The transportation sector is responsible for almost a third of the United States’ greenhouse gas emissions, more than any other sector. Between 1990 and 2017, emissions from transportation increased more than any other sector in absolute terms, underscoring the importance of addressing sector emissions to help meet climate change goals. There are more reasons to reassess how we power transportation beyond just reducing emissions. As explained in our recent webinar series, some experts say that diversifying our choice of fuels could help support the American economy and potentially free us from dependence on foreign oil.
The global market for alternative fuels is currently growing at a compound annual rate of 13.1% and is expected to be worth approximately $592.30 billion by 2022. In terms of total costs of ownership, battery electric vehicles are expected to become cheaper than internal combustion vehicles in just a few years, and they are expected to reach 35% of new car sales globally by 2040. Despite these trends, petroleum-based fuels still account for roughly 92% of total U.S. transportation energy use. Potential solutions to address our dependency on petroleum and its related greenhouse gas emissions include creating a competitive fuel market or, as some states and regions are doing, creating policies to encourage emission reductions in the transportation sector.
Learn more in our webinar series on the subject: