Closed Meeting (by invitation): Developing an Enabling Environment for Private-sector Finance and Impact Investment for Safer Roads

At the International Transport Forum Summit in May 2024, political leaders encouraged the development of an assessment framework to help mobilise private-sector finance for road safety at the global level.  Discussion papers are under development to shape frameworks for assessing safety performance and facilitate private investment in safer roads. Key stakeholders are invited to this closed session at the IRF World Road Congress to help shape the initiative in partnership. 

Historically, road safety has been underfunded. Ignoring road safety as a sustainable development issue and the market’s failure to fully account for the costs of road crashes are key reasons for this underinvestment. It is estimated that for every $100 in crash costs only $1-3 is invested in prevention. The dispersed health, social, and economic burden of dangerous roads provides little financial incentive for investment beyond minimum standards. The costs of road trauma are ultimately disconnected from the sectors where the solutions exist.  In competitive environments, crucial safety measures can be deprioritized or assumed to be the responsibility of another agency. 

Recently approved UNGA Resolution A/L78/290 on ‘Improving global road safety’ recognizes the importance of adequate, predictable, sustainable, and timely international financing. It underlines the importance of international finance to complement efforts to mobilize domestic resources, especially in low- and middle-income countries. 

To achieve SDG target 3.6 of halving road deaths and injuries by 2030, finance for road safety interventions must increase through a combination of multilateral financial instruments, public, private and donor finance. The World Bank Report ‘Saving Lives Through Private Investment’ identifies eight road safety project archetypes to catalyze public and private sector investment using various financial instruments (impact bonds, PPPs, blended financing, etc.).  

National governments and multilateral development banks are working on new financial instruments for investment in road safety, and more opportunities for private capital to flow into road safety can be created through development of an enabling environment for private-sector finance and impact investment linked to ESG commitments. 

This session aims to exchange experience in making investments in safer roads accessible to private-sector and social finance and agree on the critical success factors for social finance to flow to investments in safer roads. The outcome will inform guidelines for scaling up social finance for road safety and any associated governance arrangements that will be shared at the Morocco Ministerial in February, 2025 and the ITF Summit in May 2025. 

This meeting can be attended only by invitation. If you’re interested in participating please contact us at irf2024@irfnet.ch.