Mobilising Private Investment in Sustainable Transport

Transport infrastructure is a pillar of economic development and a key contributor to climate change.Globally, transport-related greenhouse gas emissions are expected to double by 2050 in the absence of newpolicies. There is an urgent need to scale-up and shift transport infrastructure investments towards lowcarbon,climate-resilient transport options and help achieving the environmental, social and economicbenefits associated with sustainable transport infrastructure. Given the extent of investment required tomeet escalating global transportation infrastructure needs, and the growing strains on public finances,mobilising private investment at pace and at scale will be necessary to facilitate the transition to a greenergrowth. Investment barriers, however, often limit private investment in sustainable transport infrastructureprojects, due to the relatively less attractive risk-return profile of such projects compared to fossil fuelbasedalternatives. In part, this can be attributed to market failures and government policies that fall shortof accounting for the full costs of carbon-intensive road transport and the benefits of sustainable transportmodes.

OECD Environment Working Papers

Mobilising Private Investment in Sustainable Transport

The Case of Land-Based Passenger Transport Infrastructure