Abrial Gilbert-d’Halluin from the European Climate Foundation examines how tackling climate change in transportation could substantially shrink oil demand
As governments start implementing the Paris Agreement, they will increasingly need to cut carbon emissions from transport by curbing the combustion of petroleum fuels.
They are meeting this challenge by setting policies that signal a long-term direction of travel for investment in low-carbon solutions. The European Commission’s long term decarbonisation strategy foresees for instance a fundamental shift away from petroleum towards greener energy sources. China and California have set ambitious targets for Zero-Emission Vehicles (ZEVs). Several European cities have announced impending bans on diesel cars and a number of governments have announced deadlines for phase-out. It is clear that change is coming fast.
In a world where climate policies are being implemented globally, demand for oil will be significantly lower than in a busin...