Financing sustainable urban transport infrastructure Dorothée Coucharrière, DG Move C1 JldFE 2015- November 5th, 2015 Brussels TOWARDS A NEW CULTURE FOR URBAN MOBILITY

Main problems to fix 1) Energy supply at risk Oil accounts for 94% of transport fuels, causing an enourmous EU import bill of up to one billion Euros a day. 2) GHG emissions reduction necessary According to the White Paper on Transport 2011, the sector has to reduce 60 % of its CO2 emissions by 2050 (benchmark 1990). 3) Air quality and congested infrastructure New and clean forms of mobility need to be established. 4) Competitiveness of EU industry Growth and jobs can be created by restoring world leadership of the EU transport industry.

Policy drivers The 2011 Transport White Paper - Two 'urban' goals Phase out the use of conventionally fuelled cars in cities by 2050 Towards "zero emission" city logistics in major urban centres by 2030 Urban Mobility Package -2013 Promotion of Sustainable Urban Mobility Plans (SUMP's): Urban Logistics, Urban ITS, Urban access regulations, Urban Road safety Directive for the deployment of alternative fuels infrastucture-2014: national plans for the deployment in urban areas for CNG refuelling points and electric recharging point by 2020 The 2030 Climate and Energy policy framework: “comprehensive and technology neutral approach for the promotion of emissions reduction and energy efficiency in transport, for electric transportation and for renewable energy sources in transport also after 2020". The Energy Union package Feb 25th, 2015: "tightening CO₂ emission standards for passenger cars and vans post-2020, and on measures to increase fuel efficiency and reduce CO₂ emissions for heavy duty vehicles and buses";"Electrification of transport […] especially for road (short and medium distance) and rail transport." "The Commission will take further action to create the right market conditions for an increased deployment of alternative fuels and to further promote procurement of clean vehicles".

Urban nodes Connecting Europe Facility (CEF)

Financing innovative urban infrastructure in Europe Connecting Europe Facility (CEF) with 'urban nodes’ and 'innovation': grant schemes and Innovative Financial Instruments (26 bn€ for TEN-T for 2014-2020): networks, cross-border infrastructure, urban nodes, innovation of which 11 bn€ comes from Cohesion Funds. TEN-T guidelines - Article 30 – "urban node": means an urban area where the transport infrastructure of the trans-European transport network, such as ports including passenger terminals, airports, railway stations, logistic platforms and freight terminals located in and around an urban area, is connected with other parts of that infrastructure and with the infrastructure for regional and local traffic; TEN-T guidelines - Article 33- "innovation" : to support and promote the decarbonisation of transport through transition to innovative and sustainable transport technologies […] by stimulating energy efficiency, introduce alternative propulsion systems, including electricity supply systems, and provide corresponding infrastructure… TENT A.1 (P) The capital city of each EU Member State and cities with EU capital function; A.2 (P) Every "Metropolitan European Growth Area" (MEGA in the ESPON9 Atlas 2006; A.3 (P) A conurbation or city cluster which, including the corresponding environs as defined by the corresponding LUZ ("Larger Urban Zones", according to Urban Audit and EUROSTAT) exceeds 1 million inhabitants; A.4 (P) The main city of an island or a of group of islands forming a NUTS 1 region with at least 1 million inhabitants; (Some 8 billion Euros between 2007-2013 Negotiate Partnership Agreement and OPs (ESI) Accompanying measures to ensure the intended results Investments in urban mobility should be accompanied by additional measures to ensure a broad take up of supported new transport systems. Only the construction/set up of systems is not sufficient to achieve the intended results of a project. Therefore, targeted incentives or specific dissuasive measures to ensure their competitiveness and attractiveness should be considered and undertaken. These are necessary to avoid the risk of investing in systems or infrastructure which are not used or severely underused leading to waste of public funding and excessive financial burden on the municipalities which are supposed to maintain them. If measures like the change of bus lines/schedules (to encourage the take-up of a city rail), price related incentives or others are designed e.g., they should be part of the overall mobility strategy of a city and if relevant, be communicated well in advance to the public in the frames of an information campaign (e.g. to inform car and public transport users about the system and enforcement aspects). Financial sustainability of urban public transport/mobility investments should be ensured.

Urban nodes : link between long-distance and last-mile Importance of urban dimension in TEN-T: 80% EU GDP is generated in urban areas 73% EU population live in urban areas. First and last mile Most passenger journeys start and end in urban areas e.g. links to stations and airports, journey planning, ticketing, information, assistance, people with special needs. Urban freight are often part of international/national supply chains – first and last mile disproportionally expensive.

Through journeys across urban areas Links between corridors: Passengers – infrastructure, services, information, tickets. Freight – infrastructure, ICT Links between modes: - Passengers – infrastructure, information, tickets, facilities, liability - Freight – logistics centres, integrated services Integration of physical infrastructure and: - Levels of government - Neighbouring administrative districts - Public and private actors - Modes - Innovative procurement

Alternative fuels in urban nodes Urban nodes priority aims at promoting action along the multi-modal core network corridors which makes vital contributions to the achievement of the overall corridor objectives, such as: significant CO₂ pollutant and noise reduction (with urban areas standing for a major share of the overall emissions from transport); enhancing service quality levels (travelling time, travelling comfort, safety, etc.); address missing links, bottlenecks and other barriers in the transfer between the trans-European and the urban legs of TEN-T journeys (link SUMPs and TEN-T)… Works/studies with pilot activities to test and validate alternative fuels infrastructure for road transport in urban nodes.

Horizon 2020 WP 2016-2017 Integrating urban nodes in the TEN-T core network

Tackling the Valley of Death 2014-2020: The need for aligning EU policies and programmes and mobilising markets R&D and validations of vital project components Initial demonstrations of concepts (proof of concept) Large-scale demonstrations concepts in live environments Commercial roll-out in / mass-scale deployment The Innovation Process: from invention to deployment H2020: R&I grants and FIs ESIF: grants and FIS for roll-out, Technical assist. For the current long-term EU budget that runs from 2014-2020, strong emphasis has been put on better aligning EU policies and programmes along the different phases of the innovation chain. In the past, Europe has faced problems with overcoming the „valley of death“: lots of good research led to inventions, but often enough these did not make it into the market because of a lack of supporting factors, including foremost access to finance, but also lack of suitable policy and regulatory provisions (valley of death). H202= is a research and innovation programme: much more emphasis is given to large-scale demonstrators and impact evaluation. Connecting Europe Facility and ESIF funds are reprogrammed starting from the other side of innovation deployment. Similar, under the Connecting Europe Facility there is the aim to link to market-ready innovations and faciliate their quick uptake. Similarly the Cohesion Funds have always played their role for supporting innovation take up. But for 2014-2020 the role and relevance of the ESIF funds has been geared towards practical impact. Tackling the Valley of Death Connecting Europe Facility

Urban mobility EUR 36 Million Topic Title Action type Stages Budget (EUR Mio) 2016 2017 MG-4.1 Increasing the take up and scale-up of innovative solutions to achieve sustainable urban mobility IA 2 22 MG-4.2 Supporting "smart electric mobility" in cities MG-4.3 Innovative approaches for integrating urban nodes in the TEN-T core network corridors CSA 1 MG-4.4 Facilitating public procurement of innovative sustainable transport and urban mobility solutions MG-4.5 New ways of supporting development and implementation of neighbourhood-level and urban-district-level transport innovations RIA 10 CSA = Coordination and Support Action RIA = Research and Innovation Action; IA = Innovation Action

MG-4.3 "Innovative approaches for integrating urban nodes in the TEN-T core network corridors" Integration efficient and sustainable solutions (e.g. alternative fuels vehicles) solutions for 'last mile' delivery Linking long-distance with last-mile delivery Focus on the valley of death for innovative solutions Recommendations to define funding needs and instruments for synergies between H2020 and CEF

The European Fund for Strategic Investments (EFSI) €21 billion guarantee to leverage an extra financing capacity of €255 billion => total extra financing of €315 billion Cities and private promoters active in cities should engage with the EIB and the National Promotional Banks Investment Platforms will be created under the EFSI Regulations for certain countries and sectors, for example transport

EFSI Urban transport Public and private investors to engage with EFSI through: project co-financing, on a risk-sharing basis with EIB covered by EFSI participation to Investment Platforms which support a number of projects MS to support national promotional banks, institutions, investment platforms or funds. EIB to guarantee platforms, funds or national promotional banks or institutions that invest in eligible operations such as: national or sub-national investment platforms multi-country or regional platforms covering several Member States / third countries thematic platforms that group investment projects in a given sector Investment platforms : public authorities, experts, education, training and research institutions, the relevant social partners and representatives of the civil society and other relevant actors at Union, national and regional levels.

EFSI guarantee will enable the EIB to take riskier projects, e. g EFSI guarantee will enable the EIB to take riskier projects, e.g. smart urban mobility and alternative fuels projects Research and innovation is one of the key priorities, as is urban mobility. EFSI funds are expected to invest 11-12 EUR billion in urban mobility over 2014-2020. Innovative projects can also employ financial instruments, facilitated by investment platforms. Advisory Hub will function as a one-stop-shop and work together with a network of national promotional banks. Regional hubs are likely to be created: http://www.eib.org/eiah/index.htm

Thank you. dorothee. coucharriere@ec. europa Thank you ! dorothee.coucharriere@ec.europa.eu INEA Helpdesk: INEA-CEF-transport-calls-2014@ec.europa.eu Consult INEA website: http://inea.ec.europa.eu