Readiness for Transport Climate Finance: A framework for preconditions to access climate finance in the transport sector

摘要

The transport sector is the leading source of energy-related greenhouse gasemissions. Yet, financing to mitigate climate change impacts—flows dubbed“climate finance”—are clearly not sufficient to meet the challenge of fundingtransport projects, which require significant up-front investments and incur costsover longer time periods than other comparable assets. In order to successfullyleverage climate finance, prospective recipients must ensure that local conditionsreflect the capability to plan for, access, and operationalize financing, and tomonitor and report on impacts. These conditions, defined broadly as “readiness”,apply to the roles of governments, institutional stakeholders, and the privatesector, as well as to local resources and market conditions. This paper analysesthe capacities and actions that are needed to successfully utilize climate finance,demonstrating that there are seven broad categories of preparedness which enablethe development of low-carbon transport. It concludes that recipient countries thatfocus on readiness stand to benefit not only from well-leveraged climate financebut from broader sustainable development impacts as well.