4. Investment in public transportation and vehicle efficiency improvements generates
exceptional economic returns. Several scenarios show that a green, low carbon, transport sector can reduce greenhouse gas emissions by 70 per cent without major additional investment. A reallocation of just 0.34 per cent of global GDP in support of public transport infrastructure and efficiency improvements to road vehicles would reduce the expected increase in travel volume of road vehicles by around one-third by 2050. It would diminish the use of oil-based fuel by up to one- third and promote strong and sustainable employment in the sector.
5. Enabling conditions for green transportation have to be wide-ranging in order to be
effective. Such investments, among other measures, should be enabled via policies, including land use planning to promote compact or mass-transit corridor-based cities; regulation of fuel and vehicles; and the provision of information to aid decisions by consumers and industry. In addition, shifting financing priorities towards public transport and non-motorised transport, coupled with strong economic incentives such as taxes, charges and subsidy reform will also send a strong signal. Finally, developing and widely applying green transport technology; as well as setting up and building the capacity of institutions to foster greener transport will help ensure close cooperation with other key sectors.