Green mobility faces barriers

Experts call for SME subsidies, battery localisation and consistent financing

KARACHI:

Policymakers, industry leaders, academics, researchers and climate advocates gathered on Tuesday for the Grow Green Network (GGN) Annual Assembly 2026, where experts examined Pakistan's green transition with a strong focus on sustainable mobility and climate action.

The event, organised by Indus Consortium and Grow Green Network with support from Sustain X Partners, brought together key stakeholders at a local hotel for sessions addressing policy direction, industry preparedness and implementation challenges.

The first session focused on the green transition in Pakistan's automotive sector, highlighting structural barriers alongside emerging opportunities. Panellists pointed to key challenges hindering the shift to green mobility, including inadequate infrastructure, policy inconsistencies and financial constraints.

Prof Dr Naveed Arshad, Director of the LUMS Energy Institute, outlined the vision behind Pakistan's New Energy Vehicle Policy (NEVP), stressing the importance of clear targets and long-term commitment. He noted that rising fuel prices following geopolitical tensions could make the policy's target of achieving 30% electric vehicles by 2030 more attainable.

Director of the Climate Action Center, Yasir Hussain acknowledged gradual progress in implementation but highlighted gaps in execution and coordination. Bilawal Suhag, Head of Research at FPCCI, emphasised the need for industry alignment with global trends and described innovation as a key driver of growth. He said policy continuity was necessary to achieve NEVP goals.

Muhammad Usman, Head of Sustainability at Thyssenkrupp Materials North America and consultant at the LUMS Energy Institute, noted that Scope 3 emissions remain the largest contributor in the transport sector. He underlined the need to tackle lifecycle emissions without significantly increasing costs, suggesting alternative fuels, particularly biofuels, as practical solutions to reduce emissions from existing heavy transport.

Vice Chairman of the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM), Shujaul Haq Siddiqui described the auto parts industry as being under pressure, with firms struggling to adapt to electric vehicle technologies due to limited technical capacity and uncertain demand. He pointed to gaps in policy support, particularly incentives for localisation and implementation. "Electric vehicles are still within the reach of the elite class, and there is a need for more localisation and incentives," he said.

Kanwal Nizam Bhutto, Managing Director of the Sindh Mass Transit Authority, outlined the Sindh government's ongoing and planned initiatives related to electric vehicles and the Karachi Circular Railway. She said the provincial government would move forward with the circular railway project once land issues were resolved and added that a memorandum of understanding would be signed with the railway ministry to revive the system.

Financing emerged as a central theme in the second session, where participants highlighted the importance of access to climate finance, investment in renewable energy and incentives for sustainable practices. Titled "Banking the Automobile," the session included Rashid Azeem of UBL Bank, who outlined barriers and opportunities in innovative automotive financing, and Wajih Zaman of Soneri Bank, who discussed the financial sector's role in developing green automotive products. Sadia Bukhari of Sindh Bank spoke about the existing financing landscape.

Director of the Small and Medium Enterprises Development Authority (SMEDA), Mashood Ali Khan highlighted green financing requirements. He noted that electric vehicles were promoted in developed countries through strong government policies and that infrastructure plays a critical role in adoption. He added that battery localisation is possible and called for subsidies for SMEs to develop EV components, emphasising that two-wheelers would play a key role in the transition. He also suggested that technology could be brought in through joint ventures and stressed the need for consistent policies, pointing to a prevailing trust deficit.

The third session, titled "Challenges in the Just Energy Transition," brought forward community perspectives on energy transition and climate justice. Imdad Hussain Siddiqui, Director of the Climate and Disaster Justice Unit at the Provincial Ombudsman's Office, shared lessons from the 2022 climate-induced floods, while Dr Khalid Waleed of SDPI offered a critical perspective on carbon markets. Advocate Shazia Nizamani of the Sindh Women Lawyers Alliance highlighted constraints on women's participation in energy decision-making.

Iqbal Hayder of Laar Humanitarian Development Programme (LHDP) spoke about communities displaced by multilateral development bank-financed projects in the Indus Delta. Tayyab Ur Rehman represented upstream communities affected by large hydropower projects, while Kamal Palari of the Keenjhar Maroo Arra Welfare and Development Organisation discussed challenges faced by communities in the wind corridor of Thatta district.