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The success of implementing alternative fuels for road transport depends on their cost, performance and reliability. This paper focuses on the use of natural gas and LPG, hydrogen and biofuels in Europe. A brief presentation is given of their technical development status, their market potential, and barriers to their implementation in various market segments. Some market barriers are common to many new technologies, and can be overcome through adequate policy measures at European level. Generally, a combination of policies is required, and a number of supporting measures increase their effectiveness. The following policies affecting energy use in transport are discussed: market incentives, policies targeting technology and vehicle efficiency, and overall system improvement.

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