Pakistan urges concessional finance for developing nations to boost clean energy security

illuminem summarises for you the essential news of the day. Read the full piece on Arab News or enjoy below:

🗞️ Driving the news: Pakistan is urging richer countries and international institutions to expand concessional finance for developing nations, arguing that affordable capital is essential to accelerate clean energy deployment and strengthen energy security

🔭 The context: Rapid renewables growth, limited finance
• Pakistan made the call at the 16th International Renewable Energy Agency (IRENA) Assembly in Abu Dhabi
• The country has become one of the world’s fastest-growing solar markets, with 12 GW of off-grid and over 6 GW of net-metered solar capacity installed by the end of 2025
• Renewables accounted for a record 53% of total electricity generation in the last fiscal year
• Despite progress, officials say high financing costs remain a major barrier for scaling clean energy in developing economies

🌍 Why it matters for people and the planet: Energy security meets climate equity
• Concessional finance can help countries cut fossil fuel dependence while shielding households from energy price shocks
• Pakistan is targeting 60% renewables in its power mix by 2030, aligning climate action with energy access
• Distributed solar systems are already restoring power and livelihoods in flood-affected communities
• Treating technologies like energy storage and green hydrogen as global public goods could accelerate deployment across the Global South

⏭️ What’s next: From pledges to affordable capital
• Pakistan is seeking deeper technical and financial support from international partners and IRENA
• Regional cooperation and blended finance models are expected to play a growing role in clean energy expansion
• Scaling concessional funding will be critical to replicating Pakistan’s solar growth in other developing countries

📈 One stat: By the end of 2025, Pakistan had installed more than 18 gigawatts of solar capacity, making it one of the fastest-growing solar markets globally

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