Pakistan Meteorological Department has warned that the country is likely to witness high temperatures throughout June. Last month Pakistan witnessed record high temperatures where temperatures soared above 50 degrees Celsius in the south. International media termed the phenomenon as a “Perfect Climate Storm”. Global average surface temperatures have risen by 0.08° C per decade since 1880 (2). According to the Meteorological Department, Pakistan’s main land surface air temperature in 2021 has risen by an alarming 0.99°C since the 1990s (3).
Figure 1. Pakistan’s annual mean temperature anomalies (with 1961-1990 as the base period) for the period 1961-2021 (Source: Pakistan Meteorological Department)
Accumulation of Greenhouse gases, specifically carbon dioxide, in the atmosphere is the main driver of “global warming.” A large amount of carbon dioxide is released from burning fossil fuels to generate electricity and contributes to the greenhouse effect. Pakistan is also heavily dependent on non-renewable energy sources for its power, as only 2% of electricity is generated from renewable sources. (4).
Figure 2. Pakistan’s energy mix – share in Electricity Generation (Source: Ministry of Energy)
To support a shift toward green energy State Bank of Pakistan (SBP) had launched its “Green Banking Initiative” to encourage renewable energy projects. The policy enabled sponsors of renewable energy access to grants of refinancing (5). Shams Power Limited was able to successfully close a 𝐏𝐊𝐑 𝟐 𝐛𝐢𝐥𝐥𝐢𝐨𝐧 project finance facility from Bank Alfalah Limited with a partial credit guarantee from GuarantCo, under this SBP refinancing policy.
Figure 3. Signing ceremony attended by: Saad ur Rahman Khan, Group Head, Corporate, Investment Banking, and International Business Group Bank Alfalah (left); Atif Bajwa, CEO Bank Alfalah (middle); Omar Malik, CEO Shams Power (right); Asif Elahi, Partner Capital Resource and Emily Bushby, Interim CEO GuarantCo (virtual)
Climate change directly affects the competitiveness, profitability, and survival of corporates. Pakistan’s Commercial and Industrial sectors need to be vigilant and should champion a cause for sustainable development. One of the core pillars of Sustainable development is the adoption of renewable energy sources like solar, wind, and biogas. Collaborating with a private energy provider to access renewable energy is a popular method to ensure replacement for traditional energy sources.
Shams Power is one of Pakistan’s recognized solar energy providers, serving the commercial and industrial sectors by facilitating solar sustainability on a PPA basis. Renowned corporates like METRO Cash & Carry Pakistan, Coca Cola, Packages Mall, Maxim Agri Pvt Ltd, Nishat Hyundai, Emporium Mall, AkzoNobel Pakistan, and many more have chosen clean and green energy through power purchase agreement plan with zero upfront cost and guaranteed savings in return for discounted rates on energy tariff.