Dirty energy
Published October 15, 2023
SINDH Industry Minister Younus Dagha’s recent call for the ‘aggressive’ use of coal in the country’s energy mix — given its low cost — is problematic on several counts. Although affordability is an important consideration for a financially strapped country like Pakistan, reliance on coal would be worrisome given the environmental implications. Coal is considered the dirtiest of all fossil fuels. When burned, it produces sulphuric acid and nitric acid which cause acid rain and other forms of pollution. Coal also produces the least energy for every CO2 molecule it emits into the atmosphere, thus enhancing the greenhouse effect and leading to global warming. Even if we consider Mr Dagha’s argument that after the Ukraine war, Europe, China and the US increased their coal dependence, comparing Pakistan’s carbon footprint to larger nations can be a misleading premise. Just because our footprint is ‘miniscule’ in comparison, it shouldn’t give us a free pass to increase it further. And while it is easy to point out that growing economies such as India and China are heavy coal users, it must also be considered they are actively exploring and investing in renewable energy to shed their reliance on coal. Pakistan should focus on harnessing the vast potential of its own renewable resources.
It is heartening to note that according to the 10-year Indicative Generation Capacity Expansion Plan, the country aims to produce 60pc of electricity through non-fossil fuels by 2030. However, maximising the use of coal for the remaining 40pc would nullify these very efforts. Given our potential in hydel, wind and solar energy — with hydel already contributing 37.6pc to the energy mix according to August data — these indigenous, renewable sources should be further explored and optimised. While coal might offer a temporary economic respite, the environmental repercussions are far-reaching and long-term. Pakistan must carve out an energy strategy that not only caters to its immediate needs but also ensures a green and sustainable future.
SINDH Industry Minister Younus Dagha’s recent call for the ‘aggressive’ use of coal in the country’s energy mix — given its low cost — is problematic on several counts. Although affordability is an important consideration for a financially strapped country like Pakistan, reliance on coal would be worrisome given the environmental implications. Coal is considered the dirtiest of all fossil fuels. When burned, it produces sulphuric acid and nitric acid which cause acid rain and other forms of pollution. Coal also produces the least energy for every CO2 molecule it emits into the atmosphere, thus enhancing the greenhouse effect and leading to global warming. Even if we consider Mr Dagha’s argument that after the Ukraine war, Europe, China and the US increased their coal dependence, comparing Pakistan’s carbon footprint to larger nations can be a misleading premise. Just because our footprint is ‘miniscule’ in comparison, it shouldn’t give us a free pass to increase it further. And while it is easy to point out that growing economies such as India and China are heavy coal users, it must also be considered they are actively exploring and investing in renewable energy to shed their reliance on coal. Pakistan should focus on harnessing the vast potential of its own renewable resources.
It is heartening to note that according to the 10-year Indicative Generation Capacity Expansion Plan, the country aims to produce 60pc of electricity through non-fossil fuels by 2030. However, maximising the use of coal for the remaining 40pc would nullify these very efforts. Given our potential in hydel, wind and solar energy — with hydel already contributing 37.6pc to the energy mix according to August data — these indigenous, renewable sources should be further explored and optimised. While coal might offer a temporary economic respite, the environmental repercussions are far-reaching and long-term. Pakistan must carve out an energy strategy that not only caters to its immediate needs but also ensures a green and sustainable future.
Published in Dawn, October 15th, 2023
EU carbon emission rules set to rattle Pakistan’s export sector
Kazim Alam
KARACHI: If you think the current affordability crisis in the country’s energy sector is bad, look out for the sustainability crisis that’s about to rattle our already struggling export sector.
Analysts say the long-term future of every business that exports goods to the European Union (EU) depends in large part on the kind of electricity it uses to manufacture its products.
Starting this month, all businesses based in the EU countries are required to report on imported products that are “carbon emission-intensive,” thanks to a deal between the European Parliament and the Council of the European Union. The new regime also requires that all carbon emissions be “financially offset” 2026 onwards.
So what does it mean for Pakistani businesses? “It means the competitiveness of the Pakistani businesses will go further down in the international market if we don’t invest in sustainable and renewable energy now,” says Dr Khalid Waleed, research fellow at the Sustainable Development Policy Institute, an Islamabad-based think tank.
In simple words, products made by Pakistan’s export industries will become expensive within 10 years if their processing involves electricity generated by coal-based power plants, he says.
Officially called the Carbon Border Adjustment Mechanism (CBAM), the new set of trade rules will impose carbon fees on all imports into the EU from non-members. It means the single largest destination of Pakistani exports (bloc-wise) will be using renewable energy as a trade barrier, says Dr Waleed.
For now, the EU is imposing the CBAM on imports in six sectors, namely cement, aluminium, hydrogen, iron and steel, fertiliser and electricity. “By 2030, the CBAM regime will apply to all industries, including textiles, which constitute the largest chunk in Pakistan’s exports,” he says.
According to the implementation timeline, the CBAM quarterly reporting will begin on Oct 31. The transition phase will end on Dec 31, followed by a full rollout in 2025 when statements of emissions calculations will become due. The regime will cover all imported items Jan 1, 2030 onwards.
“This will decrease our competitiveness if we keep expanding our reliance on Thar coal while ignoring renewable energy sources,” says Dr Waleed.
Thar coal should be left underground until the methods for carbon capturing mature, he adds.
The share of local and imported coal in the electricity generation mix was 10.3pc and 4.5pc, respectively, in August, which is the latest month for which official data is available. The cumulative share of coal in the energy mix in August makes it the third biggest source of electricity after hydel (37.6pc) and imported gas (17.2pc). Other contributors to the energy mix in August were nuclear (12.8pc), local gas (7.6pc), wind (5pc), furnace oil (4.1pc) and solar (0.5pc).
Published in Dawn, October 15th, 2023
Kazim Alam
Published October 15, 2023
KARACHI: If you think the current affordability crisis in the country’s energy sector is bad, look out for the sustainability crisis that’s about to rattle our already struggling export sector.
Analysts say the long-term future of every business that exports goods to the European Union (EU) depends in large part on the kind of electricity it uses to manufacture its products.
Starting this month, all businesses based in the EU countries are required to report on imported products that are “carbon emission-intensive,” thanks to a deal between the European Parliament and the Council of the European Union. The new regime also requires that all carbon emissions be “financially offset” 2026 onwards.
So what does it mean for Pakistani businesses? “It means the competitiveness of the Pakistani businesses will go further down in the international market if we don’t invest in sustainable and renewable energy now,” says Dr Khalid Waleed, research fellow at the Sustainable Development Policy Institute, an Islamabad-based think tank.
In simple words, products made by Pakistan’s export industries will become expensive within 10 years if their processing involves electricity generated by coal-based power plants, he says.
Officially called the Carbon Border Adjustment Mechanism (CBAM), the new set of trade rules will impose carbon fees on all imports into the EU from non-members. It means the single largest destination of Pakistani exports (bloc-wise) will be using renewable energy as a trade barrier, says Dr Waleed.
For now, the EU is imposing the CBAM on imports in six sectors, namely cement, aluminium, hydrogen, iron and steel, fertiliser and electricity. “By 2030, the CBAM regime will apply to all industries, including textiles, which constitute the largest chunk in Pakistan’s exports,” he says.
According to the implementation timeline, the CBAM quarterly reporting will begin on Oct 31. The transition phase will end on Dec 31, followed by a full rollout in 2025 when statements of emissions calculations will become due. The regime will cover all imported items Jan 1, 2030 onwards.
“This will decrease our competitiveness if we keep expanding our reliance on Thar coal while ignoring renewable energy sources,” says Dr Waleed.
Thar coal should be left underground until the methods for carbon capturing mature, he adds.
The share of local and imported coal in the electricity generation mix was 10.3pc and 4.5pc, respectively, in August, which is the latest month for which official data is available. The cumulative share of coal in the energy mix in August makes it the third biggest source of electricity after hydel (37.6pc) and imported gas (17.2pc). Other contributors to the energy mix in August were nuclear (12.8pc), local gas (7.6pc), wind (5pc), furnace oil (4.1pc) and solar (0.5pc).
Published in Dawn, October 15th, 2023
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