
The transportation sector is heavily reliant on fossil fuels, with about 95% of its total energy sourced from fossil fuels in 2021. This includes road, rail, water, and air transport used for moving people and goods. Transport accounts for a significant portion of global CO2 emissions, with road transport being the biggest culprit, contributing 69% of transportation emissions worldwide. While alternatives to fossil fuel vehicles, such as electric and hydrogen vehicles, are evolving, petroleum-based fuels remain the most widely used due to the limitations of alternative fuels, such as limited driving range and high cost. However, electric motors are more efficient than combustion engines, and the transition to renewable transportation is gaining momentum, with biofuels, synthetic fuels, and electrification playing a significant role in reducing the carbon intensity of the transport sector.
| Characteristics | Values |
|---|---|
| Percentage of total energy used by the transportation sector sourced from fossil fuels | 95% in 2021 |
| Percentage of fossil fuel used for transportation and heating | 76% |
| Percentage of fossil fuel used for transportation in the US in 2017 | 29% |
| Percentage of fossil fuel used for transportation in the US in 2017 that came from crude oil | 89% |
| Percentage of fossil fuel used for transportation in the US in 2017 that came from natural gas | 3% |
| Percentage of fossil fuel used for transportation that came from biofuels | 5% |
| Percentage of fossil fuel used for rail transportation | 52% |
| Percentage of transportation emissions that come from road transit | 69% |
| Percentage of transportation emissions that come from shipping | 9% |
| Percentage of transportation emissions that come from aviation | 11% |
| Percentage of biofuel projected to be used for transportation by 2055 | 34% |
| Percentage of synfuel projected to be used for aviation and navigation by 2055 | 33% |
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Gasoline and diesel fuel
Diesel fuel, on the other hand, is a distillate fuel that is used mainly by trucks, buses, trains, boats, and ships. Distillate fuels, mostly diesel, accounted for 23% of energy consumption by the transportation sector in 2022.
Both gasoline and diesel fuel are derived from crude oil and have been the primary automobile fuels since the early 1900s, replacing ethanol and biodiesel. Today, most motor gasoline sold in the US contains up to 10% ethanol, and biodiesel is often blended with petroleum diesel. Biofuels, including ethanol and biodiesel, contributed about 6% of total US transportation sector energy consumption in 2022.
The transportation sector is crucial in the transition away from fossil fuels. Electrification of vehicles, backed by a renewable power grid, is a key strategy. The US has made progress with policies like the Inflation Reduction Act to accelerate EV adoption. Additionally, hydrogen fuel cells and biofuels offer alternatives to gasoline and diesel. However, the US transportation system is highly car-centric, and passenger cars and light trucks contribute significantly to transportation emissions.
The delivery of gasoline and diesel fuel is an important aspect of the fuel supply chain. Pipelines are the preferred method for transporting crude oil and natural gas over long distances. Rail transportation, using specialized tank cars, is also crucial for moving liquid fuels across land. Barges are used in coastal and inland waterways to transport fuel efficiently and environmentally friendly. Tank trucks play a vital role in delivering smaller quantities of fuel from refineries to retail outlets.
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Jet fuel
In the United States, jet fuel consumption averaged 1.7 million barrels per day in 2019. This dropped to an average of 1.5 million barrels per day in 2022, likely due to restricted air travel during the pandemic. In 2023, jet fuel consumption increased for the third year in a row, averaging 1.65 million barrels per day, but remained below the pre-pandemic peak in 2019.
The aviation industry is working towards decarbonization by promoting sustainable aviation fuels (SAFs). SAFs currently account for less than 0.1% of all aviation fuels consumed, but manufacturers and operators are testing flights entirely fuelled by SAFs. SAFs can be deployed in current infrastructure and aircraft, and dedicated task groups are working to facilitate the use of 100% SAF by 2030. However, existing and planned SAF projects will meet only 2-4% of jet fuel demand by 2030.
To further reduce emissions, progressive tax rates that increase with flight frequency and higher taxes on premium class tickets have been proposed. Additionally, reducing demand through behavioural changes, such as opting for high-speed train connections or teleconferencing instead of short-haul or business flights, can play a significant role in lowering emissions from the aviation sector.
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Biofuels
Ethanol is a renewable fuel that can be made from various plant materials, known as biomass. It is an alcohol used as a blending agent with gasoline to increase octane and reduce carbon monoxide and other harmful emissions. Most gasoline in the United States contains up to 10% ethanol by volume, and some vehicles can run on blends containing up to 85% ethanol.
Biodiesel is a liquid fuel produced from renewable sources such as vegetable oils and animal fats. It is a cleaner-burning replacement for petroleum-based diesel fuel and can be blended with petroleum diesel in any percentage. The most common blend is B20, containing 20% biodiesel and 80% petroleum diesel.
In 2022, biofuels consumption accounted for about 6% of total US transportation sector energy consumption, with ethanol making up about 4% and biodiesel and other biofuels contributing the remaining 2%. The share of biofuels consumed in motorised transport has increased from less than 0.5% in 1990 to about 3.5% in 2022 due to decades of policy support.
Biofuel demand is expected to increase by 38 billion litres from 2023 to 2028, a nearly 30% increase from the previous five-year period. This growth is driven primarily by emerging economies such as Brazil, Indonesia, and India, which have robust biofuel policies, rising transport fuel demand, and abundant feedstock potential. Advanced economies are also strengthening their transport policies, but volume growth is constrained by factors such as rising electric vehicle adoption and high biofuel costs.
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Electrification
The global transportation sector has the highest fossil fuel consumption share, with about 95% of its total energy derived from fossil fuels. In the US, the transportation sector accounts for 29% of greenhouse gas emissions, with 58% of these emissions coming from light-duty vehicles, 24% from medium- and heavy-duty vehicles, and the remainder from aircraft, ships, rail, and other sources.
The benefits of electrification in the transportation sector include reduced emissions and improved air quality. Electric vehicles produce no tailpipe emissions, helping to reduce local air pollution. Additionally, electrification can lead to improved indoor air quality, as some electric appliances, such as electric stoves, release fewer harmful pollutants compared to their fossil fuel-based counterparts.
The impact of electrification on emission reduction also depends on the source of electricity used to power electric vehicles (EVs). For example, in Norway, the world leader in renewable energy use, 45% of electricity comes from hydropower, resulting in greener EVs. On the other hand, in a state like Wyoming, where electricity generation is primarily fueled by coal, the benefits of electrification may be negligible or even negative if the emissions from generating electricity outweigh the savings from using electric vehicles.
To support the transition to electrification in transportation, various strategies can be employed. These include implementing smart policies, investing in EV charging infrastructure, providing incentives for EV manufacturing and sales, and expanding public transit options to reduce the overall demand for driving. According to a study by the Union of Concerned Scientists, with these strategies in place, all new vehicles sold by 2035 could be battery-electric vehicles (BEVs) or fuel-cell electric vehicles (FCEVs).
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Hydrogen fuel cells
The global transportation sector has the highest fossil fuel consumption share. In 2021, about 95% of the total energy used by the transportation sector was sourced from fossil fuels. The transportation sector accounts for around 20% of global energy consumption and is the world's biggest consumer of oil.
One alternative to fossil fuel vehicles is hydrogen fuel cell electric vehicles (FCEVs). FCEVs are equipped with advanced technologies to increase efficiency, such as regenerative braking systems that capture energy lost during braking and store it in a battery. FCEVs are fuelled with pure hydrogen gas stored in a tank on the vehicle. Hydrogen molecules break apart into protons and electrons due to an electrochemical reaction aided by a catalyst. The protons then travel through a membrane to the cathode, while the electrons are forced to travel through an external circuit to provide power to the electric motor. Finally, the electrons recombine with the protons on the cathode side, where they combine with oxygen molecules to form water.
The most common type of fuel cell for vehicle applications is the polymer electrolyte membrane (PEM) fuel cell. In a PEM fuel cell, an electrolyte membrane is sandwiched between a positive electrode (cathode) and a negative electrode (anode). Hydrogen is introduced to the anode, and oxygen from the air is introduced to the cathode. A chemical reaction involving the oxygen and hydrogen creates electricity, powering the vehicle.
FCEVs can be fuelled in about 5 minutes and have a driving range of over 300 miles. Major automobile manufacturers are offering a limited but growing number of production FCEVs to the public in certain markets, alongside the development of supporting infrastructure. One example of a hydrogen fuel cell vehicle is the 2025 Toyota Mirai, which comes with $15,000 or 6 years of complimentary fuel for purchases.
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Frequently asked questions
In 2021, about 95% of the energy used by the transportation sector was sourced from fossil fuels.
The combustion of fossil fuels in the transportation sector contributes significantly to global CO2 emissions. Transport accounts for more than a third of CO2 emissions from end-use sectors.
Some alternatives to fossil fuels in the transportation sector include electric vehicles, hydrogen vehicles, and biofuels.
About 76% of the oil we use is combusted for transportation and heating.











































