Transportation

Transportation is the fastest-growing source of greenhouse gas emissions

The transport sector accounts for about 14% of the world’s greenhouse gas (GHG) emissions and about half of global oil consumption. In individual countries, transportation’s contributions are even greater; in the U.S., transportation is the top GHG contributor. [37]

Transportation infrastructure--roads, bridges, airports, and ports-- is particularly at risk of disruption from climate change. Flooding, storms, and heat threaten the reliability and efficiency of this vital system.

Battery costs for electric vehicles have dropped 85% since 2010. [38]

Challenge

Globally, transportation is the fastest-growing source of GHG emissions. Reducing GHGs from this sector is difficult because economic growth usually requires increased mobility of goods and people. While innovation in some transportation modes is happening at a rapid pace, many modes are proving difficult to decarbonize, particularly aviation and freight. [39]

By 2040, Bloomberg New Energy Finance expects 57% of all passenger vehicle sales, and over 30% of the global passenger fleet, to be electric. [40]

A host of changes to all transportation modes will reduce greenhouse gases that cause climate change:

Airplanes

Alternative fuels and technologies to increase aircraft efficiency

Cars & Electric Vehicles

Hybrid cars, battery and plug-in vehicles

Electric Bikes

Electric bikes instead of cars for urban travel

High-Speed Rail

Track construction for high-speed rail for intercity travel

Mass Transit

Mass transit or public transport to get around cities

Ridesharing

More people in fewer vehicles

Ships

Increased efficiency and alternative fuels

Telepresence

Replacing flying for business meetings with telepresence technologies

Trains

Increased electrication of freight railways

Trucks

Increased efficiency and alternative fuels

Innovation

Innovations to reduce transport-sector GHG emissions—and other air pollutants—include technologies that increase vehicle efficiency and rely on less carbon-intensive fuels such as electricity from renewables and sustainably produced biofuels.

Well-designed public transit and freight rail infrastructure—alongside policies and technologies to discourage the use of private automobiles, short-haul aviation, and long-distance trucking—could change the travel demand trends that are driving emission increases. Infrastructure investments would enable shifts to less energy-intensive modes, including walking, cycling, micromobility options (e-scooters and e-bikes), and public transit. [41]

Spotlights

HBS MBA 2017 Head of Product, Optimus Ride

HBS MBA 2006 President and CEO, Proterra

HBS MBA 2012 Director, Transportation for Massachusetts

HBS MBA 1986 Managing Director, Excel Venture Management

HBS MBA 2016 Regional Service Manager (Mobile Operations), Tesla

“Transport Sector Summary,” Project Drawdown, 2019, accessed October 9, 2019.
“Electric Vehicle Outlook 2019,” Bloomberg New Energy Finance, 2019, accessed September 2019.
“The Fourth National Climate Assessment,” U.S. Global Change Research Program, 2018, accessed October 9, 2019.
“Electric Vehicle Outlook 2019,” Bloomberg New Energy Finance, 2019, accessed September 2019.
“Transport Sector Summary,” Project Drawdown, 2019, accessed October 9, 2019.

Confronting Climate Change