Transforming Transportation 2013

By Josh Rathod (Advanced Biofuels USA) The Transforming Transportation ’13 conference, held at the World Bank headquarters in Washington, DC, proved to be an exciting event for sustainable industry everywhere. During one of the primary plenary sessions it was announced that, over the next ten years, a cooperation of eight international banks (The World Bank, IDB and ADB to name a few) will use $175 billion to support transportation projects that meet certain sustainability standards. While talk is cheap, this sizable pledge may be able to cause significant shifts in the way we do energy and transportation around the globe.

Jose Luis Irigoyen, World Bank Director of Transport, Water, Information & Communications Technology, was one of the poignant voices to stress the importance of investing in sustainable and clean transportation - ASAP. He explained that transportation (private and public) requires long term investments, and will have long term effects. If transportation manufacturers continue to produce machinery with harmful emissions, inefficient fuel economies, and that run on unsustainable fuels, the regions that use their equipment will deal with the environmental, social, and economic fallout for decades to come.

Potential for alternative fuels as a key aspect of future sustainable transport was lightly touched on during these sessions and, while announcing their financial pledge, a panel member stated that it is only logical that sustainable energy and transportation go hand in hand. The role of renewable fuel cannot be overstated, however, and the adoption of alternative fuels will play a large part in making transportation sustainable. Apart from the fact that design and emissions of vehicles are largely based on what fuels are available to them, clean renewable fuels have the potential to improve sustainability in the production of transportation as well.

Luckily, the effort to develop sustainable development and transport is being championed more frequently as evidence of global warming becomes more dramatic and population density increases in many major cities. At the last G20 meeting in Rio de Janeiro, for one of the first times in its history, sustainable transportation was arguably the most stressed topic on the docket. While Irigoyen and others acknowledged this as a momentous achievement, they also were certain that the cause must be globally backed by official government policy in order for the sustainable transport industry to truly flourish. (After an informal poll, we found that this was a common concern for the session’s audience as well.)

For example, the $175 billion pledged by these banks will provide some incentive to manufacturers and private investors to take on new green projects, but the approximate $1 trillion that was globally invested through general transport subsidies and private investments last year is really where the financial support must come from. As government subsidies influence the investing strategy of the private sector, if governments don’t begin to back sustainable development more heavily, the $175 billion pledge may be too little to start a shift in the transportation market.

The precedent of sustainable transport could be set at the G20 meeting, however, which means that it will be possible for other international groups of government agencies to adopt the same agenda.

Jorge H. Kogan , a senior transport advisor with Corporación Andina de Fomento (CAF), explained that even the biggest development banks cannot walk into government offices and say "we'll invest here and not there." However, he explained that it is possible to educate policy makers and investors in order to reform the global investment climate and urged the audience to go do so.

Being part of an educational nonprofit that advocates for the adoption of renewable fuels, I raised my mental hands in a silent ‘Amen!’ and began outlining this article. So thank YOU, reader, for being among the informed because it is people like you who help reforming our collective sustainable future: pass it on.