This study examines Pakistan’s steel sector’s readiness to comply with the European Union’s Carbon Border Adjustment Mechanism (CBAM), which mandates verified emissions disclosures for carbon-intensive imports. Although the sector primarily uses electric arc furnace (EAF) technology, recognized for its lower emissions, Pakistan lacks a formal Monitoring, Reporting, and Verification (MRV) framework to support product-level emissions certification. Through qualitative research, including stakeholder engagements and policy analysis, the study identifies key barriers related to emissions data, institutional capacity, and trade exposure. This study proposes actionable policy recommendations to strengthen MRV systems, facilitate compliance, and enhance the sector’s competitiveness in regulated markets.

The paper discusses the economic and infrastructural challenges preventing the adoption of Electric Vehicles (EVs) in Pakistan. It focuses on key factors such as affordability, consumer preferences, and the overall readiness of the market. Based on a segment-wise comparison, the analysis reveals that four-wheeler EVs carry an initial price premium of 20 to 64 percent over internal combustion engine (ICE) vehicles, with payback periods ranging from 11 to 25 years, placing them out of reach for most middle-income consumers. In contrast, electric two- and three-wheelers—comprising more than 90 percent of registered vehicles—offer a significantly more practical and affordable pathway for mass adoption. These vehicles exhibit minimal upfront cost differences, annual operational savings exceeding PKR 62,000, and short payback periods of just 4 to 6 months, making them highly feasible in the local context. The study adopts a mixed-methods approach using national price data, vehicle registration records, and international case studies from India, Kenya, and Norway. It evaluates financing innovations such as battery leasing, concessional green loans, and carbon-credit-linked microfinance, and outlines a consumer-focused policy framework that emphasizes financial inclusion, decentralized infrastructure development, and phased implementation strategies. By aligning global lessons with Pakistan’s socioeconomic and infrastructural realities, the paper offers a scalable and inclusive roadmap for accelerating EV adoption through targeted, consumer-driven solutions.

The global steel industry emits 1.92 tons of CO₂ per ton of output and faces urgent pressure to decarbonize. In Pakistan, the sector accounts for 0.29 tons of CO₂ per ton of output, with limited mitigation frameworks in place. Green hydrogen (GH2)-based steelmaking offers a strategic pathway toward decarbonization. However, realizing its potential depends on access to renewable energy. Despite Pakistan’s substantial technical wind potential of 340 GW, grid limitations currently restrict wind power to only 4% of national electricity generation. This study explores GH₂ production through sector coupling and power wheeling, repurposing curtailed wind energy from Sindh to supply Karachi’s steel industry, and proposing a phased roadmap for GH, enabling fossil fuel substitution, industrial resilience, and alignment with global carbon-border regulations.

Pakistan’s solar boom, now contributing 25% of its utility electricity, the highest among major countries, presents a strategic opportunity to localize solar supply chains within Special Economic Zones (SEZs) under the China–Pakistan Economic Corridor (CPEC). This study investigates pathways for enabling solar localization, identifies key barriers to local manufacturing, and assesses the potential for domestic value chain development. Employing a mixed-methods approach, combining policy analysis, stakeholder consultations, and feasibility analysis, the study outlines an implementation strategy centered on leveraging SEZs and promoting technology transfer. Results indicate that if Pakistan succeeds in localizing even half of its solar imports, it could reduce import dependency and switching to solar energy could potentially save over $5 billion over two decades. This shift would not only enhance energy security but also enhance sustainable industrial development under CPEC 2.0.