22 October 2015: The US and Pakistan released a joint statement on a range of issues, including: security; trade and investment; education, science and technology; clean, efficient and affordable energy; efforts to combat climate change; and people-to-people and cultural ties. In the statement, US President Barack Obama and Prime Minister of Pakistan Nawaz Sharif reinforce their commitment to an enduring US-Pakistan partnership, a prosperous Pakistan and a more stable region.

On energy, the two leaders announce the establishment of a US-Pakistan Clean Energy Partnership, which will facilitate private sector investment in Pakistan’s energy sector, including generation, transmission and distribution.

Since 2009, the US and Pakistan have been cooperating on energy through the Energy Working Group under the US-Pakistan Strategic Dialogue, with the US committing more than US$1 billion to date to support energy sector investments and reforms in Pakistan. Such efforts have led to: almost 1,700 additional megawatts available to the national grid; powering 19 million homes and businesses; and increasing the annual revenue of Pakistani distribution companies by over US$200 million.

Under the new Partnership, the US will work with Pakistan to advance energy sector reforms, improve the investment framework and make targeted investments that will enable government and international private sector developers to add at least 3,000 megawatts of clean power generation infrastructure to Pakistan’s national electricity system, benefitting up to 30 million Pakistanis.

To advance the Partnership’s goals, the two countries will work to, inter alia: strengthen regulatory institutions and develop market-based rules that attract increased local and international private investment; develop an investment plan for expanding the role of clean energy systems; expand transmission capacity for clean energy projects; and mobilize loans, grants, technical assistance, guarantees and public-private partnerships (PPPs) to manage and reduce investor risks and leverage private capital into clean power generation projects.

Areas of cooperation under the Partnership include: catalyzing private-sector energy investments; emphasizing Pakistan’s energy opportunities; improving energy resource development planning; promoting energy efficiency; facilitating regional cooperation in clean energy; and fostering a new generation of Pakistani energy leaders, through, for example, the US-Pakistan Centers for Advanced Studies in Energy.

The two countries also will cooperate to mobilize development financing to help attract private sector investments in hydropower, wind, solar and natural gas projects. Obama also said the US will support Pakistan’s efforts to secure funding for two dams to help meet Pakistan’s energy and water needs.

On climate, the leaders express their commitment to achieving an ambitious climate agreement at the Paris Climate Change Conference in December 2015. Pakistan plans to submit its intended nationally determined contribution (INDC) shortly, while the US has already submitted its plan. The leaders underscore the importance of: long-term efforts to transition to low-carbon economies; robust financial support to help developing countries build low-carbon and climate-resilient societies; and amending the Montreal Protocol this year to curb the production and consumption of hydrofluorocarbons (HFCs). Obama said the US will continue to support Pakistan to build infrastructure and organizational capacity to counter natural disasters and provide relief to affected populations. [US Press Release] [White House Fact Sheet] [IISD RS Story on US’ INDC]