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Transport is a key component to climate solution and therefore, pivotal to reach benchmarks established by the ambitious Paris Agreement. We have the technology, tools, and opportunities to advance markets, unlock investments, and scale up action. The climate action pathway – transport provides clear insights to advance and align transport with the objectives of the Paris Agreement, and is complemented by the global roadmap toward sustainable mobility. However, by most measures, action is well off-track, and greenhouse gas (GHG) emissions from transport are on the rise. At the same time, the momentum increases to drive action on transport and accelerate the transition to zero or low carbon transport modes. There are calls for decarbonizing transport and for improving the international community’s understanding of how specific investments and innovative finance solutions can create the conditions for market uptake of climate-smart solutions across transport sectors. Policy, technology, and investment are all critical in accelerating the transition toward carbon neutral transport. This document is organized as follows. Chapter 2 describes the trends on greenhouse gas emissions while Chapter 3 reviews the challenge to reduce emissions in developing countries summarizing the findings on the other TDI notes. Chapter 4 discusses the experience and trends in funding public investments and policies in the transportation sector while Chapter 5 describes the architecture of climate finance for transport decarbonization. Chapter 6 presents some innovative financial approaches and finally, Chapter 7 develops a series of recommendations for a transition to a low carbon pathway in transport.

Mobility is essential for economic and social development, but the transport sector in most countries is not sustainable in its existing form. Reducing Greenhouse Gas (GHG) emissions and local pollutants in the transport sector will create a cleaner, healthier and more livable future for everyone. Electric mobility (e-mobility) represents a crucial opportunity to develop a more sustainable transport system. Electrification of transport offers significant environmental benefits and at the same time produces a long-lasting economic impact. E-mobility is an important way to mitigate air pollution by reducing carbon intensity of the transport sector as it has better efficiency than internal combustion engine (ICE) vehicles and has zero tailpipe emissions. Through electrification of transport, the International Energy Agency (IEA) estimates that electric vehicles can reduce GHG emissions by almost half compared to an equivalent fleet of ICE vehicles under existing government policies. The note identifies tangible actions and policies that governments can adopt to facilitate the adoption of e-mobility in passenger transport. In doing so, it identifies practical considerations that governments should keep in mind when facilitating e-mobility adoption. Passenger transport includes public, shared, and private transport. This technical note places a strong emphasis on public and shared transport as improving it: (i) helps make the transport system less congested, reducing the need for many separate trips by private vehicles; (ii) can benefit people across all income strata; and (iii) can, with higher utilization, harness the operational cost savings of electrification faster than relatively low utilization private vehicles.

Globally, the transport sector contributes almost one-fourth of total carbon dioxide emissions (CO2). The road transport sector is responsible for more than 77 percent of transport-related CO2 emissions globally, with light-duty road vehicles (LDVs) encompassing passenger cars, SUVs, and pickup trucks accounting for as much as 40 percent. Therefore, decarbonizing road transport is one of the most critical challenges of the coming decade. The development objectives that encompass sustainable mobility go well beyond mitigation and adaptation to climate change, including expanding access to economic opportunities and enhancing road safety, strengthening community resilience, and improving air quality, among others. Due to high levels of motor vehicle ownership and use, the transport sector’s carbon footprint per capita in high-income countries (HICs) is an order of magnitude higher than in low- and middle-income countries (LMICs). Even as HICs are poised to adopt a less fossil fuel-intensive fleet in the coming years, the obsolete, less safe, and more polluting vehicles that are displaced may make their way to LMICs to meet their increasing demand for motorization. As motorization in LMICs increases, addressing the trade and quality of used vehicles and managing motorization throughout the vehicle lifecycle are critical for decarbonizing the road transport sector and achieving other sustainable development goals. If these impacts can be successfully managed, then the global trade in “good quality” used vehicles can be an important component in promoting sustainable transport and can also benefit the wider economy through industry and technological transition, job creation, and lowering vehicle operating and maintenance costs.

The Eastern Partnership (EaP) is a joint policy initiative, which aims to deepen and strengthen relations between the European Union (EU) and its six Eastern neighbours. One of its four priority areas is stronger connectivity which includes the extension of the Trans European Transport Network (TEN-T) to the EaP region. On the policy front, it aims at achieving regulatory convergence across transport modes between member countries and with the EU to heighten the focus on energy efficiency and combat climate change. The EaP countries experienced a large shock to their economies following the end of the Soviet Union in 1989. At the same time, EaP countries are acutely aware of the need to converge with the EU in terms of energy efficiency, environment and climate change goals. The EU is currently formalising its European Green Deal, which is a roadmap for making the EU's economy sustainable. The objective of this study is to assist decision-makers in prioritizing strategic transport policies and infrastructure investments. It develops the evidence base and prioritisation framework for improving the transport sector of the region including improved energy efficiency and sustainability so that it is not left behind by advances in the EU. The study has also developed an online visualization tool to help policy makers explore and use the results of the modelling exercise.

The Western Balkans is home to the most polluting power plants in Europe, and its transport and energy infrastructure require updates. Not surprisingly, countries such as Kosovo, are suffering from severe urban air pollution and traffic congestion as a result of high dependence on fossil fuels in the energy matrix, inefficient transport system and aging vehicle fleets. These substantially harm public health, productivity and efficiency in urban mobility. Kosovo is implementing the EU enacted Stabilization Tracking Mechanism programme, aiming to gradually integrate its national policies on legal, economic and social matters with the EU. On 6 February 2018, the European Commission published its expansion plan to cover up to six Western Balkan countries including Kosovo with potential accession as members of the EU after 2025. This is relevant for vehicle emissions as it entails implementation of EU vehicle emission and fuel standards. The development objective of this project is to support the government of Kosovo and City of Pristina to develop strategies to reduce emissions and pollutions from transport perspective, such as modernization and better management of public and private vehicle fleets, and to scope for components and activities to be considered as part of potential Develop Policy Financing or Investment Project Financing by the World Bank The layout of the report includes the following sections: Chapter second realizes a rapid assessment of vehicle pollution for Kosovo including vehicle emission trends. Chapter third list in a summarized manner major instruments to reduce transportation emissions. Based on the problem and solution description policies are selected which are assessed in further detail to curb vehicle emissions in Kosovo. These policies or interventions were selected based on on-going plans and activities and interest from the Government. They include usage of low-emission buses (chapter fourth), fiscal instruments to promote low-emitting vehicles (chapter fifth) and implementation of in-service vehicle emission testing.

For a landlocked country like Uganda, access to ports through its neighbors as well as adequate transport infrastructure (road, rail, air, inland waterways to facilitate better access to the ports) are crucial since it is the conduit through which trade flows. Regional integration is indispensable in this context in order to expand and to integrate markets, exploit economies of scale, and attract foreign direct investment. Recognizing the importance of transport and logistics as a key sector in supporting Uganda’s economic development, this report assesses the human resource needs of the transport and logistics sector, including ‘green skills’. Green transport and logistics is a focus of the sector globally as it seeks to maximize resources, focus on efficiency and effectiveness to reduce carbon emissions and bring about financial savings.