case study hgv test

CPC Module 2 Case Studies

• CPC Module 4
• Questions List
• CPC Module 2
• Modular Course
• 1 Why was Driver CPC Module 4 Introduced?
• 2 How does the Driver CPC Module 4 Test work?
• 3 Who can carry out Driver CPC tests?
• 4 How to prepare for the Driver CPC Module 4 test

Why was Driver CPC Module 4 Introduced?

1. Safe Loading

You will be required to demonstrate that you can prepare safely for duty. You will need to show that you know how to check your vehicle’s fitness for service. This includes ensuring that the vehicle is securely loaded in accordance with safety rules.

2. Vehicle Security Check

You will be required to demonstrate you know how to ensure the security of your vehicle and its contents.

3. Prevent Trafficking

The examiner will need to see that you know appropriate measures to take to prevent illegal trafficking taking place involving your vehicle.

4. Emergency Situation Assessments

You will need to show you understand about safe working practices and how to implement these in various emergency situations.

5. Preventing Physical Injury

The examiner will expect you to show awareness of the appropriate movement and postures, the importance of physical and mental fitness, demonstrate handling, and personal protection through healthy behaviours.

How does the Driver CPC Module 4 Test work?

The CPC Module 4 assessment takes 30 minutes to complete. Your examiner will expect you to explain your reasons for certain actions. They will also ask you to demonstrate these actions in practice where possible. The examiner will explain certain scenarios and you will have to explain and show how to respond appropriately. They will ask between 5 and 6 questions about potential real-life situations you could face in your working life. In order to pass, you will need an overall pass mark of 80% and at least 75% for each area you are tested on from the 5 areas listed above.

To take this test you are also required to provide a compliant vehicle that meets the minimum test vehicle standards set for the Practical Demonstration Test. In order to pass, you will also be required to use this vehicle to demonstrate your knowledge. The requirements for vehicles intended for use for the CPC module 4 tests are largely the same as the specifications for the practical test for the acquisition of the LGV licence. More specifically, the presented vehicle can be from the C1, C1+E, C and C+E test categories and be able to reach 50mph. It must also meet the following requirements:

• Be fitted with L-plates (or D-plates in Wales).
• Have 2 sets of externally mounted mirrors on the near and offsides. 1 set of these is to be positioned for the driver and 1 for the examiner.
• Have the necessary number of seat belts for passengers.
• Have a tachograph.
• Have an anti-lock braking system (ABS).

Who can carry out Driver CPC tests?

Various organisations can apply to the Driver and Vehicle Standards Agency (DVSA) if they have an eligible assessor to carry out the Driver CPC part 4 practical demonstration tests. Organisations can apply to the DVSA to do this if:

• they are an LGV training organisation.
• they are a haulage company.
• they are a bus or coach company.
• they are LGV or PCV industry training associates.
• they are a Driver CPC periodic training centre.

In order to be eligible for nomination as an assessor the person must meet the following 3 requirements:

• hold a full vocation driving licence in the relevant category being tested;
• be recognised as a ‘fit and proper person’, and;
• have passed the assessor training course for the DVSA Driver CPC part 4.

How to prepare for the Driver CPC Module 4 test

As outlined above, you will be tested on 6 different areas during the Driver CPC Module 4 test.

Area 1: Safe Loading

Demonstrating vehicle loading with appropriate regard for vehicle use and safety rules.

You will need to demonstrate to the examiner that you know how to:

• calculate total vehicle weight taking account loaded goods;
• recognise if the vehicle has been overloaded or improperly loaded in some other way, and;
• secure and safely distribute loads you may be required to carry on your vehicle so that they and the vehicle will maintain stability on the road.

Area 2: Vehicle Security Check

Demonstrate good knowledge of how to secure the vehicle and its contents at all times.

You will need to show the examiner that you know how to:

• keep your vehicle secure and know the steps you need to take to reduce the risk of theft when parked with special attention for night time parking;
• undertake physical checks of the breaks to ensure they are operating correctly and what should be done if a fault is found. You will also need to demonstrate an understanding of how the braking system functions;
• carry out proper checks of all of the wheels, tyres, and other equipment, such as spray suppression equipment, on your vehicle. You will have to do the same with a trailer if carrying one and ensure everything is in a good and serviceable condition;
• demonstrate your knowledge of the clearances required in relation to your vehicle’s physical dimensions. You will have to explain the restrictions that could apply due to these dimensions and show you are aware of overhanging or projecting objects when practically driving;
• how to check the vehicle controls and gauges as part of your ‘Cockpit Drill’ and the action to take when a warning light is showing.

Area 3: Prevent Trafficking

Demonstrate the ability to prevent trafficking and criminality.

• keep your vehicle and its contents secure in relation to potential trafficking. You will have to explain best practice procedures you should implement when crossing borders with particular reference given to leaving and returning the United Kingdom;
• make necessary checks to comply with crossing borders legislation. You will need to explain how to spot where illegal packages or people being trafficked may have been hidden inside your vehicle or the goods you are carrying;
• check that your vehicle is securely fitted with TIR cords;
• check for signs of tampering of these cords and when you may need to do it on your journey;
• spot where traffickers may target on your vehicle to gain access to it;
• meet the requirements of the anti-trafficking system implemented by your company, and;
• safely keep the appropriate paperwork in an accessible area for the duration of your journey.

An important note on trafficking – This is a key area covered by the test. Because this is an important part of the test, there are also heavy fines if LGV drivers are found to be carrying stowaways even if this happens accidentally. There should be systems in place to protect vehicles put in place by the companies you work for. If your work will involve travelling outside of the European Union then it is important to learn about the Transports Internationaux Routiers (TIR) procedures in detail.

Area 4: Emergency Situation Assessments

Demonstrate the ability to both assess and manage emergency situations

• manage extreme weather with attention given to diesel fuel and appropriate driving visual aids;
• adopt the appropriate emergency procedure in the event your vehicle catches on fire. You will also need to identify which fire extinguisher should be used to tackle specific fires and note the various types of extinguishers, and;
• safely get into and exit your vehicle and demonstrate how to give proper regard to pedestrians and other road users.

Area 5: Preventing Physical Injury

Demonstrate skills reducing potential risks for physical injuries

• take the necessary precautions before you starting your vehicle’s engine, and;
• carry out the safety checks you need to make of your vehicle every time before you start any journey. You are permitted to use a safety check sheet for drivers.

Your examiner will tell you on the day whether or not you have passed. If you fail, it is possible to book a re-test on the same day, but this will take at least 3 days to be cleared.

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• Free practice tests

Driver CPC part 2 case studies test - Heavy Goods Vehicles

This test is made up of 3 case studies . The case studies are short stories based on situations that you’re likely to come across in your working life.

You’ll be asked 5 multiple-choice questions on each case study. Some questions will involve audio and hotspot images.

You need to get 12 correct to pass. You have 25 minutes to do it.

The test can be taken in the 'Test view’ – this is similar to the screens you'll see when you take your real theory test. Use the Options button to select this. Here you can also turn on the voiceover.

The actual test is made up of 7 case studies. You'll asked between 6 and 8 multiple-choice questions on each. You'll need to get 40 out of 50 correct to pass. You’ll have 75 minutes to do it.

Even though you've passed this mock test it's only a small sample of the 60 official case studies with a total of 300 practise questions available to help you pass your real test.

Select the Upgrade button below to buy the 3 course bundle: The Official DVSA Theory Test, Hazard Perception and Driver CPC part 2, for Heavy Goods Vehicle Drivers , which includes the above case studies, 900+ theory test questions and over 130 interactive hazard perception videos. Use code PT20 at the checkout for 20% off the full price.

If you just want the Driver CPC part 2 course visit the shop here .

Take the test again

Take a free hazard perception test

Review your answers

Make sure you review your answers to find out where you need to improve and to get more information about the questions.

Click or tap on the topic below to see your answers.

This mock test is only a small sample of the 60 official case studies with a total of 300 practise questions available to help you pass your real test.

Your Guide to Passing your HGV Driving Test

• 18 Jul, 2023
• Becky Hinshelwood
• HGV driver training HGV Training

So, you’ve already decided that HGV driving is the future career for you . It’s easy to see why – competitive pay, flexibility and great experiences are pretty compelling advantages! You’ve done the training, the practice and the planning. Now it’s just the tests to get through.

You’ll already have passed standard driving tests – after all, you needed a full UK driver’s licence (ideally clean) to begin training. So you’ll have a bit of an idea about what’s ahead. It can take months to achieve your full Driver CPC , and there are more separate parts to the process than you will have experienced with a standard licence.

We have a selection of tips to get you through the process from start to finish.

Get the Theory Tests Under your Belt

With 5 parts to the full Driver CPC (Certificate of Professional Competence), two of these are ‘theory’ based. They are Part 1 test: theory and Part 2 test: case studies. You can apply for these tests as soon as you’ve received your provisional licence . Since your pass certificates from parts 1 and 2 are valid for 2 years, it’s a good idea to get them under your belt. In fact, there’s no reason not to be studying from the moment that you decide on your HGV driver career.

Understand the HGV Practical Tests

The third and fourth sections of the full Driver CPC are made up of off-road and on-road driving, and a practical demonstration. Part 3 is split into a) off-road exercises, and b) on-road driving. There is a sequence to the tests that you should be aware of in order to plan your test booking correctly.

You must have passed part 2 before you can take either the part 3a or the part 4 tests. You must have passed part 3a before taking the part 3b test.

During part 3 of the Driver CPC, you’ll be tested on vehicle safety, practical road driving, and off-road exercises. Part 3a will take around 30 minutes, and part b will involve an hour of driving after you have answered vehicle safety questions.

These key skills should be demonstrated during this section of your qualification:

• Demonstrating awareness and anticipation
• Using the controls in the vehicle
• Using your mirrors frequently
• Signaling correctly
• Moving off at an angle (up and down hill)
• Controling your speed
• Dealing with hazards
• Making controlled stops
• Finding a safe place to stop
• Reversing into a parking bay

It’s important to remember that your part b test must take place in the same category of vehicle as your part a test. Plus, you must pass part b within 6 months of passing part a, otherwise you’ll need to take part a again. So it’s worth being prepared and confident!

Part 4: What to Expect

As the final and most intensive test, Part 4: practical demonstration is probably the test that’s the most nerve wracking. However, once you know what to expect, it can feel less terrifying!

The test covers 5 areas of the CPC syllabus with 20 points available in each area. A pass requires a score of 15 in each topic area, which means a total mark of at least 80.

While you’re being tested, you should be able to demonstrate understanding and awareness in the following areas:

• Performing a walkaround vehicle safety check and assessing emergency situations
• Reducing physical risks to yourself or others, including prevention of illegal trafficking
• Loading the vehicle following safety rules and keeping it secure

So, when you think about it, these things are pretty straightforward. As long as you remember your core skills below, your ability will be allowed to shine:

• Distractions: Empty your pockets and make sure that nothing that could distract you is present in the vehicle during your test. All of your attention should be on driving as soon as you get into the HGV.
• Blind spots: These can be a major issue for HGV drivers, so demonstrate regular checking, particularly before you start pulling out. Don’t forget that you can temporarily remove your seatbelt to check behind you when you’re reversing.
• Mirrors: Your examiner needs to see evidence that you’re constantly aware of what’s going on around you. So you’re never too obvious in checking your mirrors. You should be checking approximately every 15 seconds, so it’s really not possible to overdo this in a test situation.
• Awareness: Things like changing gears smoothly and in good time, and avoiding emergency breaking will form a good basis for your test. Keep the basics in check and the rest will come naturally.

Top Tips for Preparation

You will have practiced your driving for plenty of hours with your training provider before your practical demonstration. On the day, it often comes down to relaxation. Nerves are hard to manage, but use our tips for preparation to keep them in check:

• Practice: Confidence improves with practice. Don’t rush into the test if you’re not ready. Think about asking your instructor to set some mock examinations with you leading up to the exam.
• Arrival: Check that you have the correct documents and equipment ready to take with you. Your test provider will give you instructions on what you need to bring. You’ll generally need your theory test pass certificate, your photo licence and an HGV (if it’s not provided for you).
• Destination: It’s important to arrive to your test on time or early. Check your route and even recce it beforehand to make sure you leave enough time.
• Sleep: It’s important to be rested to perform at your best, as nerves are increased with tiredness. Avoid caffeine and get to bed early the night before your test.
• Clothing: This might seem unusual, but it’s important to be comfortable while driving. Check the weather and dress in layers so that you don’t get too warm or cold. Wear sturdy shoes and avoid any clothes that are too restrictive.
• Stay calm: You can have up to 15 minor errors, so try not to sweat the small stuff. Breathe, focus, and try to remain calm. The rest will look after itself.

Getting the Best Training

Passing an HGV driving test can seem like a daunting prospect. Especially when there are so many to get through! However, choosing the right training provider will immediately give you the best chance of success. Contact HGV Training Centre today to start preparing for your new career.

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• Driving and transport
• HGV, bus and coach drivers

Become a qualified heavy goods vehicle (HGV) or bus driver

Returning to be an hgv or bus driver.

If you previously qualified, you do not have to do the full qualification process again to bring your Driver Certificate of Professional Competence ( CPC ) up to date.

Check and renew your licence

If you’re not sure whether your licence is still valid, you can check what vehicles you’re allowed to drive .

You need to renew your licence if it’s expired .

Bring your Driver CPC up to date

What you need to do depends on when you originally got your heavy goods vehicle ( HGV ) or bus licence.

Some employers offer help with the cost of training.

If you got an HGV licence before 10 September 2009 or a bus licence before 10 September 2008

You can either:

• complete 35 hours of Driver CPC training by finding and taking training courses
• take and pass the Driver CPC part 2 (case studies) and the Driver CPC part 4 (practical demonstration) tests

If you’ve already taken parts 2 and 4 of the Driver CPC tests, you cannot take them again. You must take 35 hours of training instead.

If you got an HGV licence on or after 10 September 2009 or a bus licence on or after 10 September 2008

You need to complete 35 hours of Driver CPC training by finding and taking training courses .

Any training you’ve done in the last 5 years counts towards the total. The training counts for 5 years from the date you took the course.

After you’ve completed your training or tests

Your new Driver CPC card will be sent to the address on your driving licence when you’ve completed your training or tests.

Check what you need to do once you’ve requalified .

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• Study Material
• Multiple-Choice Test
• Hazard Perception
• Practice Case Studies
• Show me, Tell me
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Case Study Sample

Andy is 65 years old and works for an aggregates firm. Today his shift will start at 09.30am where he will carry out his daily checks. He leaves the yard at 10:00am to deliver a load of sand to a large building site in central England.

Andy is driving an articulated lorry with a Maximum Authorised Mass of 30 tonnes and a kerbside weight of 12 tonnes.  The length of the vehicle is just over 48 ft.

This is his first day back at work after taking three days off.  Unfortunately his first day back will be a long one meaning he won’t finish until 11pm due to an accident on the motorway.

Last week Andy drove for a total of 54 hours and he is driving under EU rules.

Next week Andy will be on a course paid for by his company to renew his driver CPC qualification

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1 . Question

What should Andy set his tachograph to when carrying out his daily checks?

2 . Question

How often will Andy need to take and pass a medical examination?

• Every five years
• Every two years
• Every three years

3 . Question

What is the maximum payload Andy’s lorry can carry?

4 . Question

What is the maximum amount of time Andy can drive for today?

5 . Question

The time is 14:00 pm and so far Andy has driven for a total of 2 hours 30 minutes.

What time will Andy be required to take a break?

6 . Question

What is the earliest Andy can start work tomorrow?

7 . Question

What is the maximum amount of hours Andy can drive for this week?

8 . Question

To renew his driver CPC qualification Andy must complete

• A first aid training course
• Four days periodic CPC training
• The module 2 CPC case studies test
• 35 hours periodic CPC training

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• Transport & logistics
• How Many Questions in...

How Many Questions in the HGV Theory Test & More Tips

Jun 27, 2022

If you are interested in becoming an HGV driver or setting yourself up as an owner operator, then you will need to first pass your HGV driving test before you can get going.

To qualify as an HGV driver, you will need to obtain your Driver CPC . The Driver CPC is split down into 4 parts. Driver CPC part 1 and Driver CPC part 2 are the theory test elements of the qualification. Whilst Driver CPC parts 3 & 4 are on and off-road exercises and driving demonstrations.

Here we look specifically at the HGV theory test and what it involves.

How many questions are there in the HGV theory test?

The theory test for lorries and buses is split down into 3 parts

Part 1a – multiple choice questions

This part of the test sees you have to answer 100 multiple choice questions. To pass you must get at least 85 out of 100 questions right.

Part 1b – hazard perception

This part of the test will see you watch 19 video clips of everyday road scenes. Each scene includes at least one ‘developing hazard’. Points are given for spotting the developing hazards as soon as they start to happen. You can score up to 5 points for each developing hazard. Higher scores are given the earlier that you spot the hazard. And you must achieve at least 67 out of 100 to pass

Part 1a and 1b form Driver CPC part 1 of the overall process to gaining your HGV licence.

Part 2 – Case studies

Part 2 is made up of 7 case studies which according to the gov.uk site are ‘ short stories based on situations that you’re likely to come across in your working life.’

You then get asked between 6 and 8 multiple choice questions on each case study. You must get at least 40 out of 50 to pass this element of the test

Part 2 of the HGV theory test forms Driver CPC part 2 .

How much is the HGV theory test?

Each element of the HGV theory test has a different cost attached

Part 1a – costs £26

Part 1b – costs £11

Part 2 – costs £23

So, in total the HGV theory test will cost £60 to take all three elements.

How long does the HGV theory test last?

Again, each element of the HGV test lasts for a different amount of time

Part 1a – you are given 1 hour and 55 minutes to answer the 100 multiple choice questions. You do not need to use the full amount of time if you do not need it.

Part 1b – no time limit is specified on the government website for this element of the test

Part 2 – you are given 1hour and 15 minutes to work through the 7 case studies

Considerations once you pass your HGV driving test

Hopefully you are successful first time and manage to pass all the elements required to obtain your HGV driving licence . And if so, your mind will then need to turn to all the other considerations involved with becoming an HGV driver.

Some of these areas will include:

As an HGV driver, you will need to have the right insurance in place.

If you are an employee of an existing business this will most likely be set up for you and covered under the company’s fleet insurance .

But if you are going out on your own as an owner operator you will need to ensure that you have the right HGV insurance to cover the range of risks that your business faces.

Driving hours

You’ll need to keep on top of regulation relating to how many hours you can work in a day and a week . HGV drivers are subject to strict regulations given the nature of the work and the dangers linked to such heavy vehicles.

Full details of driver hours and related rules can be found on the gov.uk website .

Vehicle maintenance

Drivers, vehicle operators and transport and fleet managers have a responsibility and duty to ensure that the vehicles they operate are safe to drive and roadworthy. And part of this will be carrying out HGV daily checks . These must be carried out before each journey to fulfil your obligation of ensuring that a vehicle is safe to drive.

You’ll also want to manage any specific risks linked to the summer or winter weather and ensure your maintenance is well managed.

HGV Driver medicals

As an HGV driver you will be subject to a legal requirement to engage in periodic driver medicals. And to keep your medical reviews up to date.

How regularly your driver medical is required will depend on factors such as your age and the licence that you hold. You can find out more about the driver medical requirements in our blog on the subject.

At Anthony Jones we specialise in insurance for the transport and logistics sector – from owner operators’ insurance through to the insurance needs of large fleets . So, if you have any questions about your insurance needs or how you can minimise the risks you may face then get in touch with us today . We’re always happy to help.

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FDA Approves HPV Tests That Allow for Self-Collection in a Health Care Setting

July 24, 2024 , by Sharon Reynolds

For now, the option to self-collect a vaginal sample for HPV testing must be done in a health care setting.

On May 14, the Food and Drug Administration (FDA) expanded the approvals of two tests that detect cancer-causing types of human papillomavirus (HPV) in the cervix. Both tests are used as part of screening for cervical cancer.

Under these expanded approvals, people can now be offered the option to collect a vaginal sample themselves for HPV testing if they cannot have or do not want a pelvic exam . However, the collection, which involves a swab or brush, must be done in a health care setting, such as primary care offices, urgent care, pharmacies, and mobile clinics.

The tests included in the approvals are Onclarity HPV, made by Becton, Dickinson and Company (BD), and cobas HPV, made by Roche Molecular Systems.

Until now, screening for cervical cancer in the United States has required a sample of cells collected from the cervix during a pelvic exam performed by a health care professional. But the availability of a self-collection option in health care settings should help widen access to screening, said Vikrant Sahasrabuddhe, M.B.B.S., Dr. P.H., of NCI’s Division of Cancer Prevention.

Increased access to HPV testing is a particular need for certain populations among which rates of cervical cancer screening continue to be low , Dr. Sahasrabuddhe said.

“These [current] approvals are only a first step in what we think will be a much wider set of future approvals, once we gather additional evidence,” he said.

Those future approvals, he continued, will hopefully come as a result of the NCI-led "Last Mile" Initiative . Last Mile is intended to accelerate the development and approval of self-collection approaches for HPV testing, including self-collection in people’s own homes. Research supported by the initiative , in fact, helped lead to the recent expanded approvals.

As a part of Last Mile, a nationwide clinical trial program has been launched called SHIP (Self-collection for HPV testing to Improve Cervical Cancer Prevention) . The trial will test whether self-collection in a home setting works as well as collection by a clinician in a health care setting, continued Dr. Sahasrabuddhe, who leads the Last Mile Initiative and SHIP Trial.

Making home-based sample collection an option, he said, “will hopefully widen access to screening even further.”

Cervical cancer screening is not always accessible

Currently, almost 30% of eligible people with a cervix (women and people assigned female at birth) in the United States can't or don't get screened for cervical cancer at the recommended intervals.

In addition, far fewer people than recommended are getting HPV vaccines, which provide nearly 100% protection against cancer-causing types of HPV , explained Nicolas Wentzensen, M.D., Ph.D., of NCI’s Division of Cancer Epidemiology and Genetics, an expert on cervical cancer screening and management.

As a result, about 11,500 people in the United States are diagnosed with cervical cancer each year. Half of all new cases are in people who were not screened or inadequately screened as recommended by current guidelines.

Expert groups, including the U.S. Preventive Services Task Force, recommend that starting in their 20s, people with a cervix start getting screened for cervical cancer. (See the box.)

However, some people—such as those experiencing poverty, living in rural areas, or from racial and ethnic minority populations—tend to slip through the screening cracks, said Dr. Sahasrabuddhe. 

One big problem, he explained, is that there are “many health care deserts across the country where people still don’t have access to a regular health care provider.”

And access isn’t the only barrier to cervical cancer screening, he added. People may have personal preferences, religious or cultural beliefs, a history of trauma, or disabilities or medical conditions that prevent them from getting a pelvic exam performed by a health care provider, he explained.

In addition, Dr. Wentzensen said, “there are many providers who can't do [pelvic exams] or don't have the infrastructure to do them.”

Expanding the uses of self-collection

For the tests covered by the expanded approvals, people collect their samples using a swab or a brush. There is no change, however, to how the tests look for the presence of HPV.

Having approved self-collection tests brings the United States closer to how cervical cancer screening is offered in several other countries, said Dr. Sahasrabuddhe, including the Netherlands, Denmark, Sweden, and Australia, where testing using self-collected samples is widely used.

The SHIP Trial Network was launched in early 2024. The network’s 25 clinical sites cover a wide range of health system settings nationwide that have the potential to enroll geographically, socioeconomically, racially, and ethnically diverse participants.

The study will examine the accuracy of vaginal self-collection performed in a simulated home environment offered during a clinic visit, compared with cervical samples collected by a health care provider during the same visit. SHIP will also collect data from participants about the acceptability of their experience and whether they would prefer to use self-collection in the future.

The initial participants will be people who have a scheduled colposcopy—an examination of the cervix performed when precancerous or cancerous changes are already suspected. At later stages, the trial will be extended to people without any known cervical changes receiving routine cervical cancer screening in clinics. A major effort of the trial will be to reach under-screened people from underserved populations with a high risk of cervical cancer.

Data from SHIP will be submitted to the FDA, with the eventual goal of extending the current limited approvals to home-based sample collection, Dr. Sahasrabuddhe explained.

An important first step

While expanding access to HPV screening is vital for reducing the number cervical cancer cases, it isn’t the only thing needed, explained Dr. Wentzensen.

“Screening is only one piece of the full pathway to prevention,” he said.

For example, if a screening test detects cancer-causing HPV in the cervix, additional visits to a health care provider may be needed to determine if there are precancerous cells that need to be removed and, if so, eventually having that procedure. “At each of these steps, [the prevention process] can break down,” he said.

But for now, the limited self-collection approvals “are a great first step,” Dr. Wentzensen continued. “And if these tests get approved for home use, it's going to enable even more access to screening."

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Why Is It So Hard for Olympic Host Cities to Control Costs?

An Oxford study estimates that despite cost-cutting efforts, Paris is spending more than $1 billion above the Games’ historical median cost.

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By Vivienne Walt and Sarah Kessler

Follow live updates of the women’s gymnastics qualifying at the 2024 Paris Olympics.

Like every city that hosts the Olympics, Paris designed its opening ceremony to make a splash, with ethereal dance performances, athletes floating down the Seine and a blowout performance by Celine Dion. A big display is table stakes, and hundreds of thousands of people jammed the city’s bridges and riverbanks for hours to cheer the flotilla.

But to make these Olympics truly unique, Paris also had something quieter in mind: It vowed to buck the decades-long trend of spending a dizzying fortune on hosting them.

That vision for a budget-conscious Olympics does not seem to have panned out. The tab for the Games in Paris, the first city to fully test cost-cutting reforms that the International Olympic Committee introduced in 2019, is at least $8.87 billion. That isn’t an eye-popping bill compared with the $17 billion that London spent in 2012, the estimated $28 billion that Tokyo spent in 2021 or the $24 billion that Rio de Janeiro spent in 2016 — the three most expensive Summer Games to date. But the figure is more than $1 billion above the historical median cost of hosting the Games, according to a study by researchers at Oxford’s Said Business School published in May. And it is about 115 percent above Paris’s initial estimate.

“This is not the cheap Games that were promised,” the study concluded.

Figuring out how to keep host city expenses on budget is vital for the Olympics, which have struggled to find host cities in places where citizens have a say in the decision. When the I.O.C. voted on Wednesday to give the 2030 Winter Games to the French Alps and the 2034 Winter Games to Salt Lake City, both cities were the only candidates.

Repurposing buildings hasn’t necessarily solved the Games’ budgeting problem. Paris’s central argument in its bid for hosting rights was that reusing existing sporting facilities would help it avoid the steep capital investment that inflicted lasting economic pain on Olympic cities like Athens and Rio de Janeiro, as well as stave off anti-Olympic sentiment in the city. Los Angeles, host of the 2028 Summer Games, has promised no new Olympic buildings.

But while refurbishing buildings may be more sustainable , adapting old monuments for the Olympics has taken years — at a cost that has not been revealed. Take the 125-year-old Grand Palais, a soaring iron, glass-roofed exhibition hall in central Paris, where fencing and taekwondo competitions will take place. It shut down for renovations in March 2021 and was scheduled to be closed for so long that the city constructed a new Grand Palais near the Eiffel Tower.

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Andrew Karolyi and John Tobin-de la Puente

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In June, the Colombian subsidiary of Spanish banking group BBVA announced that it was issuing what it described as the financial sector’s “first biodiversity bond”, in order to finance habitat conservation and restoration projects in the South American country. 

The $50mn initiative — backed by the International Finance Corporation (IFC), the private sector-focused arm of the World Bank, as structurer and investor — marks a turnaround for a nation recovering from half a century of violence and guerrilla activity. It also places Colombia among a select group of pioneers, including the Seychelles and Belize, that are using the financial markets to support the conservation of nature.

While the green bonds market has seen explosive growth in the past decade, the capital it has raised has overwhelmingly been invested in climate mitigation, alternative energy, and green transportation projects. Minimal amounts go to biodiversity conservation and habitat restoration projects. 

In financing nature, explicitly and directly, this Colombian bond breaks new ground, with metrics linked to objectives to benefit the environment. Invest ors will be repaid through a mix of funding sources including a carbon tax, the government budget and donors .

Test yourself

This is the sixth in a series of monthly business school-style teaching case studies devoted to responsible-business dilemmas faced by organisations. Read the piece and FT articles suggested at the end (and linked to within the piece) before considering the questions raised. 

About the authors: Andrew Karolyi is professor and dean, John Tobin-de la Puente is professor of practice and co-director of the Initiative on Responsible Finance, both at the Cornell SC Johnson College of Business.

The series forms part of a wide-ranging collection of FT ‘instant teaching case studies ’ that explore business challenges.

The question for those concerned about the destruction of the world’s natural habitats is whether this pioneering structured bond will be effective, and whether it could help to inspire a broader range of similar instruments aimed at countering loss of biodiversity around the world. 

Meanwhile, the question for investors is whether the vehicle is sufficiently attractive and robust to attract a new and growing class of funders that may share an interest in environmental issues but also seek competitive returns.

Located at the northern end of the Andes, Colombia straddles the Equator, the Pacific Ocean, the Caribbean, and the Amazon basin. It has the second-highest number of species on the planet after Brazil, and the highest species diversity when measured per square kilometre, according to the World Wildlife Fund . Colombia is home to more than 1,900 species of birds — on a par with Brazil and Peru.

Colombia will be on the frontline of biodiversity losses

But global warming threatens to cause dramatic harm to this biodiversity . Colombia will be on the frontline of these losses because it will be disproportionately affected by climate change compared to countries with fewer species that are more widespread.

Now, though, it could also be in the vanguard of new financial models to reverse the trend.

In 2016, a historic peace agreement between the government and leftist guerrilla group the Revolutionary Armed Forces of Colombia (Farc) marked the end of five decades of armed conflict. Despite continuing violence, the peace process has greatly improved the lives of citizens. However, it has also increased pressure on natural ecosystems. The political violence had meant large areas were shielded from illegal deforestation and degradation of the habitat.

Five years after the peace deal, Colombia became the first Latin American country to issue a green bond in its domestic market : a 10-year $200mn offering aiming to finance a variety of projects intended to benefit the environment — including water management, sustainable transport, biodiversity protection, and renewable energy. High investor demand meant the final amount had been increased by half again.

Finance minister José Manuel Restrepo described the structured bond as an “important step” in finding new ways to finance investment in environmental projects: it would help develop a domestic green bond market and attract a wider range of investors. His ministry identified another $500mn in eligible projects that could be financed through green bonds, including a $50mn Colombian “blue bond” — financing focused on marine habitats and ocean-based projects that generate environmental co-benefits. This was successfully placed in 2023 with the help of BBVA and the IFC as structurer.

Now, the announcement of BBVA Colombia’s biodiversity bond marks another step forward. It focuses on reforestation, regeneration of natural forests on degraded land, mangrove conservation, and wildlife habitat protection.

In the case of green bonds, only a minuscule share of the money raised is spent on nature conservation, in part because few such projects generate cash flows from which to repay investors. Another reason is that it is harder to measure how effectively deployed resources dedicated to conservation — such as for monitoring species population growth — are, or to track activities that help to reach certain conservation target goals over time, such as for restoring degraded ecosystems.  

Using private, financial return-seeking capital to finance the sustainable management and conservation of natural resources is viewed by many experts as the most realistic solution to the twin crises of biodiversity loss and climate change — given the magnitude of investment needed. 

Yet there is growing political pushback against environmental and social initiatives, most notably in the US. 

Regulators and consumer groups have also launched legal actions to challenge green objectives. Large corporations, including Unilever, Bank of America and Shell, have in the past year dropped or missed goals to cut carbon emissions. And there has been disillusion with the ability of sustainability-linked bonds to meet their objectives. 

By association, that raises fresh questions about continued progress on biodiversity.

In biodiversity finance, doing deals is inherently more difficult

In tackling the climate crisis, the trajectory seems clear: the set of solutions needed is more or less agreed, and a good part of it makes economic sense. But, in biodiversity finance, doing deals is inherently more difficult.

It is more complex to structure transactions that generate proceeds to protect wildlife, restore ecosystems and fund other activities that may not generate cash flows, all while ensuring investors are repaid. Early successes — such as Belize’s blue bond are encouraging — but the potential for real scale is still unclear.

Questions for discussion

How companies are starting to back away from green targets (ft.com)

Green bond issuance surges as investors hunt for yield (ft.com)

Sustainability-linked bonds falter amid credibility concerns (ft.com)

Consider these questions:

1. How critical is the role of the IFC as structurer of the BBVA Colombia biodiversity bond deal in validating its legitimacy and providing investors with assurance? How important is it that IFC is also a co-investor in the biodiversity bond issuance?  

2. What are the pros and cons of the fact that the $50mn BBVA Colombia biodiversity bond deal has been launched following Colombia’s successful placement three years earlier of its sovereign green bond, and following its newly announced “green taxonomy”?  

3. What does the Colombian experience say about the likelihood of rapid change in how countries manage their biodiversity and climate impacts? Does Colombia demonstrate that such change is possible, or is its experience unique and unlikely to represent a model of rapid action for other countries?

4. Can biodiversity bonds meaningfully help to address biodiversity loss? And is this transaction the start of a trend? If not, why would BBVA Colombia have executed this transaction? Is it a gesture of goodwill and a recognition of its own corporate responsibility, or a means to greenwash some of its other less appealing investments?

5. Considering the economic and social context following the peace agreement between Colombia and the Farc forces, how might the shift from conflict to peace affect the country’s ability to balance economic development with environmental conservation?   

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On Andrew Left and the government’s fraud case

By Adam Feuerstein Aug. 1, 2024

I love the Summer Olympics. Every four years I transform into a huge fan of gymnastics and swimming, probably like all of you. But I also find myself obsessed with some of the nichier sports — handball, rowing, fencing! Go USA!

As a reporter who spends most of his time at the intersection of biotech and Wall Street, I know Andrew Left, the short seller indicted by the government on fraud changes. Left dabbled in biotech. I have some thoughts.

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Changes in self-reported alcohol consumption at high and low consumption in the wake of the COVID-19 pandemic: A test of the polarization hypothesis

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Abstract Background The Coronavirus Disease 2019 (COVID-19) pandemic and associated public health measures had an impact on alcohol use. Based on the literature of past crises (health, economic, etc.), it was hypothesized that the COVID-19 pandemic led to a polarization of drinking. That is, heavy drinkers increased their drinking, while light to moderate drinkers decreased their drinking and/or temporarily abstained. The aim of the current study was to test the respective hypothesis. Methods Data from the Reducing Alcohol Related Harm Standard European Alcohol Survey for Lithuania were obtained for 2015 and 2020. Average daily consumption (in grams per day) was decomposed into deciles for each year, and compared pre-COVID to onset-of-COVID pandemic across the highest, second highest, and lowest deciles. A comparison of population-levels of mental health was conducted between pre-COVID and the onset-of-COVID. Results The findings indicated that overall, there was higher consumption in 2015, M2015 = 11.49 (SD = 8.23) vs. M2020 = 10.71 (SD = 12.12), p < .00001. However the opposite was found in the highest decile M2015 = 29.26 (SD = 5.44) vs. M2020 = 39.23 (SD = 20.58), p = .0003. This reversal pattern was not observed in the second highest nor the lowest decile. There was a lower proportion of respondents indicating bad mental health pre- vs.post-COVID (3.4% vs. 6.5%). Conclusion Although COVID was associated with nationwide declines in alcohol consumption, this was not the case for all segments of the population. In Lithuania, it appears that there was an increase in consumption among the heaviest drinkers, supporting the polarization hypothesis.

Competing Interest Statement

The authors have declared no competing interest.

Funding Statement

The authors would like to acknowledge the National Institute on Alcohol Abuse and Alcoholism (NIAAA) (Award Number 1R01AA028224) of the National Institutes of Health for funding this research.

Author Declarations

I confirm all relevant ethical guidelines have been followed, and any necessary IRB and/or ethics committee approvals have been obtained.

The details of the IRB/oversight body that provided approval or exemption for the research described are given below:

Ethics Statement All analyses received Centre for Addiction and Mental Health (CAMH) Research Ethics Board (REB) approval as per protocol: #050/2020.

I confirm that all necessary patient/participant consent has been obtained and the appropriate institutional forms have been archived, and that any patient/participant/sample identifiers included were not known to anyone (e.g., hospital staff, patients or participants themselves) outside the research group so cannot be used to identify individuals.

I understand that all clinical trials and any other prospective interventional studies must be registered with an ICMJE-approved registry, such as ClinicalTrials.gov. I confirm that any such study reported in the manuscript has been registered and the trial registration ID is provided (note: if posting a prospective study registered retrospectively, please provide a statement in the trial ID field explaining why the study was not registered in advance).

I have followed all appropriate research reporting guidelines, such as any relevant EQUATOR Network research reporting checklist(s) and other pertinent material, if applicable.

Data Availability

All data produced in the present study are available upon reasonable request to the authors

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