Financing

Cities in developing countries are experiencing unprecedented urban growth. Unfortunately, this is often accompanied by the negative impacts of sprawl as a result of rapid motorization such as congestion, air pollution, greenhouse gas emissions, inefficient use of energy and time, and unequal accessibility. As these cities are often under severe fiscal constraints, they face great challenges in financing capital-intensive mass transit systems to reverse the course of these negative trends.

In recognition of the importance of public finance, the global community has established several “climate funds.” These funds are designed to disburse funding to developing countries to help meet the cost of climate change mitigation and adaptation. Capitalized primarily by developed countries, the funds also serve as recognition of the greater historic responsibility these countries have for current atmospheric greenhouse gases.