Financing Urban Bus Industry Restructuring within the Framework of

Transport sector, particularly urban transport sector has long been recognized as the main con- tributor of Green House Gases Emissions. Investments in urban public transport is needed yet the convention- al financing are often difficult to obtained due to the high level of investment and the current government pri- orities. Urban public transport is also seen as fall within the private sector domain - making it difficult for government to spend public money. The ratification of a Kyoto Protocol has paved ways to develop a financ- ing alternative for sustainable development. Clean Development Mechanism of the Kyoto Protocol has pro- vided an opportunity for urban transport authorities in developing countries to co-finance urban public transport project using the principle of a carbon trading. The capacity to implement CDM urban public transport project is essential to the project. Future works should be directed to investigate the methodology in incorporating soft measures and ensuring low project leakage.