Towards a Gold Standard for Transport Investment


COP27 echoed growing calls to reform the international financial system to channel more funding toward climate projects. These discussions included rising pressure on multilateral development banks (MDBs) and the nations that act as their shareholders to implement reforms with the aim of ‘substantially increasing climate finance.’ These discussions were emphasised in the COP27 outcome text, which “calls on the shareholders of multilateral development banks and international financial institutions to reform practices and priorities, and align and scale up funding, … and encourages MDBs to define a new vision and commensurate operational model, channels and instruments that are fit for the purpose of adequately addressing the global climate emergency.”

Against this backdrop, an increasing number of MDBs have committed to align future investments with Paris Agreement targets; yet, this approach does not explicitly address crucial sustainable development goals. International financial institutions (including MDBs), must therefore define lending policies based on climate and sustainability criteria, and incipient efforts on Paris Agreement-alignment and Sustainable Development Goals (SDGs)-alignment should be scaled up and accelerated. Further, aligning transport, equity, climate, health and energy in interventions enables both decarbonisation and equitable access for all; thus, Paris- and SDGs-aligned investments should support the just transport transition and green jobs. Finally, there is a need to call out ambition needs and gaps through an inter-modal lens (e.g. the Avoid-Shift-Improve framework), and thus a broad range of stakeholder perspectives is required to contribute toward a true “gold standard” for transport investment.

The SLOCAT blog series, “Towards a Gold Standard for Transport Investment,” is intended to bring together these broad perspectives. The series will feature a range of experts and change makers who are powering the sustainable, low carbon transport revolution by advancing adequate financing to reach the scale of decarbonisation of the transport sector necessary to achieve Paris Agreement targets. Collectively, these blogs present a multi-stakeholder space for peers to exchange ideas and explore further opportunities for collaboration.


Other Resources

Financing Fundamentals for the Decarbonisation of the Transport Sector: International Public Investments for Sustainable Mobility Project

A collaboration between SLOCAT and the Transformative Urban Mobility Initiative

Meeting the challenges of decarbonising the transport sector and the wider climate mitigation and adaptation targets will require a step-change increase in investment in low-carbon transport initiatives and activities. These investments must not only meet environmental standards but also ensure they are equitable, healthy and resilient. 

These Financing Fundamentals will facilitate an understanding of the power of innovative financing, guide policymakers and practitioners through best practices and case studies and, incentivise and advocate for political leadership and buy-in.

This activity has been developed with the leadership of the Transformative Urban Mobility Initiative (TUMI), the German Federal Ministry for Economic Cooperation and Development (BMZ), the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and the World Resources Institute (WRI), in collaboration with the SLOCAT Partnership on Sustainable, Low Carbon Transport.

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SLOCAT Progress Reports on 2012 Voluntary Commitment on Transport Investment by MDBs

Eight Multilateral Development Banks (MDBs) have targeted to provide more than US$175 billion of loans and grants for transport in developing countries between 2012-2022. This target is included in the MDBs’ Joint Statement of 2012 as one of the 17 Voluntary Commitments on Sustainable Transport during the United Nations Conference on Sustainable Development, also known as Rio 2012 (Rio+20).

The June 2012 joint statement “Commitment to Sustainable Transport” was issued at the Rio+20 United Nations Conference on Sustainable Development by the following institutions:

SLOCAT Engagement in European Investment Bank Climate Bank Roadmap 2021-2025

In November 2019, the EIB’s Board of Directors approved a new level of ambition for the EIB towards climate action and environmental sustainability. The EIB now needs to turn this ambition into reality and would like interested stakeholders to accompany it in developing its roadmap – the Climate Bank Roadmap 2021-2025 – that will guide this transition. The Climate Bank Roadmap will determine how the EIB Group will implement the new ambition over the period 2021 to 2025. The scope of this ambition is broad – touching upon the climate, environmental and social aspects underpinning sustainable development. Engagement on the Climate Bank Roadmap 2021-2025 will complement future public consultations, including most immediately the EIB transport lending policy and the EIB Environmental and Social Statement and the related Standards, which are due to start in 2020. The EIB is soliciting our views and inputs on how the Bank can best achieve its ambitions. This is certainly a critical opportunity for the sustainable, low carbon transport community to have an impact on the activities of the bank, especially as they relate to transport. SLOCAT has gathered inputs from partners as to make a collective transport contribution to the EIB process.

📖 SLOCAT’s submission to the EIB Climate Bank Roadmap 2021-2025 Position Paper

This submission has been developed by the SLOCAT Partnership Secretariat with contributions from  Climate Environment Services Group (CESG), Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), ICLEI-Local Governments for Sustainability, the International Association of Public Transport (UITP), the International Union of Railways (UIC), Kuehne Logistics University, MobiliseYourCity Partnership, POLIS, Rupprecht Consult, Transport and Environment, Walk21,  World Resources Institute (WRI), World Wide Fund for Nature (WWF), and is made on behalf of all partners of SLOCAT. The submission was sent to the EIB on 24 April, in line with key deadlines. Please contact with any questions.