The Global Facility
to Decarbonize Transport
GFDT
Supporting Countries in their Decarbonization Initiatives

Table of Contents
Why is the World Bank launching a new Multi-Donor Trust Fund?........................ 4
The Global Facility to Decarbonize Transport (GFDT)......................................... 8
The Objective of the GFDT.............................................................................. 8
The Conceptual Structure............................................................................ 10
The Anticipated Activities........................................................................... 14
The Beneficiaries of the GFDT....................................................................... 15
The Theory of Change.................................................................................. 16
The Governance and Implementation Arrangements for the GFDT..................... 19
Introduction.............................................................................................. 19
The Governance Arrangements..................................................................... 20
The Implementation Arrangements............................................................... 21
Collaborative Proposal Development............................................................. 23
The Relationship with other Trust Funds....................................................... 23
The Target Budget, Allocation Methodologies and Risks.................................. 25
The Target Budget....................................................................................... 25
Tentative Allocation Methodologies.............................................................. 25
Risks and Mitigation................................................................................... 26

Annexes
A: Pillars and Cross-Cutting Themes............................................................. 27
B: Indicative Results Framework.................................................................. 42
C: GFDT Risks and Mitigation Efforts............................................................. 45
D: Global Solution Groups and Solution Areas in the Transport Global Practice.. 48

The Global Facility to Decarbonize Transport2

Summary Sheet
Basic Information
Umbrella Name

Global Facility to Decarbonize Transport (GFDT)Umbrella Managing BU and collaborating BUs.

Managing BU: Transport Global Knowledge Unit (ITRGK)Collaborating BUs: Transport GP; Climate Change Group; Environment GP; Urban,
Resilience and Land GP; Social GP; Water GP; Energy and Extractives GP; Digital
Development GP; Macro, Trade, and Investment GP
Umbrella Program Manager (UPM) Name and Title

TBD, ITRGKFundraising Initiative Note (FIN)

FIN # 1600
Sector/Theme & Geographic Scope

Transport, Global
Target Umbrella size

US$200m
Target anchor MDTF size

US$200m
Target Umbrella Donors

Australia, China, Denmark, Germany, Gulf States, Korea; Japan, Netherlands, Norway,
Saudi Arabia, Sweden, UK, and the US; Private Sector.
Target anchor MDTF donors

Australia, China, Denmark, Germany, Gulf States, Korea; Japan, Netherlands, Norway,
Saudi Arabia, Sweden, UK, and the US; Private Sector.
Target establishment FY and quarter

FY21 Q3
Planned End Disbursement Date of the anchor MDTF

FY31 Q3

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Why is the World Bank launchinga new Multi-Donor Trust Fund?

The impending climate change crisis makes the decarbonization of the transport sector
one of the most pressing development challenges of our time. No scenario to stabilize
climate change around the 1.5°C target above pre-industrial temperatures, internationallyagreed as the maximum acceptable amount of warming, is feasible without an aggressive
approach to decarbonizing transport,1 which will require mitigation and adaptation. The
demand for mobility is continuing to grow as economies develop and urbanize, and as populations and incomes increase. With the world population projected to reach 8.5 billion by
2030,2 annual passenger traffic is expected to grow by 50 percent, while global freight volume
is expected to grow by 70 percent, over the same period. But emissions from the transport
sector currently comprise approximately 24 percent of total energy-related Green House Gas(GHG) emissions. Transport sector emissions have also grown faster than those of almost anyother sector over the past 50 years. They are predicted to increase by 60 percent by 2050,3 if
no action is taken.
The impact of climate change is already clearly visible, in the increased frequency and theseverity of climate induced events. Direct damage to transport infrastructure from natural
disasters costs about US$15 billion annually.4 That damage results in death and impoverish-

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ment, impairs recovery efforts and health care, and disrupts economies. As one example,
between 1990 and 2019,5 there have been over 1000 climate-induced disasters in the South
Asia region, one of the regions expected to be most impacted. Collectively, these events affected over 1.68 billion people, killed an estimated 267,000 and caused over US$127 billion
in damages. The study also noted that 800 million people in the region (or 44 percent of thetotal population) live in locations that are expected to become moderate or severe climate
hotspots by 2050 without climate action. The predicted implications are that 62 million people will be pushed below the extreme poverty line by 2030. By the same date, floods alone are
predicted to cost an estimated US$215 billion annually.
Transport emissions (Particulate Matter 2.5 (PM2.5) and Particulate Matter 10 (PM10), Nitrogen Oxides (NOX), Sulphur Dioxide (SO2), Carbon Monoxide (CO), and others), also have an
impact on health locally. The transport sector is thebiggest global contributor to the emissions of fine particulate matter, strongly linked to increasing the inci-

The challenge – andthe opportunity – is toreconcile the growing
mobility needs ofdeveloping economies,
with the imperative
for climate action andimproved resilience.

dence of respiratory and cardiopulmonary diseases andmany forms of cancer. The transport sector is also themain contributor of CO emissions, which reduces theamount of oxygen reaching the body’s organs and tissues, thereby exacerbating heart conditions. The World
Health Organization’s (WHO) most recent “Global Urban Ambient Air Pollution Database” from 2016 estimated that 98 percent of cities in low- and middle-income countries with more than 100,000 inhabitants did
not meet WHO air quality guidelines. Localized air pollution was estimated to result in 2.9 million annual premature deaths globally–of which more than 85 percent
occurred in low and middle-income countries.
The challenge – and the opportunity – is to reconcile thegrowing mobility needs of developing economies, with

the imperative for climate action and improved resilience. Transport and mobility have a central
role in the development agenda, facilitating access to employment and educational opportunities, health and social services, and local, regional and global markets. There are also clear links
between reducing barriers to transport and alleviating poverty.6 What is needed are approaches
that reduce the dependence on fossil fuels, without inhibiting growing mobility needs, which
are actually two parts of an integrated development agenda.7 As one example, increased mobility
and emission reduction can be achieved through an integrated approach of improved land management and transport provision that promotes densification along key growth corridors, which
are served by resilient high-quality transport services, to stimulate passengers to switch to lessemission-intensive modes of transport, and potentially shortens trip lengths.

The Global Facility to Decarbonize Transport

5Developing countries have significant infrastructure investment needs to facilitate development, but investment decisions need to avoid locking countries into a path that is unsustainable, and costly to reverse. It is estimated that governments globally will face an annual transport infrastructure financing gap of US$244 to US$944 billion through 2030.8 Financing needs
challenge the current status quo of dependency on year-to-year budgetary allocations and theability of multilateral and bilateral official development assistance resources to finance suchneeds. It is crucial that investment decisions, wherever possible, are made in a manner thatseeks to reconcile the integrated development challenge, mentioned above. Infrastructure provision should be undertaken to facilitate, and not impede, climate action and improved resilience. But traditional funding and financing instruments have not been designed to address
the high-risk and uncertain investments required to decarbonize the transport sector. This will
require creative financial approaches, different instruments and sources, and appropriate risk
mitigation strategies to overcome a lack of economic viability in the short to medium term.
There are many initiatives that deliver immediate positive environmental, local economic
and welfare benefits. These include investment in high quality public transport, facilitating non-motorized transport, the adoption of cleaner technologies and fuels, new forms of(shared) mobility, policies related to the importation and use of second-hand vehicles, andincentive schemes to facilitate fleet renewal. These interventions have shorter gestation periods and deliver tangible benefits earlier than the necessary but more challenging structuralchanges, such as increasing the density of cities and transit oriented urban development. But

The Global Facility to Decarbonize Transport

6both short-term and medium-term measures will be needed in a country’s integrated climate
action plan to facilitate the attainment of carbon neutrality by 2050.
There are viable green and resilient alternatives emerging, what is required is a greater
understanding as to their applicability/suitability in a developing country context, thebarriers to implementation, and the opportunity to innovate. The introduction of green
technologies, resilient infrastructure, and associated policy interventions will require apartnership between the public and private sectors, multilateral and bilateral institutions,and civil society. It will require innovative and appropriate financial solutions, leveraging
in commercial finance where possible, to support investments. But crucially, reform will beneeded to broaden sources of revenues, improve sector fundamentals, and ensure soundproject planning and preparation. Decarbonizing the transport sector will require significant
upstream work to assess suitability and applicability of emerging approaches, identify andovercome barriers, and provide the opportunity to innovate. It will require building consensus, the preparation of the country-level strategies and policies, and the necessary project-level preparation to design and implement the scalable pilot interventions.
Countries are now at a critical junction to take advantage of the opportunity for a low-carbon growth trajectory, including transformative technologies and increased resilience inthe context of economy recovery and building-back better. This change requires: The pro-active role of many stakeholders to create a win-win ecosystem rather than reactive mobility systems;
 With new technologies and the challenges for decarbonizing transport, it is critical to rethink how transport can continue delivering on development, propelling prosperity andenabling opportunities;
 Understanding the financial, institutional, and regulatory incentives that allow technology to do its part is essential, at the country, regional and international level, by considering technology transfer and cooperation; and The effective leveraging of resources from all major development partners, and the private sector, will be needed to have a profound impact on the how the transport sector
evolves across the developing world.
Responding to the growing recognition that the world needs to significantly step up its efforts
towards sustainable mobility, the World Bank is launching this Call for Funds for a major new
multi-donor trust fund, the Global Facility to Decarbonize Transport (GFDT), focused on ourclient countries. The GFDT is intended to provide the World Bank with a vehicle to deliver catalytic funding to formulate, innovate, and scale up support to client countries to decarbonize
transport and build resilience, whilst also meeting growing mobility needs. The GFDT is intended to build on the World Bank’s unique comparative advantage to coordinate regional andglobal action, within and outside of the institution, for the benefit of client countries.

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The Global Facility to
Decarbonize Transport (GFDT)The Objective of the GFDTThe objective of the GFDT is to support client countries in the decarbonization9 of theirtransport sector in a manner consistent both with the pursuit of carbon neutrality by 2050
and the development of resilient mobility systems to enable inclusive economic growth
and access to opportunities in the developing world. This will require trade-offs and somedifficult policy decisions, which will need to be informed by hard evidence. This will beachieved through the provision of support to governments, local authorities, line agencies,
and other public and private stakeholders to allow them to make informed decisions as to
how they want to approach the imperative to address climate change, embrace the digitaltransformation, and harness potential opportunities; such as, creating resilient mobility systems that enable inclusive growth amid evolving urbanization and demographic trends.
The GFDT will enable a more strategic approach for the World Bank and potential donors
to partner and finance their priorities under the new “Umbrella 2.0” approach. The Bank
continually seeks ways to enhance the impact and effectiveness of trust funds, and its new
Umbrella 2.0 approach addresses this objective. The Umbrella 2.0 Program is a flexible ap-

The Global Facility to Decarbonize Transport8

proach to trust fund organization and management that enables Development Partners andthe Bank to partner and finance mutual priorities. It is the primary way to partner with theWorld Bank through trust funds and is designed to act as the channel for the vast majorityof donor contributions. Umbrella 2.0 Programs provide scale and efficiency for enhanced
development impact and effectiveness.
The GFDT will be established as per the Umbrella 2.0 Program and consist of an anchor
Multi-Donor Trust Fund. Where a Development Partner’s interests or need is to support a narrower thematic or geographic scope (within the scope of the Anchor MDTF), it can be accommodated through nonbinding “preferencing” in the Administration Agreement (AA). Existing
World Bank Transport Trust Funds may remain as stand-alone or become Associated Trustto this new MDTF. Associated Trust Funds support the Umbrella 2.0 Program Development
Objective and contribute to the overarching Results Framework of the Umbrella 2.0 Program.
They have a thematic and geographic scope that is within the scope of the Anchor MDTF.10
All donor contributions to the Umbrella’s Anchor MDTF will be pooled. In some cases, theWorld Bank may agree to accept the expression of non-binding contribution preferences
related to specific engagement areas, themes or geographic areas, which will be accommodated to the extent possible by the World Bank. If no other options are available, for example
due to donors’ legal considerations and budget appropriations preventing them from directly
joining the Anchor MDTF, Associated TFs can be established and linked to the Umbrella Program. Since Associated TFs are within the Umbrella Program, they adhere to common governance, reporting, results and visibility arrangements of the Anchor MDTF. The flow of funds
to and from the Anchor MDTF or the Associated TFs will be governed by: (a) Administration
Agreements between the Bank and donors; and (b) Grant Agreements between the WBG and
grant recipients. The World Bank will administer the Anchor MDTF and the Associated TFs
in accordance with the terms of the Administration Agreements. The initial duration of theUmbrella’s Anchor MDTF will be 10 years.

The Global Facility to Decarbonize Transport

9The Conceptual Structure
The GFDT has one overarching goal, two distinct pillars, and two cross-cutting themes.
The overarching goal is to support the attainment of Decarbonized and Resilient Transport inclient countries. Specific interventions are envisaged to cater the two type of transport demand: individuals and freight. In turn, transport systems for individuals and freight define
2 ubiquitous pillars: mobility and access, and logistics and connectivity. Each of these pillars has subsidiary objectives of their own: safety and inclusion in the case of individualtransport, as well as integration and competitiveness in the case of freight transport. These
pillars are complemented by two cross-cutting themes Institutions, Policy and Financing andTransformative Technologies provide policy levers and address foundational aspects of the sector (as illustrated in Figure 1). Further detail on the key issues and drivers in each pillar andcross-cutting area is provided in Annex A.

Figure 1. Global Facility to Decarbonize Transport (GFDT)PILLAR 1

PILLAR 2

Inclusive and Safe
Mobility and Accessibility

Integrated
and Competitive Logistics
and Connectivity

The Global Facility to Decarbonize Transport

Institutions, Policy and Financing

Transformative Technologies

Decarbonized and Resilient Transport

10

The specific engagement areas under each pillar are roughly organized to follow the “AvoidShift-Improve” planning framework, whilst enhancing resilience. In addition, the framework
is being expanded to include those policy and investment programs that support improving theresilience of the sector, addressing key factors that underline the provision of food and critical goods, and understanding how transport services deficiencies has an impact on fragility
and the propensity of communities to civil strife. In this regard, transport interventions, both
policy and investment under each pillar are envisaged to be designed to consider the need to:

Avoid motorized transport where possible through interventions to eliminate, shorten, or reduce
the frequency of trips, creating compact cities and transit oriented urban development. Projects
that reduce spatial mismatch or implement “Transit Oriented Development” (TOD), nudge green
behaviors for firms and individuals, and enhance the possibilities for teleactivities, such as teleworking or e-shopping associated to low emissions delivery systems fall under this category;

Shift transport demand to less emission-intensive modes of transport, such as public transport and non-motorized modes, and railways and inland waterways. Development of public
transport and non-motorized modes of travel for individuals and encouraging modal shift,where possible, for freight fall under this category as these modes compare favorably against
low occupancy and road-based alternatives.

Improve the emissions performance of transport, including iinitiatives aimed at adopting
more efficient technologies, promoting the fuel efficiency of transport through technical andoperational interventions, and transitioning to low or zero emissions vehicles. This category
also includes those interventions that improve the efficiency of the system as a whole such as
the use of digital technologies and data analytics to optimize routes, but also technological improvements that structural change the some activities –e-banking, for instance- are performed.

The Global Facility to Decarbonize Transport

11Enhance Resilience of transport systems adopts alife-cycle approach that spans from system planningto engineering and design passing through operations and maintenance, contingency programming,
institutional capacity and identifying disaster risk
financing mechanisms. This category –consistent
with World Bank’s Adaptation and Resilience to Climate and Natural Disasters Strategy — includes:
 development of network-level thinking to better
understand which infrastructure is critical andvulnerable at the network level to reinforce it orbuild redundancy around it, support urbanization away from the most disaster-prone areas,

The Egypt Vehicle Scrapping Scheme
The overall objective of the program wasto reduce greenhouse gas (GHG) emissions
and air pollution associated with theaging fleet of taxi, microbuses, minibuses
and buses in Egypt through purchase of
Emission Reductions. The Recycling Program
established a mechanism through which
owners of taxis, microbuses, trailer trucks

and design of alternative plans to preserve movement of people and goods in case of disruptions;
 support of cross-sectoral contingency planning to
set in place adequate protocols and reserve funds
following an adverse climatic or disaster event,making use of early warning systems, hydrometeorological forecasts, timely evacuations, anddevelop real-time network systems (for example,
sensor systems along transport links); andand buses may voluntarily surrender their promotion of the use of innovative technologies

vehicles for managed scrapping and recycling,

for adaptive infrastructure and systems to facil-in exchange for financial incentives that may

itate and pilot new, cost-effective, and resilient

be used towards the purchase of new vehicles

techniques during transport infrastructure plan-from participating vehicle dealers, under aning, design, construction, and maintenance,

closely monitored process. The intention isand for emergency systems.

that scrapped vehicles will be recycled. Up
to date, the scheme has led to the scrappingof 45,000 taxies, and verified emissions
reductions of nearly 220,000 tons of carbon
dioxide equivalent.

It is important to note that the different elements
are expected to be pursued in parallel as determined to target specific segments of the market
for transport services. This specifically means nohierarchy between “avoid,” “shift,” “improve,” or “resilience”. Rather, the mixture of strategic focus in
any given client country should be client driven,

Source: Egypt–Vehicle Scrapping and Recycling Program (English). Washington, D.C.: World Bank Group. http://documents.
worldbank.org/curated/en/324191468037493049/Egypt-Vehicle-Scrapping-and-Recycling-Programcontext dependent, and results focused. One example of a successful project is contained in the text
box to the left.

The Global Facility to Decarbonize Transport

12All activities under the pillars are intended to support progress to achieving carbon neutrality – or consistent with incremental gains towards fulfilling the Paris Agreement. They
will follow the principles of sustainable mobility, defined in the “Avoid-Shift-Improve” paradigm and will include the adoption of mobility as a system. The practical consequence of
reducing the cost of providing mobility while minimizing the carbon footprint requires afocus on issues that demand early action, high positive co-benefits (net short-term gain to investment), considerations of a long-term target defined by sector-specific and cross-sectoral
policy frameworks (e.g. pricing policies, land management, international agreements for themarketing of second-hand vehicles) and deep-dive in investment requirements in coordination with the private sector.
The overall structure of GFDT is aligned with the internal strategy of the WB Transport
Global Practice. All activities resourced by the GFDT will be fully supported by the technical structural and internal knowledge exchange networks defined by the transport Global
Solution Groups (GSGs) and Solution Areas (SAs) (Annex D), and the sector staff in client
countries. The funding allocations made by the GFDT will be made in a manner entirely
consistent with the annual Work Program Agreements between the Country Units and theregional Transport Units, based on client demand.

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The Anticipated Activities
The activities under each of the defined engagement areas are expected to fall into four
broad categories, and fully integrated with the operational program of the Transport Global Practice. Implementation is expected to require a combination of Bank-executed (BE) andRecipient-executed (RE) activities:11

Bank Executed Analytical and Advisory Services
These are non-lending activities that help external clients or audiences advance a development objective. The World Bank provides ASA to support the design or implementation of
better policies, inform strategies and the development of investment programs and bankableprojects, strengthen institutions and build capacity, and contribute to the global development agenda. Outputs would include analytical reports, policy notes, hands-on advice, andknowledge sharing workshops or training programs.
Client Executed Advisory Services and Analytics
These include all activities that involve the definition of national or sector strategies in client
countries, and all subsequent project preparation activities. Client Executed outputs include
strategy reports, project preparation, design work, safeguard work, and transaction advice totake bankable pilot projects to close.
Provision of co-financing with World Bank lending projects to pilot innovative solutions
The GFDT would, funding permitted, complement the financing provided in the World Bank
lending, for those activities that offer substantial and substantive progress towards carbon
neutrality and resilience, and which would not otherwise happen without the grant element
provided from the GFDT. The grant support required in any pilot project is expected to be modest in comparison to the finance provided from traditional sources of public, or private investment. The intention is to facilitate innovative pilots that are scalable, with some flexibility as tothe how at this stage to allow some experimentation and allow subsequent scaling.
Applicable Policies for Activities
All Bank executed trust funded activities are administered and carried out in accordancewith the World Bank’s policies and procedures for Advisory Services and Analytics products
and applicable Administrative policies and procedures. Bank-executed products are included in a Business Unit’s management oversight responsibility. All Recipient-executed activities funded through the GFDT would be subject to the World Bank policy framework for any
Bank financed Recipient-executed activities, including the Environmental and Social Framework, and the usual fiduciary oversight.

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The Beneficiaries of the GFDTThe beneficiaries of the GFDT will include regional and national governments, line agencies, policy and research institutions, the private sector, civil society organizations, andindividuals in the World Bank Group’s (WBG’s) client countries. These entities are expectedboth to contribute to and benefit from knowledge and experience sharing, policy advice,analytical products providing data and evidence for policy making, funds to pilot innovative
approaches, opportunities for learning, and the means of engagement for public outreachand communications. The outputs of the Umbrella will assist the beneficiaries in forming
new coalitions for change, in designing and implementing policy and institutional reforms,
in adjusting public and private investments and expenditure, and in promoting innovation.
The GFDT will also serve as a platform for high-income countries and global organizations
to share experiences and good practice relevant to mobility and the megatrends affecting it,
and to pursue transformative change in building, protecting and deploying human capital.

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Global Advocacy

Preparation

Pipeline/Project

AssistanceTechnical
Safety to non-road modes

Intermodality

Competitive low-emission modes

Gender and transport

Road safety

New (shared) mobilities

Non-motorized transport

Public transport

Efficient and sustainable logistics
Green ports and shipping
Fuel standards and cleaner fuels
Trucking sector reform
Digitalization Passengers
Access to opportunities
Lagging and isolated areas

Landlocked and Small Island States

Fragility and reconstruction

Regional connectivity

Health, security, and safety

Resilient supply chains

Lagging and isolated areas

Access to opportunities

Enhance transport resiliency

Cleaner technologies
Electric mobility and alternative fuels
Motorization and fleet renewal
Intelligent traffic systems

Improve transport emissions

Re-engineered supply chains

Economic corridors, localization of production

Urban logistics and e-commerce

Telecommuting/e-services enhanced

TOD, urban planning implemented

Regulations enacted

Demand management policies

Passengers
Freight

Generation

Passengers
Freight

Knowledge

Shift toward low-carbon transport

Passengers
Freight

Avoid high-carbon transport

Intermediate Results

Short-Term OutcomesLong-Term Outcomes

Low-carbon door-to-door travel for passengers and freight

Actions

comes provide direction on results that could be achieved through funding to the Umbrella.12

outcomes and ultimately the program’s overarching goals and development objective. The out-

dressed by the activities under the pillars and engagement areas, and how these lead to key

The following diagram (Figure 2) illustrates how the key issues and underlying drivers are ad-

Carbon-neutral transport by 2050 and resilient transport that

Figure 2. The Theory of Change of the GFDT

Passengers
Freight

The Theory of Change of the GFDT presents the pathway to the attainment of the objective.

enable inclusive growth and access to opportunities

The Theory of Change

Critical assumptions provide levers to address foundational aspects of the transport sector: (i)Institutional, policy, and financing development; and (ii) Transformative technologies.
Critical Assumptions

Integrated and Competitive Logistics and Connectivity
Inclusive and Safe Mobility and Accessibility

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The establishment of the GFDT is also closely associated with the Bank’s commitment to theachievement of the Sustainable Development Goals (SDGs). Sustainable mobility is fundamental to progress in realizing the promise of the 2030 Agenda for Sustainable Development
and in achieving the 17 SDGs. Although there is no SDG exclusively dedicated to transport,
transport is directly reflected in targets SDG 3.6 and SDG 11.2, and indirectly linked to manyothers (Figure 3).

Figure 3: Linkage between Transport and SDGs

SDG 3 - Good Health and Wellbeing
Target 3.4 - Non-communicable Diseases
Target 3.6 - Road Safety
Target 3.9 - Air Pollution
SDG 7 - Affordable and Clean Energy

Universal AccessTarget 7.3 - Energy Efficiency
SDG 9 - Industry Innovation and Infrastructure
Target 9.1 - Sustainable Infrastructure

SafetyTarget 9.4 - Resource Use Efficiency
SDG 11 - Sustainable cities and Communities
Target 11.2 - Urban Access

Efﬁciency

Target 11.6 - Sustainable Cities
SDG 12 - Responsible Consumption and Production
Target 12.c - Fuel Subsidy

Green

Target 12.3 - Food Loss and Waste
SDG 13 - Climate Action
Target 13.1 - Climate Change Adaptation
Target 13.2 - Climate Change Mitigation
SDG 17 - Partnerships for the Goals
Target 17.14 - Enhance Policy Coherence

Source: Source: Own elaboration.

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Affiliation of Sustainable Mobility for All (SuM4All)
Established in 2017 and hosted by the World Bank, Sustainable Mobility for All (SuM4All)
is the Bank’s main platform for international cooperation on transport and mobility issues.
It brings together over 50 influential public organizations (including regional developmentbanks and UN agencies) and private companies with a shared ambition to advocate for sustainable mobility and contribute with the achievement of the relevant SDGs, inter alia providing a tracking and monitoring framework to support countries in identifying key areas
for intervention, progress towards goals and prioritization of efforts. The GFDT Umbrella
2.0 program will partner with SuM4All to create synergies and coordinate in global advocacy
agenda and other relevant initiatives.

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The Governanceand Implementation
Arrangements for the GFDTIntroduction
The GFDT will be housed and administered by the World Bank in the Global Knowledge
Unit of the Transport Global Practice (ITRGK). The Transport Global Practice seeks to connect people, goods and services to jobs, schools, hospitals, local, regional and international
markets. This is attained through the identification of faster, cheaper, safer and more efficient solutions, while mitigating the negative externalities of traffic fatalities, congestion,
greenhouse gas emissions, and local air pollution. The Transport Global Practice is a onestop shop for the full cycle of innovation, cutting-edge knowledge, capacity building, planning, financing and implementation of transport solutions with a current investment portfolio amounting to approximately US$40 billion in close to 100 countries.
The Transport Global Practice is seen as a trusted partner by client countries, with a substantive physical and technical presence in many countries. The WBG, purely from its
reach, has a unique ability to convene state and non-state actors for co-ordination, agreement, and collective action in the sector. Uniquely, the WBG can support the implementationof projects at regional, national, and sub-national level, which can be scaled or replicatedto other regions. It, in partnership with other parts of the World Bank Group, has a uniqueability to combine commercial, private sector and public financing at sub-national, nationaland regional levels, to meet the needs of developing countries and transition economies formodern and reliable transport solutions.
The Transport Global Knowledge Unit lies within the Infrastructure Vice-Presidency andis responsible for the strategic leadership of the knowledge program across the transport
global practice. It also provides cross-support, technical and policy guidance to the regional
operational units. This leadership and support are provided by a number of Global Leads,
and Global Solutions Groups (GSG), which shape the agenda around critical policy areas.

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The Governance Arrangements
A Partnership Council (PC) is proposed to be established, consistent with the best practicefollowed by other Umbrella 2.0 TFs. This is intended to provide strategic guidance and direction, and ensure coordination, of the implementation of the anchor trust fund and any
associated trust fund(s), and to review progress reports provided by the World Bank based on
the results framework for the trust funds under an Umbrella. The PC will comprise representatives from the World Bank, including as Chair, a representative of each Donor contributing
to the anchor trust fund, and a representative of each Donor contributing to associated trustfund(s). Each Donor representative may nominate a technical expert to the PC as an observerwhen needed.
The Partnership Council would meet at least annually, as convened by the Bank. The meetings of the PC may be conducted physically or virtually. The Bank may also agree to hold ad
hoc meetings of the PC, at the request of an individual member (s). Further, the Bank may,in consultation with the PC, invite other relevant stakeholders to attend meetings, as considered appropriate.
The World Bank will prepare annual work plans and budgets for each trust fund under an
Umbrella and present them during Partnership Council meetings. Donors contributing toa specific trust fund and the Bank will endorse annual work plans and budgets for the said
trust fund. It should be noted that only donors contributing to a specific trust fund may endorse or provide inputs to the annual work plans and budgets of that trust fund. Decisions
will be made by consensus of the Bank and the donors contributing to a trust fund.

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The main beneficiaries ofsustainable transport are
the majority that mustleave their house in orderto make an income.

The Implementation Arrangements
A Program Management Team (PMT) will be established at the World Bank to manage the GFDT. The
PMT will comprise a program manager and capacity
on monitoring & evaluation, knowledge management,
communication, partnership and grant management. The PMT will be responsible for the day-to-day
management and administration of the Umbrella 2.0
MDTF. as well as any Associated TFs. The PMT will
be placed in the Global Knowledge Unit of the Transport Global Practice. The PMT is expected to compriseWorld Bank Group staff, consultants, as well as donor-funded staff and secondees.

The main roles and responsibilities of the PMT will be, among others:
 Providing strategic and administrative support to the PC, including organizing meetings,
preparing supporting documentation, and identifying priorities for financing; Preparing the business plan for the GFDT; Supporting technical co-ordination;
 Planning and executing work plans and budgets endorsed by the PC, in close consultation with regional Practice Managers, Technical Lead Specialists and Global Leads within
ITRGK as well as in collaboration with other GPs and their TF programs, as relevant; andallocation of TF resources to activities in line with the annual workplans and budgets; Preparing the TF Annual Report, including reporting on results in line with the agreed
Results Framework for the umbrella trust funds;
 Managing communications, conducting outreach and disseminating lessons learned;
 Monitoring and evaluating the program; Liaising with donors, and establishing and maintaining relevant partnerships, including
establishing linkages with other relevant programs within and outside the World Bank; Preparing and implementing a Communications and Visibility Strategy for the umbrella
trust funds, including production of relevant communication materials;
 Ensuring that Umbrella Program activities are consistently aligned with the Bank’s policies and processes;
 Supporting and coordinating with Associated TFs where relevant.

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Program Management and Administration (PMA) expenses represent the “cost of doing business” and are necessary to ensure the effective and efficient management and administrationof the program. The PMA costs will be tracked separately and charged directly to the trust funds.
Any associated TFs under the Umbrella Program will share a percentage of their PMA budget
with the Umbrella PMT, following a pro-rata approach based on total amount of resources foreach trustee TF associated with the Umbrella. This approach may be adjusted as needed, for example when new contributions are received, or new Associated TFs are established.
The reporting, results measurement, communication and evaluation of the activities supported by the GFDT will be as follows:
The PMTT will develop a business plan for GFDT. This will be developed in coordination with thedonors and will be contain the annual work plan, and the annual progress report from the previous
year, to clearly illustrate the link between lessons learned and the provision of future support.
There will be a single consolidated annual progress report covering all activities financedby all TFs under the Umbrella Program. The format and structure of the progress reportwill be finalized in consultation with the donors. For associated TFs, the report will include
a dedicated chapter within the overall annual report that provides detailed information on
progress against the agreed results envisaged for the Associated TF.
GFDT will report against one comprehensive umbrella Results Framework (RF). The RFs
for associated TFs will form a “subset” of the overall Umbrella Program level RF, integrated
with the umbrella RF at outcome level to the extent possible, and contributing to the development objective of the Anchor TF (Annex B).
An external midterm evaluation of GFDT will be undertaken every three to five years, financed
through the Umbrella Program. ToRs for the evaluation will be developed in consultation with thedonors and can include attention to specific areas or countries of interest as part of that umbrella
program level evaluation. The cost of evaluations is part of the Umbrella Program’s PMA costs.
A Communication and Visibility Plan (CVP) will be developed in consultation with participating
development partners. It will define the objectives of communications related to the program,the target audience(s), communication activities that will be implemented, how communication
success will be measured, and the resources that will be dedicated to communication and visibility. This plan will also describe how existing and new initiatives that become part of the umbrella
could keep their own branding and visibility by making explicit reference to the GFDT umbrella.
Core messaging will shape all communications efforts and vehicles, including in stakeholder engagement, online and digital strategy, creative development, and media engagement.
The CVP will provide guidance on communication and visibility at the Umbrella Programlevel, for associated trustees, and at the activity level (including country activities). Preferenced contributions and associated TFs included under GFDT will be subject to the branding
and visibility provisions embodied in the CVP for the Umbrella Program. The GFDT logo andthe Development Partner logos will be used on program outputs and will be made visible andreferenced on the GFDT website and Annual Report.
The Global Facility to Decarbonize Transport

22Collaborative Proposal Development
The World Bank staff supporting the various GFDT pillars will collaborate with the relevant
global networks and Practices, as well as Bank regional and country teams, and other relevant departments within the World Bank to formulate proposals. These proposals will be consistent with the operational priorities as defined in the Country Partnership Frameworks, andwith the overall objective of the GFDT. All proposals will be assessed in relation to their substance, scalability, and benefit, prior to being accepted for inclusion in the GFDT work plan.
Where appropriate, there will be co-management / co-financier responsibilities and roles withother World Bank Group MDTFs, including joint projects teams. The intention would be to facilitate innovation through collaboration and minimize any risk of duplication. Examples include
E-mobility activity where Energy Sector Management Assistance Program (ESMAP) can fundwork on batteries and charging stations, and GFDT can fund work on infrastructure and policies.
In the Urban space, there would be coordination with the Sustainable Urban and Regional Development (SURGE) Umbrella MDTF. In the climate change space, GFDT will collaborate with the
Climate Support Facility (CSF) and the Climate Emissions Reduction Facility (CERF).

The Relationship with other Trust Funds
During the last year, the World Bank has been implementing a comprehensive trust fund reform program to increase synergies and avoid duplication. The central innovation of the current
phase of trust fund reform is the introduction of the Umbrella Program as a flexible way to alignand manage development resources for results at scale — an approach that will result in fewer,
larger more strategically aligned trust fund programs. Following these reforms, several umbrella programs are now operationalized in the World Bank with an overarching focus on climatechange, including the Sustainable Urban and Regional Development (SURGE) Umbrella, the Climate Support Facility (CSF), the Climate Emissions Reduction Facility (CERF), and The Global
Program for the Blue Economy (PROBLUE), among others. GFDT follows this new frameworkand has systematically engaged other relevant Umbrella Programs to align work programs andto avoid duplication and ensure maximum impact with coordination. Where appropriate, there
will be co-management / co-financier responsibilities and roles with other World Bank Group
MDTFs, including joint projects teams. The intention would be to facilitate innovation throughcollaboration and minimize any risk of duplication. Examples include (e.g. E-mobility activity
where Energy Sector Management Assistance Program (ESMAP) can fund work on batteries andcharging stations, and GFDT can fund work on infrastructure and policies).
GFDT however is the only global multi-donor trust fund focused entirely on transport andthe decarbonization and resilience of the sector. Given transport’s highly complex nature andvariety of modes, a sector-specific focus is greatly needed and helps differentiate GFDT fromother programs dealing with climate change. Decarbonizing the transport sector will requiresignificant knowledge generation, analytical work, and co-financing with World Bank lending

The Global Facility to Decarbonize Transport

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projects to pilot innovative solutions. This is because unlike in other sectors, such as energy,
policy advocacy and the formulation of country-level strategies and projects, policies and investment programs, have been lagging in the sector. GFDT aims to fill this gap.
The World Bank’s Transport Global Practice also manages two other global MDTFs to support the delivery of results for our clients. It is envisaged that the existing global transport
MDTFs (the Mobility and Logistics (MOLO) MDTF and the Global Road Safety Facility (GRSF)(Box 1), will remain as standalone programs.

Box 1

The Global Road Safety Facility (GRSF)

The Global Road Safety Facility (GRSF) is a forerunner,

injuries in LMICs; (ii) scaling up global road safety

and now partner, to the new Global Facility tofunding, coordination, and advocacy mechanisms to

Decarbonize Transport (GFDT). It is hosted by theadvance global road safety; and (iii) mainstreaming

Transport Global Practice of the World Bank androad safety components in all Bank-funded road

operates as global program providing external andinfrastructure and urban projects, GRSF is deliveringinternal grants, which advance global research, roadsustainable safety results for the World Bank, its clientssafety advocacy, enhance World Bank’s Transport GP

and donors. By capturing synergies from grant-funded

operations and leverage road safety investments instudies, technical assistance and training activities

client countries. GRSF also directly delivers road safety

GRSF leverages road safety in Bank-financed projects.

research projects, global and in-country guidance andIn 2019, the Program supported loans of the total

manuals to enhance road safety knowledge, capacity

value of almost $4 billion and a leveraging ratio forand delivery. Since its establishment in 2006 GRSF hasroad safety investments cautiously estimated at 1:40.

received or has donor commitments for $74million in

In addition to mobilizing and guiding World Bank

funding and manages 4 ongoing Trust Funds. Current

resources, GRSF Grants leveraged almost $250 million

donors and funders of GRSF’s road safety work areof financial support from counterpart governments andBloomberg Philanthropies, UK Aid (DFID and DHSC),

other funders to safe roads investments.

CITA, Total Foundation, Government of Japan, and theWorld Bank.

Over 14 years of operation GRSF’s impact has expanded
to 78 countries, saving many thousands of lives by

By addressing three strategic objectives: (i)improving road safety outcomes of World Bank loans,strengthening global, regional and country capacity

through technical assistance, capacity building, andto support sustainable reductions in road deaths anddirect delivery of road safety interventions.

Source: Egypt–Vehicle Scrapping and Recycling Program (English). Washington, D.C.: World Bank Group.
http://documents.worldbank.org/curated/en/324191468037493049/Egypt-Vehicle-Scrapping-and-Recycling-Program

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24

The Target Budget, Allocation
Methodologies and Risks

The Target Budget

The ambition is to mobilize US$200 million
during a ten-year implementation timeline
for the GFDT.

Tentative Allocation Methodologies
Allocation methodologies for donor contributions will be based on the nature of thosecontributions, likely to be a combination of competitive and direct allocations. For global
contributions to the Umbrella’s Anchor MDTF, the GFDT PMT will develop annual workplans
and budgets per pillar, for regional activities in close coordination with regional PracticeManagers and with inputs from Global Leads to ensure client demand orientation and alignment with regional and country strategies, and for global activities with Global Leads in leading roles with input from regional Practice Managers and others. These annual workplans
will describe the essential background of the World Bank’s work related to the pillar, major
features of the relevant operational and knowledge portfolios including the main topics, issues, priorities and cross-sectoral challenges, before proposing how the funds will be used
to address concrete challenges. The workplans will provide a description of the proposed
allocation modality (competitive and/or direct allocations (Box 2) and will not include a fulllist of proposed activities, although indicative activities can be listed.

The Global Facility to Decarbonize Transport25Box 2

Allocation modalities:
competitiveand direct allocation

The workplans will be discussed with and reviewed by
all relevant parties. This will involve an initial review
within ITRGK (relevant thematic/program leads, TF program managers) as well as outside ITRGK (technical leads
and practice managers in other GPs and TF Program

Competitive allocations can bea useful mechanism allowing forflexibility to respond to emerging
demands and to foster innovativeideas within certain criteria. This canbe done through issuing a call for
proposals within a certain timeframeor on a rolling basis, announced
Bank-wide or through a more targeted
distribution list. The GFDT Umbrella
Program could apply the competitive
allocation modality for specific pillars
or a combination of pillars.
Direct allocations can include theallocation of a specified amount toa particular Region or unit – a block
grant – or to specific individual
activities. A block grant provides
flexibility for the managing unit
to allocate funds as appropriate,
providing opportunities for more
operational control and integration
with Bank strategies. Individual
allocations are used to fund specificareas of potentially high-impact work,

Managers in these GPs, as relevant). After approval by
ITRGK’s leadership team, the annual workplans and budgets are shared with the Umbrella’s PC for endorsement.
For any Associated TFs, separate annual workplans will
be formulated by the relevant TF teams, with clear indication which pillar the different components of a workplan
are aligned with. For preferenced contributions received
through the Anchor MDTF, ITRGK will ensure adherence
to the agreed preference to the extent possible within thepillar workplans.
The GFDT PMT will develop clear guidance and templates
related to the allocation process. The specific focus will
be on ensuring the involvement of relevant GPs to maximize the potential cross-sectoral synergies, whilst balancing risk and innovation with the demand for results. The
GFDT Umbrella aims to align future allocations with theBank’s budget planning (WPA) process, by making indicative and if relevant notional allocations for the coming FY
by February so that funding decisions can be taken into
consideration in the WBG resource planning process. At
activity/project/grant level, allocation decisions are takenby the Bank, and the standard formats and ADM processes
used for ASA and IPF processing will be used.

Risks and Mitigationaligned with GFDT priorities and

The GFDT umbrella program will address a wide range

objectives or existing funding gaps.

of development challenges in an innovative and highrisk space. It will engage with multiple stakeholders,across multiple sectors, which comes with significant
coordination and implementation challenges. A summary of the main risks that the GFDT is expected to face
is provided in the table in Annex C, along with proposed
mitigation measures.

The Global Facility to Decarbonize Transport

26

Annex A

Pillars and Cross-Cutting Themes

Pillar 1

Inclusive and Safe Mobility and Accessibility
Objective
The objective of this pillar is to promote inclusive and safe mobility and overcome barriers toenable access to jobs, markets, health care, schools, services, and other opportunities, mainly by the bottom 40 percent and other disadvantaged groups. Among the goals of sustainablemobility is to connect all people and communities to economic and social opportunities, taking
into account the needs of different groups, including the poor, those in vulnerable situations,
women, children, the elderly, and persons with disabilities, across geographical locations.13
This pillar also aims at achieving sustainable reduction in transport deaths, injuries, and risk
in low and middle-income countries, with emphasis on the road transport sector.

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27

Mobility and accessibility are two facets

Why It Mattersof the same coin, which are critical for

Mobility and accessibility are two facets of thesustainable economic development

economic development and play a large role inand play a large role in developing andpreserving human capital.

same coin,14 which are critical for sustainable
developing and preserving human capital. Limited access to transport in rural and urban areas
are key barriers to eradicating poverty while promoting property and sustainable economic de-velopment. There is clear evidence that transport directly increases people’s ability to better
themselves and produce more economic and social value.15 In cities, transport is the elementthat makes the labor market work. Employees can find jobs if they can leave their house toreach a job in an affordable, safe, and clean mode of transport. Employers for their part canrecruit from a larger pool of workers. Reliable transport allows workers to reach their jobs andstill have energy to be productive.16 Long commuting times due to buses stuck in traffic surrounded by cars, hurts workers who arrive late and tired. High costs of transport can price out
the poor who cannot leave their house to seek a job or must walk inordinate distances to reachan opportunity. Transport is the bloodline that makes cities work, because it provides access tojobs and other opportunities.
The main beneficiaries of sustainable transport are the majority that must leave theirhouse in order to make an income.17 In rural areas, where most of the world’s poor live, limited access to transport is a key challenge to eradicating poverty and promoting sustainableeconomic development.18 In Africa alone, around 450 million people (more than 70 percent
of its total rural population) suffer from a lack of accessibility and mobility due to missing
transport infrastructure and systems. In urban areas, where an additional two billion people are expected to be living in cities by 2045, the growth in population and vehicles is far
outstripping the growth of sustainable urban transport including public and non-motorizedtransport. Even cities with few cars per thousand inhabitants experience serious traffic congestion. Congestion is regressive because a bus with 40 passengers is slowed down by thecars around it that carry at most 1.2 people per car.
Transport Safety is an integral part of providing mobility and a key developmental as well as humanitarian agenda; addressing crash deaths, injuries, and the economic burden they generate
as well as personal traffic safety risks. While the transport safety agenda is dominated by the roadsafety problem, with 1.35 million lives and over 50 million injuries suffered globally every year, thesafety of aviation, railways and maritime sub-sectors require a lot of attention and support throughWB projects as well. Transport events cause deaths and trauma generating large costs for LMICs:
Road crash deaths and injuries alone cost many LMICs over 5% of their GDP each year and areproven to seriously delay long-term economic growth.

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28

The How
This pillar’s objective will be achieved by promoting sustainable transport in developing countries for door-to-door travel in urban and rural areas. Sustainable transport refers primarily to
public transport and active mobility (walking and biking). Last mile connectivity can be supplied
through feeder buses, walking, biking, and New Mobility such as shared rides –bikes and less so
automobiles. This improved door-to-door transport must be a valid alternative to traveling by car
to lower the greenhouse gas footprint of transport. Promoting public transport includes building
rail- and bus-based mass transit lines that incorporate best practices in project preparation andmanagement plus sustainable operations that are also resilient to climate change and other natural hazards. Public transport in many cities also needs reforms to formalize workers, improvelabor standards, and improve service quality while striving for affordability.
Interventions to promote inclusive and safe mobility can be grouped in four categories,
depending on whether they help in (i) avoiding the demand for high-carbon modes; (ii) shifting passenger trips towards cleaner transportation alternatives; (iii) improving the means
whereby mobility services are offered; and (iv) increasing passenger systems resilience.
 The first group –avoid—, includes interventions to promote sustainable mobility management of demand for passenger mobility, with a focus on how the built environment, policies, and technologies can help eliminate, shorten, or reduce the frequency of passenger
trips. Land use planning and the ideas of transit-oriented development and the 30-minutecity are key levers for managing demand for travel. Also, when it comes to technology,
digitalization and the rise of telecommuting could have profound impacts on travel demand, particularly in the wake of the Covid-19 pandemic.
 The second group –shift— considers interventions aiming at making low-carbon modes
more attractive in a fare game of competition and substitution among modes. Here thebuilt environment, policies, and technology can shift passenger travel from more carbon-intensive modes of transport such as personal cars or airplanes to less carbon-intensive modes such as intercity rail, public and informal transit, walking, and cycling.
 The third group –improve— includes efficiency enhancing interventions in passenger
transportation systems. Traditional efficiency enhancements interventions such as betterroute planning, policies to keep a safe and functional fleet (motorization, fleet renewal,
scrapping, etc.), are now powered by recent gains in vehicle electrification technology,
the potential promise of hydrogen vehicle technology, and the rise of digitalization to
improve trip planning, payment, and vehicle routing. All these options combined haverenewed interest in efficiency enhancements as ways to improve current transportation
systems and with that the passenger system carbo-footprint.
 The fourth and final group, —resilience— includes interventions that can help manage shocks–let those be from climate events or other events—in way that the system becomes less vulnerable to the shock or able to bounce back quickly. In the context of the pandemic, health andsafety protocols have become a prominent part of the transport resilience agenda (Table 3).
The Global Facility to Decarbonize Transport

29

The complexity of delivering effective transport safety

Table 1.

GFDT Pillar 1
Inclusive and Safe Mobility
and Accessibility:
Engagement Areas

solutions requires a more systematic, results-focused
approach that recognizes the vulnerability of road users, the multi-sectoral nature of safety and the need toaddress issues across the transport system. Explicitly,
this requires shifting away from fragmented, isolated interventions, particularly the ones focusing on fixing the

Avoid - Managing Demand

inevitably fallible road user. The following areas of inter- Demand Management Policies
and Regulations

ventions need to be supported across all transport modes

 TOD, Urban Planning

ing Safe System principles.

 Telecommuting/E-Services

 Strengthening global, regional and country capacity(roads, railways, air, maritime, inland navigation) follow-

to support sustainable reductions in transport caused
Shift - Modal Competition and Substitution
 Public Transport Non-motorized Transport New (Shared) Mobilities Road Safety

deaths and injuries in LMICs. This should be achievedby supporting the development of global, regional andcountry strategies, institutions, investments, improved
crash data programs and practical tools, sharing rigorously evidence-based knowledge and good practices tomaximize sustainable safety outcomes.

 Gender and Transport Scale-up global, regional and country transport safety funding, coordination & advocacy mechanisms.
Road safety and indeed other transport safety agenda

Improve - Efficiency
 Cleaner Technologies, Electric Mobility
and Alternative Fuels
 Motorization and Fleet Renewal
 Intelligent traffic systems
Enhance Resilience of Systems
 Urban Accessibility
 Rural Accessibility, Lagging
and Isolated Areas Basic lifeline mobility and connectivity
 Lifeline financial support

are dramatically under-funded receiving less than one
thousandth of the funding of malaria on a per deathbasis. This may involve cooperation with partners
across all sectors to build the strong coalition neededto advance the global road safety agenda.
 Assuring safe transport solutions in all World Bank
funded infrastructure projects with potential impact
on safety. This can be achieved by ensuring that transport safety considerations are more fully appreciated by client countries and become mandatory in all
World Bank-funded infrastructure projects.
The pillar’s objective is achieved by the proper planning,
design, implementation, operations and maintenance ofinclusive, safe and accessible transport systems and services. The context can range from dense urban areas torural, isolated, or fragile areas.

The Global Facility to Decarbonize Transport30

Pillar 2

Integrated and Competitive Logistics and Connectivity
Objective
The objective of this pillar is to enhance countries integration to regional and global value
chains and integration of lagging regions through effective and reliable connectivity andefficient logistics. The approach generally involves a robust strategic assessment of the type
and timeline of improvements to the connective infrastructure and enabling environment
for logistics services. This is undertaken in parallel with additional assessments of the spatial impacts of those interventions, with a focus on stimulating wider economic benefits andpoverty alleviation at the local level, and carefully targeted political economy work to understand what is acceptable in a particular context.

Why It Matters
Preparing for the future requires improving transport’s contribution to boosting the competitiveness, productivity and the effectiveness with which countries insert themselves in
global value chains. The role transport corridors have in shrinking physical and economic
distance, promoting growth through competitiveness and stimulating wider economic development is undeniably vital. Developing and strengthening corridors potentially involves the
expansion of waterways, roads, rail, airports and ports. Increased incomes and growing populations mean that transport is more in demand than ever—for tourism, imports and exports,
services, economic migration, and jobs. Without modern global and domestic supply chains,
and without logistics and multimodal transport, countries have no opportunity to escapepoverty and countries cannot benefit from global value chains and economies beyond theirborders: even the most thriving economies would struggle.
Reducing the cost of moving goods by improving the efficiency of transport networks andservices is central to revive global trade. The rapid increase in trade over the last few decades enabled poor countries to grow faster and begin to catch up with richer countries.
Between 1950 and 2018, world trade grew at an average rate of 5.5 percent per annum. A 1
percent increase in global value chain participation, which drove the growth in trade after
1990, is estimated to boost per capita income by more than 1 percent.19 This convergence led
to significant poverty reduction. Today, however, trade on its own right might not be a force
for prosperity. Since the global financial crisis of 2008, the growth of trade has been sluggish.
The key driving forces behind the recent wave of globalization were lower barriers to tradeand investment, and lower transportation and communication costs. As trade negotiations
have steadily reduced tariff rates, the contribution of transport costs to total trade costs is rising.20 Therefore, reducing the cost of moving goods by improving the efficiency of transport
networks and services is central to revive global trade.

The Global Facility to Decarbonize Transport

31Despite the increased globalization of production and trade, the world today is still far frombeing a single integrated economy. Landlocked developing countries (LLDC), accounting forabout one-fifth of the world’s nations, face higher transport costs than coastal countries.
Stone (2001)21 shows that freight payments as percentage of total imports were 4 times higher
in landlocked African countries than in industrial countries. Not only physical and economic
distances matter across countries, they are notable within countries and often within cities.
In Ethiopia and Nigeria, the cost of moving goods (per unit distance) domestically is estimated to be about 3.5 and 5.3 times higher than in the US, respectively.22
As a result of the pronounced physical and economic distances across and within countries, the gains from trade are not distributed equally across and within countries. Landlocked countries trade less (on average 30 percent less) than coastal countries and experience
weaker growth (on average 1.5 percent lower) than coastal countries.23 The benefits of Bangladesh’s success in apparel export are concentrated in the eastern districts, with 100 percent of exports of ready-made garments being manufactured in Dhaka (the capital city) and
Chattogram (the city with the main seaport), while poverty in the southwest, which is poorly
connected to the main economic centers, is higher than in most eastern districts.

The How
Integration and competitiveness demand experience and advantages identifying, preparing
and implementing regional and multi-country projects. It also involves mobilizing resources to undertake the more strategic analytical work to investigate the potential of disruptive
technologies and (near) just-in-time data. Only under these conditions can the integration of
network industries (e.g., telecommunications, electricity, transport) can also generate significant economies of scale and scope. Moreover, integration can give rise to network effects:
it increases the size of the network and thus expands the number of economic agents thatinteract with each other or the range of complementary products and services that are available to its members.
Interventions to promote integrated and competitive logistics and connectivity can begrouped in four categories, depending on whether they help in (i) avoiding the demand forhigh-carbon modes; (ii) shifting cargo movements towards lower-carbon transport modes
like railways and inland water transport (IWT); (iii) improving vehicle utilization, route optimization, increasing energy efficiency, and switching to lower carbon energy; and (iv) increasing transport systems resilience.
The first group –avoid— includes measures to reverse the growth of freight kilometers traveled or redirect movement through changes in behavioral aspects of shippers, receivers andcarriers. Re-engineering of supply chains to use local and multiple providers, change inventory practices, reduce fragmentation of production and even reallocated production closer tocustomers; are among elements for avoid the polluting mile that can be considered.

The Global Facility to Decarbonize Transport

32

Table 2.

GFDT Pillar 2
Integrated and Competitive
Logistics and Connectivity:
Engagement Areas

The second group –shift— considers interventions aiming at enhancing inter-modality and making low-carbon
modes more attractive in a fare game of competition andsubstitution among modes. The built environment (e.g.,existing corridor and intermodal infrastructure), policies (e.g., pricing and regulations), and technology canpromote the shift of cargo from more carbon-intensive

Avoid - Managing Demandmodes of transport (such as fossil fuel-powered trucks)

 Urban Logistics and E-Commerce

to less carbon-intensive modes (such as rail, waterways

 Economic Corridors, localization of production

and short-sea shipping). For embracing a carbon-neu-

 Re-engineered supply chains
Shift - Modal Competition and Substitution

tral future, it is critical that corridors and cargo mobility consider a blend of transport modes and embrace thepromotion modal shift towards cleaner lower-emission
modes such as railways, inland waterways and short-sea

 Competitive low-emission modes

shipping. This complex transition ways from trucking re- Multimodality

quires strengthening inter-modality, a more systematic Safety to non-Road Modes

integration of freight flows using modern technologies
and data platforms; and the systematic development of
networks of logistics centers that support consolidation

Improve - Efficiency
 Efficient and Sustainable Logistics andSupply Chains Green Logistics
 Green Ports and Decarbonization of Shipping Fuel standards and cleaner fuels
 Trucking sector reform Digitalization of Corridors, Ports
and Airports
Enhance Resilience of Systemsof cargo, linkages to markets, adoption of cleaner fuels
when creating centers for clean-fuel provision.
The third group –improve— focuses on technological improvements, including traditional ones as well as switching to energy-efficient and low-carbon fuel vehicles/locomotives/vessels/aircrafts as well as network optimizations
that can increase vehicle utilization and the speed andreliability of logistics flows.
The fourth and final group –resilience— includes interventions that can help manage shocks –let those be fromclimate events or other events—in way that the system be- Resilience of Supply Chainscomes less vulnerable to the shock or able to bounce back

 Resilience and Adaptation to Climate Events

quickly. In the context of the pandemic, health and safety

 Special protocols to safeguard healthand security of transport services

resilience agenda (Table 4)

protocols have become a prominent part of the transport

 Regional Connectivity
 Fragility and reconstruction
 Landlocked and Small Island States

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33

In order to reach net zero emission targets, all the above measures will need to be deployed;
however, the nature and timing of their application will vary by country. It is also critical tounlock the bottleneck of capacity and governance. Inadequate policies and regulations, uncompetitive logistics service markets, lack of integration and lack of adequate skills are someof the reasons logistics costs, particularly the transport share, are high in most developing
countries, cleaner technologies are not adopted and investment in inter-modal platforms isthin. Well-planned investments are needed to make greener modes available and efficient,intermodal platforms and logistics centers available, and –very important—deep-dive inmaking enabling infrastructure available for modes that use and will use cleaner fuels, forinstance electrification of trucking corridors, decarbonization of shipping and green ports,
and digitalization of ports and railways.

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34

Cross-Cutting Theme

Institutions, Policy and Financing
Objective
This objective of this cross-cutting theme is to strengthen the institutional, regulatory andfinancial dimensions of transport provision. This cross-cutting theme touches upon theprovision of all transport modes and their interconnection, services, as well as physical infrastructure for passengers and cargo, at the national and subnational level. It also spans on
issues such as multi-modality and non-motorized transport, as well on the financial sustainability (sector, agency, and state-owned enterprises), and innovative financing mechanisms.
This cross-cutting theme creates the necessary foundations to all the actions and investments in the transport space. As a cross-cutting issue, sector governance, regulation, funding and financing are the backbone that support the role of transport as a mean to connect
markets, create jobs and innovation, and improve human capital.

Why It Matters
The performance of the transport sector is particularly sensitive to the quality of its governance. In fact, the landscape of transport governance is particularly complex when looking at the different actors involved. National and subnational institutions, in many caseswith diffuse borders in terms of responsibilities, cohabit with regulated and unregulatedtransport solutions. Often, transport governance is also impaired by a lack of a sector vision,or when it exists, by a focus on infrastructure rather than on mobility, and disconnectedfrom other developments in the urban and rural space. There is not a unique transport governance structure, even when policy, implementation and oversight functions are clearlyrecognized in most transport modes. In fact, each transport mode is characterized by its governance structure depending on whether it is necessary to regulate on different dimensions.
And even within the same transport mode, governments may follow a different governancestructure depending on the development of the sector.
The sector faces a complex regulatory agenda with several goals but limited achievements
in some areas. The provision of connectivity as an ultimate objective of transport is confronted to multiple regulations to achieve allocative and productive efficiency, financial andenvironmental sustainability, including transport decarbonization, safety, gender, and social
dimension, among others. The complexity of these regulations and limited institutional capacity is reflected in the many indicators covering the quality of transport infrastructuresand services.24 Undoubtedly, the difficulties lay on limited resources. but the multiple layersof governance dictating the agenda does not facilitate the challenge. And while these issues
are more notorious in developing countries, more advanced economies also find similar difficulties. There is a risk, for instance, that the lack of a conducive governance and regulatory
framework lock-in users into less friendly environmental solutions.

The Global Facility to Decarbonize Transport35Transport is never short of regulatory challenges. The transport sector combines most if
not all the market failures and externalities that call upon regulation and government interventions, namely: assets services with public goods characteristics (no exclusion, no rivalry), with evident externalities (pollution, congestion, network dynamics) and segmentsof the provision chain that can be characterized as natural monopolies (railways and metro
tracks, multi-modal and inter-modal platforms). Therefore, the transport sector is not alien
to regulations pertaining third-party access, social pricing and tariff integration, or the direct provision and financing of investment by public funds, among others. However, nowadays, transport systems, their governance and planning are being structurally challenged
by the emergence of new business models and new types of transport services rooted intechnological developments, the data and digital revolution, and the social behaviors andtrends linked to those. In the transport realm, to add to the complexity, regulated and unregulated solutions coexists.
The effects of regulated and unregulated transport solutions on sector funding is not always clear for policymakers, and it translates into some trade-off between taxpayers’ resources and transport prices. Affordability/competitiveness also adds to the complexity ofthe sector along with the externalities of any sign coming from the transport solutions. Many
good intentioned attempts to fix externalities may also find strong opposition from society ifthey don’t come with some alternative solutions.
Getting sector fundamentals right can also help mobilize commercial financing and innovative solutions, including those to decarbonize transport. Transport infrastructure and services demand important resources to make them financially viable. Insufficient funding is
one of the causes of a non-performing transport sector. It also requires lenders, investors anda framework to channel these resources into public or private initiatives (project bond, PPP,
SOEs, commercial activities, etc.). Moreover, transport infrastructures are long-lived assets andthus, matching their cash-flows with long-term financing brings some efficiencies. The use ofcommercial financing can help by bridging the public finance gap along with some incentives
and oversight on how these assets are operated. Setting an enabling framework to connect thedots between investors and the government while minimizing the cost of capital.
The success of any transport investment intervention at the regional, national or even projectlevel is contingent upon the institutional, regulatory and governance context. In particular
the WB treat transport investment as a system giving equal relevance to improve governanceon multiple dimensions (planning, procurement, operation, etc.) and knowledge sharing. The
outcome of these activities depends much on the initial conditions of the implementing institution, the regulatory framework and the enabling environment for the private sector to stepin, but the goal toward success involves paying attention to all these elements.

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Table 3.

GFDT Cross-Cutting Theme
Institutions, Policy and
Financing:Engagement Areas
Cross-Cutting Theme:
Institutions, Policy and
Financing Governance and institutions
 Regulation and competition policy

The How
Institutions, policies and regulations are essential for decarbonization of transport with the view of mobility as a system. The
identification, implementation and fine-tuning of the appropriate regulations are linked to the sub-sector, region or sub-region
and the incentives for consumption and affordability. Moreover,institutions, policy, and financing –as a foundational theme of
the transport sector and the decarbonization strategy— should bea structural element of every single operation and decision taken
regarding mobility and transport. Notably, each transport solution is characterized by its own governance structure. Ensuring a

 Sector funding and debt
management

common ground and the coordination among the different trans-

 Financing transport /innovative solutions

resilience (environmental and financial), and address other agen- Asset Management

action to improve institutions, governance and advance policies,

port solutions, however, is crucial to achieve efficiency, enhance
das in transport. While embedded in each intervention, targeted
sector-wide reforms and even pricing reforms targeting decarbonization of the sector are ends unto itself and can be themes
for recovery packages in general as much as for policy loans.

The governance, institutional and financing dimensions of the transport sector cover thefollowing areas: (i) Legal framework and institutional capacity for planning, appraisal, prioritization and selection;  ​(ii) Economic efficiency and value for money; (iii) Affordability, sector and fiscal sustainability​; (iv) Procurement​; (v) Life cycle cost​, contract management; (vi)
Frameworks for environmental and social considerations; (vii) Data availability and transparency​; (viii) Integrity ; (ix) Regulatory frameworks; and (x) Competition policy issues​; (xi)
SOEs governance, financial and operational performance; and (xii) Innovative financing for
decarbonization​; and others (Table 4).
Particularly relevant for GFDT is the understanding of pricing mechanisms, carbon taxes, energy pricing reforms, and making sure that funding and financing with private sector leverage
is available and interested in taken the lead in advancing investments in enabling infrastructures for the adoption of newer and cleaner technologies and the use and shift to cleaner offuels. By getting the governance and sector fundamental rights, this theme will contribute tomobilize commercial finance and develop markets for financing the path to decarbonization.
This cross-cutting theme will build on and from different frameworks developed by the WorldBank such as the Infrastructure Sector Assessment Program 2.0, the new launched InfraGovinitiative, and the more general frameworks including among others the Public Investment
Management Assessment (PIMA), Public Expenditure and Financial Accountability (PEFA).

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Cross-cutting Theme

Transformative Technologies
Objective
Transformative Technologies (TT) has emerged as one of the most challenging development
issues globally, rapidly transforming the way people move and goods delivered. The objectiveof this crossing-cut theme is to shed light on how transformative technologies can benefit
and improve the way countries get the best returns out of their transport and mobility decisions, including grabbing opportunities to leapfrog and accomplish a digital moon shot in
the transport sector.
Transformative technologies are bringing exciting changes to the transport sector for bothpassengers and freight. The issue of how to realize positive dividends from innovations is
closely related to all four pillars and overarching goal. Effective adoption of new technologies and/or service models may require changes to mobility institutions, policy and financing; Technologies provide new promises for inclusive access and mobility for all; Developing
counties can use the opportunities of technologies to leapfrog in the transport sector andenhance the competitiveness, productivity and effectiveness; Technologies also provide new
solutions to achieve net zero emissions and enhancing the resilience of both the transport
sector and the economy. Therefore, this cross-cutting theme of transformative technologies
is an important enabler for all other pillars that will steer the world towards a more secure,inclusive and smarter future through a sustainable transportation network.

Why It Matters
The relationship between users and providers of passenger transport services is becoming
anchored in digital platforms that enable ride-sharing; and through which booking, ticketing and payment becomes a simple and transparent option. Moreover, digital platforms normalize the integration of diverse services from public transportation to car and bike rental
systems, through to micro-mobility options. Rapid digitization forces transport providers to
set-up their own applications to participate in integrated platforms and create a much more
dynamic and competitive supply of providers and services that come in and out of the market
many times per day (making the supply stock dynamic), that do not engage in sunk capital
investment (structurally changing the production function) nor necessarily complying withsafety and driving regulations and standards developed under traditional models. In freight,
the integration of all modes via communication technology, the possibility of “commoditizing” space in containers and barges, the use of semi-autonomous trucks, block chain and theoption of remotely monitoring and restricting drivers’ behaviors are four examples of how
freight logistics are affected by new technologies. The impact of these changes can only becompared in importance to the introduction of the standardized container after World War II.

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Sustainable and smart mobility is a fundamental solution to poverty reduction and sharedprosperity as transport networks are the physical, social, and economic network connecting
people to opportunities and countries to prosperity. To achieve shared prosperity through thebenefit of technology adoption, there is an urgent need to advance the adoption and appropriate deployment of innovative practices and transformative technologies in the transport sector.
Convergence of technological and management innovations in different areas during thepast 10 years brings exciting opportunities to the transportation sector. For transport anddevelopment practitioners, opportunities for transforming lives are enormous albeit demanding a structural change of existing business models. Modern transport systems are being structurally challenged by new business models and new types of transport services thathave flourished by technological developments, data and digital revolution, social behaviors
and trends linked. The key technological innovations related to transportation fall into one
or more of the following categories: connectivity, digital platforms, automations, integration
into legacy systems, and sustainable energy. Artificial Intelligence (AI), 5G tech, Internetof Things (IoT) are affecting the movements of people, goods, and information through theworld. Multi-trip planners support the on demand multi-modal choices for a single trip available at the fingertip of a smartphone user.
New mobility services propelled by technological innovations are user-centric and demand-responsive, thus are smarter compared to the legacy system, with the enabling environment created by the open data available. Digital transformation and disruptive technologies are seen in ride sharing and creating new possibilities for doorstep delivery of goods
purchased online. Drones are delivering life-line medical packages in remote areas to save
lives. Although still in the testing mode, Connected and Autonomous Vehicles (CAV) have
moved from laboratories to the city street, providing new options of driverless operation,with the potential to unlock higher safety performance. The number of vehicles powered byelectricity from renewable energy sources are growing. Electric Mobility and alternative fuels, as green hydrogen, also offer low-carbon and adaptive mobility to reduce GHG emissions
from transport and improve air quality. Digitalization and Internet of Things (IoT) technologies are making ports smarter and more resilient to disruptions and economic shocks.
While these technological and management innovations are very promising, there are still
many issues to be addressed. The transport sector is prone to market failures, and technological innovations are not immune to this. How the world manages technological shifts will
have profound consequences for the impact on efficiency, congestion and access to socialand economic opportunities. The monthly trips served by the shared mobility25 in the New
York City grew from 2.4M to more than 20M in just three years, expanding the travel options
for travelers, while at the same time indicating the shifting trend from public transport usage
to ride sharing that may lead to the unhealthy decline of public transport. Studies showedthat shared mobility is one of the biggest contributors to the growing traffic congestion in

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Table 4.

GFDT Cross-Cutting Theme
Transformative
Technologies:
Engagement Areas

New York city and San Francisco. However, potential negative impacts can be mitigated and should not deter us
from pursuing positive dividends, for example as providers of last mile connectivity. Travel behavior monitoring
platforms based on smartphone data and big data analytics also played a critical role in saving lives by providing timely human mobility data to policy makers during

Cross-Cutting Theme:
Transformative Technologies

COVID-19. Such technology indicated great potential in Connected and Autonomous
Vehicles, and Drones

hold Travel Surveys, which has costed as much as $10M

 Smart Infrastructures(smart road, innovative
sensors, new facilities)
 Connected Agencies (policy/
regulation for transformativetechnologies)
 People-centric Inteligent
Transport Systems and Smart
City Digital Platforms
 Data-drive Technologies andComunication Protocols

unlocking low-cost alternatives to the National Housefor the 2001 round. Moreover, embracing the digitalization of transport and integrating disruptive technologies
may also be a promising way to adapt to a crisis such as
the coronavirus pandemic while laying the foundation
for more sustainable urban transport.

The How
To achieve these objectives, this area will preserve a
three-prompt framework:“Why”: Why do transformative technologies in the transport sector matter to development? Why is the participation of government agencies and intergovernmentalorganizations in the process both critical and beneficial
for maximizing positive results? there is a need to explore
the social and economic benefits that can result from theadoption of transformative technologies and identify theway that these address key development challenges, suchas poverty, inequality, and climate change.
“What”: What is transformative technology and what
technologies are available? What makes the adoption oftransformative technologies in the transport sector viablefor countries from a societal perspective? Characterizing
the spatial, social and economic contexts and learningfrom the existing experiences where policies, projects
and interventions have led and can lead to optimal results
is critical; and“How”: How to transform to a more sustainable, inclusive and affordable mobility systems by leveraging trans-

The Global Facility to Decarbonize Transport40

formative technologies and existing global experiences? Defining policy alternatives, interventions and evolution paths is of utmost importance for the program to derive lessons of
how things can be done. These demand a multi-disciplinary approach that includes: i) theengineering perspective, by structuring existing knowledge and international experiencesin TT, ii) the economics perspective, by examining the economic, social and environmental
impacts of these technologies under a development context, and iii) the policy perspective,
by providing information to decision-makers on how to better plan, operate, manage andregulate transformative technologies in the transport sector.
Four of the most essential and critical elements in the transport network will form the main
pillars in this area: i) Users, ii) Vehicles, iii) Infrastructures and iv) Agencies, which will bealigning with the TT that are shaping and reshaping the landscape of the transport network.
To achieve the objectives, strategies are required that combine the application of technologies and the understanding of behaviors, with good management practices. The Bank has
advised dozens of clients in all regions of the world on these challenges and opportunities
through its lending, convening power, technical assistance, and other instruments. The Bankis unique in being able to provide sound and unbiased technical advice to clients being independent of commercial interests.

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Annex B

Indicative Results Framework26

Overarching Goal

Decarbonization and Resilience Percentage of projects undertaking Greenhouse gas emissions analysis
 Climate co-benefits: financial value of the low-carbon and resilient actions in each activity
 Projects applying a Shadow Price of Carbon to emissions on the economic analysis
 Avoided or eliminated greenhouse gas emissions
 Avoided PM 2.5 emissions
 Total CO2 emissions reduction
 Fossil fuel savings
 Activities undertaking Climate and Disaster Risk Screening: Helps mitigate risks of extreme precipitation and flooding that can affect the performance, durability, and accessibility of road and other transport infrastructure, resulting in temporary or permanentsuspension of transport services.
 Comprehensive Asset Management and maintenance plans in place Project-financed assets under sustainable and resilient maintenance contracts

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Pillar 1

Inclusive and Safe Mobility
 Number of people with enhanced access to transportation services
 Percentage of accessibility-informed urban transport projects
 Number of passengers per day using BRT/mass transit system
 Beneficiaries expressing satisfaction with improved transport conditions
 Grievances registered and addressed in a timely manner Rail and Urban Projects that are Disability-Inclusive in their design
 Operations compliant with WB’s Gender Tag
 Percentage of female staff hired in mid-level/managerial positions for project works ormaintenance Length of pedestrian/bike paths rehabilitated and improved for NMT
 Improvement of access conditions in train and public transport stations to encourage
ridership Percentage of projects in compliance with Road Safety Transport requirement
 Reduction of road crashes or fatalities
 Urban/rural roads constructed or upgraded with climate resilience measures (landslip,
rock fall protection, coastal protection, etc)

Pillar 2

Integration and Competitiveness Roads Constructed/Rehabilitated (Transport CRI)
 Reduction in average travel time Percentage of population benefited with improved transport connectivity
 Percentage of population with access to the city center within 60-minute commute
 Percentage of jobs accessible within a 60-minute commute using non-private transport Average processing time spent for customs clearance and border crossing
 Increased access to markets and trade opportunities
 Rural Accessibility Index (population living within 2km of an all-season road) Reduction in vehicle operating costs

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Cross-Cutting Theme

Institutions, Policy and Financing
 Institutional Strengthening of Transport and Road Safety agencies
 Efficiency in Public Expenditure: assets constructed conforming to cost-optimization
strategies
 Enhanced Policy Guidance and oversight of transport programs

Cross-Cutting Theme

Transformative Technologies
 Use of crowdsourcing technologies for mobility planning/traffic management
 Adoption of ICT-based border management systems
 Use of ICT for revenue collection/improved access Use of digitization processes in the logistics value chains

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GFDT Risks and Mitigation Efforts
RISK FACTOR
Likelihood
Moderate
ImpactHigh

COMPLEX PROJECTSInterventions in the transport sector are often multi-modal, wide-ranging, cross-sectoral, multidisciplinary, involving multiple stakeholders and requiring significant resources and expertise.
This makes them complex and therefore challenging to successfully implement, presenting the riskof possibly not fully achieving its targeted outcomes.
Mitigation
World Bank’s competitive advantage and institutional strengths lay in addressing complex
development challenges. The institution thrives in brokering global knowledge and adapting it to
the local context. Nevertheless, it always remains a challenging task to engage in cross-sectoral
work and to coordinate with multiple stakeholders. GFDT will therefore encourage project teams toinclude team members from different sectors and invite cross-sectoral peer-reviewers for program
reviews. It will also encourage local partnerships and well-planned stakeholder engagement
processes. Additionally, the GFDT team will examine the design of the proposed interventions, toassess whether the proposed interventions are not overly complex and therefore unviable.

RISK FACTOR
Likelihood
Moderate
ImpactModerate

RISK FACTOR
LikelihoodHigh

FRAGMENTED SUPPORT
Donor preferencing could undermine and potentially fragment programs and result in critical gapsthat affect the ability to deliver higher-level results.
Mitigation
Donor partners may want to allocate funds towards a specific initiative or program rather
than at the Umbrella level. This can partly be mitigated when necessary through non-binding
geographic or thematic preferencing in the Administration Agreement, annual update meetings,
and highlighting the benefits in terms of efficiencies and reduced transaction costs throughconsolidation under the Umbrella.
OVERLY AMBITIOUS GOALS AND INDICATORS
Pressure to report on high-level and ambitious indicators pose the risk to commit to targets that
may be not be realistically achievable or attributable and measurable

ImpactMitigation

Low

Both internally and externally there is a desire to deliver impressive development results. The
higher the level of results however, the more dependent it is on a broader range of exogenous
factors and therefore more difficult to link and attribute to GFDT interventions. This may also leadto a bias away from engaging in projects that would deliver results
Measuring of certain results may also be very costly and time-consuming. The PMT will therefore
weigh for each agreed indicator what the expected achievability and costs are of a specific target.
Additionally, targets will be adjusted based upon the GFDT resources made available by donors.
Focus will be on demonstrating the results of interventions supported by GFDT and on using
indicators that are Specific, Measurable, Attributable, Realistic, and Time-bound.

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RISK FACTOR
Likelihood
Moderate
ImpactHigh

EXTERNAL CONDITIONSThe success of the program may also depend on external factors outside the program’s control.
These include global economic conditions, socioeconomic context in client countries, ongoing
effects of climate change, lasting impact of the current COVID-19 crisis, prevalence of natural
disasters, political and stability concerns, and more.
Mitigation
Annual work planning with the Partnership Council will allow the Bank and Donors to mutually
evaluate factors outside control of the program. On an annual basis, the Bank will identify
these issues, their potential impacts, and suggest mitigation measures during the GFDT yearlyPartnership Council meetings.

RISK FACTOR
Likelihood
Moderate
ImpactHigh

FUNDRAISING CONTEXT
Due to the near-term constraints caused by the COVID-19 pandemic, there is a risk of not being
able to mobilize funding as per the proposed targets and timelines, thereby potentially limiting thecontributions in the initial phase of the program.
Mitigation
In the context of an evolving global health crisis, there is a risk that the significant social andeconomic effects of the COVID-19 pandemic may compel GFDT donors and recipient countries
to shift (part of) their focus. Such risk can be partly mitigated by including pandemic resilience
within the scope of the GFDT program and by continuing close consultations with potential
donors. It will be important to carefully plan the program and adjust proposed targets according towhat realistically can be achieved with the pledged funds.

RISK FACTOR
Likelihood
Low

MULTI-STAKEHOLDERS’ INVOLVEMENT
The involvement of many different stakeholders may hamper efficient coordination andcollaboration.

ImpactMitigation

High

Numerous stakeholders are involved in the transport sector. They may include central governments,
municipalities, city agencies, local communities, provincial governments, private entities, NGOs andothers.
GFDT will make use of SuM4All and its global consortium of private sector and businessassociation, MDBs, civil society, international organizations, and UN agencies to ensure
coordination.

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RISK FACTOR
Likelihood
Low

CLIENT COMMITMENT
Government and stakeholders’ buy-in and willingness to commit to long-term policy changes andimprovements may be limited.

ImpactMitigationHigh

To achieve its objectives, GFDT will need the ongoing commitment and support of (local)
government agencies and other stakeholders to transform practices and adapt to new improved
systems. To warrant commitment, GFDT will focus on supporting client-demand driven projects.
Throughout the project cycle, Bank teams engage in frequent oversight of project implementationand stay in close touch with country counterparts. This raises opportunities for fine tuning
and adjustment through implementation and focus attention on the need to maintain highcommitment and focus on results.

RISK FACTOR
Likelihood
High

CAPACITY CONSTRAINTS
Capacity limits of (local) government agencies, especially institutional and human resources, could
limit project success.

ImpactMitigationHigh

Weak capacity of participating government agencies will be addressed by providing training andother resources.
GFDT specifically focuses on capacity development through its foundation pillar on Institutions,
Policy and Financing, and will make significant funding available for improving client’s capacity.
Knowledge management activities will also make tools, manuals, online training and lessons
learned available as additional resources to clients.

RISK FACTOR
Likelihood
High

RISK FACTOR
Likelihood
High

DONOR RESISTANCE TO LEAVING/AMENDING EXISTING TFS
Folding existing programs and initiatives under a new umbrella structure has not been done
before in the World Bank and may create challenges in the early phases of establishing andoperationalizing the program
OVERLAP WITH OTHER TFS
With transport touching on many different sectors (urban, water, climate change, energy), there
may be challenges in aligning the priorities of internal stakeholders including other trust funds.

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The Global Facility to Decarbonize Transport

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Access
Policy, Institutions & ProjectPreparation (Upstream)
Finance and Funding(Downstream)

Regulation and Policy

Economic, Social & Fiscal Impact ofTransport Interventions

Impact Evaluations
Development

Knowledge & Internal Skill

Road Asset Management & Rural

New Mobility

Finance

Transport
InfrastructureManagement &Technology, Data, Innovation &Transport
Economics,
Policy & Data

Institutions, Finance & TDM

Development

Land Use & Transit Oriented

New, Active & Inclusive Mobility

Mass Transit & Public Transport

Urban Mobility

Transport in FCV

ES Management & Transport

Green Transport

Road Safety

Transport

Access To Green,
Inclusive & Safe

Global Solution Groups and Solution Areasin the Transport Global PracticeAnnex D

Railways

Logistics

Maritime & IW Transit / Freight &Integration

Economic Corridors & Regional

Aviation

Integration

Transport
Connectivity& Regional

Endnotes
1

As per IPCC research reflecting the consensus views of 830 scientists, engineers, and economists from morethan 80 countries and was formally endorsed by the governments of 194 countries—identified many possible
pathways to reach carbon neutrality by the end of the century.

2

UN 2019 World Population Prospects. Retrieved from: https://population.un.org/wpp/3

https://www.itf-oecd.org/decarbonising-transport-initiative-projects-and-reports [last accessed 4/29/2019]4

Hallegatte, Stephane, Jun Rentschler, and Julie Rozenberg. 2019. Lifelines: The Resilient Infrastructure Opportunity. Sustainable Infrastructure; Washington, DC: World Bank. https://openknowledge.worldbank.org/handle/10986/31805

5Mani,Muthukumara S.; Bandyopadhyay,Sushenjit; Chonabayashi,Shun; Markandya, Anil; Mosier,Thomas
Michael Rowe. 2018. South Asia’s hotspots: The impact of temperature and precipitation changes on living
standards. Washington, D.C.: World Bank Group.

6

https://discovery.ucl.ac.uk/id/eprint/1470392/1/transport-poverty[1].pdf

7

Fay et al. (2015), Decarbonizing Infrastructure

8

Lefevre, Benoit, Ahmad Iqbal Chaudhary, Deeba Yavrom, and Aman Srivastava. 2016. “The Trillion Dollar Question II: Tracking Investment Needs in Transport.” April 2016. Working Paper. Washington, DC: World Resources
Institute. Pages 2 and 15. https://www.wri.org/sites/default/files/The_Trillion_Dollar_Question_II_Tracking_Investment_Needs_in_Transport_0.pdf

9Here, we define decarbonization as carbon neutrality, which does not imply no emissions. Positive emissions
in some sectors and some countries can be offset, to some extent, through natural carbon sinks and negativeemissions in other sectors and countries. So decarbonization means zero net emissions of CO2—as well as thestabilization of emissions of short-lived greenhouse gases such as methane that dissipate in the atmosphere indays, weeks, or decades. This definition follows from: Fay, Marianne, Stephane Hallegatte, Adrien Vogt-Schilb,
Julie Rozenberg, Ulf Narloch, and Tom Kerr. 2015. Decarbonizing Development: Three Steps to a Zero-Carbon
Future. Climate Change and Development. Washington, DC: World Bank. https://www.worldbank.org/content/dam/Worldbank/document/Climate/dd/decarbonizing-development-report.pdf

10 See World Bank (2020) Partnering with the World Bank through Trust Funds and Umbrella 2.0 Programs. Washington D.C.
11 Bank-executed trust funds (BETFs) resources cannot be transferred to clients, a recipient government, or toa third party to execute activities for which the Bank is responsible. BETFs financed activities and products
can include: Advisory services; technical assistance; a fund’s secretariat services and program management,
including monitoring, evaluation, and reporting; and non-country specific activities associated with global
and regional partnership programs. Recipient-executed trust funds (RETFs) involve funds that the World Bank
passes to a third-party recipient to execute under a grant agreement with the World Bank’s supervision. They
can include investment and assistance co-financed through IDA/IBRD loans and credits; capacity building;policy support and implementation; training; pre-investment feasibility studies; project preparation; project
implementation including preparation of bidding documents; and/or preparation of letters of development
policy.
12 The indicative list to be included in supporting the Results Framework can be found in Annex B
13 https://sum4all.org/priorities/universal-access
14 See Ardila, Arroyo and Peralta, 2019. “Accessibility, Mobility, Pricing and Land Use: reflections from practitioners.” https://www.researchgate.net/publication/341741190_Accessibility_Mobility_Pricing_and_Land_Use_reflections_from_practitioners
15 World Bank, “Catalyzing Human Capital Formation Through Better Transportation”, 201916 Bertaud, Alain. 2018. “Order without Design: How Markets Shape Cities by Alain Bertaud. The MIT Press.
17 The pandemic showed that the top echelons can tele-commute thanks to the nature of their jobs coupled to

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access to broadband. In client cities of the World Bank, the majority falls in the opposite category that musttravel outside of the house in order to reach a job or work in the street selling gadgets, for example. See Arturo
Ardila-Gomez. 2020. “With COVID-19, the case for sustainable transport is stronger than ever.” https://blogs.
worldbank.org/transport/covid-19-case-sustainable-transport-stronger-ever
18 SUM4All Global Roadmap of Action for Sustainable Mobility, 2019.
19 World Bank. 2020. World Development Report 2020: Trading for Development in the Age of Global Value
Chains. Washington, DC: World Bank.
20 Hummels, D. 2007. Transportation Costs and International Trade int eh Second Era of Globalization. Journal of
Economic Perspectives, 21 (3): 131–154.
21 Stone, J. I. 2001. Infrastructure Development in Landlocked and Transit Developing Countries: Foreign Aid,
Private Investment and the Transport Cost Burden of Landlocked Developing Countries. UNCTAD/LDC/112.
Geneva: UNCTAD.
22 Atkin, D. and D. Donaldson. 2015. Who’s Getting Globalized? The Size and Implications of Intranational Trade
Costs. NBER Working Paper No. 21439. Cambridge, MA.
23 Arvis, J. F., G. Raballand, and J. F. Marteau. 2010. The Cost of Being Landlocked: Logistics Costs and Supply
Chain Reliability. Directions in Development. Washington, DC: World Bank.
24 For instance, as documented by the World Economic Forum Global Competitiveness Report, or the different
WBG indicators (Logistic Performance Index, Doing Business and Enterprise Survey) among others.
25 Also referred as Transportation Network Companies (TNC).
26 Indicators will be updated with donor input and reported upon once GFDT receives funding for pillars / activities related to specific indicators.

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The Global Facility
to Decarbonize Transport(GFDT)
Supporting Countries in their Decarbonization Initiatives

The Global Facility
to Decarbonize Transport(GFDT)

Supporting Countries in their Decarbonization Initiatives