The Pakistani government plans to issue a $ 500 million green bond in the coming months to help develop hydropower, international media report.
Last August, Pakistan launched a plan to increase its share of electricity from renewable sources from about 4% to 30% by 2030. The euro-denominated bond will be the first to fund the government's environmental goals.
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Malik Amin Aslam, Prime Minister Imran Khan's adviser on climate change, said in an interview with Bloomberg. It is expected to be released through the country's National Water and Energy Development Agency, where JPMorgan Chase & Co. advises, he said.
“We have great potential for hydropower in Pakistan,” he said. "The tires are there to speed this up." The Khan government is investing in renewable energy to increase the economic stimulus after the pandemic.
It also promises to ban new coal-fired power plants and plant 10 billion trees. According to IQAir, the country's cities are among the worst in the world for air pollution. Given the projected increase in hydropower capacity, the shift could bring the clean energy share of Pakistan's elmix to 65% by 2030, said Nadeem Babar, head of an energy reform task force in Pakistan.
The new national renewable energy policy, approved by the Prime Minister's Office in December 2019, was delayed by the coronavirus pandemic, and negotiators sought to resolve disputes with individual provinces.
Asad Umar, the Federal Planning and Development Minister, said on social media that the resolution of these disputes has now paved the way for "unlocking Pakistan's full renewable energy potential".
Global green bond issuance is set to grow by Moody's Investors Service to $ 375 billion by 2021 after record sales last year. While Europe is leading, countries from Singapore to Brazil plan to sell their first to meet strong investor demand.
