Eight multilateral development banks made an unprecendented commitment to transportation infrastructure during the opening of the U.N. Conference on Sustainable Development, which runs June 20-22.
The 10-year commitment — more than $175 billion in loans and grants — was made a day after six presidents of MDBs announced support for nine green growth issues, including sustainable transport. The money will come from the banks represented by the six presidents and two other MDBs: the CAF-Development Bank of Latin America and Islamic Development Bank.
The fund will be used to improve, among others, public transport systems, pavements for walking, bicycle lanes, railways and inland waterways, Tyrrell Duncan, director of transport and communications at the Asian Development Bank, told Bloomberg.
The money is meant for developing countries, giving them a chance to “leapfrog to a greener future.” The transport sector in these countries is bringing in more congestion, air pollution, traffic accidents and greenhouse gas emissions, ADB President Haruhiko Kuroda said in a press release. Global emissions from the sector are projected to increase 50 percent by 2030.
Meanwhile, at a European Union side event on sustainable energy at Rio+20 on Wednesday (June 20), EU Commissioner for Development Andris Piebalgs said the bloc will look into providing ”several hundred million euros” in the next two years. The money will support investments in sustainable energy in developing countries and is on top of the planned 50 million ($56 million) EU Technical Assistance Facility the bloc announced in April.
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