This Policy Guide to Improving Access to Climate Finance for Transport provides actionable guidance for project sponsors in low- and middle-income countries (LMICs) to enhance their access to climate finance for transport projects. With the transport sector contributing significantly to national greenhouse gas emissions yet facing major investment gaps, urgent investment in sustainable and low carbon transport solutions is critical to align with the targets of the Paris Agreement on climate change. LMICs need to tackle numerous barriers to overcome the existing investment gaps, mobilise adequate financing and accelerate decarbonisation.
The policy guide outlines key solutions to barriers in accessing climate finance for transport in a variety of contexts: financial, institutional, informational and technological. The solutions shown in Section 3 are directly connected to material presented or referenced in Section 4 or through the appendices. A step-by-step guide accompanies project sponsors through the process, directing them to resources, case studies and other guiding materials with a view to enabling them to successfully access climate finance for transport.
The step-by-step guide is divided into four key steps: 1) securing the necessary enabling environment, 2) developing capacity on sustainable, low carbon transport, 3) developing capacity on climate finance and 4) designing suitable and impactful projects. Practical recommendations highlight specific actions for each of these steps, and resources with further guidance are provided.
The policy guide concludes with a solutions grid for concrete action on sustainable, low carbon transport. The Avoid-Shift-Improve framework provides an effective structure to outline potential transport projects and policies that LMICs can pursue through climate finance. The solutions grid is an initial tool to illustrate the large number of opportunities available to LMICs.
In addition, the appendices provide further resources, the results of consultation activities, profiles of climate finance mechanisms, and other materials to support stakeholders in navigating the complex landscape of climate finance. By implementing the policy guide’s recommendations, LMICs can work towards attracting more climate finance, accelerate their transition to low carbon transport and contribute to global climate goals.
