This brief sets out a practical financing blueprint to retire CPEC coal plants early while scaling renewables. The brief explains Pakistan’s debt and circular debt challenges, the exposure of Chinese lenders and IPPs, and the global push for coal phase-down. It then details tools such as debt-for-climate swaps, refinancing, and a blended-finance “managed transition vehicle” that buys out coal assets and invests in new renewable capacity, increasing enterprise value while cutting emissions. It provides an action plan for China, Pakistan and partners to pilot this model and replicate it across the BRI.
