Pakistan’s exports at risk from EU carbon tax amid coal reliance, experts warn

Brussels: Experts have cautioned that Pakistan’s reliance on fossil fuel-based electricity generation, particularly coal, could endanger its exports to the European Union (EU) as new carbon taxation measures take effect.

This warning was issued during an event jointly organised by the Policy Research Institute for Equitable Development (PRIED) and the Institute for Climate and Sustainable Cities (ICSC).

The event shed light on the socio-economic and environmental challenges associated with coal-based energy in Pakistan’s Tharparkar region and similar projects in the Philippines’ eastern Visayas.

Experts stressed the critical need for inclusive, community-focused approaches to transition toward renewable energy and build resilience against climate change.

Dr. Khalid Waleed, an energy economist, stated that Pakistan’s export markets in the EU face significant risks due to the impending carbon taxes if the country continues to generate electricity from coal. He called for collaboration among local communities, governments, and industries to foster an equitable energy transition.

Energy finance analyst Rimsha Rehan highlighted the extensive socio-economic and environmental toll of coal mining and power generation in Tharparkar. She pointed out that women and children bear the brunt of land degradation, water contamination, and health crises, underscoring the need to involve them in the decision-making process for transitioning to renewable energy sources.

Lidy Nacpil, a climate justice advocate from the Philippines, emphasized the Global North’s financial responsibility in combating climate change. “Trillions, not billions, of dollars are owed to the Global South for climate adaptation, mitigation, and loss compensation,” she said, advocating for the inclusion of vulnerable communities in climate action plans.

Philippine official Michael Sinocruz underlined the importance of learning from past policy failures to encourage renewable energy adoption. He called for awareness campaigns, alternative livelihoods for affected communities, and international funding for climate-resilient infrastructure.

Environmental activist Romil Hernandez highlighted the vulnerability of the Philippines’ eastern Visayas region to extreme weather events. He advocated for local leadership and renewable energy projects to reduce coal dependency and promote socio-economic development.

The event concluded with the presentation of a charter of demands by the Alliance for Climate Justice and Clean Energy (ACJCE), a coalition of research institutions, civil society organisations, and climate activists. The charter called for empowering local actors and ensuring that energy policies prioritize the needs of vulnerable communities.