Publication: Fertilizer Sector: Energy Efficiency and Decarbonization (EE&D) Opportunities
Loading...
Published
2025-08-06
ISSN
Date
2025-08-06
Author(s)
Editor(s)
Abstract
Pakistan’s fertilizer sector makes a significant contribution to the country’s economy, accounting for approximately 4.4 percent of large-scale manufacturing output and 1 percent of the gross domestic product (GDP). As part of the large-scale manufacturing sector, the fertilizer industry is driven primarily by agriculture, particularly crops. The sector’s reliance on natural gas makes it vulnerable to supply disruptions and price volatility. Consequently, government policies on gas allocation, subsidies, and environmental regulations play a crucial role in shaping the industry’s performance. The production of ammonia, an intermediate product in the manufacture of fertilizer, is a particularly energy intensive value-chain process; natural gas accounts for 70 percent of the total energy consumption in ammonia manufacture with coal, oil, and electricity used in lesser quantities. Overall, more than 9 percent of gas supplied to the industrial sector in Pakistan is utilized by fertilizer industries. Production of urea makes up nearly 70 percent of the fertilizer sector’s output while the rest consists of products such as di-ammonium phosphate (DAP), calcium ammonium nitrate, nitro phosphate (NP), and various mixes of nitrogen, phosphorous, and potassium (NPK). According to the country’s latest greenhouse gas (GHG) inventory, emissions from fertilizer production amounts to 7 percent of overall national industrial emissions. Carbon dioxide (CO2) from ammonia production is the main source of direct GHG emissions from the sector however, fertilizer plants capture most of the CO2 for reuse in the manufacture of urea. This note describes decarbonization interventions to improve energy efficiency and reduce emissions in the fertilizer sector while increasing industrial competitiveness and providing wider economic and environmental benefits.
Link to Data Set
Citation
“World Bank. 2025. Fertilizer Sector: Energy Efficiency and Decarbonization (EE&D) Opportunities. Pakistan Sustainable Energy Series. © World Bank. http://hdl.handle.net/10986/43548 License: CC BY-NC 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Energy Intensive Sectors of the Indian Economy : Path to Low Carbon Development(World Bank, 2011-11-01)The report is divided into seven chapters. Chapter one discusses India's current carbon footprint, the drivers that will contribute to growth in Green House Gas (GHG) emissions, the objectives of the study, and the scope and methodology of the analytical approach. Chapter two provides an overview of each of the sectors covered by the study, along with their respective specific challenges and past performance, and the modeling approach adopted in the study. Chapters three, four, and five provide the specific assumptions and findings of the three scenarios: (1) scenario one, alternatively called five year plans scenario, assumes full implementation of the five year plans and other projections and plans by the government of India; (2) scenario two, alternatively called delayed implementation, more closely follows historical performance in implementation of the five year plans; (3) scenario three, or all-out stretch scenario, adds to scenario one additional steps to increase energy efficiency and low-carbon energy sources Sensitivity analysis is conducted on each scenario. Chapter six provides a brief comparison of the results of the three scenarios, and chapter seven concludes with a brief description of the challenges of low-carbon development in India.Publication Energy Intensive Sectors of the Indian Economy : Path to Low Carbon Development(World Bank, Washington, DC, 2011-08)Energy Intensive Sectors of the Indian Economy: Path to Low Carbon Development is the product of a collaborative effort between the World Bank and the Government of India, under the overall leadership of the Planning Commission and the Ministry of Power, and with the financial assistance of the Department for International Development (DFID) and the Energy Sector Management Assistance Program (ESMAP). The study was requested by the Government of India to develop the analytical capacity for identifying low carbon growth opportunities up to the end of the 15th Five Year Plan (March 2032) in major sectors of the economy; and to facilitate informed decision making by improving the knowledge base and raising national and international awareness of India efforts to address global climate change. The study uses an innovative engineering based, bottom up model to examine CO2 emissions from energy use during 2007 to 2031. It focuses on sectors and areas that are expected to contribute significantly to India's future growth in CO2 emissions. The report received significant support from ministries and agencies of the Government of India, including the planning commission, the ministry of environment and forests, and the ministry of power, the central electricity authority, and the bureau of energy efficiency.Publication Vietnam Power Sector : Generation Options(Washington, DC, 2009-12-29)This report discusses the energy sector in Vietnam. The central task for the energy sector is to meet demands for electricity in sufficient quantity and of an acceptable quality, in as commercially and financially efficient a way as possible. Several issues arise if this task is to be accomplished in the short and medium term. They are: optimizing power investments; financing the investments that must be made; implementing the reforms in the power industry and restructuring EVN; improving access and service quality; and addressing shortcomings in pricing and tariffs. This study discusses the first of these issues, though inevitably there is some overlap. The study has four specific objectives: (1) to inform decisions about technology choices; (2) to inform decisions on energy and energy sector policy; (3) to inform the energy sector planning process; and (4) to inform the internal discussion within the Bank on how Vietnam's energy sector development can be assisted.Publication Greenhouse Gas Analysis at the World Bank(Washington, DC, 2012-06-21)This report builds on reviews of available methodologies, tools, and practices for greenhouse gas (GHG) analysis, and summarizes the outcomes of pilot studies. It discusses the issues and challenges associated with GHG analysis for energy, transport and forestry projects such as setting project boundaries and accounting for indirect emissions. To do this it draws on existing United Nations Framework Convention on Climate Change (UNFCCC) methodologies, IPCC National GHG Inventories guidelines, the GEF and CDM/JI methodological frameworks, the GHG Protocol Initiative standards, World Bank Environment Department papers, and methodologies used by other international finance institutions. The outcome of fourteen pilots provides a rich and varied set of experiences in terms of approaches taken, and application of tools and methodologies. Assessing GHG emissions from investment operations is becoming common practice for mostmultilateral and bilateral institutions, and the international financial community in general. The existing methodologies and tools could be applicable to a significant majority of the investment lending portfolio in energy, transport, and forestry. The pilot studies served to generate interest from the clients as they were linked to investment lending operations.Publication Syrian Arab Republic Electricity Sector Strategy Note(Washington, DC, 2009-08-15)This electricity sector strategy note was prepared by the World Bank, at the request of the Government of Syria. It identifies options for the Government to improve the financial and technical performance of the electricity sector. The note focuses in particular on the following major sector objectives: a) increasing the efficiency of the electric power sector, including by reducing large technical and commercial losses now standing at 27 percent of demand; b) reducing the growing gap between demand and supply of electricity through capacity expansion, thus enhancing security of electricity supply and reducing power outages; c) increasing security of supply further in an environmentally sustainable manner by developing vigorous energy efficiency and renewable energy programs; d) encouraging regional energy integration through a series of targeted investments in electric power and natural gas; e) attracting private sector investment into generation capacity expansion, including in renewable energy, through independent power producers; and f) making the electricity sector financially viable and coordinating natural gas production plans with electricity generation requirements.
Users also downloaded
Showing related downloaded files
Publication Steel Sector(Washington, DC: World Bank, 2025-08-06)The steel industry in Pakistan includes both large firms in the organized sector and smaller manufacturers operating in the informal economy; however, the largest 20 companies cater to 80 percent of local steel demand. Contributing an estimated 2 percent to the country’s Gross Domestic Product (GDP), steel manufacturing directly employs 200,000 people. Overall steel production in the country was around 8.4 million tonnes for FY24. Steel is an energy-intensive industry, requiring nearly 2.9 gigajoules of energy to produce one tonne of steel. Grid-supplied electricity is the major energy source in steel manufacturing, comprising over 80 percent of the overall energy consumption of an average integrated plant. Primary energy supply to the steel sector accounts for 6 percent of the overall national energy consumption; steel plants consume 6.4 percent of all industrial electricity, 3.7 percent of fuel oil, and 9.3 percent of natural gas. Both on-site fuel consumption and grid electricity contribute to sector emissions. According to Pakistan’s latest greenhouse gas (GHG) inventory, steel plants emit almost 1.9 million tonnes of carbon dioxide (CO2) equivalent per year, or 2 percent of overall industrial emissions. This note describes decarbonization interventions to improve energy efficiency and reduce emissions in the steel sector while increasing industrial competitiveness and providing wider economic and environmental benefits.Publication Textile Sector(Washington, DC: World Bank, 2025-08-06)Textiles are Pakistan’s most critical manufacturing sector, contributing nearly one‑fourth of the industrial value added and employing about 40 percent of the industrial labor force. It has the longest production chain and inherent potential for value addition at each processing stage, from cotton to ginning, spinning, fabric, dyeing and finishing, made‑ups, and garments. Excluding seasonal and cyclical fluctuations, textile products have maintained an average share of about 54.5 percent in national exports and contribute to 8–9 percent of GDP. Concentrated mostly in the Punjab and Sindh, companies within the sector are associated with various value‑chain activities, manufacturing products such as linen and finished garments. Primary energy sources for the textile industry make up 17 percent of overall primary industrial energy consumption in Pakistan, comprising 28 percent of industrial electricity use, 5.1 percent of industrial fuel oil use, and 28.6 percent of industrial natural gas use. Due to unreliable grid supplied electricity, a considerable share of the electricity demand for textile manufacturing is met through captive generation in large textile mills. The textile sector is responsible for nearly 5 percent of the country’s overall industrial emissions onsite fuel consumption and energy sourced from the gas and electricity networks are key sources of these GHG emissions. This note describes decarbonization interventions to improve energy efficiency and reduce emissions in the textile sector while increasing industrial competitiveness and providing wider economic and environmental benefits.Publication Paper and Pulp Sector(Washington, DC: World Bank, 2025-08-06)The paper and pulp industry in Pakistan comprises approximately 100 companies producing around 0.9 million tonnes of paper products annually. Over the past five years (FY20–FY24), paper production has grown at a compound annual growth rate of 7.2 percent, highlighting the segment’s stability and its significant contribution to overall paper and board production. In FY24, production rose to 366,267 metric tonnes (MT) from 311,675 MT in FY23, marking a 17.6 percent year-on-year increase. The sector employs an estimated 100,000 to 150,000 individuals, with nearly 70 percent of paper mills located in Punjab province. Pakistan’s total demand for paper and board stands at approximately 1.7 million tonnes, of which nearly 60 percent is met through imports. The industry accounts for 7 percent of the country’s primary energy consumption, relying mainly on grid electricity, fuel oil, and natural gas. It consumes nearly 13 percent of industrial gas, 4.6 percent of fuel oil, and 3 percent of industrial electricity. Emissions primarily stem from onsite fuel use and purchased energy, with minor contributions from chemicals used in pulping. According to Pakistan’s latest greenhouse gas inventory, the paper and pulp subsector contributes nearly 3 percent of total industrial emissions. This note outlines decarbonization strategies aimed at enhancing energy efficiency, reducing emissions, and boosting industrial competitiveness while delivering broader economic and environmental benefits.Publication Parity for Women in the Maghreb(Washington, DC: World Bank, 2025-08-01)This report examines the progress of women in the Maghreb region (Algeria, Libya, Morocco, and Tunisia) and the gaps remaining in human capital, economic participation, and political agency. Despite girls in the Maghreb outperforming boys in education and health, this progress has not yet translated into equal economic participation. Female labor force participation remains strikingly low at 17 percent in Algeria, 20 percent in Morocco, 27 percent in Tunisia and 35 percent in Libya. Women in the Maghreb face occupational segregation and are overrepresented in low-paying service sector jobs and informal employment. Restrictive and persistent patriarchal norms and legal barriers limit women’s access to credit and assets. In the political sphere, while there have been advancements through quota systems, women remain underrepresented in leadership roles, and gender-based violence – along with the belief that it is justified – continues to be common. Tunisia serves as an encouraging example with higher female business ownership and women’s representation in government.Publication Cement Sector(Washington, DC: World Bank, 2025-08-06)Cement is an important large-scale manufacturing industry that contributes nearly 1 percent to Pakistan’s gross domestic product (GDP) annually and accounts for an estimated 25 percent of all industrial primary energy consumption. Energy contributes 60 percent to the total cost of cement production, and cement manufacturing in Pakistan relies on coal as the primary source of energy. More broadly, cement manufacturing accounts for between 65 to 70 percent of industrial coal consumption and at least 49 percent of the country’s coal emissions. Pakistan’s cement sector has 16 operational companies with 27 operational plants across the country. Ten companies operate in the north of the country, three in the south, and three have production plants in both the south and north. The cumulative production capacity was 77 million tons for fiscal year 2023. The subsector directly employs approximately 0.1 million people. The plants produce Ordinary Portland Cement, which is the main cement used in Pakistan. At 3.9 GJ/tonne of clinker, the average energy intensity of cement plants in Pakistan is close to the global average. According to the country’s latest greenhouse gas (GHG) inventory, the process emissions from the cement subsector accounted for 75 percent of total industrial process emissions in 2018. This note describes decarbonization interventions to improve energy efficiency and reduce emissions in the cement sector while increasing industrial competitiveness and providing wider economic and environmental benefits.