NDB Side Event at COP30

The transport sector accounts for about a quarter of total global carbon emissions and has become the world’s second largest emitter due to its heavy reliance on fossil fuels. In 2022 global emissions from the sector grew by more than 250 MtCO₂ to nearly 8 GtCO₂ , 3% more than in 2021 (International Energy Agency, 2025).

Due to it featuring amongst global highest emitters, transport has attracted attention from climate action making it critical for moving forward clean energy commodities that are essential for decarbonization of the world’s economy. As an early uptaker of a diverse mix of clean energy – from sustainable aviation fuel and hydrogen to electrification and ammonia, it is emerging as a key driver of demand for low-carbon fuel and power systems.

This session explored how emerging markets and developing economies (EMDCs) and their partners can advance energy transition through establishing low-carbon and efficient transport systems that address various challenges inlcuding: (i) the difficulty of mobilizing and structuring finance for large-scale green transport investments; (ii) the slow diffusion of cleaner technologies and enabling infrastructure such as charging networks and electrified rail; and (iii) limited shared opportunities that align and scale up sustainable fuel production across transport modes to accelerate investment.

In response to these challenges, the discussion highlighted solutions that can translate ambition into reality, focusing on:

• Innovative financing models, such as blended finance, green and sustainability-linked bonds, and sub-national credit mechanisms that de-risk projects and mobilize resources including private investment.
• Technology partnerships that enable rapid adoption of electric mobility, hydrogen and biofuel production and uptake and digital mechanisms for efficient and low-emission transport.
• Integrated policy frameworks that align national transport strategies, urban planning, and climate targets, ensuring decarbonization of the transport sector that accelerates the global energy transition.

Government officials, development financiers, private investors and sector experts shared lessons on identifying practical pathways to scale these solutions across the Global South. The session further provided a layout of how cooperation and innovation can enable scaling up isolated pilot projects to integrated, climate-aligned mobility networks that reduce emissions, strengthen connectivity, and improve quality of life whilst enabling energy transition.