Strong support for green incentives

7 March 2011

Contacts

According to a global survey by international legal group, Norton Rose, greater incentives are the key to creating a more environmentally friendly approach to world transport.

This report (the Norton Rose Group Way Ahead Transport Survey 2010), is the second transport review released annually by the Norton Rose Group.

It details the views of 679 international respondents from a range of companies involved in transport, in occupations which include financiers, operators, manufacturers, governments and professional services firms operating in the aviation, rail and shipping sectors.

Of the respondents who took part in the survey 65% say they believe incentives (financial) are most likely to trigger a sustained investment in greener transport technologies, with only 20% being of the opinion that fines and penalties are effective.

More than a third of the survey respondents (39%) think greenhouse gas emissions should be the primary focus for regulatory action. Tellingly, though, the corresponding figure in North America was only 28.

Some additional findings from the global report:

  • 64% report that joint ventures will form part of their business strategy over the next 12 months. This is a massive increase on 2009, when only 25% of respondents planned joint ventures.
  • 44% feel that investment in infrastructure would be the most helpful form of government support during the recovery.
  • 42% of respondents chose shareholders/ equity as the most popular option of the top three sources of financing over the next two years. This includes 55% of all shipping respondents!
  • When identifying the top three promising geographical areas for investment, many respondents believe the best opportunities are in their own regional markets, though China is uppermost, being chosen by 43%. India is second, 31%, and Western Europe selected by 27%.

Andrew Robinson, a Durban based director at Deneys Reitz, which will join Norton Rose Group on 1 June 2011, commented: "South Africans have always felt that they have a duty to protect the environment, and they will welcome the global transport industry's view that for the green trend to succeed, incentives work better than "offence" based regulation."

Norton Rose South Africa (incorporated as Deneys Reitz Inc) joined Norton Rose Group on 1 June 2011.