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

Summary

This 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 nationwide survey of over 100 F&B corporates and outlets. It maps current energy mix, electricity shortfalls and how firms cover them, existing and planned solar PV capacity, carbon-footprint awareness (including of the EU's CBAM), and the financial, organizational and behavioral barriers to decarbonization, concluding with policy and financing recommendations to accelerate the sector's energy transition.

Key Points

• 1Pakistan's F&B sector contributes 20.76% to GDP and employs 37.4% of the workforce, yet grid electricity dominates its energy mix, supplemented by natural gas and traditional fuels.
• 2Among surveyed corporates, 77 face a moderate (6-25%) electricity shortfall, and of those covering shortfalls, 72% rely on generators versus just 12% on solar power.
• 375 of the surveyed F&B corporates have no existing solar capacity at all, while only 8 have installed more than 1,000 kW.
• 469% of surveyed corporates report having no formal target to reduce carbon emissions, and 59% have no idea what regulatory condition would prompt them to do so.
• 5Cost minimization (42%) and reducing GHG emissions (37%) are the top-cited motivations behind whatever emission-reduction actions corporates do take, most commonly "reduce, reuse and recycle" measures (40%).