Energy Efficiency and Environmental Nexus: An Assessment for the Efficient Reduction of Carbon Dioxide Emissions

Pakistan’s power sector faces multiple issues like circular debt, higher tariffs, infrastructural problems, policy gaps, and governance issues. Solving these problems requires implementing reforms to enhance energy efficiency and conservation measures, as well as advancing the use of sustainable energy in the future. This study utilizes the low emissions analysis platform (LEAP) tool to project five electricity supply and demand‐side scenarios for the period from 2022 to 2050. These include reference and energy efficiency improvement (EEI) scenarios. The reference scenario follows the government’s existing plans and policies. However, EEI scenarios considered energy saving potential to be 3.6%, 6.5%, 10%, and 20%. The results revealed that, when the saving potential is 3.6%, the reductions in carbon emissions, energy demand, and energy generation will be 2.53% by 2030, 4.87% by 2040, and 7.22% by 2050, compared with the REF scenario. When the energy potential is 6.5%, the reductions in carbon emissions, energy demand, and energy generation are projected to be 3.14% by 2030, 8.63% by 2040, and 12.67% by 2050. When the energy potential is 10%, the reductions in carbon emissions, energy demand, and energy generation are projected to be 5.42% by 2030, 12.98% by 2040, and 18.83% by 2050. Finally, when the saving potential for energy is 20%, the reductions in carbon emissions, energy demand, and energy generation will be 11.99% by 2030, 24.34% by 2040, and 34.18% by 2050. These findings underscore the crucial role of energy efficiency in reducing carbon emissions and achieving a sustainable energy future for developing countries like Pakistan.