The global shift toward sustainable energy is facing a serious roadblock in the transport sector, especially in road transport, which is responsible for over a quarter of the world’s carbon dioxide emissions. Within this, road transport alone contributes more than three-quarters of total transport-related emissions. While there have been some improvements in vehicle technology and fuel efficiency over the past decade, emissions are still increasing. This is mainly because of rising population and economic growth, especially from freight transport. As a result, road transport continues to rely heavily on fossil fuels, posing a challenge to public health and climate goals.
To meet the Paris Agreement and keep global temperature rise within 1.5°C, the International Renewable Energy Agency (IRENA) has suggested a major push in electric vehicle (EV) adoption. EV stock worldwide needs to increase eight times by 2030 compared to 2023 levels. This shift also requires an annual investment of more than USD 300 million in EV charging infrastructure. By 2050, it is expected that EVs will make up more than 90% of cars, two- and three-wheelers, over 75% of buses, and about two-thirds of heavy-duty trucks. However, the current pace of EV and charger rollout is too slow, held back by institutional, financial, awareness, and infrastructure issues.
A complete transformation is needed, guided by new technology, smart policies, and fresh business models. Policies that apply across transport sub-sectors are key to speeding up electrification using renewable energy. Improving fuel efficiency through standards and freight programs can save energy and cut emissions. Financial support and tax policies are also important to make EVs and chargers more affordable, but these must be designed so that consumers and smaller players benefit—not just big companies. Trade policies will also play a role in shaping this transition.
The “avoid-shift-improve” approach is a useful way to rethink transport. It involves reducing the need to travel, shifting to low-carbon options like public transport or cycling, and improving the efficiency of vehicles. Urban policies such as land use planning, congestion pricing, and requiring EV chargers in new buildings can also help. Many cities have started offering perks for EV users, like waiving registration fees, offering number plate quotas, or giving free parking.
It’s also necessary to make the market fairer for EVs by correcting pricing differences with petrol and diesel vehicles. Educating people about EVs and their benefits, including safety and driving range, is essential. National and regional governments need to offer clear, long-term plans for electrifying transport so that businesses and investors feel confident. Reskilling and training programs are important for workers whose jobs may be affected by the shift away from fossil fuel vehicles. International cooperation is also needed to help developing countries manage the transition, provide affordable EV models, and develop local supply chains for EV production.
Countries must also plan for recycling and reusing EV components, such as lithium batteries, using circular economy principles. For this, sustainable and transparent mining of energy transition materials is crucial. Though some progress has been made in countries like China, the European Union, and the United States, the global pace of EV adoption is not enough to meet climate targets. There is a clear gap between leading markets and developing nations. To triple global renewable energy capacity by 2030, two policy areas need urgent focus: setting strong EV market share targets and planning early for charging infrastructure.
Connecting EV charging stations with solar rooftops is one way to cut electricity costs for EV owners and use more renewable power. Smart charging systems, which adapt EV charging to the needs of the electric grid, can help reduce strain on power systems and allow for more solar and wind energy. Governments should support pilot projects for smart charging and adjust power market rules to allow EVs to participate and earn from grid services. Standardizing chargers and communication protocols across countries will also speed up progress. Overall, solving the upfront cost and infrastructure issues through policy support, private partnerships, and new business models like battery swapping will be key to transforming road transport worldwide.
