Climate Change Policy for Punjab

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Climate Change Policy for Punjab Environment Protection Department, Punjab July 2016

National and Provincial Climate Change Policies Tailored to sectoral requirements Additional Chapters specific to provincial needs Structure of National Climate Change Policy Provincial Climate Change Policy of Punjab Consultative Process 2

Developing Climate Change Policy and action plans for Punjab Planning and Development Department Environmental Protection Department Steering Committee Objective: To draft the provincial climate change policy document with specific sectoral policy recommendations and mitigation and adaptation measures to cope with abnormal climate changes in Punjab. Working Group Climate Change Policy Action Plans 3

Steering Committee Approve work plan for policy development process Periodic review of progress report of WG Steering Committee Oversee that policy measures tackle climate change impacts Identification of focal points within departments for liaison 4

Working Group Prepare progress report for SC Prepare briefing papers Draft Climate Change policy with relevant line departments Working Group Coordination with all concerned Government departments for support and information Follow guidelines given by SC Support SC LEAD will provide technical expertise 5

Policy Development Process 6

Process for Climate Change Policy formation Project Inception Meeting with EPA and P&D Research Studies One-on-one Interviews Draft of the Climate Change Policy Internal Review and Feedback from Project Advisory Committee Submission of the draft of Climate Change Policy to Working Group Presentation of the draft to the Steering Committee for critical feedback Finalization of Policy Dissemination 7

Review Policy Development Process Research and Analysis Consultation Policy development process Primary data collection One on one meetings Secondary data collection Situation analysis Stakeholder mapping Literature Review Research studies Energy, SDGs, Gender, Urban resilience, DRR, Food security, water, and low carbon development Communication and implementation Draft Stakeholders Focal points for Climate Change Capacity Building Authorization Utilizing LEAD expertise Analysis of other National Climate Change Policies

One on One Interviews Departments Planning and Development Department Energy Department Environment Protection Department Transport Department Irrigation Department Forestry, Wildlife and Fisheries Department Provincial Disaster Management Authority, Punjab Agriculture Department Livestock and Dairy Department Industries Department Interview Structure Roles and responsibilities of each department Impacts of Climate Change on the sector Contribution of sector to Climate Change Taking Climate Action Supporting Implementation Integrated Effort on MEAs 9

Energy Research Studies Sustainable Development Goals Urban Resilience Policy relevant Water Food Security DRR and Vulnerability Issues Gender Province specific Low Carbon Development

Capacity Building Event Urban Resilience Food Security and Agriculture Energy and Low Carbon Development Contemporary Water Issues of Pakistan: A Regional Perspective Climate Change and Development Global Financing opportunities for Climate Change Interventions Strengthening intersectoral linkages Climate Change Policy framework of Pakistan SDGs to Climate Change

Structure of the Climate Change Policy 1 Introducing Climate Change Impacts 2 Adaptation 3 Mitigation 4 Supporting policy practice Awareness Technology transfer Education Finance Capacity building Pakistan Punjab Health

Sectoral Span of the Climate Change Policy Agriculture Energy Disaster Preparedness Socioeconomic Measures, poverty, and Gender Health Biodiversity, Wildlife, Fisheries and Forest Transport Urban Planning Industries Waste Water Resources and Irrigation 13

Climate Change Adaptation and Mitigation Recommended Policy Measures Research General Management Technology Transfer Capacity Building and Training Risk Management Awareness Raising Monitoring and Evaluation Reforms in Governance 14

Climate Change Policy Implementation Climate Change Centre Green Fund Climate Action Linking ADPs to SDGs 15

NAMA Renewable Energy Solutions for Sialkot s Industrial Sector Feasibility Assessment Stage July 2016

Sialkot s industry will benefit from readily available, affordable and nimble renewable energy solutions Drivers Sialkot is an important industrial hub The energy crisis is imposing heavy costs GHG emissions will increase if not addressed now Sialkot s location has poor wind energy resources Barriers Hydroelectricity is accessible, though insufficient Solar potential is good, however grid-scale costs are large PV panels on the roof are a feasible option Enabling Conditions PV enjoys government and stakeholder support Pakistan s legislation provides a solid legal framework for this renewable energy solution 17 07/19/ Name

Drivers Sialkot is one of the most industrious and progressive cities in Pakistan Sialkot 11,000 factories export USD 800 million in manufactured goods In 2007 Sialkot self-funded and built an international airport Sialkot also built the roads and solar powered street lighting 07/19/2016 18

19 07/19/ Drivers Sialkot factories face up to 6 hours of black outs per day Diesel generators are used when the grid is not providing enough electricity Black outs result in 10% loss of revenues for the city, which relies on diesel for 20% of electricity Sialkot s yearly Industrial Electricity Consumption 216 GWh 22% Diesel is disruptive and prices are 45% higher than grid prices Diesel costs are passed on to the customer, often resulting in lost business 78% Electricity from Diesel Grid Electricity

20 07/19/ Drivers Emission Factors (tco2/mwh) Diesel is up to 40% of the city s industrial sector greenhouse gas emissions Sialkot s yearly Industrial GHG Emissions from electricity consumption 55% 0.88 136,000 tco2-eq 38% 0.57 62% Diesel Grid Electricity GHGs from Diesel GHGs from Grid Electricity

Barriers Pakistan 50 m Wind Power Evaluating technical conditions first, Sialkot is located in an area with poor conditions for wind power Poor Distance Wind Power Density at 50m (W/m 2 ) 0-200 Wind Speed at 50 m (m/s) 0.0 5.4 Transmission costs Large-scale project s time 21 07/19/ Source: National Renewable Energy Laboratory, 2009

Barriers Sialkot s rivers are not large enough to provide industry with the required electricity Sialkot s Hydro Resources Capacity needed to provide 216 GWh/yr for industry = 92 MW Planned Hydro projects Marala Hydropower Project 7.64 MW Chianwali Hydropower Project 5.38 MW Total: 13 MW Insufficient power Transmission costs Large-scale project s time 22 07/19/

Barriers Sialkot has good conditions for solar energy, costs for a grid-scale solar power plant are prohibitive Multi-year average sum (2000-2012) of Global Horizontal Irradiance (GHI) for Pakistan in kwh/m 2 (not validated preliminary result!) Solar installed capacity needed to provide 216 GWh/yr for industry = 500 MW Price per MW of solar: GOOD! kwh/m 2 Total project costs: USD 1.3 million USD 650 million Large capital costs Transmission costs Large-scale project s time Source: Solar Resource Mapping in Pakistan, ESMAP, 2015 23

Enabling Conditions PV panels are scalable and affordable PV roof top panels is the most feasible renewable energy technology for Sialkot s Suppliers of PV panels have grown exponentially in the last 5 years Surface m 2 PV Gen kwh/yr 100 22,000 350 53,000 Members of the Renewable and Alternative Energy Association of Pakistan 1000% 400 1,000 153,000 Average Savings USD/yr Average Pay back years 14,500 3.7 Source: Meeting with REAP 40 2010 2015 24

Enabling Conditions The NAMA enjoys backing from a broad range of stakeholders Key government agencies Industry stakeholders in Sialkot Government of Punjab Punjab Power Development Board Source: Solar Resource Mapping in Pakistan, ESMAP, 2015 25

Policy & Governance Regime Existing enabling policies National Climate Change Policy + implementation framework Alternate & Renewable Energy Policy Strategic Trade Framework Why industry has still not picked it up? Net-metering (Perception about) equipment performance Large payback After-sale service & secondary market Access to Finance 26