Green Financing and its impact on Sustainable Transportation- In the Context of Pakistan

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.