World Bank Approves $250M Loan for Yichang City's Low-Carbon Transportation Transition

The interventions are expected to increase the average daily public transport ridership, improve accessibility to jobs within 60 minutes using green transportation modes, and reduce net GHG emissions.

Yichang City in Hubei Province will transition to a city-wide environmentally cleaner transportation system, enhancing travel for residents, reducing greenhouse gas emissions, and potentially serving as a model for other cities. This initiative is supported by a US$250 million loan approved by the World Bank Board of Executive Directors today.

China's robust infrastructure investments have spurred economic growth but also escalated energy consumption and greenhouse gas (GHG) emissions, particularly in the transportation sector, which has the highest emissions growth rate.

The newly approved Low Carbon Transition of Urban Mobility in Yichang (Hubei) program aims to enforce cleaner vehicle emission standards and phase out older, heavily polluting freight vehicles and buses. The program will also promote compact urban development prioritizing public transit, walking, and cycling, enhance public transportation attractiveness, and improve parking management. Additionally, it will pilot the participation of the transport sector in an emissions trading scheme. These measures will help Yichang achieve its low-carbon goals while contributing to global carbon emission reductions.

The interventions are expected to increase the average daily public transport ridership, improve accessibility to jobs within 60 minutes using green transportation modes, and reduce net GHG emissions.

Mara Warwick, World Bank Country Director for China, Mongolia, and Korea, stated, "The Low-Carbon Transition of Urban Mobility in Yichang (Hubei) program is the first World Bank-financed transport operation in China to showcase a comprehensive suite of city-scale decarbonization interventions building on international best practices. It provides a unique opportunity to establish a proof of concept for other cities in China and beyond."

The total program financing over five years is estimated at US$1,114 million, with US$250 million funded through an International Bank for Reconstruction and Development loan from the World Bank and the remaining amount from the Chinese government.

The program aligns with the World Bank's Country Partnership Framework (CPF) for China for FY2020 to 2025, particularly in promoting low-carbon transport and reducing air pollution, aiding China in meeting its climate commitments, and contributing to global public goods.