Various commercial banks have extended financing of around Rs. 36 billion for 521 projects producing approximately 850 MW electricity under Financing Scheme for Renewable Energy, said Governor State Bank of Pakistan (SBP) Dr. Reza Baqir in a webinar.
Dr. Baqir stated that Pakistan faces challenges as a result of climate change and adopting prevention strategies are of paramount importance. In this regard, he pointed out that the SBP has issued Financing Scheme for Renewable Energy with a view to promote renewable energy projects.
He went on to add that mobilization of financial resources towards resource-efficient and sustainable avenues would play a central role in mitigating climate change. Pakistan is a member of the Global Sustainable Banking Network (SBN) since 2015 and green/sustainable finance policies are being aligned with global environmental and social standards and best practices.
Unilever Converts 30% of its Operations on Solar Energy
Unilever Pakistan has availed of the said facility to convert 30% of its factories to renewable energy.
As part of this financing scheme, Unilever availed a loan of Rs. 833 million through Standard Chartered Bank to set up 8.85 MW of renewable energy production facilities across four factories in Punjab.
Unilever has committed to remove the carbon emissions from operations by 2030, as well as net-zero emissions from their products by 2039, which will be 11 years ahead of the 2050 Paris Agreement. The renewable energy solution was implemented by Reon Energy Limited, producing 13 million KW units of energy per year, resulting in annual savings of Rs. 182 million and a reduction in 5,075 tons of CO2 emissions. The impact of projects such as the one implemented by Unilever proves the benefits of adopting renewable energy solutions by the wider industry in Pakistan.
Chairman and CEO of Unilever Pakistan, Mr. Amir Paracha in his address said that the Renewable Energy Financing Scheme offers tremendous social and business value to companies and producers both in terms of their environmental footprint and cost savings ambitions. The financing scheme in Pakistan has enabled them to fast-track their renewable energy goals whilst remaining financially feasible. He mentioned that Unilever is sharing this as a best practice for other corporate players, as its sustainability in its best form. They are benefitting the country and environment whilst their own business has seen a positive impact.
SBP’s Renewable Energy Financing scheme is an innovative solution that aims to encourage investments in clean energy in Pakistan. This is part of the country’s efforts to diversify the energy mix and reduce climate change impact. The scheme offers varied financing options ranging from Rs. 400 million to Rs. 6 billion for a range of entities and persons.
This includes captive energy units as well as commercial projects and individual consumers who may share excess production with the national grid. The SBP issued its Financing Scheme for Renewable Energy in 2016 and based on positive feedback the scheme was revised in July 2019.
SBP also introduced a Shariah-compliant version of this Scheme in August 2019.
The webinar was attended by various chambers, media organizations, Presidents and CEOs of banks, energy experts, representatives of the Pakistan Business Council, and senior officials from SBP.
Courtesy: Pro Pakistani