UNCRD's effort on the promotion of Green Freight under the Regional EST Forum in Asia
Ganesh Raj Joshi (PhD) Researcher, UNCRD 26 June, 2014 Outline Asian EST Initiative Background: Preparation of the Regional Cooperation Agreement on Green Freight in Asia Rational Behind the Agreement UNCRDs Effort on Green Freight in Asia & Latest Developments on Regional Cooperation Agreement Challenges, Opportunities and Way forward Development process of the Regional Cooperation Agreement
24 EST Member Countries
Organizing Annual Regional EST Forum in Asia
Formulation of National EST Strategy
Asian Mayors Policy Dialogues
Capacity building: Regional/Sub- regional/In-country EST Training Workshops
Promotion of Green Freight under the Regional EST Forum in Asia
Supporting to Regional EST Forum in Latin America & Africa UNCRD has been leading the promotion of the Sustainable Transport and Green Freight policies in Asia, in collaboration with MoE-Japan through ASIAN EST INITIATIVE since 2004. Asian EST Initiative At the 5 th Regional EST Forum held in Bangkok in 2010- participant countries agreed on the Bangkok Declaration for 2020. The declaration includes 20 sustainable Goals and relevant indicators. The Goal 12 was agreed on Freight transport Achieve improved freight transport efficiency, including road, rail, air, and water, through policies, programmes, and projects that modernize the freight vehicle technology, implement fleet control and management systems, and support better logistics and supply chain management.
At the 6the EST Form held in Delhi in 2011, Chair concluded that green Freight should become more prominent on Asias policy agenda and proposed the consideration of a Regional Cooperation Agreement or convention to collectively address freight issues under the framework of the Regional EST Forum in Asia.
Background: Preparation of the Regional Cooperation Agreement on Green Freight in Asia
In BAQ 2012 in Hong Kong, UNCRD announced the development of a Regional Cooperation Agreement (RCA) on Green Freight in Asia to collaborate on collectively addressing freight issues under the framework of the Regional EST Forum in Asia.
Rio+20 outcome document The Future We Want also viewed Freight as an important for the economic development and significance for issues like environment, public health, road safety and working conditions of drivers, etc.
7 th Regional EST Forum in Asia was agreed on the further development of the Regional Cooperation Agreement on Green Freight in Asia and this process is led by UNCRD and UN ESCAP and supported by ADB, GIZ, ITDP, SLoCaT and CAA.
Rational Behind the Regional Cooperation Agreement Asian GDP & Per capita In 2010: $16 trillion-27% of Global GDP; In 2050: $148 trillion-51% of Global GDP, and Per capita could rise six fold i.e. $38,600 to reach the global average and the similar to European levels today.
By 2050, A-7 (China, India, Indonesia, Japan, Republic of Korea, Malaysia and Thailand) countries will account for 45% of Global GDP and their average per capita income would be $ 45, 800-25% higher than the global average of $ 36,600. Source-ADB, 2012 Growth of Asian Economy Population Growth Urbanization trend Urbanization in Asia in 2010: 41% -with 12 megacities out of 21 cities in world. North-East Asia will be the most urbanized region of the Asia Asian Urban Population Growth: An estimated 3 billion people now live in urban settlements, and 45% of this population lives in Asia. 44 million people are being added to Asias urban population annually which is equivalent to 0.12million/day. In 2050, out of 3.3 billion Asians population will lives in urban areas. Asias urbanization is rapid. Ex: China transitioning from 11% of its population in urban area to 51% urban in just 61 years while it takes 210 years for Latin America & Caribbean; 150 years for Europe and 105 years for North America. Source: ADB, UN HABITAT, UNESCAP, WB.
By 2050: Urbanization rate will reach 65% with 21 megacities out of 37 cities in world. Projected Freight Transport Activity (2000-2050) Road and Rail Freight in Asia (2000-2050) Fig: Road freight share (ton) in total freight in Asia Fig: Rail freight (ton-km) growth in Asia ranges 2-4% annually from 2000-2050. Source: ICCT Road Map Projections. Road freight Growth in Asia: 645% from 2000 to 2050 compare to 241% globally. Source: http://unctad.org/en/pages/PublicationWebflyer.aspx?publicationid=380 Annual rail freight growth (in ton Km) 2 to 4%. The Transportation share of world total liquid fuel consumption increase 55% in 2010 to 57 % in 2040 in the IEA 2013 reference case. Source: IEA,2013 World Transport Sector and Energy Consumption (2010-2040) Freight now accounts for 35% of the worlds transport energy use It is estimated that by the year 2050, medium and heavy freight trucks worldwide will consume 1,240 billion liters of fuel (gasoline equivalent), 138% more than 2000 levels. Fig: Energy Consumption of Truck and Rail globally, 2000-2050 Fig: World Transport Sector Energy Consumption (2010-2040) CO2 and PM emissions across Asia by Diesel trucks Source: Clean Air Asia, 2012. Accessing Asia Trucks are large contributor to CO2 and PM emissions across Asia Trucks represent as less than 10% of national vehicle populations and generate around 60% of transport emissions. Trucks impact on environment and society is high: in Example: India 5% of vehicles are trucks involved in 26% of road accidents,46% of transport fuel consumption and general 63% of CO2 and 59% of particulate matter emissions. The global share of trucks operating within Asian countries is expected to increase from 19% in 2000 to 34% in 2050 Between 2000 to 2008, the average per capita greenhouse gas emissions grew by 97% in Asia compared with only 18% in the rest of the world.CO2 emissions could reach 10.2 tons per capita by 2050 i.e.3-times the 2008 levels as present scenario. Logistic cost as % of GDP : Very high for example 15%-India, 16%-Thailand, 18%-China, 24% -Indonesia & 25%-Viet Nam compare to developed countries less then 10%.
Flight logistic value: China-US$ 19.84 trillion in 2012 -18% of GDP. India-35% and Thailand 49% of total logistic cost
Fuel Cost: Lao PDR, Thailand and Viet Nam- 40 to 60% of overall operating costs of transport carriers.
Waterway/Marine Freight Growth: Container-6%, trade-6% in 2011, and the growth of freight activity (ton km) increased by 4.3% over past decade.
Air Freight Growth: Air freight volume growth worldwide by 3.7% annually in the past decades. It is predicted that over the next 20 years it will increased by 5.2 % .
Sources: http://news.xinhuanet.com/english/china/2012-04/19/c_131536275.htm; http://www.internationaltransportforum.org/jtrc/DiscussionPapers/DP201204.pdf; http://www.gms-eoc.org/uploads/resources/141/attachment/Gota_CAI_evaluating_impact_green_freight_technologies.pdf ) ICCT Road Map Projections http://unctad.org/en/pages/PublicationWebflyer.aspx?publicationid=380 http://unctad.org/en/PublicationsLibrary/rmt2012_en.pdf Position paper for the promotion of green freight in Asia. Logistic Cost and Freight Growth in Asia Challenges, Opportunities and Way forward Social Environment Economic Policies Public health Road safety Working conditions of drivers Employment Insurance system Energy security Air pollution Noise pollution CO2 and GHG emissions Natural disasters Climate change/global warming related Energy efficiency Competitiveness Logistic cost Institutional arrangement Lack of assess of funding Data collection Lack of adequate policies, planning, and enforcement Rule & regulations Fragmented freight sector Lack of mutual cooperation among stakeholders
Mutual cooperation/collaboration and collective effort among Governments, International organizations, Development banks, Research institutions, Private sectors, NGOs and Academia, and all concerned stakeholders on Green Freight Regional Cooperation Agreement on Green Freight in Asia UNCRD formulated three background/position papers for the promotion Green Freight and preparation of the possible Regional Cooperation Agreement on Green Freight in Asia. (Please see for detail: http://www.uncrd.or.jp/)