Pakistan’s call for a fair and sustainable global transition towards clean energy comes at a time when developing economies face the difficult task of balancing economic growth, energy security and environmental protection. While the shift away from fossil fuels has become an international priority, the financial burden of achieving this transformation remains unevenly distributed. Countries with limited resources and heavy debt obligations cannot be expected to meet ambitious climate targets without meaningful financial assistance, affordable technology and stronger international cooperation. Prime Minister Shehbaz Sharif’s remarks at the 31st United Nations Climate Change Conference (COP31) therefore highlighted an important question that must remain central to the global climate debate: who will pay for the transition, and how can its benefits be shared fairly?
Addressing a high-level meeting titled “Transitioning to Green Energy by 2035: Powering the Future” on Wednesday, the prime minister urged the international community to pursue an energy model that did not deepen poverty or place additional pressure on vulnerable populations. His message was both practical and timely. The transition to cleaner energy cannot succeed if it comes at the expense of economic development, affordable electricity and the basic needs of ordinary people. Environmental protection and economic progress should not be treated as competing priorities. Instead, both must form part of a development strategy that recognises the needs of present and future generations.
Pakistan’s position reflects the difficulties confronting many developing countries. Although the effects of climate change are increasingly visible across the world, the capacity to respond remains deeply unequal. Wealthier nations have greater access to investment, advanced technology and financial resources. Developing economies, meanwhile, must address immediate challenges such as inflation, unemployment, energy shortages and public debt while also preparing for a future with lower carbon emissions. Expecting these countries to undertake an expensive energy transformation without adequate international support would place an unrealistic burden on their economies.
The prime minister presented Pakistan’s progress in expanding cleaner energy sources as evidence of its commitment to this transition. He said clean energy accounted for about 55% of the country’s overall energy mix. This represented an important development for an economy that had long struggled with expensive energy imports, fuel price volatility and the financial pressures associated with conventional power generation. Greater reliance on renewable and other low-carbon sources could help reduce exposure to international fuel markets while strengthening long-term energy security.
Shehbaz also referred to the inauguration of a key component of Pakistan’s seventh nuclear power plant before his departure for Antalya. The advanced project would add 1,200 megawatts of electricity to the national grid. Nuclear power, alongside renewable sources, forms part of the country’s broader effort to diversify electricity generation and meet rising demand. However, increasing generation capacity alone will not resolve Pakistan’s energy problems. The country also needs an efficient transmission and distribution system, reliable electricity storage and a pricing structure that makes power affordable for households and businesses.
The government’s plans for electric transport also deserve attention. Under the recently introduced automobile policy, Pakistan aims to ensure that electric vehicles account for 30% of new vehicle sales by 2030. The government has proposed incentives, including lower tariffs, to encourage consumers and manufacturers to move towards cleaner transport. Shehbaz said all buses and motorcycles purchased by the government in future would be electric. He also pointed out that more than one in every 10 motorcycles sold in Pakistan this year was electric for the first time.
The growing interest in electric motorcycles suggests that cleaner transport is gradually becoming a practical option rather than an exclusively environmental ambition. In a country where motorcycles remain an essential means of transport for millions of people, their electrification could help reduce urban air pollution and dependence on imported fuel. Yet the transition will require more than policy announcements and incentives. Charging facilities, affordable vehicle prices, battery maintenance, reliable electricity supplies and arrangements for battery disposal will all be important. Without these supporting systems, the shift could remain limited to a section of consumers who can afford the initial costs.
The financial requirements outlined by the prime minister underline the scale of the challenge. Pakistan would need about $138bn by 2035 to finance low-carbon electricity generation projects. A further $50bn would be required to replace coal-fired power generation with solar energy, he said. These figures demonstrate that the transition cannot be achieved through domestic resources alone. Even countries with stronger financial positions would find it difficult to mobilise such substantial investment within a relatively short period. For Pakistan, where competing development needs place considerable pressure on public finances, the challenge is particularly serious.
The investment required also extends beyond the construction of solar and other clean energy projects. Expanding transmission networks, developing reliable storage facilities and integrating new technologies into the national grid will require long-term planning and substantial resources. Renewable energy generation is not enough if electricity cannot be transmitted efficiently or supplied when demand is highest. Solar power, for example, offers considerable potential, but its contribution depends on the ability to store electricity and maintain a stable supply during periods when sunlight is unavailable.
This is where international financial cooperation becomes essential. Climate finance should not be limited to loans that add to the debt burden of countries already facing serious economic difficulties. Concessional financing, grants, technology partnerships and investment guarantees could make clean energy projects more affordable and financially sustainable. Developing countries also need access to modern technologies at reasonable costs rather than being left to purchase expensive equipment and services on commercial terms.
The international community must recognise that climate commitments cannot be separated from economic realities. Countries struggling to finance essential public services cannot simply divert enormous amounts of money towards energy transformation without consequences for education, healthcare, employment and infrastructure development. A fair approach would allow developing economies to pursue climate goals without compromising their ability to improve living standards. It would also recognise that the transition must create opportunities for workers, businesses and communities rather than leave vulnerable sections of society carrying its costs.
Pakistan, for its part, must ensure that its ambitions are supported by consistent domestic policies. The reported 55% share of clean energy in the national mix provides an encouraging starting point, but maintaining progress will require transparent planning, effective regulation and a stable investment environment. Renewable energy projects must be implemented through competitive and accountable processes. The power sector’s financial difficulties also need to be addressed, as inefficiencies and distribution losses can undermine even well-designed energy initiatives. Greater private sector participation, supported by clear government policies, could help attract investment and accelerate technological development.
