Content Overview Climate Finance Toolkit

This content overview helps you navigate through the toolkit.

General information 

This introductory chapter gives background information on climate finance and highlights its relevance as an additional source for low-carbon transport. It explores the state of climate finance at country and city level and provides information about necessary preconditions to receive this finance. 

Public domestic sources

Public sources of investment are especially important in middle- and lower-income countries. In the past, domestic sources hereby accounted for 98 % of global transport investment, while Official Development Assistance (ODA) and climate funds played a minor role (Lefevre and Leipziger 2014).

The publications below provide information over public sources of financing and funding for low-carbon transport at the national and local level. They explain how taxes, congestion charging, road pricing and land value capture instruments can generate revenues that can be used to repay upfront investments and finance additional sustainable modes of transport. 

Private sources

International and domestic private finance accounts for a large part of transport spending. Thus, it is important to direct this finance into sustainable, low-carbon modes of transport.

This chapter gives an overview of private sources that can be tapped to finance sustainable transport. It underlines the need to mobilise this private finance for upfront investment, operation and maintenance of sustainable transport infrastructure, given the scarcity of public funds and the scale of investment required for decarbonising the transport sector. More detailed information on public-private partnerships and the role of institutional investors is included. 

Combining public and private sources

The following publications and guides include information on both public and private sources and highlight the importance of combining both. Furthermore, in this chapter, a special focus is put on green bonds as relatively new debt financing instrument for cities and municipal governments. 

International development finance

International development finance that flows towards climate mitigation activities is often not explicitly referred to as climate finance, when using its narrow definition. However, it plays a significant role for middle- and low-income countries.

Many Multilateral Development Banks (MDBs) have funds that provide financing for sustainable, low-carbon transport, among other sectors. Some of the main MDBs are listed in this section according to the size of their investments in sustainable transport, including the financing instruments they offer and how to apply for funding. 

International climate funds

This section includes publications that offer an overview of and access options to existing international climate and environmental funds that, inter alia, provide finance for low-carbon transport projects.

A special focus is put on the three largest, thus most important, sources of international public finance for climate mitigation in developing countries: the Green Climate Fund (GCF), the Global Environment Facility (GEF) and the World-Bank administered Clean Technology Fund (CTF).

Additional material

The final chapter includes additional material in form of trainings, workshops, tools and other interesting publications that also deal with climate finance in general, not specifically in the transport sector. 


Tools and learning material: 


Guidelines for general climate finance:

Photo by dose on Unsplash

Ronja Kwasniok

10 Principles for Sustainable Urban Transport