The United Nations Centre for Regional Development (UNCRD), along with the Government of Japan, held their latest EST forum for Asia, hosted at the Asian Development Bank (ADB) in Manila, the Philippines, and supported by the Asian Infrastructure Investment Bank (AIIB).
As a key stakeholder, the International Union of Railways (UIC) was there to advocate for rail during the event, where both Environment and Transport ministers from the region were meeting. Country delegations attended from the Philippines, Bhutan, Bangladesh, Cambodia, India, Iran, Laos PDR, Mongolia, Maldives, Nepal, Sri Lanka, and Thailand.
This year, with a focus on “Cities”, issues such as air quality, urban access, and economic sustainability were high on the agenda, with climate finance being the hottest topic of discussion among investment banks and countries.
During the event, the ADB reflected on the fact that three-quarters of its financing has been spent on roads in the last two decades. Although that proportion is decreasing, there is still a need for continued road growth in the region. They are looking to double their transport portfolio to $10 billion a year for transport infrastructure.
The AIIB then shared information on their “Panda Bonds” and sustainability-linked loans for green transport. The World Resources Institute (WRI) shared their study on finance, revealing that 71% of transport climate finance went to electric vehicles and 23% to rail and public transport.
Rail was represented also in the discussions. For example, Cambodia, who’s climate plan (Nationally Determined Contribution or NDC) includes a shift to rail via their railway master plan, planning to construct 652 km of new tracks, with two lines linking the capital to the seaport and to the Thai border. Cambodia also shared that, although the global carbon credit pricing drops were affecting the market, they hope to raise funds through the Paris Agreement Article 6 process with their Internationally Transferred Mitigation Outcomes (ITMO) agreement with Singapore.
In her address during the finance-themed panel, UIC Director for Sustainability Lucie Anderton said, “All finance for railways is climate finance, and there is great potential in this area. 1.8 Gt of future carbon emissions from low and lower middle income countries (LICs and LMICs) can be avoided by 2050 by boosting rail provision with an investment of $80 billion a year. International financial institutions can help projects in developing countries access finance by supporting building capacity in terms of and raising awareness about carbon credits, monitoring, and reporting, as well as broadening investment decisions to include broader socio-economic value.”
Members coming together in the Philippines
Also attending the Forum and making an address to the session was UIC member, the National Capital Region Transport Corporation (NCRTC). The team from India shared their ambitions and plans for transport systems in the country and the large-scale opportunities available through continued investment in infrastructure.
UIC met up with the Philippine Railway Institute (PRI), who are active members of the UIC Talent platform and are building a new facility to train the future railway workforce. Anneli Lontoc, Undersecretary for the Department of Transport, shared her vision for the institute and reflected on the remarkable transformation in railways that will be occurring over the next ten years in the country, quadrupling by 2035. She stated that the skills needed to support this transformation are substantial, and the Philippines welcomed international cooperation in the UIC forums to support this change.
The Philippine National Railways (PNR) also warmly welcomed Anderton during her visit to the PNR Tutuban Executive Building. During her visit, General Manager Deovanni S. Miranda, Assistant General Manager, Atty. Celeste D. Lauta, and other key personnel gave her an overview of PNR’s operations. This visit not only strengthened PNR’s relationship with UIC, but also fostered the sharing of innovative ideas, contributing to the advancement of the railway industry.
Spotlight on climate change and weather resilience
For the third year running, the Philippines is the highest-ranking vulnerable country for exposure to extreme weather. In the last season, six typhoons hit the country, displacing 1.4 million people.
The typhoons halted railway operations, with two trains completely submerged. Bridges required significant repairs and were out of action for more than a month. Five hundred staff were displaced from their homes, and offices were flooded, resulting in data and files being lost. Despite this, rail showed resilience due to the higher positioning of embankments, with trains resuming operation a week ahead of the roads reopening. However, recovery was difficult as no extra funding was available.
Further information about UIC’s work on climate change adaptation and weather resilience can be found at: Future proof railways: risks and solutions for railways facing climate change.
