The Energy Transition’s Impact on Transport Sector Sustainability: Opportunities and Challenges for Businesses

Energy transition in the transport sector is a major challenge for meeting global climate objectives and promoting sustainable development. This brief assesses the environmental impact, economic viability and technical challenges facing the transport sector. The focus is on electric and hydrogen-powered vehicles. A methodology combining literature review, case studies and semi-structured interviews has been adopted. This provides a comprehensive view of the subject. The results indicate that, despite the significant potential for reducing greenhouse gas emissions offered by electrification and hydrogen, several economic, technological and infrastructural obstacles persist. These challenges call for stronger political support, technological innovation and changes in user behavior. The brief proposes strategic recommendations for companies and decision-makers to facilitate a sustainable and economically viable energy transition for the transport sector.