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According to ‘Repowering Transport,’ a new report recently released by the World Economic Forum, countries seeking to reduce oil dependency as well as emissions of their transport sector must support the development, distribution and adoption of new technologies through a structured policy approach, public-private partnerships, risk hedging and collaborative financing.

Today, global transportation and fossil fuels (petrol, diesel) are inextricably linked. More than 60% of the 87 million barrels of oil consumed every day power the world’s transportation system. The influence of alternative drivelines is still small, liquid fossil fuels account for more than 96% of the current energy supply to the transport sector.

The ‘Repowering Transport’ report estimates that an annual investment of about US$400 billion would be required to achieve just 25% penetration of alternative energy sources (electricity, biofuels, CNG/LPG) from 2010 to 2030, and reduce total oil consumption in the world’s transport sector by 0.5% per year.

According to the Repowering Transport report, lack of financing for ‘green’ transportation is not the problem: sufficient capital isn’t available. Instead, it’s because of the uncertainty prevalent in the regulatory environment and the challenges in risk assessment in this area. To deal with this, the report proposes a two-pronged policy approach to achieve energy diversification – establish and impose fuel taxes and carbon fees, and set progressively higher fuel efficiency performance standards.

‘The report finds that oil will continue to be the dominant fuel for transportation over the next 20 years but innovative partnerships among business, government, academia and civil society marks are accelerating technology development of alternative sources,’ says John Moavenzadeh, Head of Mobility Industries at the World Economic Forum.
http://www.busworld.org/news/article/1264#start