Unlocking Sustainable Transportation: How the World Bank Urges the EU to Embrace Innovation and Incentives for Decarbonisation

The transport sector in Europe is facing a tough challenge when it comes to cutting down emissions. Despite various policies, emissions have actually increased by 26% from 1990 to 2022, largely due to road transport. In contrast, other sectors have successfully reduced their emissions, according to a recent report from the World Bank.

To tackle this issue, the report suggests a stronger collaboration between public and private sectors. It calls for better funding and policies that encourage sustainable transport options. While electric mobility is promising, cost remains a hurdle for many people.

In 2023, the EU made up about a quarter of the global electric vehicle (EV) market. However, it’s crucial to support smaller, energy-efficient vehicles and to electrify commercial fleets. Innovative financing models for zero-emission trucks and buses are also needed.

Urban areas, where about 75% of Europeans live, play a key role in reducing emissions. Strategies like congestion charges and dynamic parking pricing could boost progress in cities. Additionally, rail freight has potential for decarbonisation but has seen a decline to just 17% of its modal share. By investing in better coordination and logistics, rail could become more competitive.

Experts recommend exploring funding options such as the Emissions Trading System (ETS) and increasing private sector involvement in infrastructure development. If the EU acts quickly and strategically, it can lower transport emissions while supporting economic growth.

Luis Martinez from the International Transport Forum emphasizes the need to integrate transport and land use planning. By doing so, cities can enhance sustainable mobility. For instance, cities like Pontevedra in Spain have seen benefits from policies restricting parking and car access.

On fleet electrification, Martinez highlighted that strict regulations and penalties for non-compliance are crucial to accelerate the shift. He pointed out that high-mileage EVs are already competitively priced. Furthermore, he noted that rail transport faces challenges like shipment size limits and service reliability. A third-party service could address these issues and promote rail freight demand, especially in developed countries.

Felipe Rodríguez from the International Council on Clean Transportation discussed the importance of innovative financing to promote the use of zero-emission trucks and buses. He suggested developing leasing models with service contracts and credit guarantees. This can lower costs and give businesses better access to financing. For example, when Amazon leased 200 electric trucks, it showed how large companies can help smaller firms adopt cleaner technology without financial strain.

Rodríguez also mentioned successful financing models from Latin America, like initiatives in Santiago and São Paulo, which could serve as examples for European cities. He advocates for policies that integrate public transport, cycling, and walking while reducing car reliance. Cities like Copenhagen and Amsterdam exemplify how reallocating road space can enhance mobility and quality of life, provided there’s good integration and equitable access to different transport modes.

Source link