Carbon offsetting in the road transport industry: issues and challenges of meeting the objectives

The overall performance of the transport industry is generally reported in terms of moving goods, or freight or people from any location to their final destination in a safe, reliable, cost-effective, and timely manner. However, greenhouse gas and exhaust fumes resulting from their operations has an adverse impact on climate and health of people living around transport corridors. Carbon dioxide (CO
2
) in exhaust fumes, if not contained, can cause poisonous air pollution and contributes to global warming. Australia’s Department of Agriculture, Water and the Environment statistics predict that in 2030, CO
2
emissions from the road transport industry through the usage of articulated and rigid trucks, are expected to grow by 37 percent from 2015 levels and is 80 percent higher compared to 2006 levels. In various parts of the world, there are annual mandatory road worthiness and exhaust testing requirements for responding to these problems. Some countries like Singapore (5.4 years) Luxembourg (6.5 years) and Austria (8.3 years), replace vehicles in five to 10 years on an average. Affordability, easy access, congestions, greenhouse gasses, impacts on health and safety are some of the important factors in asset management that can potentially impact climate change. Fleet asset management considers capital investments, operational and maintenance costs for informed decision making based on risks, life cycle costs and performances. This paper presents a review of studies on the impact of carbon offsetting on the transport infrastructure. Issues and challenges of alternative options for reducing risks and lifecycle costs along with approaches for enhancing performance covering reduction of greenhouse gasses and adverse impacts on human health have also been presented.