The Renewables in Demand Module of the 2024 Global Status Report, published by REN21, the international renewable energy network, highlights that the transport sector’s heavy reliance on fossil fuels is hindering the energy transition and exacerbating climate change. According to the report, renewables make up only 4% of the energy used in transport, making it the most lagging sector compared to industry, buildings, and agriculture.
In this interview with Rana Adib, Executive Director of REN21, we discuss the latest developments in renewable energy targets and policies for the transport sector. As of 2023, 49 countries have enacted renewable energy targets, demonstrating a significant global commitment to reducing reliance on fossil fuels in transportation.
Adib explains several key topics, including the current percentage of renewables in the transport sector, policy recommendations from the REN21 reports, changes in global investment in biofuels, and strategies for decarbonizing transport.
How many countries have enacted renewable energy targets for the transport sector?
As of 2023, 49 countries had enacted renewable energy targets for the transport sector. 22 countries announced new or revised targets for the share of renewables in transport in 2023. Specific examples of renewable energy targets and policies in the transport sector can be found in the Renewables 2024 Global Status Report – Renewables in Energy Demand (see p. 46).
What is the current percentage of energy from renewables in the transport sector?
The transport sector relies almost exclusively on fossil fuels – with the current percentage of renewables in the total final energy consumption of the transport sector being as low as 3.9% in 2021 (latest data available).
What does the REN21 report urge policymakers to do to integrate transport and energy sectors?
The Global Futures Report: Renewables for Sustainable Transport (GFR) does not provide any concrete conclusions or policy recommendations on how renewable energy should be integrated into the transport sector, as those should be tailored to national and local contexts. Instead, it provides a toolkit to foster discussion – specifically around what has been identified as ‘tension points’ – as well as mutual understanding and strategic actions, targeting energy and transport players at all levels of governance.
The GFR offers a set of guiding questions to facilitate well-informed decision-making. These include a range of questions on the production of renewable fuels, energy demand, distribution of renewable fuels, vehicles and cost and benefits, addressing both the current situation and the future.
Currently, there is no agreement on the ‘right’ fuel mix among experts. We thus need more cross-sectoral dialogues to ultimately create more energy-efficient transport systems, less car-centric models for passenger transport and less road-centric models for freight transport.
Experts broadly agree that governance, financing and technology should be coordinated in a way that ensures that vehicle types, wholesale and retail distribution infrastructure and production capacity are developing in a coordinated manner and at a similar pace.
How has global investment in biofuels changed since 2016?
Global investment in biofuels fell sharply in 2023, down 82.7% to USD 1.02 billion, the lowest level since 2016. In wealthier countries, biofuel investment has been constrained by rising EV adoption, vehicle efficiency improvements, high biofuel costs and technical limitations. In Latin America (outside of Brazil), uncertainty about regulatory changes and a lack of supporting policies has hampered biofuel investment.
What does the REN21 report recommend for decarbonising transport?
To decarbonise transport, the sector must reduce overall energy demand and shift towards renewable energy sources. This includes avoiding unnecessary motorised trips, for example through improved spatial planning; shifting to less carbon-intensive modes, for example through promoting walking, cycling, public transport and freight transport by rail or ship; and improving vehicle design, energy efficiency and fuel sources.
On the fuel side, this includes electrification and switching to electric vehicles, but that is only part of the solution. The future of transport must also rely on other fuels like renewable-based hydrogen and biofuels. Each fuel has its strengths and weaknesses and must be carefully considered for specific applications and geographies.
There is a need to foster discussion around the question of the ‘right’ fuel mix, as this will have a significant impact on energy infrastructure at different levels of the supply chain and thus on energy planning (see guiding questions in the Global Futures Report).
