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IBRD to give Pakistan access to Clean Technologies Fund

The World Bank has shown its consent to support Pakistan in order to access the Clean Technologies Fund (CTF) of the total $4.9 billion for the developing countries of the world.

According to an official document, the newly-created ministry of climate informed the ministry of industries about the World Bank’s support to the country to get fund. The fund is disbursed as grant highly concessional loans and risk mitigation instruments.

However, to get this loan, Pakistan needs to prepare an investment plan under which the country has to cover the environment-related issues of the industries. The investment plan include the indicative technologies, including low carbon actions, addressing the power sector, including renewable energy as well as increased efficiency in generation and transmission distribution. This will also help the country overcome the electricity crisis, it revealed.

In transportation, in particular, model shifts to public transportation, improved fuel energy, fuel switching and large-scale adoption of the energy-efficient technologies and other demand management techniques in the industrial and residential building sectors.

The CTF fund is provided to those developing countries with positive incentives to scale up the demonstration, deployment and transfer of technologies, which have a high potential for long-term greenhouse gas emissions whose presence in the atmosphere prevent heat to escape from earth and cause greenhouse effect.

The CTF investment plan for Pakistan may be tailored to the country’s needs and requirements for integration into the overall national development objectives. The following areas are likely to be included in the CTF investment plan for Pakistan.

It includes waste management in the overall investment plan for project financing for Pakistan as this issue needs to be addressed. Private sector to be looped in, to seek ideas on energy efficiency for industrial technologies, industrial energy efficiency to be tackled by conducting energy audits on the pattern NPO is presently doing for many industries like steel and fertilisers.

Technical capacity building of all stakeholders will be conduct for the best utilisation of the CTF through local conferences / workshops. Proper institutional mechanism should be defined with a CTF steering committee on the top and sectoral technical committees to analyse the request before taking a decision for disbursement of the funds, it said.

The ministry of industries prioritise, sugar, cement, fertiliser, textile, leather, paper and pulp, steel and bricks in industrial sectors. In the energy sector, the industry recommended renewable / alternative energy, energy efficiency, energy distribution and cogeneration as priority areas, while in the waste management, recycling / composting, energy from solid waste are the main areas where work should be started on priority basis.

A similar kind of project called “Clean Development Mechanism (CDM)” was carried out by UNIDO in collaboration with the ministry of environment in January 2005 when Pakistan deposited its instrument of accession to the Kyoto Protocol.

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