Public Commentary: The following overview outlines FG Capital’s approach to Transport Demand Management (TDM) carbon projects. It is provided for informational purposes only and does not constitute investment advice or a solicitation.
TDM Carbon Projects – Transport Demand Management Structuring
Urban transport emissions can be curtailed substantially by shifting travellers away from single-occupancy vehicles toward public transit, active modes, and remote-work options. Well-designed TDM programmes generate quantifiable, verifiable emission reductions (VERs) in addition to congestion relief and air-quality improvements. FG Capital delivers the technical diligence, capital structuring, and market access required to translate these multi-benefit interventions into durable revenue streams.
Programme Components
• Congestion-Pricing Systems:
Dynamic road-use charges backed by ANPR or GNSS technologies.
• High-Occupancy & Bus Lanes:
Dedicated corridors improving travel times and mode attractiveness.
• Micromobility Integration:
Dockless e-bike and e-scooter fleets linked to transit hubs.
• Employer-Based Travel Plans:
Subsidised transit passes, parking-cash-out schemes, and tele-commuting incentives.
• Real-Time Data Analytics:
Mobile-device origin-destination matrices and AI-driven demand forecasting.
Advisory Framework
1 | Feasibility & Baseline Modelling
• Household-travel surveys, GPS traces, and transport-model calibration to establish business-as-usual emissions using methodologies such as Verra VT0029.
2 | Capital Structuring
• Public-private partnerships (PPP), senior green loans, and performance-based service contracts aligned with verified emission reductions and user-fee revenue.
• Advance credit-purchase agreements improving cash-flow resilience.
3 | Implementation Oversight
• Procurement of ITS infrastructure, enforcement systems, and customer-service platforms.
• Stakeholder-engagement programmes ensuring social-equity outcomes.
4 | MRV & Certification
• Continuous traffic-flow monitoring, mode-share surveys, and periodic third-party verification.
5 | Credit Monetisation
• Long-term offtake agreements with compliance entities; spot-sale facilitation following issuance.
Indicative Financial Parameters
| Metric | Typical Range |
|---|---|
| CapEx (USD / daily trip reduced) | 150 – 300 |
| Emission Reduction (kg CO 2 e / trip / year) | 350 – 520 |
| Forward Credit Price (USD / t) | 8 – 12 |
| Target Equity IRR (post-tax) | 11 % – 15 % |
Representative Capital Stack
| Tier | Security Package | Cost of Capital | Typical Providers |
|---|---|---|---|
| Senior Green Loan | Pledge over fee revenues and VER proceeds | SOFR + 225 – 300 bps | Multilateral banks, city-bond investors |
| Subordinated Facility | Second-lien on programme cash flow; cash-sweep covenant | SOFR + 425 – 550 bps | Private credit funds |
| Advance Credit Purchase | Delivery contract; make-good provisions | Fixed price USD 9 / t | Compliance entities, corporate buyers |
| Public-Sector Equity | Residual cash flow | Target IRR 9 % – 12 % | Municipal development agencies |
Stakeholder Benefits
- Municipal Authorities: Congestion relief, air-quality gains, and diversified revenue.
- Credit Purchasers: High-integrity avoidance credits linked to urban-mobility improvements.
- Investors: Predictable cash flows underpinned by user fees and long-term credit offtake.
- Communities: Improved transit reliability, safer streets, and health co-benefits.
Engagement
City planners and mobility operators interested in Transport Demand Management initiatives are invited to consult our advisory team regarding feasibility studies, optimal financing structures, and rigorous MRV frameworks.
