Transport connects people, goods, and economies — it’s how people access jobs, education and health services, food reaches markets, and economic activity happens. The sector accounted for roughly 7% of global GDP and employed nearly 200 million people worldwide in 2021, yet it’s also one of the largest sources of greenhouse gas (GHG) and carbon dioxide (CO₂) emissions and among the most exposed to climate risks like flooding and heat. Meanwhile, persistent gaps remain in inclusive access to reliable, efficient, and affordable transport, leaving billions of people worldwide in situations of inequality and transport poverty, while limiting the economic development of countries.

In 2023, the transport sector remained the second-largest and fastest growing emitting sector, responsible for 15.9% of global GHG and for 21.9% of global CO₂ emissions. Transport was also the fastest growing energy-use sector in 2023, consuming 27% of the global energy for end-uses. Despite advances in renewable energy and rapid increases in electric vehicle adoption, fossil fuels still accounted for 95.4% of the total energy consumption in the transport sector in 2023. This share has remained virtually unchanged for five decades and is directly linked to the high emissions and air pollution caused by transport activity.

Urgent action is required. According to IPCC, transport emissions need to drop at least by 59% by 2050 compared to 2020 levels to stay within 1.5°C warming. However, demand for moving people and goods is set to grow sharply, Without a paradigm shift, transport’s impacts on emissions, air quality and energy use will worsen. Moreover, each year, climate-related disasters cause an estimated USD 15–22 billion in damage to transport infrastructure, hitting low- and middle-income countries (LMICs) hardest. The negative impacts of transport disruptions on a country’s connectivity and development are even greater than the huge financial losses in transport assets.