Transport readiness for climate finance
Transport is the primary source of global energy-related CO2 emissions, and the fastest-growing sector. To mitigate a massive potential increase in atmospheric CO2, the global economy must dramatically increase annual spending on low-carbon transport. To do this, diverse funding types, including both public and private sources, are needed to supply climate finance for the transport sector. This paper adopts the Intergovernmental Panel on Climate Change (IPCC) definition for climate finance: all financial flows whose expected effect is to reduce net greenhouse emissions or to enhance resilience to the impacts of climate variability and projected climate change. This definition includes the entire value of the financial flow rather than only the incremental investment associated with emissions reduction.