Discussion Paper – A Systematic Approach for the use of Climate Finance for Sustainable Transport (Download)
A key concern for accelerating the growth of sustainable transport is to shift investments from conventional, unsustainable transport means to low-carbon and sustainable options. Today, the vast majority of investments in the transport sector originating from domestic sources.
In most countries transport investments and public transport services are subsidised. In developing countries the private sector plays a limited but increasing role, when comparing to developed countries. International climate finance covers only a very minor portion of transport spendings and, based on past experience, does not (yet) work well for sustainable transport: The transport sector attracts disproportionally small amounts of climate finance and the financing that is available is not leveraging a change in transport policies and investments at the scale required.
The objective of the work stream on climate finance of the TRANSfer project is to help ensure that climate finance is increasingly used for sustainable transport in an effective way to realize the large GHG emission reduction potential in the sector. Doing this requires an increased mutual understanding and cooperation among actors active in the areas of climate and transport finance. The TRANSfer project intends to target both, the transport finance as well as the climate finance world and develop and distribute recommendations on transport and climate finance based on the following:
- Improving the understanding of transport finance (along different types of sustainable transport measures/mitigation actions) of both sustainable and unsustainable forms of transport in order to derive recommendations how climate finance can be used most effectively;;
- Identifying of entry points for climate finance that trigger a shift to more sustainable transport investments and thus to upscale mitigation efforts (and leverage public and private investments);
- Address climate finance experts and institutions as well as the transport community with the dissemination the results.
The key questions for the expert group are:
- How can climate finance be used to
(1) shift traditional transport financing to low-emission, sustainable transport and
(2) to mobilize additional financing including from the private sector for low- emission, sustainable transport
- How to structure climate funds (such as the Green Climate Fund) to make them work for sustainable transport
- Facilitated interdisciplinary expert group: The expert group will guide the climate finance related activities of the TRANSfer project; including the study and policy brief (see below) and the development of recommendations for the effective and efficient use of climate finance in the transport sector.
- Study on “Shaping the role of climate finance for sustainable transport”: The study will analyse specific real-world cases of financial arrangements for conventional and sustainable transport and the roles of the government budgets, private sector and climate finance as a basis for providing recommendations.
- Policy Brief on “Scaling-up Sustainable, Low-Carbon Transport – overcoming funding and financing challenges, and the role of climate finance”.
- Outreach and dissemination to communicate the key results of this work stream to relevant organizations and individuals in a user friendly manner.
Climate Finance as the Engine for More Low-Carbon Transport –Recommendations to Policy Makers on Transport and Climate Change
Policy Brief: Scaling-up Sustainable, Low-Carbon Transport – overcoming funding and financing challenges, and the role of climate finance
Draft for discussion