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Manila, Philippines 17 November 2011
Financing Sustainable Transport for Green CitiesLloyd Wright
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ADBs 2020 targets
2000-2009
Roads Rail Water Air Urban
2020
Roads Rail Water Air Urban
78% road
30% urban
42% road
1% urban17% rail
25% rail
Percent of transport-sector loan portfolio
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Sustainable Transport Initiative
1. Urban transport
2. Transport and climate
change
3. Logistics and cross-border
transport
4. Road safety and social
sustainability
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Projects in the ADB pipeline
BRT projects in Dhaka, Jiangxi Jian, Lanzhou,
Pimpri-Chinchwad, UlaanbaatarMetro rail / LRT projects in Hanoi, Ho Chi Minh,
Tbilisi, Astana
Integrated urban transport in Kathmandu, Davao, Vientiane, Xian, Yerevan
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$ TrillionsInvestment need for a sustainable transport transformation
Financial realities
$ BillionsDevelopment assistance
$ Millions
Carbon finance
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Leveraging value for sustainable transport
Health CreditsFuel Security Credits Carbon
Credits
Land Value Capture
Fuel LeviesParking LeviesCongestion Pricing
Road Safety Credits
Funding
Sustainable
Transport
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Transport as a
percent of projectsunder climate
change mechanisms:
0.1%To scale up
sustainable
transport initiatives,carbon markets
alone are insufficient
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Fuel SecurityCredits
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Energy security
as a globalconcernand an
opportunity
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Transport and
urban planning
Heating
Industry
Power
generation
Fuel (and
Savings)
Fuel Security Credit concept
Reduced reliance on importedoil
Energy SecurityAttributes
FuelSecurity
Credits
e.g. Avoided SO2, NOx, GHG
emissions
EnvironmentalAttributes
NOx/SO2
trading; Carbon
Credits
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Pilot Fund
Mechanism type:Offset
Target fund size:
US$ 75 million
No. of cities to be awarded:
2 3 cities
Start date:
Late 2012
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Pilot Fund structure
Developing Nation
Low levels of fixed infrastructure Low-cost fuel reductions
Developed Nation High levels of fixed
infrastructure
High-cost fuel reduction
Baseline and credit mechanism
Management Entity
Global fuel price
reduction / price
volatility reduction
Investment
Investment
FuelSecur
ity
Credits
Developing-nation
City in Asia and the
Pacific
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Health Credits
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Capturing health benefits
Health insurance and auto
insurance firms benefit
financially from sustainable
transport measures that
reduce fatalities, injuries,
and illness
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Value Aspects of Health Credits
Accidents Injuries Deaths
Work day losses
Productivity losses
Vehicle and property
damage
Noise Illness
Productivity losses
Air Contaminants Asthma Other respiratory disease
Respiratory infections
Trachea, bronchus, lung cancers
Cardiovascular disease
Stroke and heart attacks
Lifestyle Obesity
General fitness
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Capturing health benefits
Investment firm
Savings from reduced
accident payouts and
reduced medical payouts
Investment firmInsurance
firms
e.g. 50% e.g. 50%
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Creating a Sustainable
Transport Funding Stream
Mechanism Example of potential
income for a large
Asian city (US$ / yr)
Carbon credits 35 million
Fuel Security Credits 100 million
Health Credits 20 million
Congestion Charge 75 million
Parking Levy 50 million
Land Value Capture 100 million
Fuel Levy 125 million
Total US$ 500 million
* Indicative figures only
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ADB contacts
East Asia
Tyrrell Duncan
South AsiaTeresa Kho
Southeast Asia
James Lynch
Central and West Asia
Ramesh Subramaniam
Pacific
Robert Guild
Sustainable Transport Initiative
Jamie [email protected]
Lloyd Wright
Ko Sakamoto
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Thank [email protected]