Climate-friendly urban mobility IV

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India is the world's third largest greenhouse gas (GHG) emitter. With a motorization rate that is growing more than five times faster than the population, the transport sector has become the fastest-growing GHG emitter. The trend towards private motorized transport with a rapid growth in the vehicle fleet in India is concentrated in urban centers, where the average per capita income is higher than in rural areas and the population is growing at 2.8% per year, significantly faster than the national average (1.6%). World Bank studies in other developing and emerging countries show that, alongside energy and telecommunications, transport in particular is becoming the greatest obstacle to economic growth, employment and poverty reduction as development progresses. Inadequately developed transport infrastructure in cities and suburbs affects both the emerging middle class, who have to commute to work, and the poorer population, who rely on public transport. The Indian state is to be provided with an FC development loan (low-interest loan) of up to EUR 350 million to finance urban mobility. The FC program - like the previous phases - supports selected federal states and cities in the development of energy-efficient and sustainable mobility solutions. When selecting the program components, the focus is on maximum impact, feasibility and the integration of various modes of transport (rail, bus, motorized and non-motorized individual transport). FC investments are made in the following transport systems, among others: bus rapid transit systems, light rail train/metro, energy-efficient buses (including natural gas, electric and hybrid technologies), ferries, bicycle and pedestrian paths, park & ride facilities, intelligent traffic control systems and integrated ticketing. The investments can be flanked and secured by accompanying support (driver training, operational improvements, customer orientation), for which accompanying measures of up to EUR 3 million are planned. The project sponsors are public companies in the federal states in which the respective program component is implemented. The module objective of the FC program is the increased and sustainable use of an energy-efficient public transport system in the selected program locations. The program thus contributes to reducing the negative climate and environmental impacts of urban transport and is in line with the goals of the DC program to improve environmental and resource protection, decouple economic growth from resource consumption and manage the risks of climate change. The project complements and builds on the previous commitment of Financial and Technical Cooperation (TC) with India in the sub-focus sector. Within this module, the components Climate-friendly modernization of urban public transport in Tamil Nadu and Integrated and green urban mobility for the Mumbai metropolitan region are financed.