We have already tackled the industrial sector in the previous article as one of the major contributors to carbon emissions that must transition to carbon-free in order to narrow the emissions gap set by the UN Environment Programme. In this article, we will discuss the second largest contributor to carbon emissions – the transportation sector.

The transportation sector, according to the Emissions Gap Report by UNEP, is the second-largest contributor of energy-affiliated carbon emissions at 25% of the total energy-affiliated CO₂ emissions. 2022 has seen an increase in global CO₂ emissions from transportation from 250 Mt CO₂ to almost 8 Gt CO₂ driven by aviation as it recovered from the pandemic’s effect on air travel (IEA, 2023). Transport emissions cover road, rail, air, and marine transportation, and these emissions are expected to accelerate unless appropriate measures are taken to mitigate them. The mode of transportation we urgently need to address is road transport which accounts for ¾ of total carbon emissions, as seen in the illustration below.

Countries such as Canada and several members of the European Union are phasing out the registration of internal combustion engines starting in 2030 to combat carbon emissions from transportation (Wappelhorst, 2021). While these economies have started to take the initiative, global participation to reduce carbon emissions from transportation is necessary to achieve net-zero emissions by 2050, in which global emissions must fall to 25% by 2030.

What are solutions to decarbonize the transportation sector?

1. Electrification of Vehicles

The adoption of electric vehicles has been steadily growing at 9% globally in sales in 2022 vs. the previous year (IEA, 2023). Developed economies China, European Union, and the United States have been the biggest markets of electric vehicles, and other countries are following suit. With vast improvements in technology, the electrification of vehicles is now made more convenient because of several factors based on a report on The Economics of Electric Vehicles for Passenger Transportation (2022):

Development of powerful and efficient batteries - The value of a battery is 1/3 the price of an electric car. With the cost of batteries decreasing and the advancement in motor efficiency and regenerative braking, it allows for better use of energy inputs at a lower price tag.
Digitalization of vehicle production – Electric cars rely more on complex electronics than mechanical components. They are also reflected in their advanced production facilities to the automated matching of a connected car to a driver’s charge account.
Greening of Electricity – Renewable electricity can now power these electric fleets at a lower production cost vs. fossil fuel. Car manufacturers Aptera Motors, Sono Motors, and Lightyear are integrating solar panels on vehicles for short-distance commutes, while most of the car’s power will come from electricity (CNBC, 2022).

Electric vehicles' emissions are significantly lower (by as much as 69%) than conventional vehicles, as detailed in a report by The International Council on Clean Transportation (2021). Although the future is looking bright for electric vehicle transition, there are still some considerations that might affect its scalability all over the world:

Governments will need to invest in EV Charging Infrastructure which may pose a challenge particularly for emerging economies, especially if there will be reduced fiscal revenues from oil taxes but there are several approaches that economies can take to initiate the charging infrastructures:

The implementation of a carbon tax among corporations can help subsidize the development of charging stations. If companies exceed their carbon emissions quota imposed by the government, they are mandated to pay the carbon tax. There are 46 countries that have implemented a carbon tax system with Europe as one of the forerunners. Countries in the European Union have carbon tax ranging from $1.46 to $146.41 per tonne (Tax Foundation, 2022).
The economies can adopt Europe’s development of EV Charging Stations which is through the provision of incentives, tax deductions, and grants to companies and public entities that purchase and install public charging stations (Sickels, 2022).

Vehicle electrification is more efficient for two-wheelers, buses, and four-wheel fleets such as taxis or intensively used vehicles, which can outweigh the operational costs of the transition. An example is the electric bus pilot in Saskatchewan, Canada has identified that a 100% transition to electric fleets can save up to $66 million in maintenance and fuel costs over the fleet’s lifetime (Yakub, 2022).

Aviation will still need to rely on fuel for energy as short-haul flights can only be powered by electricity and hydrogen (Bergero et al., 2023).

2. Shift to Renewable Biofuels

Biofuels are fuels that have stemmed from biomass which has been mentioned in another post as renewable material derived from plants and animals. Currently, biofuels are made of grain crops, wheat and corn, and oil crops such as soy and canola. There is potential for biofuel to replace fossil fuel as the main source of energy for the transportation sector, particularly for fuel-intensive vehicles such as trucks, ships, and planes. Bio-based jet fuel has already been initiated to help decrease carbon intensity, but mostly, it comes with a blend of fossil fuel at 50% maximum blend (Bergero et al., 2023). If we want to shift to biofuels, production must exponentially expand to supply fuel for transportation and prevent the risk of food scarcity. The International Energy Agency has recommended diversifying biofuel production by using existing waste and residues from feedstock to minimize the impact on land use and food and reduce waste. However, whether it is scalable and cost-effective is yet to be determined.

3. Switch to Rail and Water Transportation

Switching to rail and water transportation for freight (except coal deliveries) and commercial purposes can help reduce carbon footprint. Compared to aviation and road transport, rail and marine transportation have the lowest emissions per kilometre and units transported (European Environment Agency, 2023). As an example, the Eurostar International Rail only emits 6gCO₂/km and a Ferry only at 19gCO₂/km while a medium-sized car running on petrol emits 192gCO₂/km (Our World in Data, 2018). The European Union has taken the initiative to kickstart the switch with its Sustainable and Smart Mobility Strategy. The strategy incorporates doubling the high-speed rail traffic in Europe by 2030 and tripling the speed by 2050 for quicker passenger mobility and less reliance on other modes of transport. While for freight transport, rail transport should increase by 50% by 2030, and inland waterways and short-distance shipping should increase by 25% by 2030 (EEA, 2023). Another technology currently being studied to help further reduce shipping emissions is harnessing the power of kitesurfing. In France, the startup Beyond The Sea is testing a blue inflatable kite to navigate across the water a small catamaran, a sailing boat with twin hulls in parallel. The goal is to eventually develop bigger kite sails that can move heavier sea vessels such as yachts and ships.

With the solutions we have uncovered, we can reduce emissions by as much as 80%, as detailed in the illustration below:

The transition to greener transportation will be complex as this will involve collaboration among several stakeholders in the process. Policymakers must continue to play a pivotal role in incentivizing and regulating sustainable transportation solutions, encouraging research and development in renewable fuels, electric vehicle infrastructure, and public transportation systems. Policymakers can draw inspiration from EU’s initiatives on EV charging infrastructure and their Sustainable and Smart Mobility Strategy as mentioned above.

Industries must continue to embrace innovation to develop and implement eco-friendly alternatives throughout the supply chain. The private sector's active participation and consumer demand for environmentally friendly options can accelerate the shift towards greener transportation. Decarbonizing the transportation sector is not without challenges, but by working together, we can create a cleaner, healthier, and more sustainable world for generations to come.