mobilising private investment in sustainable transport - private investment in sustainable... ·...

Download Mobilising Private Investment in Sustainable Transport - private investment in sustainable... · Please

Post on 13-Sep-2018




0 download

Embed Size (px)


  • Please cite this paper as:

    Ang, G. and V. Marchal (2013), Mobilising Private Investment in Sustainable Transport: The Case of Land-Based Passenger Transport Infrastructure, OECD Environment Working Papers, No. 56, OECD Publishing.

    OECD Environment Working Papers No. 56

    Mobilising Private Investment in Sustainable Transport


    Graldine Ang and Virginie Marchal

  • Unclassified ENV/WKP(2013)3 Organisation de Coopration et de Dveloppement conomiques Organisation for Economic Co-operation and Development 21-May-2013 ___________________________________________________________________________________________



    By Graldine Ang and Virginie Marchal (1)

    (1) OECD JEL Classification: G18, L92, O18, Q01, Q50, R40 Keywords: Transport, Infrastructure, climate change, development, private investment, climate finance, transport policy, urban planning.

    All Environment Working Papers can be found available at


    Complete document available on OLIS in its original format This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.



    P(2013)3 U


    English - O

    r. English

    Cancels & replaces the same document of 16 May 2013

  • ENV/WKP(2013)3



    This series is designed to make available to a wider readership selected studies on environmental issues prepared for use within the OECD. Authorship is usually collective, but principal authors are named.

    The papers are generally available only in their original language English or French with a summary in the other if available.

    The opinions expressed in these papers are the sole responsibility of the author(s) and do not necessarily reflect those of the OECD or the governments of its member countries.

    Comment on the series is welcome, and should be sent to either or the Environment Directorate, 2, rue Andr Pascal, 75775 PARIS CEDEX 16, France.

    --------------------------------------------------------------------------- OECD Environment Working Papers are published on ---------------------------------------------------------------------------

    Applications for permission to reproduce or translate all or part of this material should be made to:

    OECD Publishing, or by fax 33 1 45 24 99 30.

    Photo credit: eloleo -


  • ENV/WKP(2013)3



    Transport infrastructure is a pillar of economic development and a key contributor to climate change. Globally, transport-related greenhouse gas emissions are expected to double by 2050 in the absence of new policies. There is an urgent need to scale-up and shift transport infrastructure investments towards low-carbon, climate-resilient transport options and help achieving the environmental, social and economic benefits associated with sustainable transport infrastructure. Given the extent of investment required to meet escalating global transportation infrastructure needs, and the growing strains on public finances, mobilising private investment at pace and at scale will be necessary to facilitate the transition to a greener growth. Investment barriers, however, often limit private investment in sustainable transport infrastructure projects, due to the relatively less attractive risk-return profile of such projects compared to fossil fuel-based alternatives. In part, this can be attributed to market failures and government policies that fall short of accounting for the full costs of carbon-intensive road transport and the benefits of sustainable transport modes. Governments have a key role to play in influencing private sector investment, by improving the enabling conditions for investment in sustainable transport infrastructure and delivering investment grade policies. This report aims to advise governments from developed and developing countries on a broad mix of policy tools and instruments that they can use at the national or sub-national levels, to scale-up private investment in sustainable transport infrastructure and shift investment away from carbon-intensive road transport. These include regulations, pricing instruments, innovative financial tools and risk-sharing mechanisms. The focus of this report is on land-based transport infrastructure for passenger use, including passenger rail, bus rapid transit systems, metros, non-motorised transportation and electric vehicle charging infrastructure. Keywords: Transport, Infrastructure, climate change, development, private investment, climate finance, transport policy, urban planning. JEL Classification: G Financial Economics, L Industrial Organization, O Economic Development, Technological Change, and Growth, Q Agricultural and Natural Resource Economics, R Urban, Rural, Regional, Real Estate, and Transportation Economics.

  • ENV/WKP(2013)3



    Les infrastructures de transport sont un pilier du dveloppement conomique, et un contributeur important des missions de gaz effet de serre (GES). Au niveau mondial, les missions de GES lies aux transports devraient doubler d'ici 2050, en l'absence de nouvelles politiques publiques. Il y a un besoin urgent daugmenter les investissements vers les infrastructures de transport faible intensit carbone et rsilientes au changement climatique, afin datteindre les bnfices conomiques, sociaux et environnementaux associs aux transports durables. Compte-tenu de l'ampleur des investissements requis pour rpondre la croissance des besoins en infrastructure de transport, et des contraintes actuelle sur les finances publiques, il est ncessaire et urgent de mobiliser l'investissement priv, grande chelle, pour faciliter la transition vers une croissance plus verte.

    Cependant, de nombreux obstacles limitent encore l'investissement priv dans les projets d'infrastructure de transport durables, souvent moins rentables et/ ou plus risqus que leurs alternatives base de combustibles fossiles. Ceci est li des dfaillances de march, et lchec des politiques publiques qui ninternalisent ni le cot de la pollution du transport routier, ni les bnfices de sant publique des modes de transport durables dans leurs arbitrages conomiques. Les gouvernements ont un rle cl jouer pour influencer les investissements du secteur priv en mettant en place un cadre rglementaire favorable ces investissements durables. Ce rapport vise proposer aux gouvernements des pays dvelopps et en dveloppement un ventail d'outils, d'instruments et de politiques publiques qu'ils peuvent utiliser au niveau national ou local pour orienter les investissements privs vers des infrastructures de transport durable. Ce rapport tudie les outils dont disposent les gouvernements, dont le cadre rglementaire, les instruments de tarification ainsi que les mcanismes financiers innovants de partage des risques. Le cadre de ltude se limite aux infrastructures de transport de passagers par voie terrestre : trains, mtros, systmes de bus haut niveau de service (BHNS) et bornes de recharge des vhicules lectriques.

    Mots cls : Transport, infrastructure, politiques publiques et cadre rglementaire, dveloppement conomique, finance climatique, planification urbaine.

    Classification JEL : G conomie financire, L Organisation industrielle, O Dveloppement conomique, avances technologiques et croissance, Q conomie des ressources naturelles et de lagriculture, R conomie urbaine, rurale et rgionale.

  • ENV/WKP(2013)3



    This paper benefited from discussion and review by the Environment Policy Committee as well as the Environment Working Party on Climate, Development and Investment.

    The authors would like to acknowledge the contribution of David Banister (Oxford University) and Ian Cochran (CDC Climat), as well as the helpful comments and inputs received from external experts Mondher Chargui (RFF), Harald Diaz-Bone (GIZ), Cornie Huizenga (SLoCaT), Joop F.M. Koppenjan (Erasmus University Rotterdam) and Ko Sakamoto (ADB), as well as from OECD colleagues: Andrea Beltramello, Carole Biau, Nils-Axel Braathen, Zack Brown, Jan Corfee-Morlot, Anthony Cox, Jane Ellis, David Gierten, Jongwan Joo, Christopher Kaminker, Osamu Kawanishi, Christopher Kennedy, Nicolina Lamhauge, Olaf Merk, Katlego Moilwa, Dambudzo Muzenda, Andrew Prag and Marie-Christine Tremblay. The authors would also like to acknowledge the helpful inputs and support received from colleagues from the International Transport Forum (ITF) and the International Energy Agency (IEA): Stephen Perkins (ITF), Philippe Crist (ITF) and John Dulac (IEA).

    The document also benefitted from discussion during a series of workshops and consultation events held in 2012, where government representatives joined private sector participants and other experts to discuss the themes addressed herein. More information on these events and participation in these can be found on the following website:

    This paper builds on relevant OECD work and publications developed by EPOC, as well as the ITF, the IEA, the Investment, Public Governance and Territorial Development Policy Committees and the International Futures Pr


View more >