Energy Landscape of the Food and Beverages Sector: Pathways to Energy Transition and Decarbonization

Summary

In December 2024 ADS study examines Pakistan's food and beverage (F&B) sector, which contributes 20.76% to GDP and employs 37.4% of the workforce, through a survey of 136 corporates across packaged food, fast-food and beverages. It maps the energy mix (46% grid electricity), shortfalls affecting 85% of corporates, solar adoption (35%), audits, carbon accounting, CBAM awareness (83% unaware), and other barriers, concluding with financing and policy recommendations to accelerate the energy transition.

Key Points

• 1Unreliable power: 85% of firms face electricity shortfalls, and 64% of them fall back on generators.
• 2Solar is growing but incomplete: 35% have installed solar, and 47% of the rest plan to install within two years.
• 3Weak carbon management: only 30% have done an energy audit and 20% have measured their carbon footprint.
• 4Low CBAM awareness: 83% of firms have never heard of the EU's Carbon Border Adjustment Mechanism, a risk for export-linked supply chains.
• 5Policy and cost barriers: policy gaps (46%) and technology cost (41%) top the obstacles, pointing to a need for incentives and new financing models such as green credit, leasing, PPAs and ESCOs.