Transport is the only sector of the world economy where demand for fossil fuel is set to rise, creating economic and sustainability challenges that will be hard for emerging and developing economies to address, according to the 11th annual MEED MENA Rail & Metro Summit, which kicked off today.
“Transport will continue to use fossil fuel and its use will increase and despite progress being made (in increasing transport efficiency), developing countries are increasing their motorisation radically,” Dr. Andreas Kopp, World Bank (USA) Lead Economist for Transport and ICT, told attendees.
Kopp said that there are limited substitution opportunities in fossil fuel used in individual mobility and the challenge for policymakers in the Middle East is intensified by the low transport fuel prices.
“Low transport cost cities will have a larger area and will be less dense,” he said, adding that said sharp increases in the cost of carbon-based fuels will be needed to contain demand to the extent required by global carbon emission reduction plans.
MEED’s MENA Rail & Metro Summit is the largest project focused gathering of experts working in GCC and North African rail and metro projects.
The summit is a platform to build momentum in moving the $350bn urban and regional rail transport goals forward.
Its agenda from 5-7 October explors projects and key issues on projected rail plans, operability, GCC integration and in technical best practices and project delivery.
This year, the summit is being held under the patronage of H.E. Dr. Abdullah Belhaif Al-Nuaimi, Minister, Ministry of Public Works and the Federal Transport Authority of the UAE.