Access to climate finance in low and middle-income countries: 14 case studies in the transport sector

Our research explores the international climate finance landscape, emphasising the opportunities to bridge the investment gap for sustainable and low-carbon transport. Drawing on several publicly available databases, we reviewed existing United Nations Framework Convention on Climate Change (UNFCCC) and non-UNFCCC climate finance windows. We gathered information on 839 transport projects accessed from multilateral climate funds, multilateral development banks (MDBs), donor governments, and databases that collect private finance data.

We examined how countries, particularly LMICs in Africa, South Asia, and Latin America and the Caribbean, access the range of financial instruments offered by the various sources of international climate finance. We analysed the major barriers to public and private climate finance for low-carbon, climate-smart transport projects, drawing upon findings from literature and policy documents; an analysis of 14 case studies covering various modes of transport and financial instruments; and consultations with experts in the climate, finance, and transport sectors.

Although the data are preliminary and the cases limited, this paper can help inform and shape strategies for shifting financial resources to sustainable, low-carbon transport.