Developing world's transport fuel demand to surge

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Thu Dec 8, 2011 8:45am EST

* Global transport fuel demand to grow up to 82 pct by 2050

* Developing countries' demand to surpass developed by 2025

* CO2 emissions from transport could be 79 pct higher in 2050

LONDON, Dec 8 (Reuters) - Transport fuel demand in developing nations is expected to grow by up to 300 percent by 2050, as China, India and other emerging economies put more cars on the road and planes in the sky, the World Energy Council (WEC) said in a report on Thursday.

The international energy body predicted global fuel demand from airplanes to ships could increase by 30 percent to 82 percent by mid-century from 2010 levels, depending on the future use of alternative fuels and technologies.

In 2010, the global transport sector consumed about 2,200 million tons of oil equivalent (mtoe), accounting for around 19 percent of global energy supplies.

Environmental restrictions and increased efficiencies in developed countries could contribute to as much as a 20-percent drop in their overall demand for transport fuel, WEC said.

This means demand from developing countries, such as China and India, the world's two most populous countries, is expected to surpass that of developed countries by 2025, it said.

"It is clear that emerging economies will contribute the most to the development of our future transport needs, with their fast growing population and rapid economic development," Pierre Gadonneix, chairman of the WEC, said in a statement.

He added: "Only with strong leadership at both government and enterprise levels can a positive contribution be made towards a radical shift in our transportation systems and the well-being of future generations."

The biggest, challenge is for governments to provide "sustainable transport" for nine billion people in 2050, while at the same time minimising congestion and pollution, WEC said.

SCENARIOS

The year-long study looked at two scenarios for the global transport sector. One is based purely on open competition and 'lowest-cost' solutions, while the other is regulated by government to promote alternative fuels and technologies.

Under these scenarios, global demand for the major fuels, such as gasoline, diesel, jet fuel and fuel oil will increase by 10 percent to 68 percent over the next forty years.

Demand for jet fuel could grow by up to 300 percent in an unregulated market, as more and more people take to the skies, according to WEC.

Meanwhile, demand for gasoline could drop by up to 63 percent in a regulated market that promotes more electric vehicles or cars using alternative fuels.

As population and incomes rise in emerging economies, there will be a shift towards demand for transport, namely cars.

In 2005, vehicle ownership was about 11 cars per 1,000 capita in China and about 6 cars per 1,000 capita in India, compared with a global average of 111 cars per 1,000 capita.

Recently, China's car ownership rate has been growing at a rate of 12 percent per year, while in India it has been growing at 9 percent per year.

The overall number of cars in the developing world could increase by up to 557 percent by 2050, while developed nations will see an increase of up to 41 percent, the report said.

The global population is expected to rise to 9 billion in 2050, meaning more climate-changing carbon dioxide (CO2) emissions churning out from a growing number of cars, planes and ships.

Globally, the transport sector's CO2 emissions could rise by as much as 79 percent by 2050 from 2010 levels of around 7 billion tonnes, the WEC report said.

However, the increase could be limited to 16 percent if tough government action and private sector investment paves the way for wide use of low carbon fuels and technologies.

(Reporting by Jeff Coelho; editing by Jason Neely)

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