[sustran] Experts Call For Urgent Transport Financing Changes ASAP

[Michael Kodransky]

PRESS RELEASE AND MEDIA ADVISORY

Contact:  Michael Replogle, ITDP in Bangkok +1(301)529-0351
mreplogle at itdp.org
Stephanie Lotshaw, ITDP in New York +1(212)629-8001 slotshaw at itdp.org
Ko Sakamoto, TRL in London +44 (0) 7827 890804 ksakamoto at trl.co.uk

Experts Call For Urgent Transport Financing Changes ASAP

(Bangkok, Thailand August 23, 2010) At a meeting today of top transportation
and environment leaders from two dozen governments across Asia, key experts
said changes in how transport is financed are essential if cities and
nations are to deal effectively with the rapid growth in motor vehicle
traffic and related environmental and health problems, including climate
change.

“Current transport financing practices are unfit to meet 21st century
needs,” Michael Replogle, Global Policy Director and Founder of the
Institute for Transportation and Development Policy (ITDP). “As much as $700
billion is spent annually subsidizing motor fuels, while hundreds of
billions more in public and global aid funds subsidize the growing use of
cars,” he said. “This comes at the expense of investments in more pressing
human needs for modern bus rapid transit, streets safe for walking and
cycling, quality public space, as well as health, housing, and education,”
he said.


As documented in a report by the Transport Research Laboratory released
today by ITDP and the Partnership for Sustainable Low Carbon Transport, over
$1.5 trillion is spent annually on transport globally, mostly in ways that
exacerbate rather than solve the problems associated with traffic growth,
including congestion, health-harming air pollution, accidents, energy
insecurity, and climate change. The report outlines financing changes that
will enable developing nations to achieve more sustainable, affordable, and
equitable approaches to transportation. “These steps can help others avoid
costly mistakes made by the world’s most car-dependent cities, like Houston,
which will face growing challenges in a carbon-constrained world,” said
Replogle. “Other cities, from Copenhagen, Madrid, and Berlin, to Singapore,
Guangzhou, and Bogota are demonstrating more effective paths to transport
system modernization.”

“Incentives, financial support, and national support programs, as India’s
Jawaharlal Nehru National Urban Renewal Mission, can enable cities to
address transport challenges and spur sustainable development. Such programs
can help move towards more integrated transport policies and planning that
is less biased in favor of motor vehicle travel,” said James Leather of the
Asian Development Bank.

“This report shows domestic public finance, official development assistance,
and private investment flows now overwhelmingly favor rapid motorization.
The modest growing resources contributed by global carbon finance programs
must leverage shifts in these much larger transport financial flows if they
are to be effective,” said Manfred Breithaupt of German Technical
Cooperation/GTZ.

“Improved access for the transport sector to climate finance under the Clean
Development Mechanism, the Global Environment Facility or newly established
funds like the Climate Investment Fund can help the transport sector
accelerate the replication and scaling up of sustainable, low carbon
policies, programs and projects as well as promote transfer of low carbon
transport services and technology,” said Heather Allen of the International
Union of Public Transport Authorities (UITP). “This makes it also important
to ensure that transport is included in a new climate agreement to be
reached in the UNFCCC conferences in Cancun 2010 or Johannesburg 2011,
enabling international support to developing countries undertaking
Nationally Appropriate Mitigation Actions,” she said.

The report, A Paradigm Shift Towards Sustainable Low Carbon Transport:
Financing the Vision
ASAP<http://www.itdp.org/documents/A_Paradigm_Shift_toward_Sustainable_Transport.pdf>,
outlines key steps in financing reform: to Analyze impacts, Shift existing
resources towards a sustainable direction, Add funding where resources are
still lacking, and restructure pricing incentives so users Pay for the full
costs of transport consumption, identifying measures to be taken by public,
private, and international organizations. The report authors, Ko Sakamoto,
Holger Dalkman, and Derek Palmer, of the Transport Research Laboratory, are
noted global experts in transport and environmental policy.

The report will be released at the Fifth Regional EST Forum in Asia, which
seeks to adopt sustainable transport goals for the coming decade, at a
plenary session at 10:30 am to noon. Experts will be available for questions
immediately after the session in the Riverside VII room at the Royal Orchard
Sheraton Hotel, Bangkok, the venue for the Fifth Regional EST Forum in Asia.

The Institute for Transportation and Development Policy is a leading
international non-profit organization founded in 1985 that promotes
environmentally sustainable and equitable transportation worldwide. See
http://www.itdp.org.

The Partnership for Sustainable, Low Carbon Transport is a voluntary,
multi-stakeholder partnership of over 50 organizations registered with the
Commission on Sustainable Development and which have agreed to work together
to advance sustainable, low carbon transport. Members include the Asian
Development Bank, InterAmerican Development Bank, African Development Bank,
German Technical Cooperation/GTZ, UITP, ITDP, International Energy Agency,
The Energy and Resources Institute, Clean Air Initiative for Asian Cities
Center, UN Center for Regional Development, UN Department of Economic and
Social Affairs, UN Environment Programme, Korean Transport Institute,
Japanese Ministry of Land Infrastructure Transport and Tourism, Ahmedabad
Centre for Environment Planning & Technology, Institute for Transport Policy
Studies, Philippines National Center for Transportation Studies, and
Rockefeller Foundation. See http://www.slocat.net.