To reduce pollution and improve the quality of life, the Asian Development Bank and seven other partners announced a huge financing effort in Asia-Pacific.
RIO DE JANEIRO- The Asian Development Bank announced last week that together with seven other multilateral development banks, it will commit more than US$ 175 billion in loans and grants to the development of transportation systems in developing countries over the next decade.
The US$ 175 billion pledge is one of the largest financial commitments coming out of Rio+20.“These sustainable transport improvements will benefit billions of people, especially the poor, and support environmental sustainability and reduce greenhouse gas emissions,” said Bindu Lohani, ADB’s Vice President for Knowledge Management and Sustainable Development at the press conference to showcase voluntary commitments made at Rio+20, on behalf of the eight Banking institutions.
Banking partners had earlier announced their plan to invest more than $175 billion over the next decade to help improve transport in developing countries. The new funds will be used to promote all forms of sustainable transport, including public transport; bicycle and walking infrastructure; energy-efficient vehicles and fuels; railways; inland waterways; and road safety. ADB’s share of the commitment is US$ 30 billion.
Rapid motorization and urbanization have together contributed to increase congestion, air pollution, greenhouse gas emissions, health and social problems, and traffic accidents. Taken together, the losses attributed to these problems account for more than 10% of GDP. The transport sector also accounts for nearly two-thirds of total oil consumption in the world.
In Asia and the Pacific, rising incomes are doubling motor vehicle fleets every five to seven years. Motorization is causing Asia’s share of the global vehicle fleet to rise – growing from 9% in 1980 to 46% by 2030. In some countries, the current trend growth in motor vehicles is almost four times faster than population growth. In addition, nearly 2,000 people are killed each day in Asia due to traffic accidents.
Transport needs massive investments, particularly in emerging economies. Over the next 10 years, some $2.5 trillion of transport investment is required in developing Asia alone. Developing countries have the opportunity to leapfrog to a greener future of less motorization, shorter commutes, and more energy efficient transport systems.
ADB has long been a supporter of transport, with its operations in the sector typically accounting for a third of its annual lending. These investments have helped provide basic access to rural communities, link cities together, and promote regional cooperation and integration.
Global CO2 emissions from the transport sector are projected to increase nearly 50 percent by 2030 unless dramatic changes are adopted.
Luc Citrinot a French national is a freelance journalist and consultant in tourism and air transport with over 20 years experience. Based in Paris and Bangkok, he works for various travel and air transport trade publications in Europe and Asia.
