Oil and Gas Climate Initiative

Decarbonizing transport – low carbon fuels

Decarbonizing transport is key to all pathways to get to net zero.

The transport sector is responsible for almost a quarter of total energy-related CO₂emissions. Around 75% of these emissions come from road transport. Another 22% comes from aviation and marine, but these emissions are harder to abate than road transport, which can more easily switch to alternative fuels or use electric power.

Decarbonizing shipping will require a range of solutions. OGCI is working on the development of low-carbon fuels, such as biofuels, ammonia, hydrogen and E-fuels. We have also supported the development of carbon capture for ships to capture emissions for storage.

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Low carbon fuels

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Decarbonizing shipping

Pathways to decarbonize transport

New report with FEV Consulting:

A new report with FEV Consulting sees a significant shift in transport energy use by 2040
This will be driven by electrification, alternative fuels adoption, and stronger climate policies
Findings provide practical guidance to governments, businesses and other stakeholders

Decarbonizing shipping with CCS

New report with GCMD, Stena Bulk and others:

Report demonstrates technical feasibility of onboard CCS (OCCS)
OCCS technology could reduce Stena Impero’s existing CO₂ emissions by as much as 20% per year
Practical barriers, such as port readiness, need to be addressed before OCCS can be widely adopted.

Transport at a glance

Our impact

Transport sector

of energy-related CO2

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Road transport

of transport sector CO2

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Shipping and aviation

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Read our latest progress report

Decarbonizing transport – low carbon fuels

Related resources

The Road Ahead for Hydrogen Powered Mobility

March 19, 2025

With transportation a major source of global CO₂ emissions, the report highlights how scaling hydrogen adoption through infrastructure expansion, regulatory updates and industry collaboration would help enable decarbonization of the sector. While hydrogen is a promising solution for hard-to-electrify sectors like heavy-duty transport, its success depends on significant investment in distribution networks, alongside clear policies and safety frameworks.

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Biomass for Marine 2025

March 13, 2025

The study aims to inform the industry’s ongoing efforts to meet the International Maritime Organization’s (IMO) target to achieve net-zero greenhouse gas emissions by 2050.

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