertainties and turmoil, the rising inflation, declining currency and critically low foreign reserves pose a significant challenge for political and economic stability for Pakistan.

BRI has the potential to elevate the geo-political and economic status of developing countries particularly Pakistan but for China it is more strategic than economic. Though the challenges that Pakistan faces are onerous but we need to look for the light at the end of the tunnel and hope in times of despair.

The writer is a freelance columnist.