GREEN YOUR BUS RIDE Clean Buses in Latin America Summary Report
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Public Disclosure Authorized Public Disclosure Authorized GREEN YOUR BUS RIDE Clean Buses in Latin America Summary report January 2019 Public Disclosure Authorized Public Disclosure Authorized i Clean Buses in Latin American Cities Transport is the fastest growing source of greenhouse gas emissions worldwide, responsible for 23% of global CO2 emissions from fuel combustion. Driven by the unprecedented rate of urbanization and demand for transportation, transport has become the largest contributor of greenhouse gas emissions in Latin America.1 1 IEA (2015), IADB (2013). ii Clean Buses in Latin American Cities Overview 1 1 Introduction 7 Overview of Clean Bus Technologies 8 2 Total Costs of Ownership 11 | World Bank TCO Estimates 12 3 Cost-Effectiveness Analysis 15 4 Enabling Environment 21 What makes a good enabling environment for the implementation of clean buses? 22 Diagnosis of Current Situation A. Public Transport Systems 24 B. Environmental Policies 26 C. Energy Sector 28 D. Governance and Markets 30 E. Funding and Finance 32 Self Evaluations 33 5 General Recommendations 35 6 City-Specific Recommendations and Implementation Roadmaps 39 A. Buenos Aires 40 B. Mexico City 44 C. Montevideo 47 D. Santiago 50 E. São Paulo 53 Conclusions 57 References 59 Appendix A: Key Assumptions for World Bank TCO Analysis 61 Appendix B: TCO Estimates for each of the Five Cities 65 iii Clean Buses in Latin American Cities Acknowledgements This report is a product of the staff of The This report was developed by Steer for the World Bank with external contributions. The NDC Clean Bus in Latin America and the findings, interpretations, and conclusions Caribbean (LAC) Project led by Bianca expressed in this volume do not necessarily Bianchi Alves and Kavita Sethi, and the team, reflect the views of The World Bank, its Board including Abel Lopez Dodero, Alejandro of Executive Directors, or the governments Hoyos Guerrero, Diego Puga, Eugenia they represent. Yeghyaian, Fiamma Perez Prada, Hellem Miranda, Monica Porcidonio, Pedro Orbaiz, The World Bank does not guarantee the Ranjan Bose, Roberto Abraham Vargas, accuracy of the data included in this work. Steve Winkelman, and Yin Qiu. The report The boundaries, colors denominations and received detailed contributions by Abel Lopez other information shown on any map in this Dodero, Pedro Orbaiz, Steve Winkelman work does not imply any judgement on the and Yin Qiu. The authors would like to thank part of The World Bank concerning the legal peer-reviewers Dominic Patella, Ivan Jaques, status of any territory or the endorsement or Franck Taillandier and Marius Kaiser for the acceptance of such boundaries. valuable contributions. The team would also like to thank Practice Managers Shomik Raj Mehndiratta and Juan Gaviria, and Sector Leader Paul Procee for their guidance and support. iv Clean Buses in Latin American Cities Overview This report presents the findings of a comprehensive study on the drivers and barriers to the uptake of cleaner technologies for public transport in five cities in Latin America: Buenos Aires (Argentina), Mexico City (Mexico), Montevideo (Uruguay), Santiago (Chile) and São Paulo (Brazil). These cities were selected to represent a range of sizes, demographics, economies, | O transport systems, and governance structures in the Latin America region. verview Their diverse experience is valuable for informing regional replication efforts on clean bus technologies. To transform transportation in Latin America for sustainable development, the World Bank has been using a conceptual framework of “Avoid-Shift-Improve”: “Avoid” unnecessary motorized trips by creating more compact and productive cities; “Shift” to more efficient and integrated modes such as public transport and non-motorized modes; and “Improve” the environmental and safety performance of vehicles, as well as the operational efficiency of transport systems. In recent years, a range of clean vehicle technologies have gained increasing appeal in cities due to their multiple benefits derived from converting energy efficiently to vehicle movements, and the region, the World Bank is conducting a higher compatibility with renewable energy, and programmatic approach aimed at accelerating lower tailpipe and lifecycle emissions compared the transition to clean technology buses. This with conventional buses. These technologies approach embraces knowledge sharing, strategic could improve air quality and public health planning, capacity building, and financing of in cities overall, as well as benefiting climate projects identification. This promising agenda change globally. They also bring an opportunity received funding support from the NDC Support to rethinking about how to make public transport Facility (http://www.worldbank.org/en/programs/ more attractive to citizens. The transition to clean ndc-support-facility) as a contribution to the NDC buses will thus achieve substantial benefits not Partnership (http://ndcpartnership.org). only by “improving” actual bus performance, but The terms “clean technology bus” or “clean bus” also by “shifting” people from private vehicles on are used interchangeably in this report to refer to public transport - essential for reducing carbon to a variety of advanced technologies involving footprints in general, relieving traffic congestion lower-emission energy sources, such as clean and improving overall urban efficiency. diesel (Euro VI equivalent), compressed natural Given the limited information on the barriers gas (CNG), battery-electric (BEB), hybrid diesel- and opportunities existing in individual cities electric (Hybrid or HBD), biofuel and hydrogen- 1 Clean Buses in Latin American Cities powered buses. The clean bus concept in and municipalities in nine countries. Also present general entails cities adopting a noncommittal were regional stakeholders, including financiers, technology-neutral approach while they conduct manufacturers, national transport operators’ evidence-based assessments of specific bus associations, energy distributors, and partner technologies tailored to local conditions. organizations, consulting firms, and research The study includes diagnostics, consultation institutes from the US, China, UK, India and and recommendations regarding the drivers and Spain. The discussions and feedback from the barriers to the uptake of cleaner technologies event were used to fine-tune the findings and for public transport in five cities in Latin America: recommendations in this report. Buenos Aires (Argentina), Mexico City (Mexico), This report first presents an overview of the five Montevideo (Uruguay), Santiago (Chile) and cities and a variety of clean bus technologies São Paulo (Brazil). These cities were selected (Chapter 1), the total costs of ownership of to represent a range of sizes, demographics, different clean bus technologies in each city economies, transport systems, and governance (Chapter 2), and an analysis of the cost- structures. Their experience is valuable for effectiveness of emissions reductions in the informing regional replication efforts on clean bus local contexts (Chapter 3). This is followed by technologies. a summary of the diagnostic findings grouped The data collection methodology included into five key factors that constitute the enabling reviewing the latest technical literature and environment (Chapter 4): A. Public Transport local workshops and interviews with primary Systems, B. Environmental Policies, C. Energy stakeholders in all five cities. The stakeholders Sector, D. Governance and Regulation, and E. included key players from government institutions, Funding and Finance. Chapter 4 also includes the 2 vehicle manufacturers, financial institutions, self-evaluation results from LAC counterparts. bus concessionaires and civil society. Data The report goes on to provide general collection sought to identify the main barriers recommendations for improvements within each and opportunities for the uptake of clean buses, of the five factors, categorizing each intervention by analyzing the five key factors of their enabling as essential, desirable or supportive of the level environment: Public Transport, Environmental of priority (Chapter 5). The report concludes by Policy, Energy and Infrastructure, Governance recommending specific interventions for each city and Regulation, and Funding and Finance. and displays an implementation roadmap with suggested specific timeframes, priority levels and required stakeholder involvement (Chapter 6). Public Transport Clean Bus Technologies The performance, emissions and costs of Funding and Environmental clean bus technologies can vary significantly Financing Policy The Five depending on local conditions, including corridor Enabling Factors characteristics, energy prices and the market availability of vehicles and parts. The optimal choice of clean bus technology for a particular city or corridor will depend on a variety of factors, Governance Energy and and Regulation Infrastructure including which emissions (e.g. air pollutants or CO2) are of greatest concern. Feasibility considerations such as upfront costs, availability of finance, ease of operation and maintenance, The work ended with a three-day regional training institutional capacities, and political will, also event in Iguassu Falls, Brazil. The event was need to be considered. attended by Latin American and the Caribbean 2 The self-evaluation exercise, carried out during the Iguassu Falls workshop, (LAC) counterparts from ministries of transport, involved