EU carbon emission rules set to rattle Pakistan’s export sector
If you think the current affordability crisis in the country’s energy sector is bad, look out for the sustainability crisis that’s about to rattle our already struggling export sector. Analysts say the long-term future of every business that exports goods to the European Union (EU) depends in large part on the kind of electricity it uses to manufacture its products. Starting this month, all businesses based in the EU countries are required to report on imported products that are “carbon emission-intensive,” thanks to a deal between the European Parliament and the Council of the European Union. The new regime also requires that all carbon emissions be “financially offset” 2026 onwards. So what does it mean for Pakistani businesses? “It means the competitiveness of the Pakistani businesses will go further down in the international market if we don’t invest in sustainable and renewable energy now,” says Dr Khalid Waleed, research fellow at the Sustainable Development Policy Institute, an Islamabad-based think tank. In simple words, products made by Pakistan’s export industries will become expensive within 10 years if their processing involves electricity generated by coal-based power plants, he says.