Car Pooling: The Middle East's Role in Achieving Sustainable Mobility
Delve into the crucial role played by the Middle East in promoting sustainable mobility through car-sharing initiatives & and ecofriendly transportation solutions.
Climate change is having a profound impact across various sectors of our society, and the transportation industry is no exception to this global challenge. Recent findings from the World Bank reveal that the transport sector currently contributes a substantial 20% to the world's total greenhouse gas emissions. Alarmingly, this figure could potentially surge by a staggering 60% over the next three decades. Recognizing the urgency of addressing this pressing issue, the MENA (Middle East and North Africa) region is taking proactive steps towards embracing clean technology and sustainable transportation solutions. Local governments are implementing ambitious initiatives aimed at combatting climate change, exemplified by the UAE's "Year of Sustainability" campaign. Moreover, they have recently raised their carbon emission reduction target for 2030 from 31% to 40%, underscoring their commitment to addressing this environmental crisis.
The world is currently witnessing a remarkable transformation in the transportation industry, driven by a global shift towards sustainability. Transport has long been a major contributor to carbon emissions and ecological imbalances. As the MENA region prepares to host the COP28 climate conference in the UAE, it becomes increasingly vital to rethink and reshape our existing mobility patterns. At the core of sustainable transportation lies the concept of car-sharing, which is gaining prominence as a smart alternative to traditional car ownership and rental. This shift in social behaviour reflects a growing awareness of the unsustainability of conventional transportation methods and a shift in consumer preferences towards convenience and sustainability. Market forecasts predict that the car-sharing sector in the UAE alone is poised to generate a significant $82.52 million in revenue by 2023. This development holds the potential to significantly impact the region's future transportation landscape by alleviating traffic congestion, reducing carbon emissions, and diminishing reliance on personal vehicles.
Another emerging trend that is making waves across various industries is fractionalization, which involves breaking ownership into smaller, more manageable units. This approach enhances the marketability and liquidity of assets that would otherwise remain illiquid. In today's economic landscape, owning a car has become increasingly financially unviable, prompting people to turn to car-sharing platforms for cost savings and improved value. Car sharing reduces the financial barriers to entry, as users are relieved from the burden of total ownership costs, including vehicle purchase, maintenance, insurance, and parking fees. Furthermore, car-sharing promotes efficient resource utilization. Unlike most privately owned cars that often remain idle, shared cars see more active use, reducing the need for excessive parking spaces and decreasing the overall number of vehicles on the road. This, in turn, mitigates traffic congestion and reduces the environmental footprint. In contrast, traditional car rentals typically require a minimum rental duration of 24 hours, while car-sharing, at its most fractionalized level, charges users per minute. Customers can conveniently select a car model, pay based on daily, weekly, or monthly usage, and cancel as needed. This fractionalization of assets reduces barriers to entry and exit, facilitates efficient price discovery, and enables risk diversification.
As we progress towards a more sustainable future, it is imperative that we shift our focus away from private car ownership and towards shared intelligent transportation solutions. An independent study indicates that approximately 85% of the daily trips in Riyadh, with its population of eight million, are made by private car. The transition to more sustainable transportation is particularly significant in Gulf cities that were built around car dependency but are now committed to achieving their net-zero emissions pledges. We require efficient, cost-effective, and environmentally responsible solutions to facilitate the movement of people from one point to another. With the population of the MENA region projected to increase to 581 million by 2030 and 724 million by 2050, shared mobility alternatives can play a pivotal role in improving air quality, fostering a balanced environment, and increasing transport accessibility for underserved populations. By reducing the number of private vehicles on the road, shared mobility can make a substantial contribution to the region's efforts to decarbonize and create a safer, more sustainable, and better-mobilized world for future generations.
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