All Transport
The Future of Public Transport Funding
Research Report, Policy Insights,
27 February 2024
- Invest more. Greenhouse gas emissions from transport must decline rapidly to meet the Paris Agreement goals. As well as renewing vehicle fleets with electric vehicles, this requires modal shift towards public transport and active mobility. Public transport investments must increase significantly to enable the required modal shift.
- Focus on efficiency. More efficient infrastructure and service provision will contain the funding requirement. This requires coordinated institutional management arrangements, a strong focus on competition, a well-functioning multimodal mobility system, public investment decisions determined with efficiency in mind, and efficient financing choices.
- Fund from all sources. Sustainable public transport requires funding from three sources: users, through fares; governments, through general budgets and earmarked taxes; and taxes on indirect beneficiaries, including owners of land that increases in value when its accessibility improves.