The proposed Fit for 55 legislation aims to cut the transport sector’s dependence on fossil fuels by promoting clean and emission-free technologies and alternative fuels. However, analysis shows that achieving the 1.5°C global warming limit may require up to 14 years of implementation and an investment of EUR75bn per year until 2030. In the road transport sector, this means an additional EUR4bn in investments annually until 2030. The road transportation sector has significant potential for decarbonization and accounted for 71% of EU transportation emissions in 2018. Electric and hydrogen-fueled vehicles will play a crucial role in this transition, but the electric charging infrastructure must increase four-fold to keep up with electric vehicle growth.

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https://www.allianz.com/en/economic_research/publications/specials_fmo/2021_11_03_TransportZeroCarbonEU.html