Group 1: Urgency of Climate Action in Transportation - The transportation sector is a major source of greenhouse gas emissions, with developing countries experiencing a faster growth rate in emissions compared to developed nations, potentially becoming the primary contributors to CO2 emissions from transportation in the future [1][31] - To achieve the 1.5°C climate target, significant increases in green and resilient transportation investments are required, estimated at $417 billion annually from 2015 to 2030, which represents an increase of 1.3% of GDP [1][31] Group 2: Current Climate Financing Landscape and Barriers - Global climate financing averaged approximately $1.27 trillion annually from 2021 to 2022, but developing countries received insufficient funding, with only 3% of total climate finance directed towards least developed countries [2][32] - The majority of financing for low-carbon transport in developing countries comes from development finance institutions (DFIs), while private sector investment is more prevalent in developed nations [2][33] - Key barriers to mobilizing climate finance include a lack of bankable projects, insufficient market demand, and inadequate risk allocation among stakeholders [3][34] Group 3: Innovative Financing Approaches and Policy Recommendations - Blended financing models that combine concessional funds with commercial capital can help scale up investments and reduce transaction costs, particularly in regions like Sub-Saharan Africa [4][38] - Establishing carbon pricing mechanisms can internalize external costs of emissions and generate funds for green investments, while optimizing funding mechanisms can incentivize climate action [4][36] - Governments should set specific climate action goals for transportation, incorporate climate scenarios into strategic planning, and enhance public spending efficiency to support the transition to low-carbon transport systems [4][39]