Experts at a high-level workshop have underscored the need to harness public-private partnerships to embrace carbon neutral industrial growth as international carbon taxation mechanisms would cast burden of increased levies and taxation on carbon-intense industries.
The workshop on ‘Leveraging Private Sector Engagement to Harness the Potential of Carbon Markets in Pakistan’ was organized by Sustainable Development Policy Institute (SDPI) in collaboration with the Embassy of Denmark and Overseas Investors Chamber of Commerce and Industry (OICCI), said a press release issued here on Thursday.
Reinforcing the need for long-term political commitment and public-private partnerships, Mr Jakob Linulf, the Ambassador of Denmark to Pakistan, said: “Denmark has completely transformed its energy mix into renewables over five decades; with its vast solar, wind, and biomass potential, Pakistan can do the same.” He also confirmed Denmark’s willingness to provide energy efficiency technology and foster clean energy investment in Pakistan.
Dr. Abid Qaiyum Suleri, Executive Director of SDPI, said: “Pakistan is going into negotiations with the IMF under the $1.5 billion Resilience and Sustainability Facility, thus a carbon levy, likely embedded in fuel or electricity prices, is on the horizon.” Dr. Khalid Waleed, SDPI’s Research Fellow, called for high-quality carbon credit generation to unlock green finance. He cautioned that ‘Pigouvian taxes’ while theoretically sound, could hamper industrial growth in Pakistan’s fragile economic context.