Kaushik Burman: Why we must divert the global $2 trillion fossil fuels subsidies.

With an estimated 700,000,000 kilometers ridden on Spiro's electric bikes, the company has saved around 176,000 tonnes of carbon dioxide emissions. Although this will attract an impressive $10.4 million in Carbon Credits, governments need to shift their thinking and increase funding for sustainable transportation, argues CEO Kaushik Burman.

In the wake of COP28, the global community stands at a pivotal crossroads. The pledges made — ambitious and forward-thinking — underscore a collective acknowledgment of the climate crisis's severity. Yet, the transition from words to action remains the greatest challenge. As the CEO of Spiro, sometimes heralded as the Tesla of Africa, I find myself reflecting on the role our organization plays in turning these pledges into reality.

Spiro's journey in Benin, Togo, Kenya and Rwanda — with expansions underway into Nigeria and Uganda, and imminent plans for Tanzania, Ghana, and the Ivory Coast — shows our commitment to electrifying Africa. With 12,000 bikes, over 7 million battery swaps, and a vision to increase our fleet to 30,000 by year-end, Spiro is leading the EV revolution.

The transition to electric vehicles (EVs) and renewable energy is an economic as well as an environmental imperative. Annually, global governments allocate US$ 2 trillion to fossil fuel subsidies, a practice that undermines the fight against climate change and stalls the progress towards cleaner, sustainable energy solutions. Redirecting these subsidies towards EV infrastructure and renewable energy initiatives could catalyze the transformation needed to meet our climate goals.

India's approach to fuel deregulation and subsidy management provides a compelling blueprint for balancing economic stability with environmental sustainability. The gradual shift of subsidies towards EVs, alternative fuels, and the development of charging and battery swapping infrastructure, supported by targeted schemes like the Production Linked Incentive (PLI), exemplifies how policy can stimulate domestic production and foster a sustainable economic ecosystem.

Spiro's vision for a Pan-African smart energy ecosystem echoes this call for strategic reallocation of resources. Our work, underpinned by innovative battery swapping technology and a commitment to affordability and accessibility, demonstrates the feasibility of sustainable urban mobility. However, the scale of change required to combat climate change demands more than individual corporate initiatives; it requires systemic policy shifts.

Governments must prioritize the development of EV and renewable energy infrastructure, learning from the century-plus journey of fossil fuel subsidy-driven growth. The transition presents an opportunity not only to address climate change but to stimulate economic development, create clean jobs, and reduce dependency on imported fuels.

As we stand "one minute to midnight" on the climate clock, the urgency for action has never been greater. Spiro's expansion across Africa, our commitment to deploying 30,000 bikes by the end of the year, and our role as the continent's largest EV player are milestones on this journey. Yet, the broader narrative must involve a collective effort — from governments, businesses, and communities worldwide.

The path forward requires turning the ambitious pledges of COP28 into concrete actions. By embracing models of subsidy reallocation, prioritizing sustainable development, and supporting initiatives like Spiro's, we can begin to craft a future that aligns with our shared vision for a cleaner, greener, and more sustainable world. The transition to electric mobility and renewable energy is not just a choice but a necessity. Acting now is the only way to a healthier planet for future generations.