Pakistani experts and officials emphasised the necessity of concerted efforts and enhanced cooperation to facilitate a transition to renewable energy in the textile industry. This call to action comes in response to the European Union’s implementation of the Carbon Border Adjustment Mechanism (CBAM), which poses challenges to countries like Pakistan heavily reliant on textile exports.
The Sustainable Development Policy Institute (SDPI), based in Islamabad, organised a seminar addressing energy transition in the textile sector. Experts stressed the importance of establishing multi-sectoral collaborations and inclusive interventions to ensure a just energy transition within Pakistan’s textile industry.
Romina Khurshid Alam, the coordinator to the prime minister on climate change and environmental coordination, highlighted Pakistan’s significant role as a textile exporter. She underscored ongoing discussions on market reforms and green financing mechanisms to address industry-related issues.
The looming challenges posed by CBAM were acknowledged, with Alam affirming the government’s commitment to engaging relevant stakeholders to facilitate the transition process and mitigate potential risks.
Abid Qaiyum Suleri, Executive Director of SDPI, emphasised the imperative for industries to adopt renewable energy sources to avoid carbon taxes imposed by the EU. Suleri stressed the need to promote profitability and competitiveness while advocating for a level playing field to encourage investment in clean energy.
Aqeel Hussain Jafri, an official from the Private Power and Infrastructure Board of the Ministry of Energy, highlighted the pivotal role of energy in enhancing export competitiveness, particularly in textiles. Jafri advocated for the adoption of solar energy to reduce production costs, thus bolstering industry sustainability.
Furthermore, Jafri pointed out the burgeoning voluntary carbon markets in Pakistan, offering the industry opportunities to explore alternative avenues.
In light of these discussions, it is evident that a concerted effort is required to navigate the challenges presented by CBAM. Collaboration between government, industry, and civil society is paramount to facilitate a smooth transition to renewable energy in Pakistan’s textile sector.
