Eight of the world’s largest multilateral development banks (MDBs) banks yesterday pledged to invest US$175 billion over the next 10 years to support sustainable transport in developing countries. The pledge was made at the UN Sustainable Development Conference in Rio de Janeiro (Rio+20) by the African Development Bank, Asian Development Bank, CAF- Development Bank of Latin America, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank, Islamic Developme
RSSEight of the world’s largest multilateral development banks (MDBs) banks yesterday pledged to invest US$175 billion over the next 10 years to support sustainable transport in developing countries. The pledge was made at the UN Sustainable Development Conference in Rio de Janeiro (Rio+20) by the:
Congestion, air pollution, road accidents and transport related climate change can cost 5-10% of GDP per year. The transportation sector is now the fastest growing source of greenhouse gases a result of decades of urban planning that focused on improving mobility for automobiles at the expense of public transport users, cyclists and pedestrians. This approach has made life much more difficult for people in cities, especially the urban poor.
“These unprecedented commitments have the promise to save hundreds of thousands of lives by cleaning the air and making roads safer; cutting congestion in hundreds of cities; and reducing the contribution of transportation to harmful climate change. They will create more efficient passenger and freight transportation, spurring sustainable urban economic growth,” said Joan Clos, executive director of UN-Habitat.
The voluntary commitments are an outcome of the Rio+20 campaign of the Partnership on Sustainable Low Carbon Transport (SLoCaT), a multi-stakeholder partnership including UN-organisations, MDBs and other development organisations, NGOs and business sector organisations. 16 additional voluntary commitments were made by 13 organisations on sustainable transport.
Calling the announcement a game changer for sustainable transport, Holger Dalkmann, director of2091 EMBARQ, the 4722 World Resources Institute’s centre for sustainable transport, said it will ensure that hundreds of millions of people will have cleaner air, less congested roads, and safer transportation.
“Ten years ago transportation wasn’t even in the discussion; now it’s a major outcome from the world’s preeminent conference on sustainable development,” Dalkmann said. “Banks are putting their money where it matters — on streets built for people, not just cars. The world’s population is expected to surpass nine billion by 2050, with more than half living in Asia, mostly in urban areas. At the same time, the rate of vehicle ownership is predicted to skyrocket from around 800 million cars a decade ago to around two billion in 2030. These two mega-trends are coming together to create an environment where people must compete for financial, institutional, and physical resources. In response, we need better urban designs; more sustainable transportation modes, like walking, biking and mass transit; and improvements in existing vehicle and fuel technology.
“This investment is not just about improving the way people move from point A to point B; it’s also about providing access and mobility for the poor and improving road safety, not to mention reducing transport-related greenhouse gas emissions. Transport is no small piece of the climate change pie: the sector represents approximately one-quarter of global CO2 emissions,” Dalkmann said, adding that the unprecedented announcement will no doubt encourage other decision-makers, especially national governments, to consider financing transport projects based on social and environmental benefits. It will push sustainability into the core of urban development.
“At the same time, we need to make sure that the money gets invested into the right kind of projects, and that there are sound mechanisms to measure its impact. This will require full transparency and independent monitoring,” Dalkmann pointed out.
“Countries often invest in transportation and infrastructure, but much of that goes into highways. We need to be smarter about where money flows, whether that means creating vibrant public spaces, providing safer infrastructure for pedestrians and cyclists, or building high-tech, low-cost transit systems. Doing this would be a paradigm shift in the way we finance the growth of sustainable cities, similar to what the Asian Development Bank has done with its Sustainable Transport Initiative, a lending and technical assistance programme for transport projects in Asia and the Pacific that emphasises inclusive economic and environmentally sustainable growth.”
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5980 African Development Bank
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2128 Asian Development Bank
- CAF -
5981 Development Bank of Latin America
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2001 European Bank for Reconstruction and Development
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4270 European Investment Bank
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5982 Inter-American Development Bank
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5983 Islamic Development Bank
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2000 World Bank.
Congestion, air pollution, road accidents and transport related climate change can cost 5-10% of GDP per year. The transportation sector is now the fastest growing source of greenhouse gases a result of decades of urban planning that focused on improving mobility for automobiles at the expense of public transport users, cyclists and pedestrians. This approach has made life much more difficult for people in cities, especially the urban poor.
“These unprecedented commitments have the promise to save hundreds of thousands of lives by cleaning the air and making roads safer; cutting congestion in hundreds of cities; and reducing the contribution of transportation to harmful climate change. They will create more efficient passenger and freight transportation, spurring sustainable urban economic growth,” said Joan Clos, executive director of UN-Habitat.
The voluntary commitments are an outcome of the Rio+20 campaign of the Partnership on Sustainable Low Carbon Transport (SLoCaT), a multi-stakeholder partnership including UN-organisations, MDBs and other development organisations, NGOs and business sector organisations. 16 additional voluntary commitments were made by 13 organisations on sustainable transport.
Calling the announcement a game changer for sustainable transport, Holger Dalkmann, director of
“Ten years ago transportation wasn’t even in the discussion; now it’s a major outcome from the world’s preeminent conference on sustainable development,” Dalkmann said. “Banks are putting their money where it matters — on streets built for people, not just cars. The world’s population is expected to surpass nine billion by 2050, with more than half living in Asia, mostly in urban areas. At the same time, the rate of vehicle ownership is predicted to skyrocket from around 800 million cars a decade ago to around two billion in 2030. These two mega-trends are coming together to create an environment where people must compete for financial, institutional, and physical resources. In response, we need better urban designs; more sustainable transportation modes, like walking, biking and mass transit; and improvements in existing vehicle and fuel technology.
“This investment is not just about improving the way people move from point A to point B; it’s also about providing access and mobility for the poor and improving road safety, not to mention reducing transport-related greenhouse gas emissions. Transport is no small piece of the climate change pie: the sector represents approximately one-quarter of global CO2 emissions,” Dalkmann said, adding that the unprecedented announcement will no doubt encourage other decision-makers, especially national governments, to consider financing transport projects based on social and environmental benefits. It will push sustainability into the core of urban development.
“At the same time, we need to make sure that the money gets invested into the right kind of projects, and that there are sound mechanisms to measure its impact. This will require full transparency and independent monitoring,” Dalkmann pointed out.
“Countries often invest in transportation and infrastructure, but much of that goes into highways. We need to be smarter about where money flows, whether that means creating vibrant public spaces, providing safer infrastructure for pedestrians and cyclists, or building high-tech, low-cost transit systems. Doing this would be a paradigm shift in the way we finance the growth of sustainable cities, similar to what the Asian Development Bank has done with its Sustainable Transport Initiative, a lending and technical assistance programme for transport projects in Asia and the Pacific that emphasises inclusive economic and environmentally sustainable growth.”
