Keys to mainstreaming sustainability in the rapidly growing transport sector were the focus of an Environmental and Social Safeguards Community of Practice seminar that was held in Chengdu, China on 31 October-1 November and cohosted by the Asian Infrastructure Investment Bank (AIIB) and Multilateral Cooperation Center for Development Finance (MCDF).

Bringing together E&S specialists, International Financial Institution (IFI) investment operations staff, and other transport sector stakeholders, the seminar opened by highlighting environmental and social (E&S) risks facing transport infrastructure projects and the importance of incorporating E&S standards and good practices in them to advance sustainable development.

In welcome remarks, Mr. Hun Kim, Acting Vice President, Investment Solutions and Director General, Sectors, Themes, and Finance Solutions Department at AIIB, described the increasing need both for IFI financing of multimodal transport infrastructure in developing countries, particularly in Asia, and to assess and manage the complex impacts of projects on the environment and local communities.

These include the potentially significant implications for fragile ecosystems, biodiversity, water resources, land accessibility and resettlement, social wellbeing, and the global climate agenda.

“Without an efficient, affordable, and environmentally sustainable transport system within and across countries, economic development and equitable improvements to people’s livelihoods are not possible,” explained MCDF CEO Zhongjing Wang, in keynote remarks.

“Finding a more innovative path for transport sector development is crucial for ensuring smooth traffic flows, health and safety, energy efficiency, and progress toward decarbonization and is fueling demand for high-quality connectivity infrastructure financing and development,” CEO Wang continued.

Participants discussed how applying E&S issues in the design stage through the implementation and operation stages is imperative for mainstreaming sustainability in transport projects.

“There is great potential for new technologies such as artificial intelligence, remote sensing, and online stakeholder platforms to promote sustainable transport,” noted Mr. Ede Ijjasz, Senior Advisor to the CEO at MCDF and a panel moderator

Participants examined rail and road project case studies in Sulawesi, Indonesia and elsewhere that showcase how biodiversity can be protected by funding mitigation measures in project costing and emphasizing monitoring and corrective actions during project operation. They underscored the value of climate resilience in port and airport design, routine mainstreaming of energy efficiency and clean energy sources in new projects, and lifecycle and supply chain assessments in operational standards.

The standard use of Paris Accord alignment requirements in IFIs and need for greater climate adaptation in the technical designs and operations of transport projects were further points of discussion.

Participants went on to spotlight the employment and household wellbeing benefits of safer mobility for women and solutions for tackling related cultural, capacity, engagement, and budget challenges. They also examined examples of new technology use for realizing more effective resettlement and stakeholder engagement, including during the construction of Kewatkhali Bridge in Mymensingh, Bangladesh.

Participants looked at the critical role of occupational health and safety beyond the operation of sustainable transport projects, encompassing their design, construction, and commissioning. Experts from AIIB, the Asian Development Bank (ADB), New Development Bank (NDB), and World Bank additionally exchanged broader sustainable transport project challenges and innovations.

“MCDF continues to expand its support for the preparation of high-quality transport projects for financing by MDBs and the private sector given increasing demand for bankable projects in developing countries,” said Mr. Frederic Wiltmann, MCDF Program Head. MCDF’s USD9.46 million in grant support over the last three years for 11 transport projects globally are projected to mobilize USD2.03 billion in investment.

“MCDF is providing parallel support for soft sustainable transport infrastructure via capacity building and information sharing under the Environmental and Social Safeguards Community of Practice and in areas such as climate-smart connectivity infrastructure, Mr. Wiltmann added. “Partnerships to promote high-quality infrastructure and connectivity investments are at the core of MCDF’s mission,” he concluded.

Mr. Hun Kim, Acting Vice President, Investment Solutions and Director General, Sectors, Themes, and Finance Solutions Department, AIIB

Mr. Zhongjing Wang, CEO, MCDF

Left to right: Mr. Ede Ijjasz, Senior Advisor to the CEO, MCDF and Panel Moderator, Mr. David Rollinson, Senior Environment Specialist, AIIB, Mr. Nianshan Zhang, Head, Office of Safeguards, ADB, Mr. Roman Novozhilov, Chief of ESG Department, NDB, Mr. Piers Touzel, Head of Advisory, ERM, Mr. Corey Wong, Director Transport, Arup

Left to right: Ms. Shagun Mehrotra, Social Development Specialist, AIIB and Panel Moderator, Ms. Gulru Azamova, Senior Social Development Specialist, AIIB, Ms. Sita Aripurnami, Executive Director, Women Research Institute, Ms. Juliana Franco Ramos, E&S Specialist, NDB, Mr. Runze Yu, Investment Officer, AIIB

Mr. Frederic Wiltmann, Program Head, MCDF