April 28, 2022
Scaling sustainable transport, which has historically relied on public funding, requires significant political support and capacity. Sustainable transport infrastructure, like cycle lanes, footpaths, and public transport stops and depots, yields substantial benefits to cities in terms of public health and safety, improved productivity, and environmental sustainability. However, they typically do not generate revenue directly, making it difficult to attract private investment. At the same time, local and national road budgets, which heavily support car-centric infrastructure, outweigh the public funding available for public and active transport.
National and subnational policies are needed to institutionalize access to and funding for high-quality, sustainable transport into the future. As political administrations shift over time, sustainable transport projects can face serious delays, prolong the delivery of public benefits, and cost even more to construct. Funding, financing, and policies that support and scale sustainable transport are inextricably linked.
National governments may provide overarching visions, policies, targets, and programs that allocate resources for public transport, cycling infrastructure, Complete Streets, or other sustainable transport interventions. Subnational governments, in turn, adapt these targets and policies for local implementation, supplementing national investment with local budgets. National governments also collaborate with development banks to access concessional financing for transport projects, thereby leveraging broader investment, including private-sector participation.
ITDP’s work aims to better align these three key elements to deliver cohesive project planning, efficient resource allocation, and long-term operational and financial sustainability. ITDP supports governments in developing National Urban Mobility Plans (NUMPs) and Sustainable Urban Mobility Plans (SUMPs), advocating for policy frameworks that include funding programs to implement projects. ITDP also works to improve collaboration among governments, development banks, and private investors, identifying emerging business models and financing mechanisms that more effectively distribute risk between the public and private sectors.
At the local level, ITDP focuses on levers to expand municipal budgets’ capacity to support sustainable transport. This includes identifying revenue streams beyond public transport fares that can be earmarked: From travel demand management measures such as priced parking, low emission zones, and even congestion pricing, to land value capture, to taxes and emerging mechanisms like green bonds, these local revenue sources — when revenue is allocated directly and transparently to sustainable transport — can ensure long-term viability.
