Page 126 - AJWEP-22-4

Shah, et al.

clear regulatory mandates, the lack of harmonized target a wider range of sustainability goals beyond
policies, and weak coordination between financial the specifications of climate finance programs.”
institutions and government agencies have slowed (DA, oral communication, [July] [13], [2024])
down the adoption of green transport finance. In “The absence of green finance clauses in most
addition, financial incentives such as subsidies, tax national policies indicates a lack of foresight
exemptions, and concessional loans remain limited in addressing sustainability.” (SR, oral
or inaccessible, reducing the attractiveness of green communication, [May] [22], [2024])
transport investments. A well-structured monitoring and “Green finance needs to be embedded in both
evaluation framework is also lacking, making it difficult urban and rural transport strategies to ensure
to assess the impact of green financing initiatives in inclusivity.” (YD, oral communication, [February]
the transport sector. This theme is supported by the [22], [2024])
perspectives of interviewees as follows:
“There exists no defining policy structure that 4.3. Theme 3: Leveraging international finance
connects green finance initiatives with transport Pakistan’s green finance landscape faces significant
directives.” (UZ, oral communication, [January] funding gaps, making international financial support
[11], [2025]) essential for scaling up sustainable transportation
“Green finance is often viewed as something initiatives. International financial mechanisms, such
complex, and there’s limited effort to train local as climate funds, multilateral partnerships, and green
stakeholders in understanding its scope.” (AK, oral financial instruments, offer critical opportunities to
communication, [February] [22], [2024]) bridge the financial shortfall. However, access to
“Disjointed policies between federal and provincial these funds remains a challenge due to bureaucratic
governments create barriers to implementing green inefficiencies, weak institutional frameworks, and
finance effectively.” (HJ, oral communication, limited alignment with global investment standards.
[May] [30], [2024]) Strengthening engagement with international finance
“Policy harmonization will create clarity for can enhance funding accessibility, investment security,
both public and private sector actors.” (AW, oral and the large-scale adoption of sustainable mobility
communication, [April] [12], [2023]) solutions.

4.2.2. Strategic decarbonization 4.3.1. Global mechanisms
The transition toward low-carbon transportation is crucial Various international climate finance mechanisms exist
for achieving climate resilience and meeting global to support low-carbon transport initiatives, but Pakistan
sustainability commitments. However, current financing faces challenges in accessing them. Organizations such
mechanisms do not adequately support decarbonization as the GCF, Climate Investment Funds, and the Global
efforts in the transport sector. Limited funding for EVs, Environment Facility provide financial support for
inadequate infrastructure for clean energy-powered sustainable transport projects, yet Pakistan’s ability to
transport, and the slow adoption of green mobility solutions secure these funds remains limited. The application
hinder progress. In addition, private sector engagement process for international climate finance is often
in sustainable transportation is constrained by financial complex, requiring strong governance structures,
risks, unclear policies, and a lack of long-term investment transparent accountability mechanisms, and compliance
security. To accelerate transport decarbonization, green with international sustainability standards – areas where
finance must be strategically linked to national climate Pakistan currently faces deficiencies. In addition, there
policies, energy transition goals, and urban development is limited capacity among local financial institutions and
strategies, thereby ensuring a cohesive and sustainable policymakers to develop competitive project proposals
mobility framework. This theme is supported by the that meet the requirements of global funding agencies. This
perspectives of my interviewees as follows: theme is supported by the perspectives of interviewees,
“Green finance is not just about funding; it is several of whom emphasized the conceptual distinction
about creating an ecosystem that encourages between green finance and climate finance:
sustainability.” (BI, oral communication, [May] “Climate finance is an element of green finance
[11], [2024]) that mainly involves climate change reduction
“Climate finance is an element of green finance that strategies.” (DA, oral communication, [May] [11],
supports main strategies. Green financial initiatives [2024])

Volume 22 Issue 4 (2025) 118 doi: 10.36922/AJWEP025160121