Pakistan's textile sector, which provides nearly 60% of export earnings, is caught between buyer demands for low-carbon production and continued pressure on prices. The EU's Carbon Border Adjustment Mechanism is already in its definitive phase, and textiles are expected to be included within the decade, potentially costing exporters over 350 million euros annually. At the same time, industrial electricity tariffs are among the highest in the region, inflated by capacity payments and cross-subsidies, pushing mills toward captive gas that is now being taxed. The article argues that the solution lies in making the Competitive Trading Bilateral Contracts Market (CTBCM) work with low wheeling charges, so mills can sign long-term renewable power contracts. It also calls on brands to move beyond compliance checks and become co-investors, financing solar or wind projects and offering multi-year orders to make green loans bankable. Examples from Vietnam and Bangladesh show how direct power purchase frameworks and pooled brand capital have helped competitors, while Pakistan's own Shared Transition Responsibility Movement is trying to build a similar consortium. The key takeaway: the transition only works if costs and risks are shared between suppliers, brands, and the state.
