A policy dialogue convened by Pakistan- German Climate and Energy Partnership (PGCEP) and the Sustainable Development Policy Institute (SDPI) in Islamabad explored the economic, social, and environmental implications of early coal power plant retirement in Pakistan.
The session, titled “Political Economy of Early Coal Retirement in Pakistan,” attracted stakeholders from government, civil society, and international organizations to discuss the challenges and potential solutions for transitioning to cleaner energy sources.
Mr. Sebastian Paust, Head of Development Cooperation at the German Embassy emphasized the importance of mitigating the negative social impacts of early coal retirement, drawing on Germany’s comprehensive approach that balances economic needs with environmental protection. “Germany’s green policies offer a model for managing coal retirement with a focus on nature conservation,” Paust noted.
Ms. Sobiah Becker, Adviser, Pak-German Climate and Energy Partnerships (PGCEP) highlighted Pakistan’s energy security needs, pointing to the significance of the power sector as both an employment generator and a driver of climate change. She explained that imported coal emissions exacerbate Pakistan’s climate crisis, stressing the need for a sustainable balance between energy security and environmental responsibility.
Shah JahanMirza, Managing Director, Private Power and Infrastructure Board, briefed about the ongoing efforts of the government to phase out inefficient thermal power projects, particularly those reliant on furnace oil. “Amid a tariff crisis and growing environmental concerns, we are phasing out inefficient power plants, though the cost of closing these projects is substantial,” Mirza said.
