Vanuatu Transport and Climate Profile 2026

Outline

VANUATU

TRANSPORT AND CLIMATE PROFILE

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Background

Vanuatu, a low- and lower-middle-income economy in the Pacific Islands region, had a population of 328,000 in 2024. During this same period, the nation's Gross Domestic Product (GDP) at Purchasing Power Parity (PPP) reached USD 1.2 billion, reflecting a GDP per capita of USD 3,602. These economic indicators frame a transport landscape that is increasingly carbon-intensive despite the global shift toward decarbonization. The sector is a significant driver of the national environmental footprint, contributing 139,000 tonnes of Greenhouse Gas (GHG) emissions in 2024, which accounts for approximately 22% of Vanuatu's total economy-wide emissions.

The trajectory of transport-related CO2 emissions in Vanuatu has accelerated significantly since the Paris Agreement. Prior to 2015, the sector's emissions grew at an annual rate of 5.1%; however, since the adoption of the Sustainable Development Goals (SDGs) and the Paris Agreement, this growth rate has surged to 7.8% annually. This escalation is reflected in the economy's transport carbon intensity; emissions per unit of GDP rose from 81.8 gCO2e per USD in 2000 to 117.7 gCO2e in 2024. This figure is starkly higher than the 2024 averages for the Asia-Pacific region (29.0 gCO2e), the Pacific Islands subregion (56.6 gCO2e), and other low and lower-middle-income economies (23.8 gCO2e).

Structurally, road transport is the dominant source of emissions, representing 86% of total transport emissions and 19% of the national total. In contrast, domestic navigation and domestic aviation each contributed 7% in 2024, while rail remains non-existent. Furthermore, the infrastructure itself carries an environmental burden, with an estimated 244,000 tonnes of material utilized annually for expansion and maintenance, resulting in 8,000 tonnes of CO2-equivalent embodied emissions per year.

In 2023, the transport sector's energy demand reached 3,063 terajoules. The annual growth rate of energy use accelerated from 6% (2000–2010) to 7% since 2010. Energy intensity relative to GDP also kept rising. Vanuatu used 2.6 megajoules (MJ) per USD of GDP in 2023, up from 1.77 MJ in 2000. This level is very inefficient compared to the Asia-Pacific average of 0.37 MJ per USD. Importantly, the sector remains fully reliant on fossil fuels; all transport energy comes from oil products, unchanged since 2010. In 2023, the share of biofuels and electricity in the transport energy mix was <1%.

Vanuatu is situated in one of the world's most disaster-prone regions. Since 2000, the country has recorded 26 natural disasters—primarily storms (46%), earthquakes (12%), and flooding (8%)—which have affected 1.2 million people and resulted in economic costs exceeding USD 580,000. The transport network is particularly susceptible, with projected average annual losses to infrastructure estimated at USD 1.6 million, or 0.144% of GDP. These losses are heavily concentrated in the road sector (89%), followed by ports (8%) and airports (3%). Nationally, Vanuatu ranks 158th out of 208 countries in National Road Vulnerability, highlighting a high risk of network failure during disaster events. Additionally, 1% of the population resides in low-elevation coastal zones vulnerable to sea-level rise.

Motorization rates have risen from 238 vehicles per thousand population in 2000 to 271 in 2024, though this remains below the Asia-Pacific average of 317. The vehicle fleet is dominated by two-wheelers (70%), followed by trucks (19%) and Light Duty Vehicles (LDV) (9%). While the value of bus imports more than doubled between the 2010–2015 and 2015–2024 periods, reaching USD 21.3 million, <1% of this trade involved electric buses. Electric vehicle (EV) adoption remains in its infancy, with EV imports totaling USD 744,000 between 2017 and 2024—representing only 1% of total road vehicle imports. The majority of these imports (93%) are LDVs. Vanuatu's E-mobility Readiness Index score is 47/100, with particularly low scores in technology/market (5) and financial instruments (8).

Official Development Assistance (ODA) for transport has increased significantly, rising from USD 105.5 million (2002–2010) to USD 250.1 million (2011–2023). Notably, the allocation of ODA has shifted away from a pure road focus (decreasing from 71% to 36%) toward a greater emphasis on ports (increasing from 19% to 49%). There has been no recorded public-private partnership (PPP) investment in the sector since 2000.

On the policy front, Vanuatu has several documents, including 8 climate-specific plans and strategies. The 2025 NDC 3.0 sets an economy-wide target of 30% below business-as-usual (BAU) for the energy sector, but it lacks a specific transport GHG target or a net-zero commitment. However, the NDC and Long-Term Strategies (LTS) do outline measures for biofuels, EV mandates, and shipping efficiency. Currently, 80% of identified policy measures focus on climate mitigation, while only 48% address adaptation and resilience. Key guiding documents beyond the NDC include the Vanuatu Roads for Development Program and the National Energy Road Map 2016-2030, which prioritize vehicle efficiency standards, transport regulations, and data collection.

Avoid: Vanuatu's approach to avoiding unnecessary transport demand and emissions is rooted in integrated land-use planning and climate-resilient infrastructure. The National Policy on Climate Change and Disaster-Induced Displacement emphasizes that relocation plans for vulnerable populations must incorporate essential services, specifically ensuring that transportation considerations are built into the design of new settlements to minimize forced or inefficient mobility. The Updated Vanuatu National Energy Road Map 2016-2030 complements this by seeking to consolidate the use of locally produced biofuels for electricity generation and transport, thereby reducing the carbon intensity of existing logistics and supply chains.

Vanuatu is working to promote low-carbon transportation by focusing on electrified public fleets and boosting maritime transport. The Vanuatu Updated NDC and the Low Emissions Development Strategy specify goals such as introducing electric buses for public transit and making all government vehicles electric by 2035. On a smaller scale, the government plans to deploy $1,000 electric two- and three-wheelers to improve last-mile connectivity with cleaner options. A key part of this effort is the Vanuatu NDC 3.0 commitment to the Pacific Blue Shipping Partnership (PBSP), which aims for a carbon-free maritime sector by 2050. This includes creating regulations to cut shipping greenhouse gases and turning major ports into climate-resilient "Green Ports." Additionally, the National Ocean Policy supports developing domestic ferry services as a sustainable way to connect islands through marine routes.

Improve: The "improve" pillar of Vanuatu's strategy focuses on rigorous efficiency standards and the adoption of renewable energy. The Vanuatu NDC Implementation Roadmap and the Vanuatu Updated NDC target a improvement in land and marine transport energy efficiency by 2030 through more efficient use of petrol, diesel, and aviation fuels. This is supported by the Vanuatu Low Emissions Development Strategy, which advocates for the introduction of mandatory fuel quality and vehicle emission standards to phase out inefficient technology. The Action Plan for CO2 Emissions Reduction from International Civil Aviation in Vanuatu highlights significant improvements in the aviation sub-sector, such as replacing classic runway lighting with LED systems at Port Vila and Tanna airports and exploring the feasibility of sustainable aviation fuels (SAF). To ensure long-term sustainability, the Updated Vanuatu National Energy Road Map 2016-2030 proposes reforming import duties and VAT to encourage the uptake of energy-efficient vehicles and renewable energy equipment, while the Vanuatu Low Emissions Development Strategy identifies the need to augment the National Human Resources Development Plan with a focus on clean technology skills to service the emerging electric vehicle fleet.

Furthermore, the Vanuatu NDC 3.0 mandates that all new government infrastructure investments undergo a "Resilience of Project Assets to Climate Change and Natural Disaster Risk" assessment, ensuring that the road network is designed with backup and low-vulnerability locations to prevent the socio-economic losses associated with climate-induced disconnection.