Transitioning Away From Coal: An orderly retirement of coal power plants in Pakistan

Year Published

2024

Contributing Organizations

Sustainable Development Policy Institute (SDPI)

Type of Resource

Research/Insights Report

Languages

English

Relevant Topics

Core Topic

Coal

Topic 2

Just Transition

Topic 3

Transition Finance

Target Audience

Banks

Asset Owners

Philanthropies

Governments & Policymakers

MDBs/DFIs

Relevant Geography

Asia & the Pacific

Central Asia

Resource Description

This study provides a ranking system for early retirement of coal based power plants in Pakistan, and the potential of using different financing instruments such as Energy Transition Mechanism (ETM) and Just Energy Transition Partnerships (JETPs).

Why This Matters

Pakistan’s managed phaseout is essential to align with global climate goals while addressing domestic energy and development needs. A managed approach can reduce emissions and support a fair transition.

Key Insights

Recommends a phased retirement plan prioritizing older, costlier, and higher-emitting plants
Emphasizes the need for financing mechanisms, including concessional capital and just transition support
Identifies barriers such as long-term contracts and limited fiscal space
Highlights the importance of institutional collaboration, power sector reforms, and renewable energy investment

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