Transportation has the lowest share of energy use from electricity, but electrification holds significant potential to replace oil as the main fuel for cars, trains, buses, and near-shore shipping. Bloomberg New Energy Finance estimates that the first electric vehicles will achieve price parity with conventional combustion engine vehicles from 2022
Bloomberg New Energy Finance (2019) Electric Vehicle Outlook 2019.. Synthetic fuels derived from green power and biofuels can help decarbonise some of the harder-to-abate modes of transportation such as aviation, long-range shipping and heavy-duty road transport.
Industry depends on fossil fuels for both fuel and feedstocks, and it will be challenging to fully decarbonise this sector. However, green on-site power production, electric boilers, furnaces and smelters, heat pumps, and power to gas from renewables are all electricity-based solutions that will help reduce emissions by replacing oil, gas and coal in industrial production processes. Furthermore, increased resource efficiency and new technologies can help reduce emissions in some of the harder-to-abate industries such as cement, steel, and plastic production.
Buildings will benefit greatly from switching to heat pumps for space heating and hot water as these are 3 to 4 times more efficient than conventional forms of space heating. Some harderto-abate areas in buildings could reduce emissions through waste reduction, more reuse, and increased material efficiency. Furthermore, there is a large untapped potential to reduce energy use in buildings by increasing energy efficiency through smart buildings, heat pumps, better insulation, and other solutions.