Experts Advocate for Climate Financing and Affordable E-Bikes: Urgent Call for Incentives-laden NEV Policy

KARACHI: Experts and climate advocates have emphasized the urgent need to phase out fossil fuels to combat the climate crisis. They have called on the government to access global climate financing and ensure the affordability of electric motorbikes by formulating a new energy vehicle (NEV) policy that benefits customers, parts vendors, and assemblers.

Phasing Out Fossil Fuels: A Step Towards a Sustainable Future

The Inaugural Pakistan Electric Vehicle (EV) Conference

The “Inaugural Pakistan Electric Vehicle (EV) Conference, New Energy Vehicles Policy 2025,” themed “Accelerating the Transition to a Sustainable Future,” organized by the Climate Action Centre (CAC), marked a significant step towards promoting sustainable transportation in Pakistan.

Keynote Address by Senator Sherry Rehman

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.

The Urgency of Affordable Electric Vehicles

Rehman highlighted the urgency of making electric vehicles (EVs) affordable and developing 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 and energy tariffs, 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 asserted.

Incentives for Electric Bikes

Rehman emphasized that without incentives, customers would not purchase e-bikes, and the industry would struggle to thrive. “Green economy is a circular economy. This is truly a sustainable future,” she remarked, stressing the need for policies tailored to Pakistan’s unique challenges. “Smart slogans are not enough; we need realistic, accelerated policies.”

Addressing Air Quality and Climate Change

The Impact of Traffic on Air Quality

As Pakistan faces worsening air quality and smog every winter, Rehman highlighted the urgency of addressing these 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.

Panel Discussions: Finance and Policy

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.

Unlocking Private Finance for Decarbonisation

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.

Challenges in Accessing Climate Funds

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.

Economic and Environmental Benefits

Masud spoke about opportunities in Pakistan in terms of economic benefits, including reduced fuel import costs, 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, which can provide additional economic benefits.

Addressing Environmental Challenges

When it comes to environmental factors, severe urban air pollution calls for cleaner transport and alignment with Pakistan’s Paris Agreement commitments. Masud highlighted challenges including resale value uncertainty, high upfront costs and depreciation, high interest rates, government support, project financing, geopolitics, policy, and infrastructure.

Role of Climate Action Centre

Yasir Husain, Founder of CAC and Chief Organizer of the Conference, emphasized 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.

Strengthening the EV Ecosystem

Dialogue Among Key Players

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.

Future Conferences

As part of a two-phase initiative, the conference will continue in Lahore in February 2025, building on the discussions initiated in Karachi.

FAQs

1. What is the significance of the NEV Policy 2025?

The NEV Policy 2025 aims to promote sustainable transportation in Pakistan by encouraging the use of electric vehicles (EVs). It seeks to make EVs affordable, support local manufacturing, and reduce the country’s reliance on fossil fuels.

2. Why is there a need to phase out fossil fuels in Pakistan?

Phasing out fossil fuels is crucial to combat climate change and improve air quality. Reducing reliance on fossil fuels will help mitigate the adverse effects of climate change and promote a healthier environment.

3. What challenges does Pakistan face in accessing international climate funding?

Pakistan faces challenges in accessing international climate funding due to inefficiencies in the application process and capacity issues at the provincial level. Structured, actionable efforts are needed to secure such financing effectively.

4. How can the EV revolution benefit Pakistan’s economy?

The EV revolution can reduce fuel import costs, provide better payback for consumers, create jobs through local assembly and charging network development, and offer economic benefits through import duty reductions and tax exemptions for EVs.

5. What role does the Climate Action Centre play in promoting sustainable transportation?

The Climate Action Centre advocates for and facilitates the transition away from fossil fuels to promote sustainable transportation. It plays a crucial role in initiating dialogue, addressing challenges, and identifying growth opportunities in the EV ecosystem.

MUST READ:

https://skipper.pk/2024/12/22/importers-urge-fbr-clear-backlog/