Abstract:
This study examines the role of green financing in promoting sustainable transportation in
Pakistan, a sector responsible for over 40% of air pollution. By analyzing financial
mechanisms such as green bonds, public-private partnerships (PPPs), and climate funds,
this research highlights the potential of green finance in overcoming regulatory and
economic barriers to low-carbon mobility solutions. Despite the introduction of the National
Electric Vehicle (EV) Policy, EV adoption remains below 1%, hindered by poor financial
incentives, institutional inefficiencies, and lack of stakeholder engagement.
The study identifies key barriers, including the absence of a structured green financing
framework, limited access to international climate finance, and policy misalignment. A
mixed-method approach was applied, combining thematic analysis, policy analysis
matrices, and meta-analysis to assess financial viability and policy effectiveness. The
research follows the Quadruple Helix Model, incorporating primary data from stakeholder
interviews and secondary data from national policies, financial reports, and global case
studies.
To address these challenges, the study emphasizes the need for a national green financing
framework, expanded climate finance accessibility, and strengthened policy coordination.
Accelerating EV adoption, Bus Rapid Transit (BRT) expansion, and green transport solutions
require collaborative efforts among governments, financial institutions, policymakers, and
private-sector stakeholders. Establishing an enabling financial ecosystem will allow
Pakistan to transition towards sustainable mobility, meet its climate commitments, and
reduce urban air pollution.
