Cornie Huizenga, Secretary General Partnership on Sustainable Low Carbon Transport

www.slocat.net

Asia-Pacific Forum on Public-Private Partnerships for Transport

Infrastructure Development, Bangkok, Thailand 21-22 January 2015

Expanding the Role of the Private Sector for Investment in Sustainable, Low Carbon Transport Modes

The SLoCaT Partnership 90+ Members: International Organizations – Government – Development Banks – NGOs – Private Sector - Academe

African Development Bank (AfDB) *African Transport Policy Program (SSATP) *Alliance to Save Energy *Asian Development Bank (ADB) *CAF-Development Bank of Latin America * Cambridge Systematics * Center for Clean Air Policy (CCAP) * Centre for Environment Planning & Technology (CEPT), Ahmedabad *Center for Science and Environment (CSE) *Center for Sustainable Transport (CTS) Mexico * Center for Transportation and Logistics Studies (PUSTRAL), Gadjah Mada University * China Urban Transport Research Centre (CUSTReC) * Civic Exchange (CE) *Clean Air Asia (CAI-Asia)* Clean Air Institute (CAI) *Climate Focus *CODATU * Despacio *Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) * Dutch Cycling Embassy * Ecofys * EMBARQ, The WRI Center for Sustainable Transport * Energy Research Center Netherlands (ECN) * European Bank for Reconstruction and Development (EBRD) * European Cyclists' Federation (ECF) * European Institute for Sustainable Transport (EURIST)* First African Bicycle Information (FABIO) *Fia Foundation *Fraunhofer- Institute for Systems and Innovation Research (ISI)* Global Environmental Facility (GEF) * Global Transport Knowledge Partnership (gTKP) * Global Urban Development (GUD) *Green Mobility *Health Bridge * HSBC * Innovation for Center for Energy and Transportation (iCET) *International Council Local Environmental Initiatives (ICLEI) *Institute for Global Environmental Strategies (IGES) * Institute of Urban Transport India (IUTI)* Institute for Transport Policy Studies (ITPS)* Institute for Transport and Development Policy (ITDP) * Institute of Transport Studies (ITS), University of California, Davis * Inter-American Development Bank (IDB) * International Association for Public Transport (UITP) * International Energy Agency (IEA) * International Road Assessment Program (iRAP) *International Road Federation (IRF)* International Transport Forum (ITF) * International Union for the Conservation of Nature (IUCN) * International Union of Railways (UIC) * Korean Transport Institute (KOTI) *Mobility Magazine * National Center for Transportation Studies (NCTS), Philippines *Nordic Development Fund *Renewable Energy and Energy Efficiency Partnership (REEEP) * Society of Indian Automotive Manufacturers (SIAM) * Stockholm Environment Institute (SEI) *Sustainable Transport Africa *Tehran Urban and Suburban Railway Operation Company (TUSROC) * The Energy and Resources Institute (TERI) * Transport and Environment (T+E) * Transport Research Laboratory (TRL) * Uganda Road Sector Support Initiative *United Nations Center for Regional Development (UNCRD) * United Nations Department for Economic and Social Affairs (UN-DESA) * United Nations Development Program (UNDP) * United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) * United Nations Economic Commission for Europe (UNECE) * United Nations Economic Commission for Latin America (CEPAL) * United Nations Human Settlement Program (UN-HABITAT)* University College of London, Department of Civil, Environmental and Geomatic Engineering * University of Transport and Communication (UTCC) Hanoi * University of Twente/ITC-Department of Urban and Regional Planning (UTC) * VEOLIA Transport * Victoria Transport Policy Institute * Volvo Research and Education Foundations (VREF) *Walk 21 *World Bank * World Business Council on Sustainable Development (WBCSD) * World Health Organization(WHO) *World Streets * Wuppertal Institute for Climate, Environment and Energy * WWF International *Youth for Road Safety (YOURS)

Mission: Integrate Sustainable Transport in Global Policies on Sustainable Development and Climate Change

The SLoCaT Foundation Established with sole objective to support the SLoCaT Partnership in achieving its objectives Registered in the Netherlands – supervised by a nine-person Board Secretariat based in Shanghai, China

Diamond Supporters

Platinum Supporters

Gold Supporters

Paradigm shift on development of Transport

Predict and Provide Build Roads to promote

economic and social development

Road safety 1.3 million

deaths

Air Pollution 3 million deaths

(large part transport)

Climate change – transport GHG fast growing

Access not inclusive – large groups no

access (urban and rural)

Negative externalities of old paradigm: 6-10% of GDP at least 50 Trllion USD up to 2030

Congestion

Access: (Avoid + Shift + Improve)

Expand/Improve Transport

infrastructure and services

Avoid unnecessary motorized transport

Shift Transport to most effective mode

(people and goods)

Improve environmental performance

transport : + +

Then

Now

Economic benefits of new paradigm: 70 Trillion USD up to 2050 (International Energy Agency/2012) -100+ Trillion USD up to 2050 (ITDP/ 2014)

Funding needs for Transport

Trillions are needed not Billions !

It is unrealistic for limited public sector funding to provide needed investments within the required timeframe, even if complemented by contributions from end users, official development assistance, and climate finance

Asian Cities have a Mass Transit Deficit

Asian Transport Ministers Meeting, November 2013

Global Agreement on Sustainable Development or Climate Change without means of implementation is NOT a good agreement

Proposed Round Tables on Private Sector Financing for Sustainable Transport

• Planned round table, facilitated by EBRD Date: 25 March, 2015 Location: London

• Planned round table, facilitated by Konrad Adenauer Foundation Date: May/ June, 2015 Location: Shanghai

• Round table, Latin America – CAF Date: TBD Location: TBD

• Round table, Africa Location: TBD Date: TBD

• PPP units in emerging and developing countries • MDBs and bilateral development organizations, • Climate finance institutions under the UNFCCC, or outside the

convention, • Private sector organizations that are implementing transport

projects in developing and emerging countries; • Private sector financial institutions, often banks, that are already

funding transport • Institutional investors, which so far have a limited involvement in

funding transport projects in developing countries; • Knowledge providers and process facilitators on private sector

financing of sustainable transport; and • Advocacy organizations on sustainable transport

Key Stakeholders for Private Sector Financing Round Tables

Themes for First London Round Table on Sustainable Urban Transport (1)

• Current Status/Trends of Private Sector Financing Sustainable Urban Transport – private sector involvement helping with the

delivery of the ideal of integrated transport with ‘seamless’ accessible transit journeys

– the scale of current funding needs for sustainable urban transport, and how must current funding flows be modified to meet future investment needs

Themes for First London Round Table on Sustainable Urban Transport (2)

• Defining incentives for optimal private sector involvement in sustainable urban transport – role of the public sector in creating incentives to attract

private sector involvement – Differences between private sector stakeholders (public

sector banks, private sector banks, and institutional investors) – implications PPP Units, MDBs, etc.

– ‘private’ component of infrastructure PPPs is not always private

– risk reduction strategies (e.g. credit enhancement, asset securitization) be applied to enhance the quantity and quality of PPPs on sustainable urban transport

Themes for First London Round Table on Sustainable Urban Transport (3)

• Can global processes on climate change and sustainable development accelerate private sector involvement in sustainable transport finance – post-2015 agenda and SDGs be used to define transport

projects in a different manner, different assessment methodology – monetizing social benefits (reduced air pollution, improved safety)

– lessons learned from the social sector for delivering transport PPPs based on non-traditional benefits

– How to use growing climate finance in best manner to catalyze sustainable urban transport

– If sustainable transport is to move forward, do we need more of the same kind of projects, or must we increase range/breadth (e.g. pathfinder PPPs)

Themes for First London Round Table on Sustainable Urban Transport (4)

• Optimal strategies to facilitate scaling up private sector in financing of sustainable transport – roles of MDBs and bilaterals? – Project aggregation help to drive greater private sector

involvement (e.g. use of infrastructure funding facilities for transport, bond issuance) in sustainable urban transport?

– How to free up long-term MDB loans to allow faster re-investment (assuming sufficient institutional capacity) and spur transformational change?

– How can MDBs/IFIs/bilaterals leverage broader sources of capital (e.g. climate bonds, institutional investors) ?

“We need to change the way we plan our cities, the way we move goods and ourselves” SG Ban Ki-moon, October 2013

Thank you!

Cornie Huizenga cornie.huizenga@slocatpartnership.org