Experts advocate green financing

Experts have called on the government and State Bank of Pakistan (SBP) to implement targeted policy measures aimed at unlocking the potential of renewable energy financing, thereby driving the country’s transition towards sustainable and renewable energy sources. This call was made during the launch of a study conducted by the Islamabad-based think tank Policy Research Institute for Equitable Development (PRIED). The study, conducted in collaboration with the German think tank Agora Energiewende, points out the limited financing opportunities for renewable energy projects in Pakistan. It recommends that the government and the SBP need to introduce targeted policy measures to facilitate renewable energy financing and promote the country’s transition towards sustainable energy sources. Titled “Facilitating Green Loans for Sustainable Energy Transition,” the study highlights a significant gap in the financing of green energy projects. While green lending options exist, their implementation and accessibility are not consistent, says the report. It shows that despite Pakistan being among the top ten countries most affected by the negative impacts of climate change, the banking sector has shown limited interest in financing green energy projects.