Access to climate finance in low and middle-income countries: 14 case studies in the transport sector - Cloned

HIGHLIGHTS
Much has been written about scaling climate finance, but less is known about its use in specific sectors, such as transport. Authors examined the landscape of international climate finance for transport in Asia, Africa, and Latin America, looking at 839 transport projects and conducting 14 case studies. The international climate finance mechanisms they studied included climate funds, multilateral development banks, donor governments, and private investors.

Authors found that a third of the transport projects that received climate finance involved building roads. Fewer public transport and electric vehicle projects accessed climate finance, and only 20 percent of projects explicitly aimed at improving resilience.

The common barriers to accessing climate finance were inadequate policy frameworks, limited project preparation capacity, high upfront costs and risk perceptions, complex funding requirements, and difficulties in assessing projects’ broader socioeconomic benefits.

Countries can address these roadblocks by creating an enabling environment with sustainable policies and transport targets, attracting private investments with de-risking instruments, building capacity to design and implement bankable projects, and doing more to monitor and evaluate the impacts of transport measures.