What we didThis report investigates the role of drones as part of the future transport mix. It specifically addresses the issues policy makers face in engaging with the emerging private drone sector. Drones for recreational purposes are not part of this study.Drones are already deployed in the transport sector in surveying and monitoring the condition of infrastructure. They also promise to provide innovative services in freight delivery, passenger transport and disaster relief. With the sector developing at a rapid pace, regulators will want to create frameworks for drone use that allow innovation while ensuring positive overall outcomes.The potential impacts of large commercial drone fleets are as yet not fully understood. Assessment of the potential impact on aviation has begun but appraisal is rarely addressed from a cross-sectoral perspective.Freight drones for urban goods deliveries and, eventually, drones for passenger travel, may have both positive impacts (e.g. improved connectivity in remote regions, traffic congestion alleviation, reduced travel times) and negative impacts (e.g. safety, privacy, noise, energy consumption, land use and visual amenity concerns). We explore how some of these impacts could be anticipated and included in appraisal guidelines to support the underlying policy goals of efficient, safe, sustainable and equitable transport.The insights in this report build on expert interviews, a review of published research and a workshop with 37 international experts held in San Francisco in November 2017. Attendees included drone manufacturers, leaders of regulatory, humanitarian and economic organisations as well as representatives of companies that utilise drones as a central component of their businesses, or are planning to do so.