China-Pakistan Bilateral Energy Investment Agreements in the Perspective of CPEC: Environmental Challenges, Legal Issues and Recommendations

Abstract

The purpose of the following study is to conduct a critical and in-depth investigation of the coal-based electricity projects and investment under CPEC (China-Pakistan Economic Corridor), discussing their environmental impacts, legal issues, and recommendations. This research uncovers various aspects of these projects, phases them out, and presents solutions to achieve sustainability. For this study, the researchers have chosen the qualitative research method with the help of secondary data sources and thematic analysis. Following the qualitative design, this research will uncover varied subjective data, such as the results of other studies on carbon pricing, the carbon power energy projects of CPEC, and the arbitration methods used for amicable solutions and their impacts. Additionally, using the qualitative design will allow offering more enriched and detailed outcomes, supporting a better understanding of the data. The data sources of the current research include but not limited to Acts, Statutes, International Conventions and Treaties, International Energy Reports and Statistics, Case laws as well as quality research articles, books and e-journals repositories. Through the findings of this study, it may be observed that coal-based electricity projects under the CPEC require further improvement to overcome environmental and legal issues. The solutions recommended within this study include emission trading system, significant development and work on renewable sources, carbon pricing policy and adopting best international arbitration practices. This study is significant because by examining Pakistan's coal-based energy infrastructure situation, revisiting applicable rules and regulations, and considering the bilateral investment regime, Pakistan can better manage the CPEC projects.