Sustainable Mobility: Utilizing Green Finance and New Market Mechanisms 

Sustainable Mobility: Utilizing Green Finance and New Market Mechanisms

Date: Oct 24, 2022

Time: 16:00 to 17:30 (KST/GMT+9)

Overview:

On October 24th, 2022, the Global Green Growth Institute (GGGI) is organizing an event on Linkages between the Financial Mechanism & the Market Mechanism for facilitating the participation of private sector in sustainable transport, structured as acceleration workshops.

Global surface temperature will continue to rise until 2050 under all emissions scenarios considered. Global warming of 1.5 °C and 2°C will be exceeded in the 21st century without deep reductions in carbon dioxide (CO2) and other greenhouse gas (GHG) emissions in the following decades. The transport sector is the second largest contributor of CO2 emissions globally, accounting for 24.5% of CO2 emissions in 2019. This development is due to a growing population and a rapid rate of economic development in recent times, resulting in increased reliance on automobiles and other forms of GHG emitting transport.

Electromobility is seen as one of the potential solutions to mitigating the GHG emissions of the transport sector. The EV market continues to grow, with an increasing reliance on electric vehicles. Governments are showing heightened support for the use of EVs, with this being one of the common strategies seen in NDCs. In order to give effect to these strategies, it is encouraged of governments to utilize the financial (GCF) mechanism for the mobilization of green finance and the new market (ITMOs) mechanism for provisions for voluntary international cooperation between participating countries.

Event Structure:

The event is structured around two sessions as described below.

1.              Presentation Session

The session starts with two presentations from GGGI and KRIC. Mr. Kim, a team manager in KRIC, will introduce the Paris Agreement Article 6 mechanism including ITMOs and present how to utilize ITMOs for facilitating the adoption of E-Mobility. Dr. Julia Hollnagel will present GGGI’s approach to supporting the uptake of e-mobility solutions in general and introduce some case studies of past and current work. The Presentation Session will run for 30 minutes, advocating green growth through each organization’s sustainable transport strategy to determine opportunities for governments, businesses, companies, promoters, and financiers to work together towards countries committed to low-carbon development goals.

Specific Presentation Objectives for facilitating the participation of the private sector in sustainable transport

• Share GGGI e-mobility solutions and approaches for facilitating the adoption of E-mobility; and

• Advocate for a market-based approach to electromobility through sharing ideas and making recommendations.

2.              Panel Discussion Session

The panel discussion session will last for 45 minutes, moderated by Mr. Changsun Jang, Transport Lead in GGGI. It will allow for innovative and interactive discussions involving policymakers, experts from financial and market-based institutions, industry representatives, and sector experts. The panel discussion session will be the venue for the audience to understand how to utilize the Financial Mechanism and the Market Mechanism to facilitate the participation of the private sector in sustainable transport.

Some of the questions that will be addressed in the panel discussion session are related to GGGI Member experiences/key issues encountered on financial and market mechanisms related to e-mobility/decarbonization of transport: 

• (Government)
  • What policies and regulatory frameworks have your government planned or introduced to support the transformation of the transport sector? 
  • Are there national electric transport deployment targets? Targets for the introduction of e-mobility and charging infrastructure?
  • What are the main challenges related to financing e-mobility and charging infrastructure in your country?
  • How do you think of utilizing global green finance and new market mechanisms such as ITMOs for E-mobility distribution in your country. 
• (Finance Expert)
  • Is there any specific or innovative financial model or instrument for facilitating the adoption of E-mobility in the context of developing countries?
  • As the accredited entity to GCF, how do you think of utilizing GCF resources and is there any plan or strategy for E-mobility? 
• (Carbon Market Expert)
  • What are ITMOs and how do ITMOs can help lower global carbon emissions?

(Article 6 of the Paris Agreement creates provisions for voluntary international cooperation between participating countries to achieve the objectives of their NDC. Section 2 establishes that two countries can reach an agreement in which one of the parties reduces carbon emissions and transfers those reductions to the other party to be accounted for as part of their NDC objectives.)

• In order to facilitate the adoption of E-mobility under Article 6.2 bilateral cooperation, what do you think each country should prepare? 
• (Private Sector)
  • What do you think of major obstacles or challenges for the private sector to do e-mobility business or possess electric mobility?
  • Is there any specific or innovative financial mechanism for facilitating the private sector’s engagement?

Event Agenda: