VIII. Pricing and fiscal policy guide market forces, and, together with finance, channel public and private funds towards the most sustainable transport services.
Financial instruments and policies have to be realigned so they set the right frameworks that enable investors and users to provide and request the most sustainable transport services. Their timely adaptation will prevent lock-in into soon-to-be-obsolete and carbon-intensive infrastructure and technologies; as well as avoid sunk cost for industry and society. Financial institutions must focus on green investments, shift their portfolios accordingly, and define lending and grant policies based on sustainability criteria. Public finance is to leverage innovative financing mechanisms and to de-risk private investments, and Subsidies to fossil fuels in transport need to be phased-out urgently and funds collected from inefficient and polluting modes be used to support people-centred and low-emission mobility solutions.