Accelerating Green Energy Transition under China–Pakistan Economic Corridor 2.0 †
Abstract
:1. Introduction
Energy Projects under CPEC
2. Methodology and Data Collection
- Summit on “Green Financing Summit: Driving Energy Transition through alternate and Green Financing Mechanisms”
- Policy Dialogue on “Ten Years of BRI: Lessons Learnt & Charting a Way Forward for Green Development”
- Policy Dialogue on “Gwadar as an Energy Hub of Pakistan: Pathways for Sustainable Development”
- Policy Dialogue on “Transforming the Power Sector: Exploring the Prospects of China-Pakistan JETPs”
3. Key Findings and Discussion
3.1. China’s Shift to Green Investment
3.1.1. China’s Emergence as a Renewable Energy Leader
3.1.2. China’s Green Financing Market
3.1.3. Capitalizing on China’s Green Financing: Opportunities and Challenges for Pakistan under CPEC 2.0
3.1.4. The Way Forward
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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Challenges | Opportunities |
---|---|
High Investment Requirements | Significant Economic Growth |
USD 1 trillion needed for renewable infrastructure worldwide; USD 3–6 trillion by 2050. | Investment in clean energy can drive economic expansion, as seen in China’s growth. |
Debt Accumulation in Energy Sector | Green Financing from China |
High debt to Chinese IPPs (USD 493 billion) hinders new projects. | CPEC 2.0 can facilitate investment from China in renewable sectors. |
Regulatory and Policy Uncertainty | Clear Policy Frameworks |
Frequent policy changes create an unpredictable environment. | Development of consistent policies can enhance investor confidence. |
Insufficient Transmission Networks | Expansion of Renewable Capacity |
Current networks limit the growth of renewable energy. | Investment in infrastructure can support increased renewable generation. |
Limited Local Investment Opportunities | Joint Ventures and Partnerships |
Scarcity of viable local partners restricts investments. | Collaborations can diversify investment portfolios and share risks. |
Complex Taxation and Bureaucratic Procedures | Access to Global Markets |
High taxes and complicated regulations deter investors. | Transition to clean energy opens new export opportunities in technology. |
Technical Challenges in Wind Power | Technological Advancements |
Curtailment issues and technical hurdles impact growth. | Investments in R&D can improve efficiency and reduce costs. |
Foreign Exchange and Financial Planning Issues | Increased Green Bond Market |
Uncertainty in currency availability complicates investments. | Growing green bond market can channel finance into clean energy projects. |
Lack of clear decision-making processes. | Public–private partnerships (PPPs). |
Ambiguity in regulatory processes delays project approvals. | Establishing PPPs can streamline project development and funding. |
Investor Confidence Erosion | Long-term Investment Stability |
Policy inconsistency undermines trust among investors. | Clear frameworks can stabilize the investment climate and attract foreign capital. |
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Share and Cite
Usmani, Z.; Satti, S.; Zulfiqar, M. Accelerating Green Energy Transition under China–Pakistan Economic Corridor 2.0. Eng. Proc. 2024, 75, 31. https://doi.org/10.3390/engproc2024075031
Usmani Z, Satti S, Zulfiqar M. Accelerating Green Energy Transition under China–Pakistan Economic Corridor 2.0. Engineering Proceedings. 2024; 75(1):31. https://doi.org/10.3390/engproc2024075031
Chicago/Turabian StyleUsmani, Zona, Sadia Satti, and Muhammad Zulfiqar. 2024. "Accelerating Green Energy Transition under China–Pakistan Economic Corridor 2.0" Engineering Proceedings 75, no. 1: 31. https://doi.org/10.3390/engproc2024075031