In a move to boost renewable energy in Pakistan, the government plans to issue the country's first green bond.

As per Bloomberg, the government is planning to issue a $500 million green bond in the next few months, which will be used to develop hydroelectric power. It is pertinent to mention that as per Investopedia, a green bond is defined as a fixed-income instrument that is specifically earmarked to raise money for climate and environmental projects.

Advisor to Prime Minister Imran Khan on climate change, Malik Amin Aslam told the platform that the bond will a euro dominated and will be issued through the Water & Power Development Authority (WAPDA) alongside JPMorgan Chase & Co.

“We’ve got a lot of hydro potential in Pakistan,” he said. “The bonds are there to accelerate this,” said Aslam.

The present government of Prime Minister Imran Khan is keen to boost electricity generation through renewable sources including wind and solar.

Earlier, Minister for Energy Omar Ayub Khan Thursday said that there was a vast scope of investing $40 billion in the energy sector. He said that by the year 2030, 60 per cent energy would be generated from the solar system, wind, bio-gas, 10 per cent gas, 10 per cent nuclear, 10 per cent coal and remaining 10 per cent from local sources.

Back in December, Nadeem Babar, Special Assistant to Prime Minister on Petroleum at the Petroleum Division informed that the government is carrying out structural reforms in the energy sector in view of newly promulgated Renewable Energy Policy of Pakistan. He said that the government had set targets to introduce 20 percent renewable energy by 2025, and 30 percent by end of 2030.

With an additional share of 30-40 percent hydel power generation, Pakistan will have the cleanest generation mix as a result, expressed SAPM.