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Back You are here: Home Politics Funding & Incentives Development banks investing $175 billion in low-emission transport

Funding & Incentives

Development banks investing $175 billion in low-emission transport

Eight of the world’s largest multilateral development banks pledged to invest $175 billion for the creation of sustainable transportation projects particularly in Asia and Africa over the next 10 years.

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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 Development Bank and the World Bank, made the announcement at the United Nations Conference on Sustainable Development at the Rio+20 Summit on June 20.

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Holger Dalkmann, director of Embarq, the World Resources Institute’s center for sustainable transport, called the fund a “game changer,” saying the world’s population is expected to surpass 9 billion by 2050, with more than half living in Asia, mostly in urban areas.

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The rate of vehicle ownership is predicted to skyrocket from around 800 million cars a decade ago to around 2 billion in 2030.

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Mr. Dalkmann said these population trends need responses such as better urban design; more sustainable transportation modes like walking, biking and mass transit; and improvements in existing vehicle and fuel technology.

“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,” Mr. Dalkmann added.

The banks project that between 2010 and 2020, developing countries in Asia will be needing more than $2.5 trillion in transportation funding while in Africa, $183 billion of investments are needed annually for clean transport projects. – EcoSeed Staff

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