E-mobility and the potential of electric vehicles to mitigate carbon emissions in Pakistan discussed
USAID, UNIDO and Private Financing Advisory Network (PFAN) hosted a webinar last week on e-mobility and the potential of electric vehicles to mitigate carbon emissions in Pakistan. The multi-stakeholder online event shed light on the business potential in the electric transition of the country.
The forum was held to discuss electric vehicles and e-infrastructure building as key priority areas within the PFAN Pakistan Private Sector Energy Project (PPSE) project, which aims to expand the portfolio of commercially viable clean energy projects in Pakistan and provide support to enable them to access financing and reach financial close.
Launched officially in February 2021, PPSE is funded by USAID and implemented by UNIDO and PFAN, the project targets small and medium-sized enterprises (SMEs) in Pakistan working on the country’s energy transition to mitigate carbon emissions and bolster climate innovation and resilience.
The forum commenced with opening comments from Peter Storey, Acting Chief of Party for PPSE and PFAN Global Coordinator, who commented on how the PFAN methodology has been especially contextualized towards the needs and potential of the Pakistani clean energy landscape for the PPSE
“In an intensive market scoping study conducted at the beginning of PPSE project, the e-mobility sector was identified as showing significant potential for deal flow and investment,” said Storey.
Rabia Bukhari, Program Management Specialist, Energy, USAID, commented on Pakistan’s climate vulnerability and which initiatives USAID is undertaking to help the country’s climate mitigation and resilience.
Pakistan has consistently ranked among the top 10 countries most vulnerable to the impacts of climate change.
“Having an affordable EV charging infrastructure is equally important and in this regard USAID is partnering with the US Department of Energy to advise NEPRA, the regulatory authority for EVs. We are in discussion to review electrical standards and monitoring structure to ensure charging efficiency,” said Bukhari.
Deputy Chief of Party, PFAN PPSE, Ghazil Jabbar, gave a presentation on PPSE’s value proposition to entrepreneurs. Jabbar shared that PFAN has supported nearly 1,000 projects with more than 300 projects in the current pipeline, raising USD 2 billion in total investment leveraged by PFAN-supported projects.
Nagaraja Rao, Head of Investment Facilitation, PFAN speaking to the prospective and budding EV market, Rao shared that a record $12.8B in funding was raised over 193 deals in 2020 from electric vehicles alone.
A panel discussion proceeded and brought together various key players from the private, public and academic sectors. The panel comprised of Ali Khar, CEO Ona Mobility; Naveed Arshad; Founder Neubolt/ Associate Professor, LUMS; Asim Ayaz, GM Policy, Engineering Development Board and Muhammad Iftikhar Javed, Head Auto Business, Bank Alfalah.
Ayaz shared that entrepreneurs in the EV sector are always welcome to connect with EDB and visit their office for more information and guidance.
Khar stressed the importance of the role reducing the electricity tariff to drive EV production and consumer adoption forward. He called the latest EV policy a “launching pad” for innovation and scaling up.
Dr. Arshad noted that Pakistan is theoretically one of the countries in the world that is ripe for the electric vehicle transition due to its vast electricity reserves, however, he stressed the electricity infrastructure needs to be strengthened.
“One thing about the EV value chain that needs to be solved in the country is the battery, whoever can crack this puzzle, will see a lot of success and make the value chain stronger,” added Dr. Arshad.
Speaking to the finance opportunities and challenges, Javed shared that there are some risks with secondary re-sale of EVs but banks such as Alfalah are working to de-risk buying and selling of EVs.
During the online event, several polls were launched and were answered by almost 100 participants. 57% of attendees felt lack of access to financing was seen as the biggest challenge to mainstream e-mobility in Pakistan. Whereas, 41% thought that access to investment by private institutions will drive Pakistan’s EV sector forward.