Experts for access to climate financing

Urge govt action to ensure affordable e-bikes with incentives-laden NEV policy

KARACHI:

Experts and climate stalwarts have called for the phasing out of fossil fuels to tackle climate crisis and also urged the government to access the global climate financing.

Additionally, they asked for ensuring the affordability of electric motorbikes and drawing up a new energy vehicle (NEV) policy that could benefit the main stakeholders – customers, parts vendors and assemblers.

They stated this while speaking at "The Inaugural Pakistan Electric Vehicle (EV) Conference, New Energy Vehicles Policy 2025" themed "Accelerating the Transition to a Sustainable Future," organised by the Climate Action Centre (CAC) on Saturday.

The moot marked a significant step towards promoting sustainable transportation in Pakistan.

They stressed the need for phasing out the use of fossil fuel in vehicular traffic, as part of urgent steps towards climate action.

Speaking as the chief guest, Senator Sherry Rehman, Chairperson of the Standing Committee on Climate Change, underlined the pivotal role of civil society in tackling climate change and the need for transformational policies. "Civil society is pivotal in addressing climate change. Without its engagement, there is no meaningful action," she said.

Rehman highlighted the urgency of making electric vehicles (EVs) affordable and putting in place local manufacturing capabilities to reduce Pakistan's reliance on fossil fuels.

"If the EV revolution comes with the removal of all hindrances, such as high prices, energy tariffs, etc, we can advance faster than many other countries. We can be leaders in the field, as we can manage it locally. The future is EVs," she said.

Rehman emphasised that without incentives, customers would not purchase e-bikes and the industry would not be able to run, adding that the policy could only be unlocked with the aid of incentives that would benefit the public.

"Green economy is a circular economy. This is truly a sustainable future," she remarked and stressed the need for policies tailoured to Pakistan's unique challenges. "Smart slogans are not enough; we need realistic, accelerated policies."

As Pakistan faces worsening air quality and smog every winter, the senator highlighted the urgency of addressing the challenges. "Pakistan has the fifth-largest population in the world. As traffic doubles, the air in the atmosphere will become unbearable unless action is taken now," she warned.

The conference featured panel discussions that brought together experts from various fields.

The first panel, moderated by Dr Aazir Khan, Director of the Integrated Engineering Centre of Excellence at the University of Lahore, focused on finance and policy.

The panelists included Dr Naveed Arshad, Director of LUMS Energy Institute, Rabeel Warraich, Founder and CEO of Sarmayacar, Muhammad Atif Hanif, CEO of Al Baraka Bank (Pakistan) and Zafar Masud, President and CEO of The Bank of Punjab.

They discussed the importance of unlocking private finance for decarbonisation, addressing capacity issues at the provincial level and tapping into international climate funding.

The panelists outlined inefficiencies in accessing international climate funds and called for structured, actionable efforts to secure such financing.

Rabeel Warraich shared that it took two years to secure $15 million from the Green Climate Fund, underscoring the need for coherent strategies to tap into global funding pools.

Zafar Masud noted that while provinces had sufficient resources, they faced serious challenges in developing and implementing policies despite decision-making being much easier at the provincial level.

He spoke about opportunities in Pakistan in terms of economic benefits, which consisted of reduced fuel import costs and better payback for consumers, local assembly and charging network development for job creation.

He also noted the EV policy 2020-25, targeting 30% penetration of EVs by 2030, and import duty reductions and tax exemptions for EVs, lower costs for consumers and manufacturers, which can provide additional economic benefits.

When it comes to environmental factors, severe urban air pollution calls for the need for cleaner transport and alignment with Pakistan's Paris Agreement commitments, he added.

Masud noted challenges including resale value uncertainty, high upfront costs and depreciation, high interest rates, government support, project financing, geopolitics, policy and infrastructure.

Yasir Husain, Founder of CAC and Chief Organiser of the Conference, emphasised the need to transition away from fossil fuels. "The use of fossil fuels has to come to an end. Groups like the Climate Action Centre have an important role to play in advocating for and facilitating this transition," he commented.

Moreover, the conference aimed to initiate a dialogue among key players in the EV ecosystem, address the challenges faced by the industry and identify opportunities for growth and collaboration. Participants also discussed the draft NEV Policy 2025 and explored the creation of an EV industry alliance to strengthen the sector. As part of a two-phase initiative, the conference will continue in Lahore in February 2025, building on the discussions initiated in Karachi.