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Green Leader is the first part of Mr. David Van contribution on blended finances.

 

Part II – The GRAB Experience

Transportation emissions are a significant contributor to harmful air pollution in Cambodia, where rapid urbanization is fueling a growing demand for mobility, resulting into increase of Greenhouse Gas emission. The project conceived helps support the government’s efforts to strategically improve urban transport system in Cambodian cities to become inclusive, safe, resilient and sustainable.

The United Nations has stated that by 2050 the world urban population is expected to nearly double, making urbanization one of the 21st century’s most trans-formative trends with Africa and Asia being the fastest in urbanizing, with projected figures of 56% and 64% urban, respectively. The infrastructure investment needs for Southeast Asian countries for the 2010-2020 period are estimated at almost $600 billion. On top of that, cities occupy 0.5% of the world’s land surface, yet consume 75% of global energy. 80% of Greenhouse gas emissions that cause global warming come from cities. Roughly half of this amount comes from burning fossil fuels in cities for urban transport; the other half comes from energy in-use in buildings as well as for use in appliances. Henceforth, climate change and urbanization become virtually inseparable.

Southeast Asia’s leading on-demand transportation and mobile payments platform Grab has sought to position itself as a leading Green Actor since its mobility business model deals with motor vehicles and motorbikes across eight markets in ASEAN covering 217 cities and mobilizing 6.6 million micro-entrepreneurs daily across the spectrum.

Russell Cohen, Head of Regional Operations, Grab said, “It is with great pleasure that Grab is entering into the next phase of partnership with UNDP to continue our mission and commitment to work together in reducing pollution as well as increasing road safety and traffic efficiency for Cambodia. Our continued partnership with the UNDP will help us further our ambition to make Southeast Asian cities cleaner and more livable.”

“This Partnership with Grab is a major step for us to apply ride-hailing, app-derived data and technology to solve urban pollution and traffic problems. We are excited about this and look forward to working together with Grab to improve sustainability and the quality of lives for Cambodian people”, said Mr. Nick Beresford, Country Director, United Nations Development Program (UNDP) Cambodia.

The project will be co-funded on a tripartite basis by UNDP, GRAB and MPWT (Ministry of Public Works & Transport). It acts as a catalytic investment model to establish the required foundations and knowledge in improving urban transport management and planning while encouraging increased public and private investments in smart urban transport solutions and research to encourage users in adopting more sustainable urban transport modes.

Three major outputs are targeted at the term of the project being:

MPWT’s capacity in traffic management and urban transport planning reinforced by analyzing the traffic data generated by GRAB across its nationwide traffic and guiding the ministry in developing a solid traffic management policy.

Air pollution monitoring and clean fleet management solutions applied by reinforcing air pollution monitoring and management capacity of MOE (Ministry of Environment), encouraging the usage of green vehicles through some incentive programs and introducing clean fleet management system and tools.

Innovative urban transport solution launched through communicating of materials to promote clean fuels and vehicles including road safety, generating knowledge and solutions on smart urban transport, developing and launching a national innovation challenges on smart transport solutions.

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