We live in a world of unprecedented mobility, which has transformed the planet into the proverbial global village. While this brings people closer together and promotes closer ties between humanity, it has come at a hefty environmental price. Transportation, which continues to rely mostly on fossil fuels, constitutes a fifth of global emissions.

Despite considerable improvements in the energy efficiency of vehicles, transportation-related emissions have almost tripled since 1970. In spite of the temporary drop during the COVID-19 pandemic, transportation emissions are on the rise again, according to the International Energy Agency (IEA). This is due to the fact that some 90% of the sector’s final energy use comes from fossil fuels, which is only 3.5% lower than in the early 1970s, according to the IEA. 

Buildings also have a gigantic carbon footprint. The construction, use, maintenance, heating and cooling of the world’s building stock accounts for two-fifths of global carbon emissions. Many governments are trying to shrink the carbon footprint of buildings but progress is patchy and slow.

Inefficiently insulated buildings and a reliance on fossil fuels exacerbates energy poverty and undermine energy security. The decarbonisation of buildings will impact people directly and is a key area in which the co-benefits of climate action can be highlighted.

The limited progress achieved to date for transport and buildings reflects both the immensity of the task and the failure of governments and the private sector to take seriously the necessary urgency of accelerating the long road to decarbonisation.

Given the huge climate impact of transportation and the significant challenges involved in decarbonising the sector, Carbon Market Watch focuses, both at the level of the European Union and internationally, on most forms of transportation: road, aviation and shipping.