In a dynamic session chaired by Sudhir Gota, Co-Team Lead of the Asian Transport Outlook (ATO), experts gathered to discuss Asia’s progress toward climate alignment in transport infrastructure, focusing on the evolving approaches being imbibed by multilateral development banks. This was part of the "Sustainable Transport Investments: Opportunities, Challenges, and Good Practices" which was co-organized by the Asian Infrastructure Investment Bank (AIIB) and the Multilateral Cooperation Center for Development Finance (MCDF). The forum’s objective is to provide a platform to share good practices, lessons learned, opportunities and challenges in managing environmental and social risks and impacts in transport infrastructure projects.

The session entitled "Sustainable Transport Projects - Climate and Green Transition Investments" highlighted Asia's urgent need to align transport projects with environmental objectives, shedding light on methods used to integrate sustainable practices across varying project stages.

Main Discussion Points:

1. Project Screening and Environmental Alignment: The session began with a deep dive into examples of approaches and tools being employed by multilateral banks such as AIIB, which are designed to ensure that projects align with climate goals. A representative from AIIB explained how their methodology prioritizes projects that meet both economic viability and environmental responsibility. This includes evaluating potential projects for their climate impact before final approvals, ensuring alignment with corporate strategies that emphasize sustainability.
2. Strategic Methodologies for Long-Term Impact: As discussions unfolded, speakers underscored the need for structured methodologies that go beyond short-term goals. During the panel discussions, it was explained how development bank strategies interlinking with broader corporate objectives, may prove to effectively influence Asia’s infrastructure landscape in the long run. The emphasis was on advancing transportation projects that mitigate emissions and foster sustainable growth, with specific frameworks tailored for Asian markets.
3. Challenges in Policy and Implementation: The panelists also discussed the implementation challenges, such as the gap between policy aspirations and on-ground realities. Another speaker highlighted that achieving price alignment within the transport sector remains complex due to the diverse economic conditions in Asia. Participants agreed that bridging this gap requires continued support from both regional and international stakeholders.
4. Future Directions and Goals: The session concluded with a forward-looking perspective on integrating price alignment and climate resilience into Asia's transport sector. Sudhir Gota emphasized the role of ATO in facilitating data sharing and capacity building, essential for scaling sustainable transport initiatives. He also called for enhanced collaboration across sectors to enable Asia to meet its climate commitments effectively.

The panel was composed of: Andres Pizarro, Principal Transport Investment Operations Specialist and ATO’s champion at AIIB; AIIB; Alberto Alcubilla Arribas, Senior Investment Solutions Specialist, AIIB; Yuan Zheng (Virtual), Climate Change Specialist, NDB; R.M.S. Bandara, Project Director, Sri Lanka: Reduction of Landslide Vulnerability by Mitigation Measures Project (RLVMMP); Bijaya Jaishi, Deputy Director General, Development Cooperation Implementation Division (DCID), Department of Roads, Nepal. This session underscored the need for actionable policies and practical tools to ensure that Asian transport infrastructure evolves in line with environmental goals. The insights shared offer a roadmap for aligning regional projects with international standards, marking a significant step in ATO’s ongoing mission to drive sustainable transport solutions in Asia.