Leveraging the impact of climate finance through MDBs Ko Sakamoto Transport Economist Asian Development Bank

Source: M. Breithaupt Content 1. MDBs and sustainable transport 2. Climate finance: The experience so far 3. Maximizing future opportunities through NAMAs

Source: M. Breithaupt Content 1. MDBs and sustainable transport

MDB joint statement + voluntary commitment

The commitment $175 billion

Congestion

Air pollution

Severance

Climate change

Copyright Ko Sakamoto Road safety

Sustainable Transport = accessible, affordable, efficient, financially sustainable, environment friendly, safe MDBs have been changing to focus on ST Background to the commitment

Priority areas: 1.Urban transport 2.Transport and climate change 3.Logistics and cross- border transport 4.Road safety and social sustainability ADB’s Sustainable Transport Initiative

2% 21% 30% 17% 19% 25% 78% 57% 42% Urban Railway Road Progress so far

Implementing the commitment

Source: M. Breithaupt Content 2. Climate finance: The experience so far

Climate finance Source: ITDP, 2010, based on UNFCCC (2007) and Bakker and Huizenga (2010) Global transport investments by source of finance in annual terms (US$ bn) Climate finance for transport

Example: CDM for BRT

Source: M. Breithaupt Example: GEF for public transport GEF Program supporting public transport projects in: Bangladesh Mongolia PRC

STI lending examples – Ulaan Baatar BRT BRT Before After

The experience so far Climate finance has: Helped elevate project profile Allowed innovative features Helped make the case for projects But with: Heavy transaction costs Uncertainty Administrative challenges

Source: M. Breithaupt Content 3. Maximizing future opportunities through NAMAs

Nationally Appropriate Mitigation Action NAMA Supports competitiveness Reduces traffic accidents Reduces air pollution Relieves congestion Reduces GHGs from the baseline…. In a measurable way Often referred to as Co-benefits Reduces poverty “MRV” NAMAs put climate finance in appropriate context of development

Source: M. Breithaupt NAMAs vs CDM Source: Van der Tak (2013)

Submitted NAMAs NAMAs in preparation Actions not referred to as NAMAs Tip of the iceberg

Highlight opportunities Measure (MRV) Match with finance, technology, knowledge Copyright Ko Sakamoto Homework ahead

Guidance to policy makers on what can be T- NAMAs Ensure transport ministries and local governments are engaged in NAMA formulation Learn from best practices within and outside of the region (south-south transfer) Ensure supportive policy framework is in place (e.g. legislation and institutions) Highlight opportunities

MRV is key to make a low carbon transport project/policy a NAMA! Ensure MRV requirements do not restrict efforts in the sector Policy identification and programming Measure (MRV)

Further develop transport sector compatible tools/methodologies to MRV transport NAMAs. ADB working on:  Transport Emissions Evaluation Model for Projects (TEEMP)  Methodologies for public transport Policy identification and programming Measure (MRV)

Policy identification and programming Measure (MRV) Economic Environmental 12.GHG emissions 13.Transport-related emissions & pollution 14.Natural & built environment 15.Resource efficiency 16.Climate resilience 1.Movement of people 2.Movement of goods 3.Quality & reliability 4.Fiscal burden 5.Employment 6.Wider economic benefits: cross-border, urban, rural Social 7.Basic accessibility 8.Affordability 9.Inclusion 10.Social cohesion 11.Safety, security & health Risk to Sustainability 17.Design & evaluation risk 18.Implementation risk 19.Operational risk

Work to improve quality and quantity of data ADB working on improving data in Asia and the Pacific Policy identification and programming Measure (MRV)

Role of MDBs: – Provide scaled-up finance – Promote technology and knowledge transfer Amplify impacts of climate finance Match with finance, technology, knowledge

Thanks for your attention! Ko Sakamoto Transport Economist Asian Development Bank