How Stimulus Spending Can Impact The Transport Sector - World Resources Institute - B.welle

11/06/23, 20:12 How Stimulus Spending Can Impact the Transport Sector | World Resources Institute
5 Ways to Shape a Greener,

More Equitable Recovery
Through Transport
June 24, 2021 By Ben Welle Cover Image by: Jose Gasparian/Unsplash
Finding
Topic Cities
Editor's Note: Learn more about urban transportation services in this working paper,
which is part of WRI's flagship World Resources Report, Towards a More Equal City.
The global coronavirus pandemic brought a wave of public and private initiatives to
help societies adapt and recover, from economic stabilization and safety measures to
new business models and shifts in consumption. Many of these initiatives are not
green, despite the fact that society needs major changes to avoid the most dangerous
effects of climate change and ensure health and equity for all.
https://www.wri.org/insights/transport-stimulus-spending-green-recovery?utm_source=twitter&utm_medium=worldresources&utm_campaign=soci… 1/9
Transport is a key sector in need of big changes, comprising 14% of global

greenhouse gas emissions and 24% of carbon emissions. Meanwhile, over a million
traffic fatalities occur every year, millions are exposed to deadly air pollution on
roads and the majority of residents in many cities — often the poorest — cannot
reach a job within an hour of travel time.
In a new paper with the Transport Decarbonisation Alliance, WRI evaluated

countries’, cities’ and companies’ actions during the pandemic that impact the
transport sector. We found that of the $298 billion in global recovery funds
catalogued by the Energy Policy Tracker in the transport sector between March
2020 and February 2021, only 44% positively affect the climate and sustainability.
Meanwhile, some of the most encouraging actions come from the local level.
Hundreds of cities — including Lima, Paris and Addis Ababa — are adding new
bicycle and walking facilities as pandemic safety measures. Since March 2020, over
200 cities launched more than 400 bicycle and pedestrian interventions.
Mentioned in this article
Working Paper
Steering a Green, Healthy, and Inclusive Recovery Through Transport
Companies stepped up commitments, as well. Corporate alliances, such as the

Corporate Electric Vehicle Alliance, saw major international retail, e-commerce,
logistics and ride-hail companies publicize plans to decarbonize their vehicle fleets.
Major automotive manufacturers also pledged to phase out internal combustion
engine vehicles. Between October 2020 and February 2021, business members of
the EV100 initiative deployed 89% and 23% more passenger and commercial
vehicles, respectively, and installed 79% more charging stations compared to the year
prior.
But as countries, cities and companies continue to shift their strategies to longer-
term recovery from short-term stabilization, there is significant work to be done to
get the world on track for a resilient, net-zero future. We identify five key
opportunities for transport investments that can not only address climate change,
but create jobs, promote economic development, improve health and bolster equal
access to opportunities.
1. Stabilize and Reimagine Public Transport

Public transport ridership and revenues collapsed globally during the pandemic,
forcing many agencies to cut services and raise fares. As a result, green stimulus
without public transport support is a non-starter.
Per dollar invested, public transport creates more than three times as many jobs as
building new highways. Investing in public transport improves equal access to jobs
and services, road safety, smart urban growth and limits carbon emissions.
Stabilization funds are the first step, as they will help public transport continue to
run and employ people. Thirty percent of recovery funds have gone to these funds,
including over $20 billion in the United States. Nigeria also committed over $200
million to compensate minibus operators for lost revenues.
The next step is putting public transport on the right track to not just revive, but
thrive.
Many locales have a withstanding need to reimagine public transport as the

backbone of urban mobility, grounded in reliable funding, better governance and
focus on access to jobs, education and services. Instead of building new urban
highways, cities can increase national and provincial funding for rapid transit lines
and public transport operating costs. Cities can also institute broader mobility
policies that manage demand, such as London’s congestion charge, which generated
almost $303 million in gross revenue last year. Such measures not only raise revenue
for public transport, but put a price on private vehicle traffic.
Planners have a role to play, as well. They can reallocate urban space for bus priority
infrastructure, like red carpet lanes, and make systems more user-friendly through
digitalization. Delhi introduced mobile payment options on 650 buses and issued
over 200,000 tickets in a matter of three months of its initial pilot in the last year.
2. Double-down on Active Transport

Bike lanes and sidewalks have been a critical lifeline during lockdowns, offering
fresh air and routes to essential services and jobs. They also create jobs, enliven local
retail and promote healthier, safer, emissions-free transport.
Cities that widened sidewalks and popped-up bike lanes during the pandemic
should make them permanent. Bogotá, Colombia, which created 84 km of
emergency bicycle lanes, announced a plan to add an additional 280 km to their
existing 550 km network within four years. The mayor, an avid cyclist herself, wants
half of all trips made by bike.
More can be done at the national level, as well. Only 4% of recovery spending
shown by Energy Policy Tracker went toward active mobility. This funding is
clustered in a few countries like the Netherlands, France and the United Kingdom.
National funding for active mobility is low as well, especially in low- and middle-
income countries. Green recovery programs should pivot to increased national
commitments in bicycling, walking and road safety.
3. Electrify Vehicles
Electric vehicles (EVs) are crucial to decarbonizing transport. Recessions from
COVID-19 brought EV sales down 18% for 2020. While sales may rebound,
electrification must happen much faster to reach net-zero vehicle emissions by 2050.
Government EV incentives and zero-emission mandates can speed up

electrification. The International Council on Clean Transportation found
governments that instituted the highest fiscal incentives immediately following the
2008 Great Recession — including the governments of Norway, California and The
Netherlands — achieved the largest increases in EV market shares in the years that
followed, though some programs had a blind eye to middle and low-income
consumers. China achieved almost half the world’s EV market share by mandating
zero-emission vehicle manufacturing and subsidizing EV purchases.
Companies also have an essential role to create a loop between mandates and private
sector action. Many have announced exit dates from the internal combustion engine
market.
This electric renaissance will also require many more public charging stations.
Laying out the infrastructure will be a massive public works undertaking, which the
International Energy Agency estimates will create 12 jobs per $1 million invested.
To put that in perspective, the United States alone will need $4.7 billion in charging
infrastructure investment to meet demand over the next five years, resulting over
56,000 jobs.
Private passenger vehicles should not be the only focus. Electric buses can improve
equitable access to opportunity for more people and reduce long-term operating
expenditures. Santiago, Chile, has the largest electric bus fleet outside China. This
fleet has almost 800 electric buses, including 150 ordered this year. One local bus
company found operational and maintenance costs were 70% and 37% cheaper,
respectively, than with former diesel buses.
4. Shift People and Goods to Rail

In many ways, rail investment is the elephant in the room. During the Great
Recession, 26% of global green stimulus funds went to rail, making it the largest
category of green stimulus investments across sectors. To date, stimulus spending
after COVID-19 has not been so different: Energy Policy Tracker identified almost
$30 billion going to rail expansion.
Whether from the public or private sector, recovery investments in rail should be
green with mode shift and efficiency in mind. Countries collectively commissioned
or planned over 32,000 km of inter-city, high-speed rail, including first-ever high-
speed rail connections in countries like India. High-speed rail is 12 times more
energy efficient per passenger-kilometer than airplanes and cars. Germany’s Deutsh-
Bahn rail corporation announced plans to pilot zero-emission, hydrogen-powered
trains by 2024.
Meanwhile, cities in China and India are shifting goods from truck beds to boxcars,
saving on emissions and improving local air quality. Investments also should avoid
laying track for what could be larger carbon-intensive activities, such as shuttling
coal, as was the case in China after the Great Recession.
5. Clean R&D for Harder-to-Abate Sectors

Economic recovery stimulus packages can help mitigate emissions in so-called
“harder-to-abate” sectors that require innovative zero-emission fuels and
technologies. Clean research and development (R&D) can accelerate the market
readiness of zero-emission fuels and lower future price barriers. Hundreds of top
bank officials, economists and finance ministers voted clean R&D a class favorite
among other stimulus investments for having the highest long-term climate impact.
For example, the aviation sector saw travel plunge 60% since March. A swift return
to business as usual could cause aviation to consume up to 27% of the global carbon
budget in a 1.5 degree C by 2050 scenario. In the same timeframe, converting
conventional aviation fuel to biorenewable fuel could reduce emissions from
international flights by 63%. Meanwhile, emerging fuels like hydrogen could
eliminate airplane emissions completely. To nudge the transition along, France
invested €1.5 billion ($1.8 billion) to support R&D to launch a clean fuel airplane
by 2035.
Making Sustainable Mobility Part of the “New Normal”

The world faced enormous changes in the last year and a half and continues to face
an unprecedented reality. The transition toward a “new normal” leaves open
questions about how to reach a better equilibrium for the environment and people.
As countries prepare plans to raise their climate ambitions ahead of COP26, choices
in how to spend trillions in stimulus money will have long-lasting effects. Climate
change should be central to those choices, and by extent, transport must play a
starring role.
Enacting these five recommendations together will create a plethora of benefits,

including job creation, road safety, improved air quality, revitalized economies and so
much more. Putting equitable and zero-emission mobility front-and-center
improves the chances of handing off a better world to today’s young people and
future generations.
Relevant Work
CITIES
Safer, More Sustainable Transport in a Post-COVID-19 World

Insights APRIL 23, 2020
CLIMATE
5 Shifts to Transform Transportation Systems and Meet Climate Goals
Insights MARCH 9, 2023
CLIMATE
NDC Enhancement and COVID-19 Recovery: Building Blocks for a Sustainable

Future
Insights SEPTEMBER 23, 2020
CITIES
4 Ways to Design Safe Streets for Cyclists
Insights NOVEMBER 10, 2021

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11/06/23, 20:12 How Stimulus Spending Can Impact the Transport Sector | World Resources Institute

5 Ways to Shape a Greener,

Transport is a key sector in need of big changes, comprising 14% of global

In a new paper with the Transport Decarbonisation Alliance, WRI evaluated

Mentioned in this article

Companies stepped up commitments, as well. Corporate alliances, such as the

1. Stabilize and Reimagine Public Transport

Many locales have a withstanding need to reimagine public transport as the

2. Double-down on Active Transport

Government EV incentives and zero-emission mandates can speed up

4. Shift People and Goods to Rail

5. Clean R&D for Harder-to-Abate Sectors

Making Sustainable Mobility Part of the “New Normal”

Enacting these five recommendations together will create a plethora of benefits,

Safer, More Sustainable Transport in a Post-COVID-19 World

5 Shifts to Transform Transportation Systems and Meet Climate Goals

Insights MARCH 9, 2023

NDC Enhancement and COVID-19 Recovery: Building Blocks for a Sustainable

4 Ways to Design Safe Streets for Cyclists

Insights NOVEMBER 10, 2021

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