According to the International Energy Agency (IEA), the transport sector is responsible for 23% of all energy-related CO2 emissions globally and 13% of total GHG emissions. Shifting to low-carbon transport is essential for climate change mitigation; but what should and shouldn't be called "low-carbon" is not always clear.
To provide guidance for investors we have convened an expert Low Carbon Technical Working Group under the Climate Bonds Standard and Certification Scheme. Today they've published their first set of proposed eligibility criteria for Climate Bonds Certification, for Bus Rapid Transit (BRT) systems.
For those of you unfamiliar with a BRTs, they're mass transit systems that use low cost buses (often hybrid or electric) in dedicated bus corridors, complete with metro-style passenger stations. Developed originally in Curitiba in Brazil, they're flexible, relatively fast to implement and a lot cheaper than rail. But there are good ones and not-so-good ones.</p> <p>For bonds and BRTs the Working Group is proposing the use of an existing ratings system, the BRT Standard, as developed by the Institute of Transportation and Development Policy. Any BRT project meeting Bronze, Silver, or Gold Standard under the BRT Standard will be eligible for certification under the Climate Bonds Standards.
The published BRT criteria are now subject to a 30 day period of public consultation – if you’re interested you can comment on this page (see below).
After 30 days the criteria will be submitted to the Climate Bond Standards Board for confirmation. Board members are CalSTRS, the (US) Investor Network on Climate Risk, the (EU) Institutional Investor Group on Climate Change, the (Australian) Investor Group on Climate Change, NRDC, CDP (formerly known as the Carbon Disclosure Project), and the State Treasurer of California, Bill Lockyer.
"Climate Bond financing will help promote the more rapid scale-up of high quality BRT systems worldwide," said Michael Replogle, Working Group member and Managing Director for Policy and Founder of the Institute for Transportation and Development Policy. "Just as motor vehicle and fuel standards have driven progress in fuel economy and pollution reduction, the BRT Standard linked to Climate Bonds will help ensure that BRT system development and investments in related bonds deliver maximum benefits for passengers, operators, and the environment."
The next transport criteria to be released, in coming weeks, will be for rail and low-emission and electric vehicles. Green property criteria will also go out for public consultation this month.
Members of the Low-Carbon Transport Technical Working Group are:
- Heather Allen, Transport Research Laboratory, London
- Lewis Fulton, University of California’s Davis Institute of Transportation Studies
- Michael Replogle, Institute for Transportation and Development Policy, Washington DC
- Gary Hoffman, rail planning consultant, GM Hoffman Consulting, Washington D.C.
- Elizabeth Deakin, University of California’s Berkeley Institute for Environment Design
- Karl-Josef Kuhn, Siemens, Munich
- Rupert Faussett, Green Cities program, Forum for the Future, London
- Cornie Huizenga, SLoCaT – partnership for sustainable low carbon transport, Shanghai
- Benoit Lefevre, World Resources Institute, Washington DC
- Arie Bleijenberg, TNO, the Netherlands Organisation for Applied Scientific Research, Delft
- Nina Renshaw, Transport & Environment, Brussels
- He Dongquan, China Sustainable Transportation Centre, China Energy Foundation, Beijing
- Danang Parikesit is a leading transportation expert in Asia, President of the Indonesian Transport Society, Professor of Transportation at Universitas Gadjah Mada and a transport policy advisor to the Indonesian Government.
- Carol Lee Rawn is Director of the Transportation Program at Ceres, a Boston-based NGO.
- Nick Owen is principal consultant at E4 tech transport consultants in London.
The criteria is available on the website, standards.climatebonds.net
The Climate Bond Standard is a screening tool for investors and governments to support investment in delivering a Low Carbon Economy. Bonds complying with the Standard will be certified as ‘Climate Bonds’, a mark that assures their contribution to the delivery of a Low Carbon Economy.
