World Sustainable Transport Day is commemorated annually on November 26th for affordable, safe, sustainable and accessible transport systems for all. It is an opportunity to foster sustainable mobility as the transport industry is at the crossroads to navigate the path of low-carbon and sustainable pathways. The UN Regional Commissions notes that around 25% of global energy-related carbon dioxide emissions emanate from transport and over 90% of its energy is derived from oil products. Moreover, the transportation sector accounts for 45% of NOx total emissions inventory in the U.S. The world is in tune to enhance economic growth, trade and supply chains and navigate a low-carbon journey.
When it comes to being in line with the Sustainable Development Goals and the Paris Agreement on Climate Change, a resilient and socially inclusive transport system underpinned by EV, Power-to-X, biodiesel and Sustainable Aviation Fuel becomes a vital cog for a sustainable future.
A tectonic shift towards low-emission fuels and electric mobility alludes to the growing prominence of electric vehicles (EVs) and micro-mobility. Specifically, EVs will have to play a pivotal role in EU’s journey toward zero-emission Europe by 2050. A transition towards a low-carbon economy entails a considerable shift in the electric vehicle market. The IEA asserts that 14 million electric cars were sold globally in 2023, with China, Europe and the U.S. contributing 95%.
In a similar vein, the expansion of charging infrastructure remains a stiff challenge for the advocates of EVs. In February 2022, the Biden administration rolled out a USD 5 billion plan to ramp up the national EV charging network. Such competitive grant programs have encouraged decision-makers to inject funds into the landscape, boding well for the EV charging infrastructure market. To illustrate, in October 2024, Nissan announced the launch of the NISSAN ENERGY Charge Network with access to more than 90,000 public chargers across the U.S. using the MyNISSAN app.
Trucks, vans, tippers and small cars are at a critical juncture to propel the electrification of trucks to clean up air pollution. In February 2024, a UNEP report inferred that heavy-duty vehicles contribute more than 60% of on-road particulate matter (PM 2.5) and more than 40% of on-road nitrogen oxides (NOx) emissions. Besides, its contribution on black carbon emissions stands at over 20%. Alarmingly, around 97% of registered trucks and 73% of buses in the EU run on diesel.
Electric mobility can be the silver bullet to reduce emissions and navigate a way toward cleaner technologies to meet net-zero goals. This becomes more pivotal considering the heightened demand for light commercial vehicles, trucks and dumpers in construction and mining activities. The commercial vehicles market is on the cusp of revolution.
While commercial vehicles are an enabler of economic growth, regulations should focus on curbing emissions that are hazardous to health. The UNEP exhorts that more than 700 thousand premature deaths can be avoided if Euro VI equivalent vehicle emission standards and cleaner fuels are adopted.
A certified jet fuel-sustainable aviation fuel (SAF)-has hit the headlines in the aviation industry to curb carbon footprint. For the uninitiated, SAF is a liquid fuel used in commercial aviation, which can be produced synthetically and from fats, waste oil, non-food crops, green and municipal waste. Airbus notes that SAF can minimize carbon emissions by 80% and concerted efforts are underway to power aircraft with 100% SAF. SAF volume was pegged at 600 million liters in 2023, alluding to merely 0.2% of all aviation fuel for the year and the robust growth trajectory of the liquid biofuels market.
The efforts to decarbonize aviation have boded well for the sustainable aviation fuel market. For instance, in July 2024, Airbus announced an infusion of funds into LanzaJet to underscore the growth of Alcohol-to-Jet (ATJ) pathway and rev up ethanol to Sustainable Aviation Fuel (SAF) process technology. Moreover, the IATA claims SAF could lead to a 65% reduction in aviation emissions to reach net zero CO2 emissions by 2050.
Power-to-X has emerged as a value proposition to turn electricity into hydrogen, liquid fuels and synthetic natural gas. In essence, the rising footprint of hydrogen trucks, cars and maritime transport has augured growth for the power-to-x market. In addition, E-SAF is seen as a game changer in the path towards decarbonizing the aviation industry.
As SAF comes of age, biodiesel is uniquely positioned to propel sustainable transportation. IEA predicts total biofuel demand to soar to 200 billion liters by 2028, with ethanol and renewable diesel contributing two-thirds of the growth, and biojet fuel and biodiesel accounting for the remainder. Besides, the U.S. transportation sector accounted for close to 3 million barrels of diesel consumption per day in 2022.
The prevailing trends have prompted researchers to further their efforts to make biodiesel less energy-intensive. In November 2024, the UC Santa Cruz chemists reportedly discovered a new approach to produce biodiesel from waste oil. The biodiesel market could witness an influx of funds amidst surging demand to reduce CO2 emissions from trucks, boats, trains, barges and farm and construction equipment. For instance, in May 2024, Volvo Trucks exhorted that a full range of new Volvo truck models could be 100% biodiesel-powered.
The notable uptick in hydroelectricity has an instrumental role to play in the penetration of hydropower in the transportation industry. In 2022, hydroelectricity contributed 28.7% of total utility-scale renewable electricity generation. So much so that in October 2024, the U.S. DOE’s Water Power Technologies Office (WPTO) earmarked over USD 33 million in projects to expedite hydropower and marine energy.
The trend in the hydropower market alludes to the growing traction for the energy source across Europe and the U.S. In February 2024, the energy model of the European Commission Joint Research Centre (JRC) recommended a 20% rise in annual hydropower output in the EU by 2050. Hydropower will continue to provide a fillip to the manufacturing, transport, water and energy storage, drought mitigation and flood control. In March 2022, researchers from the International Institute for Applied Systems Analysis (IIASA) developed a hydropower technology based on electric trucks for a clean and flexible solution for electricity generation in mountainous regions.
The World Sustainable Transport Day 2024 will be marked by events, initiatives and discussions to push for low-carbon and sustainable transport solutions to connect people and goods, helping achieve Sustainable Development Goals (SDGs). The use of public transportation is expected to surge to combat air pollution, traffic congestion and resource depletion.
The next decade could observe the adoption of smart mobility, EVs and digitalized freight systems complementing the expanding footprint of highways, maritime links and railways. In addition, soaring freight and passenger demand will encourage stakeholders to bat for the environmentally sustainable transport system.
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