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CLIC™ conversations: the transport revolution

CLIC™ conversations: the transport revolution

Transport emissions would need to essentially halve by 2050 if we are to achieve the goals of the Paris Agreement. How feasible is this and what does it mean from an investment perspective?

In the third episode of our six-part series on the climate transition, we focus on transportation - a carbon-intensive sector that accounts for around 17% of global GHG emissions. We go through what needs to change, covering the mass adoption of electric vehicles, the growth of micro mobility, as well as the accompanying need to reimagine urban spaces.  

While electric vehicles are quickly becoming the poster-child of the climate transition, electrification is most suited to short-haul, personal vehicles. Heavy and long distance transport, such as trucking, aviation and shipping, accounts for 50% of all transport emissions and represents a tougher challenge in the context of decarbonisation, with much higher abatement costs. 

“We're going to need to see a huge push over the next decade for the decarbonisation of heavier duty forms of transport and that is where there’s a lot of investment opportunities, because that is where regulation is pushing for big changes”.
 

To find out more about the challenges and opportunities presented by the transport revolution, listen to the full episode below.

Top three considerations for investors

•    The next phase of decarbonisation of transport really needs to focus on the hard-to-abate sectors such as heavy and long distance transport.
•    We are going to see far greater focus on new modes of transport. 
•    We are going to see a shift away from ownership to the idea of paying for mobility as a service. 
 

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