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greenhouse gas emissions

Climate finance: why is transport getting the short end of the stick?

Shomik Mehndiratta's picture
Going nowhere fast... Photo: Simon Matzinger/Flickr
Climate change is a global challenge that threatens the prosperity and wellbeing of future generations. Transport plays a significant role in that phenomenon. In 2013, the sector accounted for 23% of energy-related carbon emissions… that amounts to some 7.3 GT of CO2, 3 GT of which originate from developing countries. Without any action, transport emissions from the developing world will almost triple to reach just under 9 GT of CO2 by 2050.

In previous posts, we’ve explored the policies that would maximize a reduction of transport emissions. But how do you mobilize the huge financial resources that are required to implement these policies?  So far, transport has only been able to access only 4.5% of Clean Development Mechanisms (CDM) and 12% of Clean Technology Funds (CTF). Clearly, the current structure of climate finance does not work for transport, and three particular concerns need to be addressed.

Why sustainable mobility matters

Hartwig Schafer's picture
Photo: Mariana Gil/WRI
In the 1960s, the vision of future mobility was people with jet packs and flying cars – we believed these innovations wouldn’t be far off after the moon landing in 1969. Obviously, the reality in 2017 is somewhat different.

Today, we have congestion in cities, rural areas cut off from the rest of the world, and too many people without access to safe, efficient, and green transport. This stifles markets and hinders people from the jobs that will help them escape poverty. Without access to sustainable mobility, it will be much harder—if not impossible— to end poverty and achieve the Sustainable Development Goals (SDGs).

And perhaps the most tragic reality is this: that approximately 1.3 million people die each year in traffic-related incidents. Young people, those between the ages of 15-29, are the most affected by road crashes. This heartbreaking and preventable loss of life should be a clear signal that road safety matters.

At the same time, how we change transport is vitally important and will impact generations to come.

Motorization and its discontents

Roger Gorham's picture
Photo: Sarah Farat/World Bank
They say a picture is worth a thousand words.  While visiting the World Bank library the other day, I was struck by how many development publications featured pictures of motor vehicles on their covers, even though most of them covered topics that had little to do with transport.  The setting and tone of the pictures varied – sometimes they showed a lone car on a rural highway, sometimes congested vehicles in urban traffic, and sometimes a car displayed proudly as a status symbol – but the prevalence of motorized vehicles as a visual metaphor for development was unmistakable to me: in the public imagination, consciously or otherwise, many people associate development with more use of motorized vehicles.

Indeed, motorization – the process of adopting and using motor vehicles as a core part of economic and daily life – is closely linked with other dimensions of development such as urbanization and industrialization.

Motorization, however, is a double-edged sword.

For many households, being able to afford their own vehicle is often perceived as the key to accessing more jobs, more services, more opportunities—not to mention a status symbol. Likewise, vehicles can unlock possibilities for firms and individual entrepreneurs such as the young man from Uganda pictured on the right, proudly showing off his brand new boda boda (motorcycle taxi). 

But motorization also comes with a serious downside, in terms of challenges that many governments have difficulty managing.  Motor vehicles can undermine the livability of cities by cluttering up roads and open spaces—the scene of chaos and gridlock in the picture below, from Accra, is a telling example. In addition, vehicles create significant safety hazards for occupants and bystanders alike… in many developing countries, road deaths have effectively reached epidemic proportions. From an environmental standpoint, motorized transport is, of course, a major contributor to urban air pollution and greenhouse gas emissions. Lastly, motorization contributes to countries' hard currency challenges by exacerbating their long-term demand for petroleum products.

Given these challenges, how are developing countries going to align their motorization trajectories with their development goals?  What should the World Bank advise our clients about how to manage this process?

Sustainable mobility: can the world speak with one voice?

Nancy Vandycke's picture

 
The transport sector is changing at breakneck speed.
 
By 2030, global passenger traffic is set to rise by 50%, and freight volume by 70%. By 2050, we will have twice as many vehicles on the road, with most of the increase coming from emerging markets, where steady economic expansion is creating new lifestyle expectations and mobility aspirations. Mega-projects like China’s One Belt, One Road could connect more than half of the world’s population, and roughly a quarter of the goods that move around the globe by land and sea.
 
These transformations create a unique opportunity to improve the lives and livelihoods of billions of people by facilitating access to jobs, markets, and essential services such as healthcare or education.
 
But the growth of the transport sector could also come at the cost of higher fossil fuel use and greenhouse gas emissions, increasing air and noise pollution, a growing number of road fatalities, and worsening inequities in access.
 
Although these are, of course, global challenges, developing countries are disproportionately affected.
 
The vast majority of the one billion people who still don’t have access to an all-weather road live in the developing world. Although low and middle-income countries are home to only 54% of the world’s vehicles, they account for 90% of the 1.25 million road deaths occurring every year. If we don’t take action now, transport emissions from emerging markets could triple by 2050, and would make up 75% of the global total.
 
While the case for sustainable mobility is evident, the sector still lacks coherence and clear objectives. There is a way forward, but it requires pro-active cooperation between all stakeholders.
 
That’s what motivated the creation of Sustainable Mobility for All (SuM4All), a partnership between a wide range of global actors determined to speak with one voice and steer mobility in the right direction.
 
SuM4All partners include Multilateral Development Banks, United Nations Agencies, bilateral organizations, non-governmental organizations, civil society organizations, and is open to other important entities such as national governments and private companies. Together, these organizations can pool their capacity and experience to orient policymaking, turn ideas into action, and mobilize financing.