Abstract:

The need for investment into zero-emission greenhouse gas (GHG) technologies is apparent. McKinsey estimates that €28 trillion of investments will be required to reach net-zero by 2050 in the 27 European Union members alone, compared with no climate action. The domestic transportation sector6 accounts for 21% of European GHG emissions (10% for transport globally7) and makes up 40% of the total investment need (€12 trillion), so it is a critical sector for abatement.8 Current momentum – which is far below what is needed to limit global warming within 1.5 degrees Celsius of pre-industrial levels9 – does not suffice, and barriers to a faster transition to zero-emission transportation must be overcome quickly. The barriers include long investment horizons to achieve positive business cases, the chicken-andegg problem of limited charging and refuelling infrastructure in advance demand take-up (at scale) of alternative powertrain vehicles, the need for significant large-scale investment, and nonnegligible risk – at least for a single industry player or private investor.