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Revolutionizing mobility through blockchain

Photo: Plamenj/Flickr

As digital technology continues to transform and reshape the transportation industry over the last few years, blockchain as a decentralized distributed technology has been embraced by other fields through various applications. It has found varied applications across banking, financial services, healthcare, e-governance, and voting.

Blockchain has immense potential to solve the most pressing problems of mobility where it can be used by private & public sector to securely share and integrate data across modes of transport. It paves  the path for transforming Mobility as a Service (or MaaS), where a user may access different modes of transport (three-wheelers, bus, metro, train etc.) on a single platform with seamless connectivity. It makes a paradigm shift in redefining the customer needs in terms of service, rather than the mode of transport.

The applications of blockchain in reducing the cost of financial transactions have been implemented across sectors. In India, 80% of our travel is for distances less than 5 km and most of this is through non-motorized modes of transport which may largely be served by walking, bicycle, and cycle rickshaws. In these modes the, transaction size for every ride is small (or nil). Also, people in urban and semi-urban areas tend to use multiple modes of transport to reach their destinations. In this case, it makes sense for using digital payments that are integrated across all modes of transport. But the payment systems of today charge a transaction fee of between 0.5% to 5%. This hampers the faster uptake of digital payments, especially for smaller transactions. Blockchain greatly reduces the cost per transaction as there are no intermediaries involved in the payment system, thus making small transactions of even 1 or 2 Indian rupees ($0.014 to $0.028) digitally feasible.

Moving toward green mobility: three countries, three different paths

Nancy Vandycke's picture
A local bus in Luxembourg. Photo: Fränz Bous/Flickr
As discussions concluded at COP24, countries still struggle to translate their climate commitments into effective and socially acceptable actions. This sense of stagnation is particularly evident in transport. With 23% of energy-related GHG emissions coming from the sector, transitioning to greener mobility will be crucial to the overall success of the climate agenda. Yet the world remains largely reliant on fossil fuels to move people and goods from A to B. As shown in Sustainable Mobility for All’s Global Roadmap of Action, there are multiple policy options that could help countries move the needle on green mobility, each with their own fiscal and political costs. To illustrate this, let’s look at three countries that did take concrete measures to cut carbon emissions from transport but opted for three different options: France, Luxembourg, and Norway.
 
What these countries have in common
 
These three countries all have a high level of income, which means the majority of their residents can afford to buy and own a car. The governments of these countries have also invested heavily into road and rail systems—including France’s transformative high-speed railway network. This effort has significantly increased the number of people who have access to fast and reliable transport, and helped bridge the social divide between urban and rural areas.
 
But “universal access” is only one of the four policy goals to achieve sustainable mobility: efficiency, safety, and green mobility are equally important.  Now that the infrastructure is in place, and carbon-intensive cars and trucks are on the roads, the challenge for policy-makers is to figure out how we can reach these three other goals in a world where individual mobility has become a new “social right”.  In other words, which policies will be most effective for reducing the environmental footprint of the current mobility system (GHG emissions, noise, and air pollution)?

Time to ask the tough questions about transport and climate

Nancy Vandycke's picture
Photo: Bernard Spragg/Flickr
Last month, the Intergovernmental Panel on Climate Change drew global attention by providing fresh and overwhelming evidence about the urgency of the climate situation. According to the agency’s latest report, global temperatures will reach 1.5 degrees Celsius above pre-industrial levels within the next 12 years—unless we act now. 
 
Transport bears a huge responsibility in the current situation: the sector contributes to nearly a quarter of global energy-related greenhouse gas emissions, and 18% of all manmade emissions in the global economy.  Under a business-as-usual scenario, this figure will continue rising to reach 1/3 of all emissions by 2040.
 
This means cutting emissions from transport will be central to solving the climate equation. To kickstart this process, the Sustainable Mobility for All initiative (Sum4All) just released a preliminary Global roadmap of action towards sustainable mobility that lays out concrete policy measures for a healthier transport future. Our coalition of 55 leading public and private organizations looks at all dimensions of sustainability: safety, efficiency, equitable access, and, of course, environmental impact.
 
As global leaders head to Poland for the COP24 Climate Conference, now is a good time to identify the most effective solutions for lowering the carbon footprint of transport. In that spirit, we encourage all interested parties to provide input and feedback on SuM4All’s Roadmap of Action: Which policy interventions do you think should be prioritized? Are there any critical measures that are missing from the proposal?  How can the private sector be part of the solution?