Leveraging the impact of climate finance through MDBs

Ko SakamotoTransport Economist

Asian Development Bank

Source: M. Breithaupt

Content

1. MDBs and sustainable transport2. Climate finance: The experience so far3. 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

2000 - 2009 hist

orical

2012-2014 pipeline

2020 targe

tUrbanAirWaterRailwayRoad

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

Domestic fi

nance FD

I

Internati

onal deb

t finan

ce

MDB lending (

2012)ODA

CTF

GEF, in

cl. co

financin

gGEF

CDM

0100200300400500600700

582.56

148.73 149.62

17 8.09 0.6 0.3 0.02 0.01

Climate financeSource: 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

BRTBefore

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 Appropria

te

Mitigation

Action

NAMA

Supports competitiveness

Reduces traffic accidents

Reduces air pollution

Relieves congestion

Reduces GHGs fromthe baseline….

In a measurable wayOften referred to as

Co-benefits

Reduces poverty

“MRV”

NAMAs put climate finance in appropriate context of development

Source: M. Breithaupt

NAMAs vs CDM

CDM NAMAs0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

OthersAgricultureForestryBuildingsWasteIndustryTransportEnergy supply

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 programmingMeasure (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 programmingMeasure (MRV)

Policy identification and programmingMeasure (MRV)

30%

30%

30%

10%

Economic

Environmental12.GHG emissions13.Transport-related

emissions & pollution14.Natural & built

environment15.Resource efficiency16.Climate resilience

1. Movement of people2. Movement of goods3. Quality & reliability4. Fiscal burden5. Employment6. Wider economic benefits:

cross-border, urban, rural

Social

7. Basic accessibility8. Affordability9. Inclusion10.Social cohesion11. Safety, security

& health

Risk to Sustainability17.Design & evaluation risk18. Implementation risk19.Operational risk

• Work to improve quality and quantity of data

• ADB working on improving data in Asia and the Pacific

Policy identification and programmingMeasure (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 SakamotoTransport Economist

Asian Development Bank