Developing Infrastructure for Alternative Transport Fuels and Power-trains to 2020/2030/2050 is the product of an IFP workshop held in November 2012 that explored progress in the development and widespread introduction of alternative fuel vehicles (AFV).
The transport sector is the second largest and second fastest growing source of greenhouse gas emissions (GHG) after energy industries. However, progress in the development, and more widespread introduction, of alternative transport fuels has been markedly slow so far. High costs relative to fossil fuels, technological challenges and public acceptance are among the main obstacles today. Infrastructure development has been held back by the scale of the investment required, regulatory uncertainty, the challenges of coordinating the many players involved, and the reluctance of investors to commit until vehicle sales reach satisfactory levels. This workshop report highlights the importance of approaching the value chain in its entirety, and identifies how some of the key the economic risks associated with the development of AFV infrastructures might be tackled.
Oliver Wyman’s Global Risk Center has been participating in the Organisation for Economic Cooperation and Development’s “International Futures Programme” (IFP), considering global infrastructure needs for the twenty-first century.
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