With the global transport sector contributing approximately 15 percent of all greenhouse gas (GHG) emissions,1 and over 91 percent of its energy needs still met by gasoline and diesel,2 a transformative shift to alternative fuels has become an urgent necessity.
Even with progress in electrifying passenger cars, the transport sector remains heavily dependent on conventional fuels. The shift to alternative fuels faces several obstacles: differing levels of technology readiness, inadequate infrastructure, higher costs than traditional fuels, and regulatory and market uncertainties. Nevertheless, a variety of transitional and alternative fuel options such as natural gas, biofuels, and synthetic fuels are available. Organisations that embrace these fuels early can benefit from first-mover advantages, government incentives, and improved sustainability profiles.
The detailed KPMG report, “Evolution of transport fuels: The role of alternative fuels on the path to sustainability”, provides valuable insights and strategic recommendations to help navigate this complex process. The report analyses the readiness and potential of various alternative fuels, such as biofuels, natural gas, methanol, DME and synthetic fuels, for hard-to-electrify sectors like aviation, maritime shipping and road transportation (including long-haul trucking and inter-city buses).
Explore the alternative fuels readiness factors
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Sharad Somani
Partner, Head of Infrastructure Advisory, Head of Infrastructure, Asia Pacific and Head of ESG Consulting
KPMG in Singapore
