The industrial sector in Pakistan is characterized by high dependence on fossil fuels such as diesel and natural gas for captive power. In most cases the fossil fuels are used in inefficient machineries and technologies, thereby incurring high production costs for industries. Therefore, industries can benefit from taking measures to use these energy resources efficiently as well as adopt renewable energy technologies.

 This UNIDO/GEF project seeks to promote the adoption of renewable energy and energy efficiency technologies and services in industries. The ultimate goal of this UNIDO/GEF project is to avoid greenhouse gas (GHG) emissions by developing and promoting a market environment that will stimulate investments in renewable energy and energy efficiency which, in turn, will help drive economic growth, support industrial development in Pakistan. The project consists of three components:

 (i)  Develop the policy and regulatory framework on use of EE and RE in industry - The project will provide a set of recommendations for incentivizing and promoting RE and EE in industries that could be included in existing government policies or form the basis of formulating new legislation

(ii)  Promoting RE and EE investments in industry- The project will demonstrate the technical and financial viability of RE and EE in industrial facilities through supporting RE demonstration units, facilitating EE audits, ISO 50001 Energy Management System (EnMS) implementation and energy use optimization

(iii)  Create platform for promoting investment and sustainability- The projects aims to develop a robust market of RE and EE investments through a series of capacity development and awareness initiatives for industrial units, energy services companies, public sector organizations, financial institutions and academia

 Energy Management Systems (EnMS) Programme:

Under the banner of GEF funded project, UNIDO with NEECA as a main stakeholder is implementing EnMS with 50 industrial units of Pakistan mainly from Textiles including readymade garments , foundry including automobile , ceramics , paper & pulp and food processing sectors. UNIDO has initiated the cluster based approach whereby the 10 energy service consortia comprising energy management consultants , sectoral experts , energy auditors and training institutions were aligned to undertake the Energy Management Implementation programme . The consortia covers the industries from all major cities in four provinces of  Pakistan including Lahore , Faisalabad , Quetta , Hub, Karachi , Hyderabad , Shiekupura , Gujranwala, Peshawar, Islamabad etc.  

For the successful implementation of Energy management programme Project counterpart NEECA  has a vital role to play. NEECA is already engaged with this project since the inception phase . During the ongoing implementation of EnMS programme NEECA is a  part of oversight body to perform the monitoring role and will provide assistance to UNIDO in assessing the impact of EnMS Programme during the concluding phase. The effective EnMS implementation in beneficiary industries will result in energy system optimization activities where the beneficiary industries will implementing the EE measures and technology interventions to become more energy efficient. In order to incentivize these EE interventions, UNIDO is proposing to establish a fund at NEECA or couple it with its already existing fund which could provide financial incentives to performing beneficiary organizations.