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Background Research Paper

Title: Corporate Response to Climate Change in Pakistan

Author: Dr. Harish K. Jeswani, Research Associate, Manchester University, UK

Published by: LEAD Pakistan 2009


Abstract:
Climate change represents a significant threat to the environment and livelihoods of large proportions of humanity. The latest Intergovernmental Panel on Climate Change (IPCC) reports (2007) and the Stern Review (2006) have highlighted the seriousness of the effects of climate change. Both IPCC and the Stern Review warn against delaying action and appealed to governments and private actors to move swiftly to implement mitigation measures and formulate a strategy for adaptation. Large energy-intensive industries are urged to take an active role in responding to new policies and capitalising on opportunities to improve the energy-efficiency and utilise low-carbon technologies. The suggestion is that climate-friendly interventions will not only reduce harmful emissions but could also reduce production and operational costs. However, there are significant economic, political and technological challenges attached to these opportunities.

This paper empirically reviews the implications and response towards climate change of the most energy-intensive industrial sectors in Pakistan. For this undertaking, a survey of 72 companies across various sectors in Pakistan and 14 interviews of key stakeholder were carried out. The results of this study indicate that companies in Pakistan have recently begun to focus on improving energy efficiency. The interest in energy efficiency is primarily linked to cost saving as the principal driver, because, unlike many other environmental improvement activities, financial benefits are more obvious in this context for energy-efficiency projects. However, due to several factors that act as barriers, which include lack of awareness, lack of financial resources, absence of regulatory and societal pressure and lack of expertise and organisational capabilities, the uptake of those activities is limited. The paper also recommends several measures to encourage more proactive responses of companies in Pakistan.  

Note: This paper will be presented at the Corporate Summit on Climate Change by Dr. Harish K. Jeswani. The paper will be available on LEAD Pakistan’s website after February 19^th, 2009.