Road and air transport are among the biggest sources for CO2 emissions. The European Union’s (EU) climate change commitments imply an urgent need to de-carbonise transport sector.
Nonetheless, investment policies and practices of the EU, its Member States and the European Investment Bank (EIB) continue to prioritise these sectors with large new infrastructure projects. Specifically in central and eastern Europe (CEE) road transport is increasing rapidly, thus threatening the European Union’s (EU) own emission reduction targets.
Bankwatch advocates for a clear a shift in public funding from carbon-intensive and environmentally damaging to more sustainable transportation modes.
Impacts on climate and biodiversity
Europe’s transport sector in its current shape is a fundamental threat to any emission reduction targets of the EU, especially when taking developments in central and eastern Europe into account.
At the same time, Bankwatch is concerned about infrastructure projects that clash with some of the most unique natural habitats in central and eastern Europe.
International financial institutions’ role in the transport sector
IFIs should provide crucial funding for an often notoriously underdeveloped public transport infrastructure. This would not only serve the majority of citizen’s in their countries of operation, but also help decarbonising their transport sector.