Portfolio Manager
• Stunning statistics
Short-haul flights are the worst offenders for CO₂
Domestic and other short-haul flights are the most carbon-intensive form of travel, figures show.
Authors
Summary
- Short-haul flights emits more CO₂ per person km than long haul
- Eurostar rail service is the least carbon-intensive form of travel
- Smart Mobility strategy targets transformational companies
Aircraft on routes of 700 kilometers or less emit more carbon dioxide per person for every kilometer traveled than long-haul flights: 251 grams per km for short haul compared to 195 g/km for long haul. That’s due to the fact that take-off and landing uses the most fuel, making level flight over whatever distance relatively cleaner.
By comparison, a diesel car emits 171 g/km of CO2 with one passenger, or an average of 43 g/km for four passengers, according to UK government figures. An urban bus emits 104 g/km and a coach 27 g/km due to its greater weight efficiency. Electrified domestic rail, including shorter suburban services, emits 41 g/km.
The most efficient form of transport is the transnational Eurostar, emitting only 6 g/km per passenger on trips through the Channel Tunnel. It means someone who flies from Amsterdam to London but returns on the Eurostar will be responsible for 20 times more CO2 emissions on the flight there than on the train back.
Source: BEIS/Defra Greenhouse Gas Conversion Factors 2019
Reducing carbon emissions from all sources to make the world effectively carbon-neutral by 2050 is essential to meet the goals of the Paris Agreement. This seeks to limit global warming to 2 degrees Celsius or less above pre-industrial levels.
The entire transport sector is responsible for about 14.7% of all greenhouse gases emitted. The biggest contributor is not the more CO2-intensive airline industry, responsible for about 1.7% of all CO2 emissions, but road vehicles, accounting for 10.5%.
One problem is that unlike cars, aircraft cannot be battery powered – the batteries needed to get a 200-ton aircraft off the ground would currently weigh three times as much as the plane. However, work has begun in the US in trying to develop a hybrid electric engine for a 186-seater plane, with the first test flight due in 2023.
What does it mean for investors?
“Electrification will transform all modes of mobility, transport and travel,” says Thiemo Lang, portfolio manager of the RobecoSAM Smart Mobility strategy which targets companies operating in this sector. “Though the pace of change varies by vehicle and purpose, the revolution is underway and accelerating.”
“Emissions regulations and improved economics are shaping the market, coupled with increasing urbanization and growing megacities which create demand for the sustainability of all modes of public transportation and the rise in private electric vehicles on our streets.
“For investors, this presents an opportunity to participate in the transformative shift towards zero-carbon mobility. The RobecoSAM Smart Mobility strategy focuses on companies enabling this transformation in all its forms – ground, sea, and sky – including component suppliers, electrical grid and charging suppliers, and data connectivity solutions providers.”
Stunning statistics
Every month we look at stunning statistics related to trends and thematic investing. What do they mean? What is the impact for investors?
Important information
THIS WEBSITE IS SOLELY INTENDED FOR PROFESSIONAL INVESTORS, WHICH HAS THE MEANING ASCRIBED TO IT IN THE SECURITIES AND FUTURES ORDINANCE (CAP. 571 OF THE LAWS OF HONG KONG) AND ITS SUBSIDIARY LEGISLATION. Investment involves risks. Past performance is not indicative of future performance. The information contained in this website is provided for reference only and does not constitute investment advice or an offer or solicitation to buy or sell in any securities or to adopt any investment strategy. Investors should not base their investment decisions solely on the information provided on this website and are advised to seek independent advice (including advice on tax implications) before making any investment decisions. Investors should ensure they fully understand the risks associated with the investment products and should also consider their own investment objectives and risk tolerance level. The investment decision is yours. You should not invest unless the intermediary who sells you the investment products has advised you that it is suitable for you and has explained how it is consistent with your investment objectives. Please refer to the relevant offering documents or other legal documents for further details including the risk factors. This website is published by Robeco Hong Kong Limited which is regulated by the Hong Kong Securities and Futures Commission (“SFC”) (CE No. APU851). This website has not been reviewed by the SFC. No assurance can be given that the investment objective of any investment products will be achieved. No representation or promise as to the performance of any investment products or the return on an investment is made. The value of investments may fluctuate. Past performance, projections, or forecasts included in this website should not be regarded as guarantees or indications of future performance, and no express or implied warranty is provided. The contents of this website are based on sources believed to be reliable, but due to the nature of information delivery technology and the necessity of using multiple data sources, including third party content, their accuracy is not guaranteed. The opinions expressed are as of the date shown above and may change as market conditions evolve, and are subject to change without notice. These opinions may differ from those of other Robeco investment professionals. Robeco accepts no liability for any direct, indirect, or consequential loss arising from the use of this material or any comments, opinions, or estimates contained herein. Robeco has no duty to update this website or any website content. Materials on this website may not be reproduced, distributed, or published without prior written permission from Robeco. Unless otherwise specified, Source: Robeco.
