Climate finance is an important component that could
help the shift towards low-carbon and climate-resilient
transport development.
Climate finance relates to funding that can be used
to support climate change mitigation and adaptation
activities. It encompasses both public and private
sources of finance and can be used to support activities
in all sectors of the economy in both developed and
developing countries. Consequently, climate finance
can be used to help achieve the shift and scaleup
of funding for sustainable low-carbon freight
transport that directly contributes to the enactment of
sustainable development on a larger scale. Yet, climate
and environmental concerns are not usually given all
the necessary attention when evaluating transport
investment projects. Generally cost-time analysis
remains the most significant in a project appraisal.
There are, however, several sources and mechanisms
Of climate finance that can be applied in transport
Sector today (figure 6.5). These mechanisms can be
grouped into two categories: the carbon market and
climate funds.