Publication Date: July 2023
This publication was developed to advance the strategic alignment of transport investments with the goals of the Paris Agreement and the Sustainable Development Goals (SDGs). With transport emissions critically needing a reduction of nearly two-thirds by 2050, the role of Multilateral Development Banks (MDBs) in fostering transformative investments becomes crucial.
The objective is to critically assess existing MDB frameworks for Paris alignment in transport investments, identify significant gaps, and propose clear criteria for a new, ambitious ‘Gold Standard’ to ensure transport finance effectively supports global climate and sustainability targets. This publication has also a robust literature review coupled with a vision document.
Key messages:
- MDBs must adopt explicit, stringent eligibility criteria to ensure transport investments are unequivocally aligned with Paris Agreement targets, eliminating support for fossil fuel infrastructure and airport expansions.
- Robust and universally consistent Paris alignment methodologies for transport investments need immediate operationalisation by all MDBs to ensure transparency and efficacy.
- MDBs should urgently scale up financial support for sustainable transport infrastructure, prioritising investments that deliver substantial climate mitigation and adaptation benefits.
- Standardised approaches to carbon pricing and detailed guidance for passenger and freight transport investments must be embedded within MDB frameworks to close current knowledge gaps.
- MDB reforms must integrate greater ambition, simplify access to sustainable finance, and proactively mobilise private sector investments to accelerate the shift towards a decarbonised transport sector.
