1. Akram Khalid CEO Pakistan Prosperity Initiative (Not for Profit Company) May 6, 2014 Presentation made at the Energy & Environment seminar held in the University of Management & Technology

2. Sequence Introduction Energy, Development & Environment Sources of Energy Advantages & Disadvantages Civil Society Perspective Recommendations Conclusion 3. Introduction Energy, development and environment are closely related There is a trade-off among them: a bit more of one demands reduction in other two or at least one of them It poses a challenge for policy makers and administrators to find a perfect balance My presentation is about the perspective of Civil Society on the above mentioned balance 4. The term Civil Society refers to a wide array of non-governmental and not-for-profit organizations that have presence in public life They express the interests and values of their members or others based on considerations such as: Ethical, Cultural, Political, Scientific, Religious or Philanthropic Civil Society Organizations (CSOs) therefore refer to a wide of array of organizations, community groups, non-governmental organizations (NGOs), labor unions, indigenous groups, charitable organizations, faith-based organizations, professional associations, and foundations What is Civil Society 5. Energy, Development& Environment - Ensures functioning of world economy - Fuels industrial, agricultural, commercial, transportation, power generation activities - Provides for habitat and subsistence needs - Provides sources of energy, air, water and other resources needed to sustain life - Enables the continued functioning of society and the economy - Ensures perpetuity, Shapes and manages human society and the economy in a manner that satisfies the material and other needs of the world's population - Enables the international community to evolve through mutual cooperation and co-exist in peace 6. Sources of Energy There are over a hundred sources of energy. The above are the most commonly used sources 7. 38.1 23.2 22.9 8.1 1.7 2.9 2.7 0.3 0.1 0.1 Oil Coal Gas Nuclear Propane Biomass Wind Solar United States Energy Mix 8. Pakistans Energy Mix 9. Advantages & Disadvantages Type of Fuel Advantages Disadvantages HYDRO Power produced in large quantities Sustainable Run of river are less expensive Environmentally destructive Fermenting vegetation in dams releases greenhouse gas methane COAL Huge world reserved Low cost Not sustainable Requires huge quantities of water Produces high carbon dioxide Produces large quantities of ash NATURAL GAS Low cost Produces less Carbon Dioxide Not sustainable OIL Low cost Not sustainable Produces carbon dioxide SOLAR Sustainable Non-polluting Large areas are required Not cost-competitive on large industrial scale NUCLEAR Abundant fuel availability Not proven on commercial scale 10. Civil Society Perspective Civil society looks at energy issue from three different perspectives 1.Energy availability 2.Energy affordability 3.Environmental sustainability Although different but all three are interrelated 11. Civil Society Perspective People need energy People need energy People need energy For domestic use For infrastructure requirements For entrepreneurial needs That is affordable That is supplied un-interrupted That does not pollute environment during production and transmission Use of which does not result in environmental degradation 12. Energy- Availability Load Shedding and power cuts have become widespread It is adversely affecting all the sectors of the economy and has serious social and political repercussions also The gap between supply and demand for energy is likely to widen if corrective measures are not taken 13. Electricity Consumption Trend 35.7 15.4 6.4 36.1 5.4 0.8 27.5 11.6 7.5 46.5 6.2 0.6 0 5 10 15 20 25 30 35 40 45 50 Industry Agriculture Commercial Household Government Streets 1993-94 2011-12 Source: Economic Survey of Pakistan 14. Transmission & Distribution Losses 21.3 21.1 20.9 20.8 20.5 19.3 18 18.5 19 19.5 20 20.5 21 21.5 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Source: Economic Survey of Pakistan 15. Energy- Affordability Besides shortages, the price of energy is escalating at a rapid speed adversely affecting the poor and the middle classes Over 65% of Pakistans installed capacity is dependent upon fossil fuels bulk of which is imported. Fuel prices have risen consistently in the past Unfavorable Rupee-Dollar parity has shrunk our electricity generation and forced government to increase prices 16. Environmental sustainability is now an essential condition of any development project all over the world Unfortunately Pakistans record on this count is not enviable as the table on the next slide would indicate There is thus an urgent need to ensure that all our future development, including energy ,should be environment compliant Energy Environmental Sustainability 17. Energy sector is the top contributor with emission as highest among the direct and indirect Green House Gasses (GHGs) Stationary sectors are the highest emitter of CH4, of which 98.4% is residential sector at household and community level primarily due to combustion of biomass for domestic purposes Almost 85% of rural households use wood biomass for cooking Twenty five percent of Pakistans total energy consumption comes from biomass, contributing to 47% of all Green House Gas emission of the country. Energy-Environmental Sustainability Source: Economic Survey 18. Country name Total rank 2013 Energy security rank 2013 Environnemental impact mitigation Rank 2013 Energy performance rank 2013 Societal strength rank 2013 Economic strength rank 2013 UK 5 11 19 2 17 55 Malaysia 37 34 92 49 44 13 S/Korea 64 103 85 85 26 9 Turkey 75 64 70 74 51 91 China 78 18 126 90 61 7 Pakistan 114 56 100 98 124 123 India 115 76 121 124 80 54 Bangladesh 123 113 78 122 114 65 Energy-Environmental Sustainability 19. RECOMMENDATIONs 20. How to Improve Energy Availability Develop legal framework for community based power generation solutions Improve production & transmission efficiency of current installations by reviewing equipment & HR Improve recoveries and overcome theft by engaging professional networks with police support Import electricity if needed; pollution impact on producing country Encourage use of energy efficient home & kitchen electrical appliances in addition to industrial equipment 21. How to Improve Energy Availability Create awareness, promote & facilitate solar energy production Legal framework for installation of reversible meters for private entities generating electricity Develop alternate energy sources through exploration of Shale Gas; Pakistan has proven reserves in excess of 51 TCF (1.0 TCF = 1.027 Quadrillion BTUs) Go for coal using environment friendly technology Avoid unproven biofuel sources of energy such as Jetropha 22. Change the energy-mix; develop renewable energy resources and increase the share of nuclear and hydroelectric power Promote biogas & biomass energy modules particularly in rural areas Indigenous coal usage would be cheaper; Electricity produced from coal should be linked environmental safeguards Increase in production and reduction in line losses & thefts will in turn improve affordability Import of electricity from neighboring countries should improve affordability in the short run How to Improve Affordability 23. Improving Environmental Sustainability Ensure that negative impacts of power projects on the environment as well as on the local communities are properly assessed and addressed Plan necessary expansion of nuclear power while ensuring the highest safety standards Obtain technological know-how for installing the clean coal technologies and ensure that coal-fired power stations perform with optimum environmental safeguards Promote, encourage and enforce environment friendly energy efficient building designs through legislation Encourage businesses to develop solar & alternate energy equipment for energy self- sufficiency, especially in public sector buildings; Corporate sector in power generation should fulfill their obligations for environmental improvement under their Corporate Social Responsibility Create awareness about importance of environmental sustainability among masses 24. What Civil Society Should Do Create awareness among masses for energy conservation and environmental sustainability Launch advocacy campaigns for good governance in energy sector Initiate private businesses in respect of energy conservation Create awareness to install solar panels on houses in urban areas and biogas units in rural areas 25. Policy makers must try to maintain balance to ensure energy sources are sustainable and affordable without compromising on development and environment Legislation in respect of power generation by any of the sources should maintain transparency while the requirements of environmental safeguards must be maintained. Polluter to pay principle should be the cornerstone of all our public policies The Civil Society leading by example must create enough pressure on legislators and administrators for the provision of affordable energy ensuring environmental sustainability Conclusion 26. Thanks