Financing Sustainable Transport for Green Cities

8/3/2019 Financing Sustainable Transport for Green Cities

1/19

Manila, Philippines 17 November 2011

Financing Sustainable Transport for Green CitiesLloyd Wright


2/19

ADBs 2020 targets

2000-2009

Roads Rail Water Air Urban

2020

Roads Rail Water Air Urban

78% road

30% urban

42% road

1% urban17% rail

25% rail

Percent of transport-sector loan portfolio


3/19

Sustainable Transport Initiative

1. Urban transport

2. Transport and climate

change

3. Logistics and cross-border

transport

4. Road safety and social

sustainability


4/19

Projects in the ADB pipeline

BRT projects in Dhaka, Jiangxi Jian, Lanzhou,

Pimpri-Chinchwad, UlaanbaatarMetro rail / LRT projects in Hanoi, Ho Chi Minh,

Tbilisi, Astana

Integrated urban transport in Kathmandu, Davao, Vientiane, Xian, Yerevan


5/19

$ TrillionsInvestment need for a sustainable transport transformation

Financial realities

$ BillionsDevelopment assistance

$ Millions

Carbon finance


6/19

Leveraging value for sustainable transport

Health CreditsFuel Security Credits Carbon

Credits

Land Value Capture

Fuel LeviesParking LeviesCongestion Pricing

Road Safety Credits

Funding

Sustainable

Transport


7/19

Transport as a

percent of projectsunder climate

change mechanisms:

0.1%To scale up

sustainable

transport initiatives,carbon markets

alone are insufficient


8/19

Fuel SecurityCredits


9/19

Energy security

as a globalconcernand an

opportunity


10/19

Transport and

urban planning

Heating

Industry

Power

generation

Fuel (and

Savings)

Fuel Security Credit concept

Reduced reliance on importedoil

Energy SecurityAttributes

FuelSecurity

Credits

e.g. Avoided SO2, NOx, GHG

emissions

EnvironmentalAttributes

NOx/SO2

trading; Carbon

Credits


11/19

Pilot Fund

Mechanism type:Offset

Target fund size:

US$ 75 million

No. of cities to be awarded:

2 3 cities

Start date:

Late 2012


12/19

Pilot Fund structure

Developing Nation

Low levels of fixed infrastructure Low-cost fuel reductions

Developed Nation High levels of fixed

infrastructure

High-cost fuel reduction

Baseline and credit mechanism

Management Entity

Global fuel price

reduction / price

volatility reduction

Investment

Investment

FuelSecur

ity

Credits

Developing-nation

City in Asia and the

Pacific


13/19

Health Credits


14/19

Capturing health benefits

Health insurance and auto

insurance firms benefit

financially from sustainable

transport measures that

reduce fatalities, injuries,

and illness


15/19

Value Aspects of Health Credits

Accidents Injuries Deaths

Work day losses

Productivity losses

Vehicle and property

damage

Noise Illness

Productivity losses

Air Contaminants Asthma Other respiratory disease

Respiratory infections

Trachea, bronchus, lung cancers

Cardiovascular disease

Stroke and heart attacks

Lifestyle Obesity

General fitness


16/19

Capturing health benefits

Investment firm

Savings from reduced

accident payouts and

reduced medical payouts

Investment firmInsurance

firms

e.g. 50% e.g. 50%


17/19

Creating a Sustainable

Transport Funding Stream

Mechanism Example of potential

income for a large

Asian city (US$ / yr)

Carbon credits 35 million

Fuel Security Credits 100 million

Health Credits 20 million

Congestion Charge 75 million

Parking Levy 50 million

Land Value Capture 100 million

Fuel Levy 125 million

Total US$ 500 million

* Indicative figures only


18/19

ADB contacts

East Asia

Tyrrell Duncan

South AsiaTeresa Kho

Southeast Asia

James Lynch

Central and West Asia

Ramesh Subramaniam

Pacific

Robert Guild

Sustainable Transport Initiative

Jamie [email protected]

Lloyd Wright

[email protected]

Ko Sakamoto

[email protected]


19/19

Thank [email protected]

Financing Sustainable Transport for Green Cities

Documents

Transcript of Financing Sustainable Transport for Green Cities