ISLAMABAD   -   China has been actively involved in several solar and wind power projects in Pakistan, primarily under the China-Pakistan Economic Corridor (CPEC), says a report carried by Gwadar Pro on Saturday.

Pakistan can learn several valuable lessons from China’s success in expanding its solar and wind energy capacity.

Firstly, China has established robust policies and regulations to support renewable energy development. Pakistan can benefit from creating a clear and supportive regulatory framework that encourages investment in renewables.

The government of Pakistan has introduced the Alternative and Renewable Energy (ARE) Policy, aiming for a 30% share of variable renewable energy (VRE) by 2030. This policy encourages investment in renewable energy through transparent, competitive bidding processes. Secondly, China has made substantial investments in renewable energy technology and infrastructure. Pakistan should focus on upgrading its grid infrastructure and investing in advanced technologies to enhance efficiency and capacity.

Thirdly, China has effectively utilized public-private partnerships to fund and develop renewable energy projects. Pakistan can foster similar collaborations to attract more investment and expertise.

China is constructing wind and solar capacity at a rate that surpasses the combined efforts of all other countries.

An analysis by Global Energy Monitor (GEM) reveals that China is developing 180 gigawatts of large-scale solar projects and 159 gigawatts of large-scale wind projects. Together, these projects represent nearly two-thirds of the new capacity being added globally.

The report says, wind and solar now account for 37% of the total power capacity in the country, an 8% increase from 2022, and widely expected to surpass coal capacity, which is 39% of the total right now, in 2024.

Looking ahead, if all proposed utility scale solar and wind projects come online as intended, China could easily reach 1,200 GW of installed wind and solar capacity by the end of 2024, one year earlier than GEM’s forecast last year, the report added. While China’s progress is impressive, it also highlights a concerning trend.  Of all proposed renewable energy projects globally, only 7% have reached the construction stage. In contrast, one-third of China’s proposed projects are already being built.

According to environmental experts, China’s renewable energy boom isn’t just a domestic issue, it has significant implications for the global energy market and climate efforts. China’s massive investments in renewable technologies are driving down costs worldwide, making clean energy more accessible for other countries.

Chinese-made solar panels and wind turbines are now among the most affordable in the world, accelerating the global transition to renewable energy.

Fourthly, China has developed a strong local manufacturing industry for solar panels and wind turbines. Pakistan can also promote local manufacturing to reduce costs and create jobs.

Efforts are being made to develop a local manufacturing industry for solar panels and wind turbines in Pakistan recently. Fifth, continuous research and development has been crucial to China’s advancement in renewable energy. Pakistan should invest in Research and Development to innovate and improve its renewable energy technologies.

Sixth, China has emphasized building the capacity of its workforce in the renewable energy sector. Pakistan can implement training programs to develop skilled professionals in this field. Lastly, by adopting these strategies, Pakistan can significantly enhance its solar and wind energy capacity, contributing to a more sustainable and secure energy future.

JVs to boost expansion of Pakistan’s leather industry

Pakistan and China are forging joint ventures expected to propel Pakistan’s leather industry to new heights.

These collaborations involve setting up manufacturing plants, tanneries, and R&D centers dedicated to leather product innovation, according to Khalid Waleed, advisor to the Pakistan Tanners Association.

In June, the Association of Guangdong Shoe Manufacturers delegation visited Pakistan to explore relocating their operations to the country. These companies are prepared to invest between USD 5 and 8 billion in the local industry.

Pakistan’s leather industry, a crucial export-oriented sector and the second most dynamic after textiles, has recently faced competitive challenges. It is the only country in the region to see a decline in leather exports, signaling a critical issue within the industry, as per a media report.

In fiscal year 2022-2023, Pakistan’s leather exports fell by 7%, dropping to USD 887 million from USD 953 million the previous year. This downturn was paralleled by an 18% decrease in other leather products and an 11% reduction in leather garments, as noted by the Pakistan Leather Garments Manufacturers and Exporters Association.

China, a leading global producer and exporter of leather and leather products, manufactures over 4 billion square feet of leather annually. In 2023, China exported leather, fur, and related products worth USD 96.98 billion, according to the China Leather Industry Association.

The synergy between China’s production capabilities and Pakistan’s advantages—including high-quality leather and lower labor costs—presents significant cooperative potential. Pakistan’s market also shows strong consumer demand for fashionable footwear and bags.

Furthermore, preferential import policies for these products create a conducive environment for joint ventures under the China-Pakistan Economic Corridor (CPEC).

These joint ventures are poised to boost the growth of leather-related small and medium enterprises (SMEs) in Pakistan, providing opportunities for modernization and technological upgrades through Chinese investment and support.

The enhanced infrastructure and trade routes under CPEC offer Pakistani leather products improved access to the vast Chinese market, promising a boost in sales and increased market presence.