by Raheela Nazir
ISLAMABAD, May 9 (NNN-XINHUA) – Pakistani experts and officials, yesterday, called for efforts and enhanced cooperation, to promote renewable energy transition in the textile industry, to boost exports, especially in the context of the European Union’s Carbon Border Adjustment Mechanism (CBAM).
There is a need to establish multi-sectoral collaborations and all-inclusive interventions to ensure just energy transition in Pakistan’s textile sector, experts said, while addressing a seminar on energy transition in the textile sector, organised by the Sustainable Development Policy Institute (SDPI), an Islamabad-based think tank.
Speaking on the occasion, Romina Khurshid Alam, coordinator to the prime minister on climate change and environmental coordination, said that, Pakistan is one of the largest exporters of textile commodities, and there is a broader consensus on the issues related to the textile industry, underlying that market reforms and green financing mechanisms are being deliberated.
Due to the CBAM, Pakistan’s textile and other industries could face challenges in the future, she said, adding that, the government is actively engaging with relevant stakeholders to facilitate the process of transition and combat its looming risks.
The CBAM, also known as carbon tariffs, which officially came into effect by the EU in May last year, concerns imports of products in carbon-intensive industries.
It will remain in place until the end of 2025, and subsequently become mandatory on a gradual basis, at the same time as the phasing out of free allowances.
Abid Qaiyum Suleri, executive director of the SDPI, said, the industries have to come up with renewable energy sources; otherwise, they would have to pay carbon tax levied in the EU, if not done in Pakistan.
“The profitability and competitiveness need to be promoted to achieve green energy transition. The country needs to converge all its sectors on one point and provide a level playing field for its industries, to choose clean and green energy and invest in just energy transition,” he said.
Energy is the main component that brings competitiveness in the export products, including textiles, said Aqeel Hussain Jafri, an official from the Private Power and Infrastructure Board of the Ministry of Energy.
“Solar energy provides an opportunity to reduce the cost of electricity and production for industry, which is part of the solution,” he said, adding that, the voluntary carbon markets in the country are gaining momentum that can allow the industry to explore new opportunities.– NNN-XINHUA
