Low- and middle-income countries (LMICs) face many funding challenges to put in place the transport changes needed to pursue goals in climate change and sustainable development. A project funded by HVT has explored recommendations for amendments and revisions to Official Development Assistance (ODA) funding.
The ODA is managed and monitored by the OECD Development Assistance Committee (DAC). This assistance aims to promote the economic development and welfare of developing countries. By boosting economic development, alleviating poverty, and helping LMICs pursue the full range of Sustainable Development Goals, including climate change mitigation and adaptation, ODA plays a crucial role in global development efforts.
The project, led by CONCITO, looked at what role ODA plays in providing access for sustainable transport modes and climate compatible transport solutions. Through literature review, data extracted from the OECD Data Explorer and interviews with ODA experts, the project mapped out the ODA spending on transport from the last ten years. It also analysed the current procedures and data codes used in reporting and delivered a set of ideas for new categories or indicators to measure and report on ODA in support of sustainable transport.
The research found that transport received $11.8 billion per year or 5.7% of all ODA on average for the ten year period 2013-22 with a declining trend. Transport received less than health and education sectors, about the same as the energy sector, and more than the water and sanitation sector.
Within transport, road transport received the most by around half of all ODA, followed by rail transport at 30% and transport policy at around 10%. Among the main recipients of transport ODA are India and the Philippines together with other Asian countries, and Egypt in Africa.
Each sector is represented by certain ‘codes’ in the system. The research found that as transport codes have not been changed for decades, it means that there are, for example, no dedicated codes for items such as active transport, public transport, electric vehicles, or mobility services helping women reach jobs.
Henrik Gudmundsson, Senior Consultant at CONCITO, said: “No major review of the code structure for ODA to the transport sector has been undertaken for several decades. It’s vital to reflect the adoption of the 2030 Sustainable Development Agenda and the Paris Agreement on Climate Change, as well as resolutions and declarations regarding sustainable transport adopted by the United Nations.”
The report analysed several ideas to provide better information on ODA for transport and redefine and enhance the reporting. It summarises three main recommendations for the future:
- Bringing together DAC members with an interest in transport to discuss ideas and models for enhanced reporting of ODA for transport in light of the UN Decade on Sustainable Transport and other relevant agendas. A key element being a potential major modernisation of the transport sector codes
- DAC members reach out to current high-level initiatives of relevance for sustainable transport finance, such as the preparations for the UN Decade for Sustainable Transport, the Sustainable Mobility for All initiative, and the Finance for Development Agenda, in order to explore opportunities to generate external high-level support for a reform of transport ODA
- A representative group of DAC members instigate the submission of a proposal to potentially rename the code, modernise the structure of transport codes, consider alternative options to enhance ODA reporting for transport, consider a process for reviewing and elaborating the proposals, and regular follow-up with publications on the status and trends for transport ODA
Henrik Gudmundsson concluded: “We hope that the recommendations from this research will lead to changes to support sustainable transport into the future.”
You can read the full report here.