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Global: Promoting Sustainable Urban Mobility through Public Transport Business Models

Consultancy Services on Popular Transport Business Models and Financial Mechanism Research in Latin America, Africa, and Asia

Challenge

Establishing financially-viable business models that ensure equitable opportunities for both operators and users is a key challenge for public transport systems in achieving a Just Transition (ensuring broad societal participation in moving toward greener economies). A sustainable and progressive business model is also crucial to electrification of transport fleets as part of that transition.

Approach

The Sustainable Mobility Sector Project, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), funding GIZ, supports sustainable urban mobility, infrastructure financing, poverty reduction, and climate protection. The project plays a key role in implementing the German funded Transformative Urban Mobility Initiative (TUMI) by raising awareness and building capacities in cities across developing and emerging economies. Through policy advice, knowledge sharing, and capacity-building programs, the project helps cities achieve their sustainable transport goals

In many fast-growing lower- and middle-income cities, Popular Transport systems (also known as Informal Transport or Paratransit) represent a majority of the transport supply — elevating the importance of mutual benefit among users and operators. Learnings from different contexts on how financial and business model structures have evolved could bey key for other urban areas to rethink and reform their own systems. A Just Transition is essential for locations where Popular Transport is the backbone of the mobility system. Through awareness-raising, policy advice, knowledge sharing, and capacity-building initiatives, this programme helps cities achieve sustainable transport goals.

Goals and Results

The project goals were:

  • To understand how to empower Popular Transport systems by understanding financial and business models and how each work in their specific context.
  • To communicate this to Popular Transport systems in other cities as inspiration for their business model and operational set-up.
  • To provide guidance for policymakers, operators, and financial institutions on recommended actions towards a Just Transition for local Popular Transport systems.
Status
Complete
Date
2024 - 2025
Funded by
GIZ
Implemented by
DT Global Europe
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