Phasing down coal: UN report details challenges, opportunities

Pakistan is facing the critical task of phasing down its coal power plants, necessitating a careful examination of various factors like energy security, environmental impacts, socio-economic impacts of just transition, and feasibility of power generation alternatives, says a new United Nations report. One of the main challenges of phasing out coal in Pakistan is the existing coal capacity and long-term agreements associated with coal projects, such as those under the China-Pakistan Economic Corridor (CPEC). The government faces difficulties in shutting down these plants immediately due to capacity payments and circular debt issues, says the report, “Phasing-Down the Use of Coal in Pakistan”, published by the United Nations Economic and Social Commission for Asia and the Pacific (UN-ESCAP) on Monday. Additionally, global economic factors, such as the Russia-Ukraine conflict and Covid-related logistics issues, have led to high natural gas prices and increased reliance on coal for power generation, it says. Given that nine out of a total of eleven of Pakistan’s coal-fired power plants have come online under the China-Pakistan Economic Corridor (CPEC), China’s announcement to stop investing in coal-fired power projects abroad post-2021 presents an invaluable opportunity for transitioning away from coal, the UN report says.