New project about the financing of a fossil-free transport system
Five questions to professor Rickard Bergqvist about a new project that will focus on the challenges of financing the transition to a fossil-free transport system.
What is the purpose of the project?
The purpose of the project is to analyze and understand the challenges of financing the conversion of the freight transport system and thus identify opportunities and threats that can facilitate or hinder its financing.
Which challenges will you focus on?
The transition to a fossil-free transport system requires extensive investments covering everything from infrastructure to processes and technology in various forms. The transport system has always been capital intensive, but the transition will entail investment needs that far exceed what the system traditionally encompasses. The investment need will affect all players but may differ depending on the choice of technology, business models but also the pace of transition. All in all, this will generate a huge need for financing in the transport system that must be addressed. Despite uncertain preconditions, the financing perspective must deal with costs, risks and multi-dimensional effects and how these are distributed among different stakeholders and what responsibilities/roles different actors have to contribute with this funding.
Why is this important?
Knowledge and analysis about financing from a variety of perspectives are essential to ensure, facilitate and speed up the transition to a fossil free transport system. Due to the complexity of the issues, the interdisciplinary nature and the scope of the project, within the framework of this project, both academia and industry as well as senior research in collaboration with doctoral student resources are gathered.
What are your expectations regarding the findings?
The project takes a Swedish perspective and contributes with knowledge of how we can finance the transport system's sustainability transition until 2045 in the best way. Knowledge of how conversion from fossil-fueled modes of transport and transport chains can be stimulated is also developed in the project. The project is divided into three interconnected work packages that engage senior researchers in business administration, economics and law, as well as a doctoral student.
What do you hope that the project can lead to?
Overall, the project has the potential to influence and accelerate the transition by more actors contributing in the context of financing and that we explore and gain knowledge about how services and solutions can best be designed and established, not least in the financial markets, for example through green financing.
The interview was first published in the Northern Lead Newsletter
The project is funded by the Swedish Transport Administration 2020-2023