Greening road transport

IN NINE G20 EMEs, FINANCING OF CHARGING INFRASTRUCTURE IS THE KEY CHALLENGE

- RAKESH MOHAN JANAK RAJ

THE WORLD HAS experienced a complete change in lifestyle, and the living space has never been the same ever since Carl Benz made the first commercially-produced motor vehicle in 1886. Internal combustion engines (ICEs) have enabled the kind of mobility that we are now used to but never seen prior to the 20th century. While providing this boon of mobility, the climate-changing emissions from the vast spread of personal and transport vehicles has now posed a challenge for the future. The transport sector contributes about 23% of all global energy-related CO2 emissions, and road vehicles are responsible for roughly 70%. The mitigation of these emissions is critical for managing climate change.

Road transport in the nine G20 emerging market economies (EMEs) collectively accounts for 21% of global carbon emissions emanating from road transport and 12% of the total emissions in the nine economies. With rising income and continued economic development, EMEs will witness rising demand for passenger vehicles in the years to come. Thus, making the transport sector sustainable is essential.

Our study titled “Climate Finance Needs of Nine G20 EMEs: Well Within Reach” examines the climate finance requirements of the nine G20 EMEs—Argentina, Brazil, China, India, Indonesia, Mexico, the Russian Federation, South Africa, and Tiirkiye—from 2022 to 2030. The study covers the four highest carbon-emitting sectors—power, road transport, cement, and steel, which cumulatively constitute 49% of carbon emissions in the aforementioned EMEs.