Globally, modern renewables only cover 10.4% of the total final energy demand. Transport represents 30% of the total final energy demand but only slightly over 3% is of this energy is supplied by renewable energy, mainly biofuels. Compared to other sectors, the power sector in particular, renewable energy uptake in transport lags far behind.
To decarbonise transport, renewable energy for transport must be developed and accelerated. Moreover, the integration of renewables in the transport sector is fundamental to decarbonising the energy sector.
Stronger integration of the transport and energy sectors is crucial to reach the goals of the Paris Agreement and requires the development of effective policies, planning, coupled with ambitious targets. Developing renewable energy in transport also offers numerous, additional benefits, such as enhanced energy security, increased opportunities for sustainable economic growth and jobs, and - depending on the renewable fuel - improved local air quality.
Ambitions for developing electric mobility are rising and electricity will play an increasing role in road transport. This in turn creates opportunities for high shares of renewable electricity for trains, light rails, trams and two-, three-, and four-wheeled electric vehicles. However, the electrification of transport needs to be coupled with renewable energy-based decarbonisation of the electricity sector. This process can be driven by explicit measures that integrate policies to stimulate the use of renewable electricity in transport, e.g. by introducing renewable electricity mandates or binding financial and fiscal incentives for electric mobility. Phasing out fossil fuel subsidies to create a level playing field needs to accompany such measures.
Analysis of the transport sector in the G20 reveals that many challenges remain in driving the decarbonisation of transport and energy in an integrated way. Agora Verkehrswende, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), and the Renewable Energy Policy Network for the 21st Century (REN21) have joined forces to underline the importance of coupling decarbonisation efforts in transport and energy.