<p>The economic turbulence in the wake of the COVID-19 pandemic challenges public sector decision-makers in their efforts to sustain climate engagement. As economic and environmental challenges increasingly intersect, it becomes critical to explore youth’s environmental engagement during recession, particularly among Generation-Z, a cohort noted for its environmental-consciousness. Here, we used Affective Events Theory (AET) to develop and test an integrative-model exploring how the cognition of post-COVID-19 economic recession, in terms of its relevance and ability to cope, influenced Pro-Environmental Behaviors (PEBs) across multiple spheres. In doing so, the study extends AET beyond its established organizational and health applications to the economic-environmental nexus. A particular contribution of the model is the incorporation of financial-sphere PEBs, a dimension often sidelined for younger cohorts in behavioral research and policy discourses. We analyzed survey data from 320 Generation-Z respondents in six major Pakistani cities using Partial Least Squares Structural Equation Modelling and found that recession relevance amplifies both positive and negative affective reactions, while coping ability reduces positive but increases negative affect. These affective reactions mediate PEBs unevenly: strongest in public-sphere, while weakest in financial-sphere. Our results suggest that, to harness affective intensity during recessions for lasting sustainability gains, planners should channel youth emotions into structured forums such as climate-councils and community initiatives. Public engagement can be reinforced through civic-infrastructure, household and workplace practices through behavioral nudges, and financial-sphere engagement through microfinance, subsidies, and youth-friendly tariffs. Collectively, the findings offer insights for planners to ensure that economic adversity does not undermine Gen-Z’s environmental engagement.</p>