From deadly floods to earth-scorching droughts, Pakistan is no stranger to the extreme weather exacerbated by climate change. The Government of Pakistan recognizes the immediacy of this crisis and has committed to a 50% reduction in greenhouse gas emissions by 2030 — with the transition to renewable energy a key component of this commitment.

Though Pakistan is not a significant contributor to harmful greenhouse gas emissions worldwide, the country has increased its share of power generation from fossil fuels in the last 30 years — leading to a projection of tripling emissions from 2018 to 2030.

As part of the U.S.-Pakistan “Green Alliance” framework, the United States through USAID is working with partners throughout Pakistan to support clean energy and sustainable water management in the country. USAID has supported Pakistan’s effort to mitigate climate change by helping to transform the country’s energy sector, resulting in an increase of wind and solar generation capacity by 50%.

In total, USAID’s energy programs in the last decade have benefited more than 47 million people in Pakistan, and helped reduce 55 million tons of carbon dioxide emissions. Read on to learn about three actions USAID has served as a catalyst to jumpstart and transform the sector.

1. USAID helped solve a decade-long roadblock to renewable energy investment.

Knowing that the Jhimpir region in southeastern Pakistan would have tremendous potential to harness wind power, for decades, Pakistan’s Ministry of Energy tried to incentivize the private sector to invest in wind power. However, many companies were concerned the region lacked the necessary transmission infrastructure to connect wind turbines to the national power grid.

Between 2015 and 2018, USAID invested $43 million in a transmission line in Jhimpir, which created the first wind energy corridor connected to the national energy grid. USAID’s commitment gave the private sector and the ​​U.S. International Development Finance Corporation (DFC) (previously, the Overseas Private Investment Corporation) the confidence they needed to begin constructing renewable energy projects.

USAID’s critical investment connected 780 megawatts of private sector wind projects to the grid, jumpstarting the development of a major new source of clean energy for Pakistan.

2. USAID catalyzed finance for renewable energy projects.

Once the transmission line successfully brought wind power to the national grid, other companies wanted to capitalize on the opportunity. USAID worked hand-in-hand with the government, other donors, and private developers to bring 16 wind and solar projects to fruition.

Additionally, the Agency partnered with four local banks to develop a partial loan guarantee to finance clean energy projects. In total, USAID partnerships with the private sector in renewable energy projects has resulted in mobilizing over $2.5 billion of private investment in five years, increasing the national grid’s capacity by more than 4,000 megawatts. Investments like these are a key part of USAID’s Climate Strategy, which aims to mobilize $150 billion in climate finance globally by 2030.