Download Expanding the Role of the Private Sector for Investment in... Carbon Transport Modes Asia-Pacific Forum on Public-Private Partnerships for Transport

Expanding the Role of the Private Sector for Investment in Sustainable, Low
Carbon Transport Modes
Asia-Pacific Forum on Public-Private Partnerships for Transport
Infrastructure Development, Bangkok, Thailand
21-22 January 2015
Cornie Huizenga, Secretary General
Partnership on Sustainable Low Carbon Transport
www.slocat.net
The SLoCaT Partnership
90+ Members: International Organizations – Government
– Development Banks – NGOs – Private Sector - Academe
African Development Bank (AfDB) *African Transport Policy Program (SSATP) *Alliance to Save Energy *Asian Development Bank
(ADB) *CAF-Development Bank of Latin America * Cambridge Systematics * 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 (CUSTReC) * Civic Exchange (CE) *Clean Air Asia (CAI-Asia)* Clean Air Institute (CAI) *Climate Focus
*CODATU * Despacio *Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) * Dutch Cycling Embassy * Ecofys *
EMBARQ, The WRI Center for Sustainable Transport * Energy Research Center Netherlands (ECN) * European Bank for
Reconstruction and Development (EBRD) * European Cyclists' Federation (ECF) * European Institute for Sustainable Transport
(EURIST)* First African Bicycle Information (FABIO) *Fia Foundation *Fraunhofer- Institute for Systems and Innovation Research
(ISI)* Global Environmental Facility (GEF) * Global Transport Knowledge Partnership (gTKP) * Global Urban Development (GUD)
*Green Mobility *Health Bridge * HSBC * Innovation for Center for Energy and Transportation (iCET) *International Council Local
Environmental Initiatives (ICLEI) *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 of
Transport Studies (ITS), University of California, Davis * Inter-American Development Bank (IDB) * International Association for
Public Transport (UITP) * International Energy Agency (IEA) * International Road Assessment Program (iRAP) *International Road
Federation (IRF)* International Transport Forum (ITF) * International Union for the Conservation of Nature (IUCN) * International
Union of Railways (UIC) * Korean Transport Institute (KOTI) *Mobility Magazine * National Center for Transportation Studies
(NCTS), Philippines *Nordic Development Fund *Renewable Energy and Energy Efficiency Partnership (REEEP) * Society of Indian
Automotive Manufacturers (SIAM) * Stockholm Environment Institute (SEI) *Sustainable Transport Africa *Tehran Urban and
Suburban Railway Operation Company (TUSROC) * The Energy and Resources Institute (TERI) * Transport and Environment
(T+E) * Transport Research Laboratory (TRL) * Uganda Road Sector Support Initiative *United Nations Center for Regional
Development (UNCRD) * United Nations Department for Economic and Social Affairs (UN-DESA) * United Nations Development
Program (UNDP) * United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) * United Nations Economic
Commission for Europe (UNECE) * United Nations Economic Commission for Latin America (CEPAL) * United Nations Human
Settlement Program (UN-HABITAT)* University College of London, Department of Civil, Environmental and Geomatic Engineering
* University of Transport and Communication (UTCC) Hanoi * University of Twente/ITC-Department of Urban and Regional
Planning (UTC) * VEOLIA Transport * Victoria Transport Policy Institute * Volvo Research and Education Foundations (VREF)
*Walk 21 *World Bank * World Business Council on Sustainable Development (WBCSD) * World Health Organization(WHO)
*World Streets * Wuppertal Institute for Climate, Environment and Energy * WWF International *Youth for Road Safety (YOURS)
Mission: Integrate Sustainable Transport in Global Policies on
Sustainable Development and Climate Change
The SLoCaT Foundation
Established with sole objective to support the SLoCaT
Partnership in achieving its objectives
Registered in the Netherlands – supervised by a nineperson Board
Secretariat based in Shanghai, China
Diamond
Supporters
Platinum
Supporters
Gold
Supporters
Paradigm shift on development of Transport
Predict and Provide
Build Roads to promote
economic and social
development
Road safety
1.3 million
deaths
Air Pollution
3 million
deaths
(large part
transport)
Climate
change –
transport
GHG fast
growing
Congestion
Then
Access not inclusive –
large groups no
access
(urban and rural)
Negative externalities of old paradigm:
6-10% of GDP at least 50 Trllion USD up to 2030
Access: (Avoid + Shift + Improve)
Expand/Improve
Transport
infrastructure and
services
:
Avoid unnecessary
motorized transport
+
Now
Shift Transport to most
effective mode
(people and goods)
+
Improve
environmental
performance
transport
Economic benefits of new paradigm:
70 Trillion USD up to 2050 (International Energy Agency/2012) -100+ Trillion USD up to 2050 (ITDP/ 2014)
Funding needs for Transport
Trillions are needed not Billions !
Asian Cities have a Mass Transit Deficit
Asian Transport Ministers Meeting, November 2013
It is unrealistic for limited public sector
funding to provide needed investments
within the required timeframe, even if
complemented by contributions from end
users, official development assistance,
and climate finance
Global Agreement on Sustainable Development or Climate Change
without means of implementation is NOT a good agreement
Proposed Round Tables on Private Sector
Financing for Sustainable Transport
• Planned round table, facilitated by EBRD
Date: 25 March, 2015
Location: London
• Planned round table, facilitated by Konrad Adenauer
Foundation
Date: May/ June, 2015
Location: Shanghai
• Round table, Latin America – CAF
Date: TBD
Location: TBD
• Round table, Africa
Location: TBD
Date: TBD
Key Stakeholders for Private Sector
Financing Round Tables
• PPP units in emerging and developing countries
• MDBs and bilateral development organizations,
• Climate finance institutions under the UNFCCC, or outside the
convention,
• Private sector organizations that are implementing transport
projects in developing and emerging countries;
• Private sector financial institutions, often banks, that are already
funding transport
• Institutional investors, which so far have a limited involvement in
funding transport projects in developing countries;
• Knowledge providers and process facilitators on private sector
financing of sustainable transport; and
• Advocacy organizations on sustainable transport
Themes for First London Round Table
on Sustainable Urban Transport (1)
• Current Status/Trends of Private Sector
Financing Sustainable Urban Transport
– private sector involvement helping with the
delivery of the ideal of integrated transport with
‘seamless’ accessible transit journeys
– the scale of current funding needs for sustainable
urban transport, and how must current funding
flows be modified to meet future investment
needs
Themes for First London Round Table
on Sustainable Urban Transport (2)
• Defining incentives for optimal private sector
involvement in sustainable urban transport
– role of the public sector in creating incentives to attract
private sector involvement
– Differences between private sector stakeholders (public
sector banks, private sector banks, and institutional
investors) – implications PPP Units, MDBs, etc.
– ‘private’ component of infrastructure PPPs is not always
private
– risk reduction strategies (e.g. credit enhancement, asset
securitization) be applied to enhance the quantity and
quality of PPPs on sustainable urban transport
Themes for First London Round Table
on Sustainable Urban Transport (3)
• Can global processes on climate change and sustainable
development accelerate private sector involvement in sustainable
transport finance
– post-2015 agenda and SDGs be used to define transport
projects in a different manner, different assessment
methodology – monetizing social benefits (reduced air
pollution, improved safety)
– lessons learned from the social sector for delivering transport
PPPs based on non-traditional benefits
– How to use growing climate finance in best manner to catalyze
sustainable urban transport
– If sustainable transport is to move forward, do we need more of
the same kind of projects, or must we increase range/breadth
(e.g. pathfinder PPPs)
Themes for First London Round Table
on Sustainable Urban Transport (4)
• Optimal strategies to facilitate scaling up private sector in
financing of sustainable transport – roles of MDBs and
bilaterals?
– Project aggregation help to drive greater private sector
involvement (e.g. use of infrastructure funding facilities for
transport, bond issuance) in sustainable urban transport?
– How to free up long-term MDB loans to allow faster reinvestment (assuming sufficient institutional capacity) and
spur transformational change?
– How can MDBs/IFIs/bilaterals leverage broader sources of
capital (e.g. climate bonds, institutional investors) ?
“We need to change
the way we plan our
cities, the way we
move goods and
ourselves”
SG Ban Ki-moon, October 2013
Thank you!
Cornie Huizenga
[email protected]