IFC’s Nyirinkindi on opportunities for private sector in decarbonising transport

The private sector has a significant opportunity to lead the way in the global effort to decarbonize the economy, particularly in the transport sector. Emmanuel Nyirinkindi, Vice President of Cross-Cutting Solutions at IFC, highlighted the importance of transforming the transport sector to reduce carbon emissions and combat global warming. Transport plays a crucial role in economic development, facilitating the movement of people and goods. However, it is also a major source of carbon emissions. Nyirinkindi noted that significant investments, amounting to about 3.7 trillion annually until 2035, are required to meet the sector's needs, with a majority focused on emerging markets. Given the massive funding gap, the private sector's involvement is essential in financing and driving innovation in the transport sector. Nyirinkindi emphasized the importance of creating bankable deal flow to attract private investment and transform the sector's carbon-intensive nature. Through initiatives like the Dakar bus rapid transit project in Senegal, IFC is working to introduce electric bus services and promote sustainable transportation solutions. The shift to green transport not only contributes to carbon reduction but also presents vast economic opportunities, including job creation and revenue generation. Electric transport, such as eBuses, is gaining traction globally, with developing countries like Kenya embracing sustainable transportation solutions. To address the financing challenges in Africa, governments can play a crucial role by implementing supportive policies and leveraging public financing to attract private investment. By collaborating with regulators and sustainable finance networks, organizations like IFC are working to green the financial sector and promote investments in green transportation infrastructure. Gender inclusivity is also a key focus area for IFC, with efforts aimed at increasing female representation in the transport workforce and designing transportation projects to meet the specific needs of women as passengers and commuters. The rollout of initiatives like the eBus Toolkit underscores IFC's commitment to promoting gender-inclusive and environmentally sustainable transportation projects. Looking ahead, Nyirinkindi highlighted the need for concerted action from both the public and private sectors to scale up sustainable transport investments and create a more resilient and low-carbon transport sector. He called for greater intentionality in unlocking private sector opportunities, reiterating the vast potential for investment in emerging markets. With a sense of urgency to address the pressing climate challenges, Nyirinkindi urged stakeholders to collaborate and accelerate efforts towards a sustainable and decarbonized transport future.