22/05/2013 - Boosting private sector investment in sustainable transport infrastructure will be essential as governments seek to meet long-term economic and environmental objectives at a time of constrained public finances, according to a new OECD report.
Mobilising Private Investment in Sustainable Transport: The Case of Land-Based Passenger Transport Infrastructure points out that investment in transport systems is a powerful driver of long-term growth. It also notes, however, that the transport sector is the second largest contributor to greenhouse gas (GHG) emissions globally, contributing 23% of carbon dioxide (CO2) emissions from fossil-fuel combustion, as well as a significant source of pollutants which pose serious risks to human health.
Transport emissions could double by 2050 if governments fail to address unsustainable patterns in existing models, the OECD said. The new report encourages policymakers and private sector actors to shift investments away from emissions-intensive transport infrastructure that is not resilient to climate change towards more sustainable transport modes, such as metros, passenger rail, bus rapid transit or electric vehicle charging stations.
“It is urgent that investment in transportation moves towards building right, not just building more. The private sector has a key role to play in this shift, which will help governments to meet the pressing economic, social and environmental challenges they will face over coming decades.” OECD Secretary-General Angel Gurría said during the launch of the report at the International Transport Forum’s annual summit in Leipzig, Germany. “Governments on their part must play a central role in mobilising private sector investment for sustainable transport infrastructure. (Read the full speech)”
The new OECD working paper provides governments with a comprehensive toolkit of key policy instruments to mobilise private investment in sustainable transport infrastructure. It builds on the OECD’s Green Investment Policy Framework, and emphasises the need for integrated, domestic policy frameworks to address investment barriers.
The OECD Green Investment Policy Framework
Source: Adapted from Corfee-Morlot et al., 2012.
Key policy recommendations include:
The working paper is available here, and is summarised here. More information on OECD’s work on climate finance and investment is provided at www.oecd.org/env/cc/financing.
For further information, journalists can contact Geraldine Ang or Virginie Marchal of the OECD Environment Directorate or the OECD Media Office (Tel.: +33 1 45 24 97 00).
See German version here.