Cornie Huizenga, Joint Convener, SLoCaT Partnership

“Financing of sustainable, low carbon transport in developing countries: improving existing instruments and creating new

instruments”Next Steps after Copenhagen: Opportunities and Challenges in the

Transport SectorTransforming Transportation 2010

The SLoCaT PartnershipImprove the knowledge on sustainable, low carbon

transport, help develop better policies and catalyze their implementation

50 Members: International Organizations – Government – Development Banks – NGOs – Private Sector - Academe

African Development Bank (AfDB) * Asian Development Bank (ADB) * Corporación Andina de Fomento (CAF) *Believe Sustainability * 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 * Civic Exchange (CE) * Clean Air Initiative for Asian Cities (CAI-Asia) Center * Clean Air Institute (CAI) * German Technical Cooperation (GTZ) * EMBARQ, The WRI Center for Sustainable Transport * Energy Research Center Netherlands (ECN) * Fraunhofer- Institute for Systems and Innovation Research (ISI)* Global Environmental Facility (GEF) * Global Transport Knowledge Partnership (gTKP) * Inter-American Development Bank (IDB) * Interface for Cycling Expertise (I-CE) * International Association for Public Transport (UITP * International Energy Agency (IEA) * International Transport Forum (ITF) * International Union for the Conservation of Nature (IUCN) * International Union of Railways (UIC) * 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 for Transport and Development Policy (ITDP) Europe * Institute of Transport Studies (ITS), University of California, Davis * Korean Transport Institute (KOTI) * Ministry of Land Infrastructure Transport and Tourism, Japan * Mobility Magazine* National Center for Transportation Studies (NCTS), Philippines * Rockefeller Foundation * Society of Indian Automotive Manufacturers (SIAM) * Stockholm Environment Institute (SEI) * The Energy and Resources Institute (TERI) * Transport and Environment (T+E) * Transport Research Laboratory (TRL) * United Nations Center for Regional Development (UNCRD) * United Nations Department for Economic and Social Affairs (UN-DESA) * United Nations Environment Program (UNEP) * University College of London, Department of Civil, Environmental and Geomatic Engineering * University of Transport and Communication (UTCC) Hanoi * VEOLIA Transport * World Street * WWF International

SLoCaT meeting Work Plan 2010-2011

Saturday (tomorrow) 16 January09.00 -12.00

EMBARQ/WRI office10 G street NE, Suite 800

04/10/23 504/10/23 5

Dhaka, Bangladesh

Photo: Karl Fjellstrom

Beijing, China

Photo: Cornie Huizenga

Hanoi, Vietnam

Photo: Cornie Huizenga

Scale and Impact: We need a global 50% CO2 cut by 2050

0

10

20

30

40

50

60

70

2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

CO

2 e

mis

sio

ns

(G

t C

O2

/yr)

BLUE Map emissions 14 Gt

Baseline emissions 62

WEO 2007 450 ppm New ETP2008 analysis

Power

Industry

Buildings

Transport

IEA ETP 2008

“Given the role that transport plays in causing greenhouse gas emissions, any serious action on climate change will zoom in on the transport sector”Yvo de Boer, Executive Secretary UNFCCC, January 2009

Energy Subsidies in 2007

Utilization Current Transport Funding Development Banks

Roads 87%

UrbanTrans.9%

Ports 1%

Waterways 0.5%

Airports 1.5%

Railroads 1%

Inter-American Development Bank World Bank

Asian Development Bank

Imbalance between current transport emissions and dedicated carbon funding

for Transport

• Transport 13% of total global GHG emissions and 23% of energy related CO2 emissions

• Transport so far 0.2% of carbon funding under Clean Development Mechanism and less than 10% of Climate Investment Fund.

Indicative Future Transport and Climate Funding

Range Assumptions

GEF current

CIF/CTF (phase 1)

Climate Fund 2010 - 2012

Copenhagen Climate Fund 2020

Multilateral Development Banks

National Investments - Asian Region- African Region- Latin American Region

The Challenge: Integrate emerging processes at all Levels

Funding Sustainable Low Carbon Transport in developing countries

Source: Ko Sakamoto

Funding and GHG assessment requirements

Size of funding GHG emission reduction assessment requirements

National and local funds

********** *

Development bank funding

***** **

Climate Funds- CDM- GEF- CIF/CTF

******

*********

Future Climate Funding- priorities for transport sector-

• Copenhagen:– US $ 30 billion: 2010 – 2012– US $ 100 billion per year by 2020

• Transport:– Lobby for the importance of transport– Develop funding packages– Modify appraisal methodologies (carbon

versus co-benefits)

Re-orient existing funding

• Restructuring of the transport sector requires comprehensive reorientation of existing transport funding and NOT creation of supplementary additional funding

Existing Transport Funding

Existing Transport FundingClimate Funds

Restructured Transport Funding

Lot of bad

projects

Many bad, some good

projects

Restructured portfolio

Key messages

• Transport needs to be a key part of future climate change mitigation policies

• Need to re-asses:– National transport funding and pricing– Development funding for transport– Carbon financing

• ODA will remain the most important external source of transport funding

• Restructure existing transport finance, do not create (limited) additional climate funds for transport

For more information:

Cornie HuizengaJoint Convener

Partnership on Sustainable Low Carbon Transport

cornie.huizenga@slocatpartnership.orgwww.slocat.net