LUMS Hosts First Asia Energy Transition Summit 2024

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Pakistan recently hosted the inaugural Asia Energy Transition Summit 2024 at the Lahore University of Management Sciences (LUMS), bringing together national and international experts to accelerate the shift from fossil fuels to renewable energy. The two-day summit, organized by the LUMS Energy Institute (LEI) in collaboration with the Pakistan Renewable Energy Coalition (PREC), the Sustainable Development Policy Institute (SDPI), Pakistan Research Institute for Equitable Development (PRIED), and Renewable First, aimed to explore innovative strategies and financial frameworks critical for this transition.

PREC, a consortium of research institutions, civil society organizations, and energy transition advocates, played a key role in the event, which sought to address both the challenges and opportunities presented by Pakistan’s renewable energy potential.

Pakistan’s Renewable Energy Potential

Federal Minister for Planning and Development Ahsan Iqbal, in his address on the second day of the summit, highlighted Pakistan’s vast potential to generate up to 300,000 megawatts of renewable energy from wind and solar power sources. “However, mobilizing both private and public finance is essential to realizing this potential,” he remarked. Mr Iqbal underscored the federal government’s focus on five pillars for energy transition: innovation frameworks, technology-driven solutions, financial mobilization—including the proposed Asia Energy Transition Fund, policy harmonization within Pakistan and across Asia, regional collaboration, and ensuring a just and inclusive energy transition.

Calls for Financial Support and Policy Integration

Senator Sherry Rehman, speaking at the summit, stressed the urgent need for innovative financing solutions to combat climate change and facilitate a swift energy transition. Drawing from her tenure as Federal Minister for Climate Change, she discussed the difficulties Pakistan faces in securing international financial support and outlined the strategic importance of leveraging new financial tools.

During a session on energy policy, Sher Ali Arbab, Co-Convener of the Parliamentary Forum on Energy and Economy, highlighted the benefits of power devolution to the provinces under the 18th Amendment, advocating for further decentralization to enhance efficiency and inclusivity in Pakistan’s energy policy.

Global and National Perspectives on Energy Transition

Key speakers at the summit, including Dr Fiaz Chaudhry, Chairman NTDC and Senior Advisor at the LUMS Energy Institute, Shahjahan Mirza, head of the Private Power and Infrastructure Board (PPIB), and several local and international experts, provided insights on the financial and technical aspects of energy transition. Discussions ranged from local challenges in renewable energy adoption to international best practices and potential partnerships.

Federal Power Minister Awais Ahmed Khan Laghari emphasized the need for creative financial solutions to drive Pakistan’s energy transition. Proposing the utilization of Chinese expertise in renewable energy, Mr Laghari called for increased knowledge transfer, infrastructure development, and technical training. He also recommended exploring Chinese financial instruments, including RMB-based bonds, and positioning Pakistan as a key player in the global supply chain for critical green metals.

LUMS Leadership and Central Bank’s Role

The summit commenced with welcome addresses by LUMS Rector Shahid Husain and Vice Chancellor Dr Ali Cheema. Dr Cheema emphasized the urgent need for a swift energy transition to mitigate Pakistan’s energy and climate crises, pointing out the significant role that academic institutions like LUMS can play in fostering innovation and dialogue on sustainable energy solutions.

The Governor of the State Bank of Pakistan (SBP), in his inaugural address, highlighted the financial challenges facing countries like Pakistan that are highly vulnerable to climate change yet lack the resources for a comprehensive energy transition. He pledged the SBP’s commitment to developing a climate-driven banking framework to support renewable energy financing.

Provincial and Legislative Perspectives

In a separate session, Dr Nafisa Shah, Co-Convener of the Parliamentary Forum on Energy and Economy, spoke about the critical link between Pakistan’s energy and economic crises, calling for transparent, open, and participatory policymaking processes. Sindh Energy Minister Nasir Hussain Shah and Former Minister of State for Environment Malik Amin Aslam also contributed their perspectives, discussing the importance of provincial decentralization and integrating climate-resilient policies.

The inaugural Asia Energy Transition Summit 2024 set a precedent for future regional collaboration, policy harmonization, and financial innovation, creating a platform for stakeholders to explore sustainable energy solutions that can reshape Pakistan’s energy landscape.