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Arab News
23-04-2025
- Business
- Arab News
Pakistan central bank to launch ‘green taxonomy' guidelines by June — finance minister
KARACHI: The State Bank of Pakistan is finalizing a green taxonomy framework set for launch in June, the finance minister said this week, paving the way for innovative instruments such as green bonds, green sukuks, and the country's inaugural panda bond. In May 2021, Pakistan issued its first $500 million green bond to fund a hydroelectric project. Last month, the country launched its first-ever rupee-denominated green bond as part of efforts to mobilize private sector capital for environmentally sustainable development. Pakistan's Nationally Determined Contributions 2021 (NDCs) set a cumulative and ambitious conditional target of an overall 50 percent reduction in its projected emissions by 2030, with 15 percent from the country's own resources, and 35 percent subject to provision of international finance amounting to $101 billion just for energy transition. To reach the target, Pakistan aims to shift to 60 percent renewable energy (RE), and 30 percent EVs by 2030 and completely ban imported coal, while expanding nature-based solutions. A green finance scheme in the country can significantly support the achievement of these targets. 'Now the State Bank is in the process of finalizing the green taxonomy guidelines,' Finance Minister Muhammad Aurangzeb said during a talk at The Atlantic Council. 'In the June timeframe, they will come out with the green taxonomy framework.' Recalling Pakistan's first green bond by the Water and Power Development Authority in 2021, he said a second step under the green taxonomy framework would be launch green sukuk, a Shariah-compliant Islamic bond where the proceeds are used to finance or refinance green projects that contribute to environmental sustainability, such as renewable energy, infrastructure development, and biodiversity preservation. 'The second is some of the green sukuks that we have issued locally now through the ministry of finance and the State Bank,' he said. ' 'And the last thing I just want to mention here is we are quite hopeful that during this calendar year, we can print the first, inaugural panda bond that is going to also be green in nature, because the proceeds of those bonds are going to be linked with the SDG [UN's Sustainable Development Goals] projects. So a lot is happening in that space.' A panda bond is a Chinese Yuan (RMB)-denominated bond issued by a non-Chinese entity within China's domestic bond market. This type of bond allows foreign entities, including governments and corporations, to access Chinese capital markets and tap into the liquidity of the Chinese financial system. Essentially, it is a way for non-Chinese issuers to raise funds in China without having to go through the standard international bond issuance process. Pakistan is highly vulnerable to climate change, experiencing significant impacts like rising temperatures, changing precipitation patterns, and increased extreme weather events. These changes threaten water, food, and energy security, impacting agriculture, coastal areas, and ecosystems, according to a report from the Ministry of Climate Change and Environmental Coordination. The country is also grappling with sea-level rise, glacial melting, and increased droughts.
Axios
03-03-2025
- Business
- Axios
How Russia's war on Ukraine reshaped the energy world
Russia's invasion of Ukraine upended global petro-flows — maybe forever — but the effects on low-carbon transition are tougher to parse. Why it matters: Monday marks three years since the launch of the attack. Here are some effects within energy circles ... Climate crosscurrents. There was plenty of chatter when the war started that it would speed energy transition in Europe and perhaps beyond. Yes, but: It also put the spotlight on U.S. LNG as shipments to Europe grew, while then-President Biden in 2022 urged U.S. oil producers to boost supply. Driving the news: The Atlantic Council's new global survey of energy experts — from industry, academia, government and more — is mixed on this question. What they found: 38% see the conflict slowing the process toward net zero, 31% see an accelerant, while the remainder see no effect. And just 25% see a major impact in either direction. It's a new map. Europe's efforts to shun Russian oil and pipelined gas have redirected shipments, deepening Kremlin energy ties with China and India. Zoom in: China's oil imports from Russia rose to 2.4 million barrels per day last year, per IEA data. India's increase has been stunning, rising from roughly 100,000 barrels per day in 2021 to roughly 2 million in 2023 and 2024, per IEA. State of play: Europe vastly curbed imports of gas from Russia, once its dominant supplier, thanks to cutting pipelined supply. LNG shipments from its eastern neighbor have risen, but overall Russia now has just a small fraction of its prior 40% share of European gas imports. Real but limited economic pushback on the Kremlin. Russia's "shadow fleet" of tankers has stymied the effects of oil sanctions and the G7-led price cap. The big picture: Volumes have declined slightly, but Russian oil has been an "enduring" presence, said Landon Derentz, senior Atlantic Council energy analyst. The conflict has not deterred a "meaningful portion of Russian oil flows from reaching the market," he said. What we're watching: U.S. talks with Russia over ending the war. U.S. Treasury Secretary Scott Bessent has raised the prospect of tougher oil sanctions to force talks, and easing restrictions as an incentive. Meanwhile, there's chatter about what once sounded far-fetched: resumption of large-scale Russian pipeline gas flows to Europe, which is grappling with high prices, if the war ends.
