Global Pathways to Net-Zero: Behavioral, Social, and Technological Research and Innovation Strategies for Transportation Decarbonization; Summary of the Seventh EU-U.S. Transportation Research Symposium: Proceedings of a Symposium (2024)
Chapter: Appendix A: White Paper on Decarbonization in the Transportation System: A Joint Perspective from the United States and the European Union
Appendix A
White Paper on Decarbonization in the Transportation System: A Joint Perspective from the United States and the European Union
Kelly Fleming, Federation of American Scientists, United States
Gereon Meyer, VDI/VDE Innovation + Technik GmbH, Germany
As the world faces the escalating challenge of climate change, the urgency to decarbonize transportation systems has never been more critical. As a significant contributor to greenhouse gas (GHG) emissions and to air pollution, the transportation sector requires concerted global efforts to reduce its carbon and pollutant emissions. In view of this major and urgent necessity, this white paper presents a collaborative approach between the United States (U.S.) and the European Union (EU), aimed at synergizing efforts toward a sustainable future. The goal is to foster a transatlantic dialogue that facilitates sharing of knowledge, enhances collaboration in research and innovation, and accelerates the adoption of effective strategies for the development and deployment of climate- and environment-friendlier vehicles and services across all modes in the transportation and mobility domain.
At the same time, the paper aims to set the scene for the Seventh EU-U.S. Transportation Research Symposium, organized by the European Commission, the U.S. Department of Transportation (U.S. DOT), and the Transportation Research Board (TRB) in June 2024 in Washington, DC, where this dialogue will be realized. The title of this event is Global Pathways to Net-Zero: Behavioral, Social, and Technological Research and Innovation (R&I) Strategies for Transportation Decarbonization. It builds on key governance frameworks, including the Agreement on Scientific and Technological Cooperation (2023),1 the Bilateral Implementing Agreement for Cooperative Activities in the Field of Research, Development, Technology and Innovation for all Modes of Transport between U.S. DOT and the European Union (2013), as well as insights from previous symposia focused on decarbonization and climate change mitigation, such as Adaptation to Climate Change (2016) and Decarbonizing Transportation for a Sustainable Future: Mitigating Impacts of the Changing Climate (2017). At the political level, the Joint Communiqué by the U.S. DOT Secretary Pete Buttigieg and the European Commissioner for Transport, Adina Vălean on Transatlantic Cooperation from May 2023 supports the ongoing cooperation in aviation and maritime
___________________
1 Council of the European Union, “Council Decision (EU) 2023/2073 of 25 September 2023 Concerning the Extension of the Agreement for Scientific and Technological Cooperation Between the European Community and the Government of the United States of America,” September 2023, https://op.europa.eu/en/publication-detail/-/publication/b74dfd83-5dcb-11ee-9220-01aa75ed71a1/language-en.
transport, as well as issues of common interest in transportation, such as international collaboration to fight climate change and decarbonize transport.2
While the exchange primarily aims to explore common priorities and instruments of coordinated research and innovation activities, it extends to examining public policies, industrial strategies, and regulatory frameworks that underpin the use of new knowledge and practices. Such a comprehensive approach is critical to understanding and implementing the transformative changes needed to achieve decarbonization goals in a sector as complex and multifaceted as transportation. According to this paradigm, the dialogue focuses on the overarching policies and measures implemented by the United States and the European Union at the federal and union levels. Nonetheless, mobility choices and transportation policy occasionally reflect the variety of regional conditions. Therefore, activities at the U.S. state or EU Member State level and particularly in urban areas are also discussed when there is particular relevance or particularly innovative approaches to the decarbonization challenge.
Structured to provide both a comprehensive overview and detailed insights into the challenges of decarbonizing the transportation sector, this white paper is organized into several focused sections. It begins by highlighting the critical issues associated with transportation emissions, including the climate crisis, impacts on human health, ecosystems, and the economy. Following this, the paper reviews current U.S. and EU policies and programs, showcasing successful collaborations and detailing the strategies, technologies, and infrastructures being implemented. It delves into the social, economic, and environmental implications, emphasizing the effects on underserved communities, affordability issues, as well as competitiveness and workforce impacts. The paper also addresses challenges of and barriers to decarbonization, such as technological limitations and slow adoption rates. Furthermore, it explores new and emerging technologies in research and innovation, offering insights into future enablers of transportation decarbonization, including the potential role of artificial intelligence (AI). The white paper concludes with key research questions and opportunities for collaboration, setting the stage for further discussion and exploration of effective strategies for a sustainable and resilient transportation future. Complementing the white paper, a series of briefing papers will detail exploratory topics and include lead questions to guide discussions at the symposium, ensuring a thorough examination of the subject matter.
TRANSPORTATION EMISSIONS
Globally, GHG emissions from the transportation sector make up the largest share of any economic sector at 23%, and continue to grow (see Figure A-1).3 According to the U.S. Environmental Protection Agency (EPA), in 2021 transportation emissions made up 28% of all emissions in the United States, shown in Figure A-2.4 Of those emissions, 58% are from on-road light-duty vehicles (LDVs), 23% are from on-road medium- and heavy-duty vehicles, 8% are from aircraft, 3% from marine, 2% from rail, and 6% from other modes such as transit, motorcycles, and pipelines.5 In the European Union, like in the United States, road transportation constitutes the highest proportion of overall transportation emissions—emitting 76% of all transportation GHG emissions in 2021,6 while rail causes less than 1%, and marine and aviation contribute the rest about equally. The large share of emissions
___________________
2 European Commission’s Directorate-General for Mobility and Transport, “Joint Communiqué by the U.S. Department of Transportation Secretary Pete Buttigieg and the European Commissioner for Transport, Adina Vălean on Transatlantic Cooperation,” May 2023, https://transport.ec.europa.eu/news-events/news/joint-communique-us-department-transportation-secretary-pete-buttigieg-and-european-commissioner-2023-05-30_en.
3 International Energy Agency, “Global Energy-Related CO2 Emissions by Sector,” July 2020, https://www.iea.org/data-and-statistics/charts/global-energy-related-co2-emissions-by-sector.
4 U.S. Environmental Protection Agency, “Sources of Greenhouse Gas Emissions,” https://www.epa.gov/ghgemissions/sources-greenhouse-gas-emissions (accessed April 2024).
5 U.S. Environmental Protection Agency, “Fast Facts on Transportation Greenhouse Gas Emissions,” https://www.epa.gov/greenvehicles/fast-facts-transportation-greenhouse-gas-emissions (accessed April 2024).
6 European Environment Agency, “Greenhouse Gas Emissions from Transport in Europe,” October 2023, https://www.eea.europa.eu/en/analysis/indicators/greenhouse-gas-emissions-from-transport.
SOURCE: International Energy Agency. 2020. “Global Energy-Related CO2 Emissions by Sector.” https://www.iea.org/data-and-statistics/charts/global-energy-related-co2-emissions-by-sector. CC BY 4.0.
SOURCE: U.S. Environmental Protection Agency. https://www.epa.gov/ghgemissions/sources-greenhouse-gas-emissions.
is a result of the vehicle’s reliance on combustion engines, where more than 90% of the fuel used for transportation is petroleum-based, producing carbon dioxide when it is combusted in an internal combustion engine (ICE).7
However, carbon dioxide is not the only harmful emission associated with combustion engines. Petroleum-based fuels contain impurities that contribute to nitrogen oxide (NOx) emissions, particulate matter, carbon monoxide, and other emissions that contribute to significant public health and environmental problems. Emissions can lead to serious health issues such as asthma, birth defects, premature death, and heart disease. These impacts are disproportionately impacting underserved and disadvantaged communities and have immense and lasting economic impacts.8
In the United States, pipelines are a primary mode of freight transportation for fuels including natural gas (methane), oil, hydrogen, and carbon dioxide. While pipelines account for 4% of known transportation emissions, pipeline leaks and failures are a major issue and are responsible for the majority of emissions from pipelines. Regulatory actions to monitor and mitigate pipeline leaks have been a major priority in the United States and other countries, in addition to reducing our use of fossil fuels that are transported through them.
In the United States and the European Union, emissions from transportation continue to grow as demand for travel grows, especially with the rise of e-commerce and delivery. Added demand from shipping has raised the emissions and demand for movement from aviation, marine, and heavy-duty vehicles.9,10 The rise of larger, heavier sport utility vehicles (SUVs), which is present in nearly all automotive markets around the world, significantly impacts the energy and fuel consumption and CO2 emissions of road vehicles, while being just partially offset by the lower energy consumption of electric vehicles.11 The relative size of LDVs has also increased in the United States, and a majority of emissions from LDVs come from “light trucks” including SUVs, pickup trucks, and minivans, partly as a result of the deviation of emission rules between light-duty cars and light-duty trucks as defined by the footprint of the vehicle.12
EPA is working to remedy this through its latest GHG Rule, stating: “In assessing new footprint curves, EPA wanted to (a) reduce the likelihood of change to average vehicle footprint as a compliance strategy and (b) to minimize the incentive to shift vehicle attributes and the resulting car/truck classification as a compliance strategy.”13
In the European Union, where transportation also makes up about a quarter of emissions, the largest growth comes from the aviation sector rather than on-road vehicles.14 Differences in urban layout, geography, and population sprawl result in obvious different areas of focus for emission reductions. However, policies can address the adoption of technologies in both the United States and the European Union that will result in the largest reduction in emissions.
___________________
7 Reitz, R. D., H. Ogawa, R. Payri, T. Fansler, S. Kokjohn, Y. Moriyoshi, A. K. Agarwal, D. Arcoumanis, D. Assanis, et al., “IJER Editorial: The Future of the Internal Combustion Engine,” International Journal of Engine Research, 21(1), 3–10, 2020, https://www.osti.gov/servlets/purl/1607021.
8 U.S. Environmental Protection Agency, “Research on Health Effects, Exposure, & Risk from Mobile Source Pollution,” https://www.epa.gov/mobile-source-pollution/research-health-effects-exposure-risk-mobile-source-pollution (accessed April 2024).
9 Biniaz, S., “A Key Moment to Advance Green Shipping,” U.S. Department of State, July 2023, https://www.state.gov/advance_green_shipping.
10 Muñoz-Villamizar, A., J. C. Velázquez-Martínez, P. Haro, A. Ferrer, and R. Mariño, “The Environmental Impact of Fast Shipping Ecommerce in Inbound Logistics Operations: A Case Study in Mexico,” Journal of Cleaner Production, 283, 125400, 2021, https://www.sciencedirect.com/science/article/abs/pii/S0959652620354469.
11 Global Fuel Economy Initiative, Trends in the Global Vehicle Fleet 2023, November 2023, https://www.globalfueleconomy.org/data-and-research/publications/trends-in-the-global-vehicle-fleet-2023.
12 U.S. Environmental Protection Agency, 2023 EPA Automotive Trends Report, December 2023, https://www.epa.gov/automotive-trends/download-automotive-trends-report.
13 U.S. Environmental Protection Agency, Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and Medium-Duty Vehicles: Regulatory Impact Analysis, March 2024, EPA-420-R-24-004, https://nepis.epa.gov/Exe/ZyPDF.cgi?Dockey=P1019VPM.pdf.
14 European Environment Agency, “Transport and Mobility,” https://www.eea.europa.eu/en/topics/in-depth/transport-and-mobility (accessed April 2024).
CURRENT U.S. AND EU POLICIES AND PROGRAMS
Opportunities for Alignment
Both the United States and the European Union have taken steps recently to address GHG emissions from transportation through technology deployment. Europe differs greatly from the United States in terms of policy implementation, political landscape, geography, and domestic resources, which make them both very different cases, but complementary in some ways.
European countries tend to be more densely populated with better access to public transportation and historically grown trans-national railway networks and shorter distances between cities.15 Because of these features, more emphasis can be placed on improving current infrastructure, shifting modes to less polluting ones such as bicycling and trains, and reducing on-road vehicle travel.
The United States, on the other hand, has historically been dominated by on-road vehicle travel partly due to its size, but also because the auto industry has remained a major economic generator for the country. Because of this, U.S. policies have focused on the auto industry both through regulation and incentives; however, these efforts have been met with resistance from the fossil fuel industry and the legacy automotive industry.16
Another main difference between transportation policy in the European Union and the United States lies in their respective degrees of centralization and institutional management. The U.S. transportation system, which historically implemented comprehensive planning of railroads and highways, today operates through a decentralized approach, involving collaboration between local stakeholders, national agencies, and legislative branches. In contrast, the European Union’s current approach is characterized by detailed transnational planning set by the European Commission, including the Trans-European Transport Network (TEN-T) with less direct control over national governments’ actions.17
Current Policies and Programs
United States
The U.S. policy landscape is limited by political realities of the two-party system, and the relationship between Congress, the Executive Branch, and the Judicial system. Despite those challenges, the 2022 Inflation Reduction Act18 (IRA) was passed as the most significant climate legislation in the history of the United States. The IRA followed other significant legislation for climate including the CHIPS and Science Act19 and the Infrastructure Investment and Jobs Act (IIJA),20 both of which were passed with bipartisan support from Republicans and Democrats in Congress. Because of the U.S. filibuster rule in Congress, only legislation that is directly tied to the budget reconciliation process can be passed without 60 votes in the Senate. For this reason, the IRA only has policies in place in the form of appropriated funds for grants and tax credits—resulting in a major focus on incentives for clean energy and climate technology from the federal government.
Those legislative acts passed between 2021 and 2022 were critical in expanding new grant programs at the U.S. Department of Energy (U.S. DOE) for clean fuels, battery technologies, community engagement, and infrastructure investment including deployment programs for those technologies. Tax incentives for electric vehicles and chargers have garnered attention for the strict domestic content requirements and price caps they are now
___________________
15 Bertaud, A., and H. W. Richardson, “Transit and Density: Atlanta, the United States and Western Europe,” in Urban Sprawl in Western Europe and the USA, edited by H. W. Richardson and C.-H. C. Bae, Routledge, 2004, Chapter 17, https://courses.washington.edu/gmforum/Readings/Bertaud_Transit_US_Europe.pdf.
16 Tabuchi, H., “The Oil Industry’s Covert Campaign to Rewrite American Car Emissions Rules,” The New York Times, December 2018, https://www.nytimes.com/2018/12/13/climate/cafe-emissions-rollback-oil-industry.html.
17 Gordon, C., “Transportation Policy in the European and American Unions Compared: Lessons in Transportation Federalism,” Public Works Management & Policy, 9(4), 292–304, 2005.
18 H.R.5376—Inflation Reduction Act of 2022, August 2022, https://www.congress.gov/bill/117th-congress/house-bill/5376/text.
19 H.R.4346—Chips and Science Act, August 2022, https://www.congress.gov/bill/117th-congress/house-bill/4346.
20 H.R.3684—Infrastructure Investment and Jobs Act, November 2021, https://www.congress.gov/bill/117th-congress/house-bill/3684.
subject to.21 However, other significant credits important to EVs include manufacturing credits for battery production and storage facilities,22 which has resulted in a significant increase in U.S. automakers and battery suppliers opening new facilities in states such as Georgia and North Carolina.23 The IRA also implemented tax credits for clean fuels, with an additional incentive to produce sustainable aviation fuel (SAF). In particular, clean fuels can benefit from numerous tax incentives from the IRA that can be stacked together. The clean fuel production credit, 45Z, can be claimed along with any state credits from programs such as the Low Carbon Fuel Standard (LCFS), and the Renewable Fuel Standard (RFS). For fuels made synthetically, credits can also be claimed for the clean production of hydrogen (45V) and carbon capture (45Q). Claiming each of these can make some business models extremely profitable.24
Incentives in the forms of grants and loans were also a large part of recent climate legislation, which provide amounts up to $300 million in grants for new manufacturing or recycling facilities for batteries to help address battery supply chain issues and incentivize domestic producers to scale manufacturing facilities in the United States.25 Federal loans are also a potential avenue for new clean energy technologies to secure government-backed, low interest loans that will specifically address innovative new clean technologies or help scale up the deployment of technologies with large emission reduction impacts.
The bipartisan IIJA legislation implemented some major programs and funding pots for transportation decarbonization. Of major note was the inclusion of $7.5 billion for Alternative Fueling Corridors, which have mainly been focused on building out a network of EV charging technologies. Of note, the National Electric Vehicle Infrastructure (NEVI) program made money available through partnerships with the states if the charging infrastructure complied with minimum standards. NEVI minimum standards made several things mandatory in order to receive funding for projects, including minimum operating time and reliability, public accessibility, a standard for interoperability and non-proprietary technology, and minimum percentages of “Build America, Buy America” products.26 These rules have subsequently shaped the private-sector approach to manufacturing, installing, and approaching charging networks. IIJA also created the Joint Office of Energy and Transportation, which is the program where work on electric transportation infrastructure is conducted, along with other areas where U.S. DOE and U.S. DOT overlap in their priorities and goals.27
State DOTs are crucial for U.S. DOT as it implements its decarbonization programs. The majority of grant money from U.S. DOT is given to the state DOTs contingent on their plans, or through a competitive application process. DOTs at the state level vary widely in their priority areas, especially as economics, geography, and population patterns are unique in every state and city. Collaboration between states and the federal government is an essential step to ensure that funding is being allocated and implemented in the most effective and efficient way possible.
Research and development are an important federal investment for transportation technology and system advancement. Many of the grants in the IRA will come in the form of support for research and development at U.S. DOT and U.S. DOE to continue making progress in new technologies such as new battery chemistries, charging technologies, materials for vehicles and roads, automated technology, and efficiency improvements for the transportation system. The support of research and development is critical to ensure that technology continues to progress to a point that it
___________________
21 Internal Revenue Service, “Credits for New Clean Vehicles Purchased in 2023 or After,” https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after (accessed April 2024).
22 Internal Revenue Service, “Treasury, IRS Issue Guidance for the Advanced Manufacturing Production Credit,” December 2023, https://www.irs.gov/newsroom/treasury-irs-issue-guidance-for-the-advanced-manufacturing-production-credit.
23 U.S. Department of Energy, “American-Made Batteries: New U.S. Battery Manufacturing and Supply Chain Investments Announced Under President Biden,” February 2023, https://www.energy.gov/sites/default/files/2023-02/Battery%20Supply%20Chains%20Investments%20Map.pdf.
24 Sadler, J., “Stacking Rules, Bonus Credits, and the Future Industrial Markets the IRA Aims to Create,” Rocky Mountain Institute, September 2023, https://rmi.org/stacking-rules-bonus-credits-and-the-future-industrial-markets-the-ira-aims-to-create.
25 U.S. Office of Energy Efficiency & Renewable Energy, Vehicle Technologies Office, “Electric Vehicle Battery Manufacturing Capacity in North America in 2030 Is Projected to Be Nearly 20 Times Greater Than in 2021,” January 2023, U.S. Department of Energy, https://www.energy.gov/eere/vehicles/articles/fotw-1271-january-2-2023-electric-vehicle-battery-manufacturing-capacity.
26 U.S. Department of Transportation, “National Electric Vehicle Infrastructure Standards and Requirements: Final Rule,” February 2023, https://www.transportation.gov/bipartisan-infrastructure-law/regulations/2023-03500.
27 Joint Office of Energy and Transportation, “About the Joint Office,” https://driveelectric.gov/about (accessed April 2024).
can be deployed, such as we have seen with U.S. DOE’s continued investment into battery research and development in the Vehicle Technology Office, the Hydrogen and Fuel Cell Technology Office, and the Bioenergy Technology office as well as the Advanced Research Projects Agency offices, ARPA-E and ARPA-I. This research has resulted in foundational data used for policy actions and continued progress in technology.28
The U.S. DOT Office of Research, Development, and Technology Programs for University Transportation Centers (UTCs), research hubs, and program management are funded. Research funded by U.S. DOT totals about $1 billion per year to continue advancing research priorities. While research at U.S. DOT spans safety, economics, equity, and technology transformation, it has recently made climate and sustainability an agency-wide and research priority. Priorities for decarbonization include electrification, alternative fuels, and embodied carbon in structures such as roads and bridges used for transportation.29 U.S. DOT also has outlined a Research, Development, and Technology Strategic Plan (RDT) for fiscal year 2022–2026 that outlines an approach to monitoring and guiding the use of emerging technologies such as artificial intelligence to improve the efficiency and accessibility of transportation.
The Biden administration has signaled through agency goals and executive actions what areas are priorities for decarbonization. Of significance to reduce transportation emissions from aviation, U.S. DOE, U.S. DOT, and the U.S. Department of Agriculture (USDA) have signed a memorandum of understanding for the SAF Grand Challenge which creates a goal of reducing GHG emissions for SAF compared to jet fuel and producing enough SAF to meet aviation fuel demand by 2050.30 While this is not a statutorily mandated program, it has resulted in several areas of research and funding through U.S. DOE and U.S. DOT that emphasize the research into new SAF chemistries and that support the scale-up of proven SAF technologies and infrastructure.
California
California is the leading state in the United States for transportation policy. In California, 50% of GHG emissions are from transportation,31 so it has been identified as a main priority to cut for meaningful progress on climate goals. Programs and policies are targeted at increasing the adoption of zero-emission vehicles and charging infrastructure, using lower-carbon fuels, and reducing passenger miles.32 In 1976, EPA granted California the power to regulate its own pollution standards to address increasingly difficult smog issues under the Clean Air Act.33 This provision also allows other states to adopt California’s standards (section 177). Under these rules, California and other states have implemented stricter fuel economy standards, zero-emission vehicle mandates, and regulations for criteria emissions.34
California implemented the first LCFS, which creates a crediting program for fuel producers, including renewable electricity, that fuel transportation. The value of the credit is based on carbon intensity of the fuel source. This program has resulted in decreasing emissions from the biofuel industry and has helped create the market for zero-emission vehicles.35 California has also issued a number of aggressive policies for electric vehicles including
___________________
28 U.S. Office of Energy Efficiency & Renewable Energy, Vehicle Technologies Office, Analysis Program: 2022 Annual Progress Report, 2022, U.S. Department of Energy, https://www.energy.gov/sites/default/files/2023-10/2022%20VTO%20Analysis%20Annual%20Progress%20Report%20-%20FINAL%20091223_compliant_.pdf.
29 U.S. Department of Transportation, Research, Development, and Technology Strategic Plan 2022–2026—Building a Better Transportation Future for All, December 2022, https://www.transportation.gov/sites/dot.gov/files/2023-01/USDOT%20RDT%20Strategic%20Plan%20FY22-26_010523_508.pdf.
30 U.S. Office of Energy Efficiency & Renewable Energy, Bioenergy Technologies Office, “Sustainable Aviation Fuel Grand Challenge,” U.S. Department of Energy, https://www.energy.gov/eere/bioenergy/sustainable-aviation-fuel-grand-challenge (accessed April 2024).
31 California Energy Commission, “Transforming Transportation,” https://www.energy.ca.gov/about/core-responsibility-fact-sheets/transforming-transportation (accessed April 2024).
32 Brown, A. L., D. Sperling, B. Austin, J. R. DeShazo, L. Fulton, T. Lipman, C. Murphy, J. D. Saphores, G. Tal1, et al., Driving California’s Transportation Emissions to Zero, University of California Institute of Transportation Studies, April 2021, https://doi.org/10.7922/G2MC8X9X.
33 U.S. Environmental Protection Agency, “Vehicle Emissions California Waivers and Authorizations,” https://www.epa.gov/state-and-local-transportation/vehicle-emissions-california-waivers-and-authorizations (accessed April 2024).
34 Ibid.
35 California Air Resources Board, “FAQ: The Standardized Regulatory Impact Assessment for the Low Carbon Fuel Standard,” https://ww2.arb.ca.gov/resources/documents/faq-standardized-regulatory-impact-assessment-low-carbon-fuel-standard (accessed April 2024).
the Advanced Clean Cars Act, Advanced Clean Trucks, and Advanced Clean Fleets, which require an increasing percentage of zero-emission vehicles in the light-duty, medium-duty, and heavy-duty sectors, respectively.36
European Union
The European Union has embarked on an ambitious journey to decarbonize transportation, anchored in a comprehensive suite of policies and programs designed to achieve climate neutrality and zero air pollution by 2050. At the heart of these efforts is the European Climate Law, a central element of the European Green Deal,37 which sets forth a vision for a net-zero GHG emissions economy, aiming to decouple economic growth from resource use while ensuring that no person and no place are left behind in the transition to a green economy. For transport-related GHG emissions, the European Green Deal sets the sector-specific goal of achieving a 90% reduction by 2050.
Central to the European Union’s strategy is the Fit for 55 package,38 a comprehensive set of legislative proposals that are key for the European Green Deal, which is designed to reduce the European Union’s GHG emissions by 55% by 2030, compared to 1990 levels. It includes the target to phase out internal combustion engine (ICE) vehicles by 2035. Its interim reduction targets are −55% for cars and −50% for vans by 2030, with the ultimate goal of achieving a complete transition to zero-emission vehicles. While there have been setbacks and delays in fully passing the ban on ICE cars by 2035 in the European Union, primarily due to debate on exceptions for cars that operate solely on carbon-neutral fuels such as e-fuels, negotiations are ongoing to address these issues.
The European Union has set specific CO2 emission standards39 for passenger cars, vans, and trucks to reduce GHG emissions and promote cleaner vehicles. For passenger cars and light-duty vehicles (vans), these imply a stepwise reduction of fleet-wide average CO2 emissions per kilometer for new cars, leading to the zero-CO2 emission target from 2035 onward. As of 2025, manufacturers must meet fleet-wide average CO2 emission targets for new heavy-duty vehicles (i.e., lorries) registered in the European Union, at first a 15% reduction compared to the EU average in the reference period, and 30% by 2030. There are financial penalties for non-compliance with these targets.
Complementing these vehicle-related measures, the Alternative Fuels Infrastructure Regulation (AFIR)40 seeks to enhance the infrastructure necessary for alternative fuels, paving the way for a broader adoption of zero-emission vehicles. The AFIR is a binding legal instrument that mandates EU countries, charge point operators (CPOs), and electric mobility service providers adhere to specific rules when deploying public electric vehicle charging infrastructure. It sets targets (e.g., for power capacity and distance-based coverage along major roads and motorways) to ensure a robust charging network that meets demand. The AFIR goes beyond electric road mobility, though, as it also aims to ensure that there is a sufficient infrastructure network for recharging or refueling ships with alternative fuels. This includes providing solutions so that vessels at berth and stationary aircraft do not need to keep their engines running, contributing to reducing emissions and promoting cleaner transportation.
The Smart and Sustainable Mobility Strategy41 further elaborates on the European Union’s vision for decarbonizing transportation, with flagships on technology-neutral but not fossil fuel–based vehicles—for example, by aiming for all city buses to be zero-emission by 2030. It emphasizes carbon pricing, green freight, and better incentives through the “polluter pays” principle and supports informed consumer choices.
___________________
36 California Air Resources Board, “Advanced Clean Cars II,” https://ww2.arb.ca.gov/our-work/programs/advanced-clean-cars-program/advanced-clean-cars-ii (accessed April 2024).
37 European Commission, “The European Green Deal: Striving to Be the First Climate-Neutral Continent,” https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal_en (accessed April 2024).
38 Council of the European Union, “Fit for 55,” https://www.consilium.europa.eu/en/policies/green-deal/fit-for-55-the-eu-plan-for-a-green-transition (accessed April 2024).
39 European Commission, “CO2 Emission Performance Standards for Cars and Vans,” https://climate.ec.europa.eu/eu-action/transport/road-transport-reducing-co2-emissions-vehicles/co2-emission-performance-standards-cars-and-vans_en (accessed April 2024).
40 Council of the European Union, “Alternative Fuels Infrastructure: Council Adopts New Law for More Recharging and Refueling Stations Across Europe,” July 2023, https://www.consilium.europa.eu/en/press/press-releases/2023/07/25/alternative-fuels-infrastructure-council-adopts-new-law-for-more-recharging-and-refuelling-stations-across-europe.
41 European Commission’s Directorate-General for Mobility and Transport, “Mobility Strategy,” https://transport.ec.europa.eu/transport-themes/mobility-strategy_en (accessed April 2024).
The Urban Mobility Framework, another cornerstone of the European Union’s strategy, focuses on creating more sustainable urban transportation systems, while the TEN-T urban nodes initiative seeks to integrate urban mobility with broader trans-European networks, enhancing connectivity and sustainability.
In the realm of research and innovation, the long-term strategy for decarbonizing transportation has been presented in the framework of the Strategic Transport Research and Innovation Agenda (STRIA) of the European Commission, particularly in the roadmaps on the “Electrification of the Transport System” (2017)42 and on “Low-Emission Alternative Energy for Transport” (2020).43 In terms of planning and implementing research, a number of European partnerships stand out, including the co-programmed partnerships “Towards Zero Emission Road Transport” (2Zero) and “Zero-Emission Waterborne Transport” (ZEWT), and the institutionalized partnerships “Transforming Europe’s Rail System” and “Clean Aviation.” These partnerships are fostering collaboration between public and private stakeholders to accelerate the development of zero-emission transportation solutions. Moreover, the European Mission “Climate-Neutral and Smart Cities” is implementing research and innovation for decarbonizing transportation and mobility, and additionally, the New European Bauhaus is playing an important role in driving the development and deployment of sustainable, inclusive, and innovative mobility solutions as part of transforming public spaces, buildings, and cities toward a greener and more livable future.
Not least, European Technology Platforms such as the European Road Transport Research Advisory Council (ERTRAC)44 are outlining the research priorities and technological pathways to achieving the European Union’s decarbonization goals in their Strategic Research Agenda and Vision, notably in the ERTRAC Roadmap on “Sustainable Energies and Powertrains for Road Transport.”
Besides the implementation of the European Green Deal in transportation and research policies, it is also relevant for industry policy. Established as a response to industrial policies in the United States (such as the IRA) and in China, the Green Deal Industrial Plan45 aims to scale up manufacturing of clean technologies, such as batteries for electric vehicles, in the European Union. The plan is covering four pillars: a predictable and simplified regulatory environment, faster access to funding, enhancing the necessary skills, and open trade for resilient supply chains. Thereby, it further continues the path of promoting innovative and strategically important key technologies which started with the Important Projects of Common European Interest (IPCEI), that allow European Members States to fund large-scale European consortia in key strategic value chains on, for example, microelectronics, batteries, and hydrogen.46
EU-U.S. Collaboration
For many years, the United States and the European Union, or their respective states and Member States, have exchanged knowledge and coordinated their policies in the domain of decarbonizing transportation. Examples include the Electric Vehicles Initiative (EVI) of the Clean Energy Ministerial and the Technology Collaboration Programme Hybrid and Electric Vehicles (HEV-TCP) of the International Energy Agency (IEA). A recent outcome of this collaboration is the Global Memorandum of Understanding for Zero Emission Trucks in which signatories commit to working together to enable 100% zero-emission new truck and bus sales by 2040 to facilitate achievement of net-zero carbon emissions by 2050, with an interim goal of 30% zero-emission vehicle sales by 2030. It has been signed by the United States and eight EU Member States.
___________________
42 European Commission’s Directorate-General for Research and Innovation, Electrification of the Transport System, Expert Group Report, Publications Office, 2017, https://op.europa.eu/en/publication-detail/-/publication/253937e1-fff0-11e7-b8f5-01aa75ed71a1.
43 Bauen, A., I. Gomez, E. Nanaki, D. OudeNijeweme, M. Paraschiv, and R. Schoentgen, STRIA Roadmap on Low-Emission Alternative Energy for Transport (ALT), May 2020, European Commission’s Directorate-General for Mobility and Transport, https://trimis.ec.europa.eu/system/files/2021-03/alternative_fuels_stria_april2020_final_version_newcover_0.pdf.
44 European Road Transport Research Advisory Council (ERTRAC), https://www.ertrac.org.
45 European Commission, “The Green Deal Industrial Plan—Putting Europe’s Net-Zero Industry in the Lead,” https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal/green-deal-industrial-plan_en (accessed April 2024).
46 European Commission, “Important Projects of Common European Interest (IPCEI),” https://competition-policy.ec.europa.eu/state-aid/ipcei_en (accessed April 2024).
In 2022, U.S. DOE and the European Commission announced support for a collaboration between the European Battery Alliance and the U.S. Li-Bridge Alliance to accelerate development of robust supply chains for lithium-ion and next-generation batteries, including the critical raw materials segments.47 The joint activities aim to develop sustainable industrial capabilities for the growing battery demand in transportation and energy, advance research in eco-friendly technologies, ensure ethical sourcing of raw materials, accelerate recycling and reuse, invest in workforce development, and prioritize environmental justice in the clean energy transition.
Standardization represents a successful area of collaboration between the European Union and the United States in enhancing the transportation system, especially aimed at decarbonization. This partnership specifically focuses on establishing joint standards for electric vehicle charging infrastructure, a commitment reaffirmed during the 2023 meeting of the EU-U.S. Trade and Technology Council.48
The U.S.-EU Trade and Technology Council also released a joint report on smart grid interoperability and electromobility in May 2023. The goal was to identify common gaps with standards for e-mobility infrastructure, support the development of smart charging infrastructure, and invest in research and development of new technologies. The report outlines several recommendations between the European Union and the United States,49 including the following:
- Develop a joint standards support strategy (e.g., charging interoperability standards and plug standards);
- Support the development and implementation of cost-effective smart charging infrastructure to avoid stranded assets; and
- Direct research and development to support the consumer, grid, and industry.
DEPLOYED STRATEGIES, TECHNOLOGIES, AND INFRASTRUCTURES
Current Approaches
Vehicle Electrification
Experts agree that on-road transportation will shift to EVs. EVs are less GHG-emitting than internal combustion engine vehicles, even in areas where electricity is produced primarily from coal.50 EVs use stored energy from either a battery or a fuel cell to power the motor. Battery electric vehicles (BEVs) are the most common type of EV, but fuel cell electric vehicles (FCEVs) have also existed for decades. Plug-in hybrid vehicles (PHEVs) contain both an electric motor and an ICE that can be used if the battery is depleted. Challenges and costs associated with producing, transporting, and storing clean hydrogen on the vehicle have made the technology slower to be adopted than BEVs. A systemic and life-cycle perspective is crucial for accurately assessing the decarbonization benefits of EVs. For example, the higher GHG emissions during the manufacturing phase are offset by the lower-use-phase emissions, resulting in an overall significant reduction in GHG emissions from BEVs compared to conventional vehicles.
Globally, much of the electric vehicle market has been driven by sales of micromobility vehicles such as mopeds, scooters, and e-bikes. EV sales in the United States are accelerating as new models of light cars and trucks are introduced and prices drop, thanks in part to the incentives and regulations discussed in the prior chapter.
___________________
47 U.S. Department of Energy, “DOE and European Commission Support Collaboration Between the U.S. Li-Bridge Alliance and European Battery Alliance to Strengthen Supply Chain for Battery Technologies,” March 2022, https://www.energy.gov/articles/doe-and-european-commission-support-collaboration-between-us-li-bridge-alliance-and.
48 “U.S.-EU Joint Statement of the Trade and Technology Council,” May 2023, https://www.whitehouse.gov/briefing-room/statements-releases/2023/05/31/u-s-eu-joint-statement-of-the-trade-and-technology-council-2.
49 EU-U.S. Trade and Technology Council: Working Group 2—Climate and Clean Tech, Transatlantic Technical Recommendations for Government Funded Implementation of Electric Vehicle Charging Infrastructure, May 2023, https://www.energy.gov/sites/default/files/2023-05/TTC4_WG2_Joint-Recommendations-EV-Charging-Infrastructure_vFINAL-2.pdf.
50 Bieker, G., “A Global Comparison of the Life-Cycle Greenhouse Gas Emissions of Combustion Engine and Electric Passenger Cars,” International Council on Clean Transportation, White Paper, July 2021, https://theicct.org/publication/a-global-comparison-of-the-life-cycle-greenhouse-gas-emissions-of-combustion-engine-and-electric-passenger-cars.
Countries around the world are investing in and deploying EVs at accelerating rates. Currently in the United States, new vehicle sales are nearing 10% BEVs;51 in the European Union, it is 12%.52
Medium- and heavy-duty vehicles are slower to deploy as electric vehicles due to their size and uses, but can fully shift to electric vehicles by 2040 according to manufacturers and researchers. As batteries continue to become more efficient and cheaper, and charging networks become more robust, EVs in the medium- and heavy-duty space will become more ubiquitous.
One of the main barriers to new EV adoption is lack of charging options and range anxiety. As more charging networks are built out and standardized, particularly in the United States where cars must drive farther distances between city centers, experts expect consumers to adopt these vehicles at much higher rates. One potential challenge to meeting this goal is the U.S. grid’s outdated hardware and transmission system, as well as the need to add more generation from clean energy sources to support additional load from vehicle charging.
Clean Fuels
Clean fuels can be used as “drop in” fuels to directly replace petroleum equivalents in existing engines, or be used as another cleaner fuel for new combustion engines. Clean drop-in fuels can be used in existing vehicles on the road now, to reduce emissions as vehicle turnover to electric drivetrains lags. More research is needed on the air quality impacts of drop-in fuels—particularly those such as ethanol blending that may emit more of one pollutant but reduce emissions of deadly pollutants such as particulate matter.
Transportation modes such as aviation, marine, and others, require energy-dense liquid fuels, and will for the foreseeable future. Low-carbon fuels vary in emission savings depending on their feedstock, processing practices, and end use. They can be derived from biomass sources such as corn, or from cellulosic waste feedstocks such as landfill gas, switchgrass, or from combining hydrogen and carbon from carbon capture into a hydrocarbon that is chemically equivalent. While in the European Union regulations allow the production of biofuels from certain crop-based and waste feedstocks, they are phasing out feedstocks such as palm oil for fuel production because of the related deforestation risk. The primary source of biomass in the United States is corn-based crops. The amount of GHG emission reductions from crop-based ethanol has been widely debated because of the nuance in the way indirect land use change emissions are calculated when evaluating its life cycle. However, smart agriculture and new systems such as bioenergy carbon capture and sequestration has been shown to reduce the overall emissions of corn ethanol significantly in the last 20 years.53
One main area where clean fuels will be necessary to get to our zero-emission goals in time to reduce the worst impacts of climate change is in aviation. SAF is produced mainly with biofuels, but increasingly, synthetic fuel start-up companies are entering the space. Production and scale-up of SAF will require investment in operating SAF producers, increased yield of feedstocks, and research into new chemistries and engine technologies to optimize different new SAF fuels. In the near term in the United States, biofuels will be the readiest to deploy for SAF to meet the goals of the SAF Grand Challenge. However, biomass will also be required as a means of natural carbon removal to meet our overall climate goals. Existing biofuel producers can continue to reduce life-cycle emissions through innovative agricultural technologies and new production methods to increase fuel yield.
Mode Shifting and Digitalization
Experts agree that we must reduce vehicle miles traveled in order to meet our climate goals. Changes in behavior are essential to achieving the emissions reduction necessary to meet key climate targets. An aspect of this
___________________
51 EV Hub, “One Million EVs Sold Through September 2023,” November 2023, https://www.atlasevhub.com/weekly-digest/one-million-evs-sold-through-september-2023.
52 ACEA, “New Car Registrations: +10.1% in February 2024; Battery Electric 12% Market Share,” March 2024, https://www.acea.auto/pc-registrations/new-car-registrations-10-1-in-february-2024-battery-electric-12-market-share.
53 Energy Systems Division, Argonne National Laboratory, Energy and Water Sustainability in the U.S. Biofuel Industry, ANL/ESD-19/5, June 2019, https://water.es.anl.gov/documents/EW%20survey%20report%20final%20ANL.pdf.
involves diminishing the demand for on-road vehicles by embracing alternative modes such as transit, walking, biking, and shared mobility, particularly in urban environments where reducing travel demand is crucial.
Technologies including ridehail, micromobility, and automated vehicles (AVs) are expected to continue to disrupt the transportation industry for decades to come. Uber and Lyft have faced criticism for worsening emissions and causing congestion, especially in dense urban areas. These issues are attributed in part to “deadheading,” in which rideshare vehicles add unnecessary miles without passengers. Increased emissions are also tied to greater demand for cars, with riders opting for ridehailing instead of staying home or choosing alternative transportation such as public transit or even green and healthy options such as walking, or biking. Without regulation, the introduction of AVs into rideshare networks could exacerbate these negative impacts.54
An important urban planning concept in this context is the 15-minute city where most daily necessities and services, such as work, shopping, education, healthcare, and leisure, can be easily reached within a 15-minute walk, bike ride, or public transit ride from any point in the city.55
Digitalization of travel can reduce demand for on-road vehicles and improve the efficiency of the systems we have and avoid the problems outlined above. Digitalization of data can help us better invest in multimodal transportation in an optimized way to reduce emissions. Quickly emerging technologies such as AI can help us optimize transportation systems to optimize emission reductions.
Land Use and Mode Shifting
The optimization of land use can have tremendous effects on reducing emissions from transportation and for the energy sources used for transportation. As discussed, modal shifts are necessary to meet our climate goals, and we must provide people with options outside of individually owned on-road vehicles.
Sustainable urban mobility plans play a crucial role in the decarbonization of urban mobility by strategizing the development of more efficient, greener, and integrated transportation systems and mobility options that reduce reliance on fossil fuels and lower GHG emissions. The Federal Highway Administration (FHWA) has a program called “Complete Streets” which prioritizes all street users, including pedestrians, cyclists, and transit users so that they are safe, comfortable, and connected to areas where people want to travel. FHWA has rolled this out as a funding program for cities and states who design projects and programs that meet these criteria.56
SOCIAL, ECONOMIC, AND ENVIRONMENTAL CONSIDERATIONS
Social, economic, and environmental considerations include areas where infrastructure decisions that have harmed underserved and disadvantaged communities (air and noise pollution, traffic violence, disruptions to communities), affordability and accessibility, workforce and public health; circular economy; safety/security; and nature protection and conservation. These areas are discussed below.
Infrastructure
Transportation Infrastructure
Transportation infrastructure in the United States has historically been used to segregate and consequently cause harm to underserved communities that are disproportionately communities of color. This is a direct result of policies
___________________
54 Stephens, T. S., J. Gonder, Y. Chen, Z. Lin, C. Liu, and D. Gohlke, Estimated Bounds and Important Factors for Fuel Use and Consumer Costs of Connected and Automated Vehicles, National Renewable Energy Laboratory, Technical Report NREL/TP-5400-67216, November 2016, https://doi.org/10.2172/1334242.
55 Gongadze, S., and A. Maassen, “Paris’ Vision for a ‘15-Minute City’ Sparks a Global Movement,” World Resources Institute, January 2023, https://www.wri.org/insights/paris-15-minute-city.
56 Federal Highway Administration, “Funding Safety for All,” September 2023, https://highways.dot.gov/sites/fhwa.dot.gov/files/2023-10/complete_streets_poster_funding_safety_for_all_09132023.pdf.
such as redlining in the 1940s.57 Because of policies that purposely separated White communities from Black communities, interstates and highly polluted areas were concentrated around Black communities. Those neighborhoods are still located in areas with higher-than-average pollution, resulting in significant public health issues.
In addition to pollution exposure, these communities are physically separated from economic areas with access to jobs, groceries, and medical care. Furthermore, they lack safe pedestrian and cycling infrastructure at higher rates, which is compounded by their proximity to interstates and high-traffic areas.58 Programs targeted at reconnecting communities and increasing access to transit, pedestrian, and cycling infrastructure are currently being piloted at U.S. DOT and the U.S. Department of Housing and Urban Development.
Also in Europe, uneven development and funding of transportation infrastructure has played a role in creating and exacerbating social divides, by limiting accessibility and mobility options for disadvantaged communities. A prominent example is Europe’s rail system with a rising number of high-speed rail sections between major cities in many countries, but also a significant and systematic underfunding of regional train lines, causing the closure of small train stations and leading to mobility poverty over the last three decades.59
In general, protecting transportation networks is a key component of the European Union’s overall critical infrastructure protection efforts. The European Union’s Critical Infrastructure Protection Strategy recognizes the vital importance of transportation infrastructure as part of Europe’s critical infrastructure, and has implemented legislative, inspection, and coordination mechanisms to strengthen the security and resilience of transportation systems across Member States.
Electric Vehicle Infrastructure
Drivers who live in low-income communities and multifamily housing face barriers to accessing EV charging. Challenges include a lack of home charging options due to factors such as the absence of designated parking spots, affordability issues, and difficulty obtaining permission or funds for charger installation in multifamily housing. Public charging infrastructure is more concentrated in wealthier neighborhoods, leading to disparities in access. Even if public charging is available in low-income areas, it can be two to four times more expensive than home charging, disproportionately affecting these households. Some policies provide rebates for installing Level 2 chargers in disadvantaged communities, but these often cover equipment costs and not installation, which can be costly.60
Policies outlined earlier in the white paper discuss targeted investment in charging stations along interstate corridors, as well as in communities that are experiencing worse environmental and public health outcomes because of historical policies such as redlining. U.S. investments in infrastructure upgrades supported by federal funding are targeted at low-income disadvantaged communities, defined by census tract designations. This designation is directed through the Biden administration’s Justice40 Initiative.61
Upgrading the infrastructure required to support electric vehicles must take equity into consideration and use tools such as managed charging and vehicle-grid infrastructure to reduce the power demand needed to support EV deployment. This is especially important in areas with less power generation or transmission, such as rural areas and urban residential areas. Areas at high-risk for climate disasters also must consider resiliency of the infrastructure to prevent catastrophic damage from events such as wildfires, hurricanes, snowstorms, and high-force winds that will become more frequent because of irreversible climate change.
___________________
57 Lane, H. M., R. Morello-Frosch, J. D. Marshall, and J. S. Apte, “Historical Redlining Is Associated with Present-Day Air Pollution Disparities in U.S. Cities,” Environmental Science & Technology Letters, 9(4), 345–350, 2022, https://doi.org/10.1021%2Facs.estlett.1c01012.
58 U.S. Department of Housing and Urban Development Exchange, “Reconnecting Neighborhoods Divided by Urban Renewal Infrastructure,” October 2023, https://www.hudexchange.info/programs/fair-housing/fheo-table-talks/reconnecting-neighborhoods-divided-by-urban-renewal-infrastructure.
59 Rudolph, F., N. Riach, and J. Kees, Development of Transport Infrastructure in Europe: Exploring the Shrinking and Expansion of Railways, Motorways and Airports, T3 Transportation Think Tank gGmbH and Wuppertal Institut für Klima, Umwelt, Energie gGmbH, June 2023, https://t3-forschung.de/wp-content/uploads/2023/09/Research-study.pdf.
60 Hardman, S., K. L. Fleming, E. Khare, and M. M. Ramadan, “A Perspective on Equity in the Transition to Electric Vehicles,” MIT Science Policy Review, August 2021, https://sciencepolicyreview.org/2021/08/equity-transition-electric-vehicles.
61 U.S. White House, “Justice40: A Whole-of-Government Initiative,” https://www.whitehouse.gov/environmentaljustice/justice40 (accessed April 2024).
In Europe, the AFIR mentioned previously focuses on ensuring fair and inclusive access to EV charging infrastructure across the European Union, going beyond just supporting the growth of electric mobility in already-developed markets. The regulation aims to make electric driving accessible to all.
Equity and Affordability
Underserved and disadvantaged populations, who are often heavily reliant on public transportation, currently face less access to transportation than affluent communities. Targeted planning often neglects transportation and housing costs when determining location and eligibility based on affordability. Alternative transportation modes such as bicycling and walking are not prioritized and can be unsafe due to inadequate infrastructure in underserved neighborhoods. These populations also are disproportionately burdened by environmental hazards including emissions from transportation that cause public health issues such as asthma because they tend to be located along high-traffic highway corridors or industrial areas with high rates of pollution exposure.
New mobility technologies, such as electric, shared, and automated vehicles, offer potential equity improvements, as they are not constrained by traditional transit infrastructure. Programs to deploy these innovative technologies and utilize their innovation for public transportation would not only provide solutions to those who need it most, but could save the government money through increased efficiency. It is imperative that communities and local residents are consulted when planning new mobility and infrastructure projects to ensure that their needs and challenges are being addressed.
The Briefing Paper titled “Ensuring a Just Transition to Net-Zero Transport” (see Appendix C) contains a table of key terms used throughout this section when referring to equity and justice.
Although the Biden administration has focused an effort at investing in disadvantaged and underserved communities in the United States, the metrics that are used to measure those benefits, or where those benefits are realized, is difficult to measure. For example, installing EV charging networks in low-income census tracts will help drivers who live in those areas afford EV charging; however, low-income individuals will charge their vehicles in tracts outside the ones in which they live. Furthermore, the improved air quality from using electrified vehicles benefits the communities that those vehicles travel through, not the areas they are charging. Agencies and researchers should be working collaboratively to quantify and pinpoint geographical areas for these benefits.
Public and Private Partnerships
Public transportation is one of the most impactful ways to reduce emissions from transportation. Countries with robust transit lines have less emissions per capita than those with car-centric transportation systems such as the United States. Transit and walkable cities are more efficient than personally owned vehicles. However, there is a role for private industry to help improve mode efficiency. Digitalization and technology can help us be more efficient in transportation modes. For example, data and connectivity can be used to shift transit routes to areas where there will be fewer empty seats during times when people need transit. It could also help fill in gaps during late-night shifts or off-peak hours to provide transportation to people who are the most underserved by current transit routes and schedules. Vehicle and ridesharing could be better optimized with data streamlining, and deadheading (driving between trips with passengers) could be minimized to reduce emissions from rideshare.
Public–private partnerships, sometimes known as P3s (or PPPs in the European Union), will be critical in this transition. Innovative companies providing solutions to transportation problems could partner with transit agencies and federal transportation researchers to help implement clean transportation and provide valuable insight into the ways consumers want to travel. Their partnership could help improve public transportation and fill in gaps that cannot be filled with transit.
In the European Union, PPPs involving local businesses are therefore a cornerstone for the implementation of the “Climate-Neutral and Smart Cities” Mission.
CHALLENGES AND BARRIERS
The decarbonization of transportation systems is a global challenge not just because climate change is a worldwide phenomenon, but also because mobility is connecting places over distances short or large, its technologies rely on worldwide supply of materials and resources, and its industries are global. Hence, misalignment of goals and policy objectives of innovation, industrialization, and implementation of zero-emission transportation means and services can severely hinder the shift to greener and cleaner modes such as electric vehicles, transit, cycling, and walking.
Existing efforts are challenged by a complex mix of technological, regulatory, business, social, and behavioral factors. The rapid developments and the interplay among these elements create a significant barrier to realizing a sustainable transportation future, often resembling a Gordian knot of intertwined issues. This situation is exacerbated by ongoing global crises, such as geopolitical conflicts, trade disruptions, and resource scarcity. These issues have affected both the U.S. and EU markets, leading to shortages of critical components such as semiconductor chips and electric vehicle batteries. Simultaneously, there’s an influx of undervalued products in these markets, as some entities aim for dominance. Additionally, broader challenges such as needs for renewable energy electricity sources or fuels, power grid stability, workforce readiness, safety considerations, life-cycle effects, and obstacles related to funding and planning contribute to the complexity of decarbonizing efforts. Public perception, influenced at times by misinformation in the media, causes resistance to, ignorance of, and reluctance to embrace decarbonization, despite the clear and severe impacts of climate change. As this landscape underscores the multifaceted nature of the challenge at hand, a comprehensive and nuanced approach to achieving decarbonization goals is needed, and the transatlantic dialogue is deemed an opportunity for this.
Comprehensive strategies, policies, and programs have emerged as powerful tools to navigate the barriers to a climate- and environment-friendly transportation system, driven by dedicated research that sparks innovation and facilitates a swift transition. For instance, the European Partnership 2Zero, under the Research Framework Programme Horizon Europe—and its predecessors, the European Green Cars Initiative and European Green Vehicles Initiative—showcase the collaborative efforts between private stakeholders and public authorities. These initiatives are organized through a strategic research and innovation process, embodied in a roadmap that outlines future objectives, milestones, and the actions needed to achieve these goals, derived from a back-casting method from the set objectives. This strategic planning has successfully aligned stakeholders around a common framework, advancing the development of electric vehicle technologies in Europe.
Similarly, in the United States, efforts to address these issues have just begun through the policies described above. However, the politically fraught governance system and upcoming elections create additional challenges to ensure the efforts are not disrupted. Unfortunately, because of the politicization of decarbonization efforts, election outcomes could cause the United States to undo some of the federal policies it has made progress on in recent years. However, these policies have spurred the market into one that will be hard to derail because it has attracted so much private capital that it would be politically unpopular to put those investments at risk. Such efforts highlight the effectiveness of a holistic approach that addresses not just the immediate barriers but also the broader economic, social, and political factors that influence the success and speed of decarbonization efforts.
NEW AND EMERGING TECHNOLOGIES
Digital technologies such as big data analysis, AI, machine learning, and integrated electronic systems are fundamentally transforming the transportation and mobility sector toward greater efficiency, lower carbon emissions, and smoother traffic flows. These innovations reduce unnecessary travel and support the shift to less energy-intensive modes of transport. Automation, as a cornerstone of these advancements, is scrutinized for its dual potential to either diminish or amplify environmental impacts. The move toward software-defined vehicles, with their increasingly centralized control architectures, heralds a future of vehicles that are more efficient in terms of resource use, component lifespan, and energy consumption, further enabled by the potential for upgrades extending product life cycles.
Looking ahead, the imperative to cut energy consumption while preserving safety is driving a transition from decentralized, vehicle-based control logics to a systemic, top-down control paradigm, particularly in road transport.
This evolution demands the flexible coordination of data and energy flows, software updates, and hardware allocation across the vehicle, infrastructure, and cloud levels. Such a shift requires further advancements in sensors, networks, computing systems, embedded software, communication infrastructures, and cloud services. The push for efficiency and reliability necessitates technologies that can be widely applied and seamlessly integrated into a unified, co-designed data and energy architecture, paving the way for improved testing, validation, and vehicle function monitoring.
Digitalization is set to render transportation services and networks more efficient, resilient, and sustainable. The European Common Mobility Data Space exemplifies digitalization’s role in fostering interconnected, accessible, and energy-efficient mobility across the European Union. It highlights the critical role of AI, digitalization, and Internet of Things technologies in enabling connected, electric, and autonomous mobility operations. Crucial to this transformation is the development of digital interfaces between different transportation modes, the provision of standardized solutions for intelligent and bidirectional grid integration, and the creation of digital tools for user-friendly, inclusive, and accessible mobility, marking a significant leap toward a more sustainable and interconnected transportation future.
Future prospects in battery technology, lightweight and alternative (non-rare) materials, alongside smart design and circular economy solutions, are ready to further advance decarbonization in the transportation sector. The interplay between software and hardware, augmented by robotics, outlines an evolving technological ecosystem that supports sustainable transportation from the production along the lifespan of vehicles and infrastructures toward their disassembly.
Addressing equity issues through these new and emerging technologies presents both opportunities and challenges, underscoring the importance of equitable access to the benefits of technological advancements in ensuring a sustainable, efficient, and inclusive transportation future.
KEY RESEARCH QUESTIONS AND OPPORTUNITIES
The expert discussions at the Seventh EU-U.S. Transportation Research Symposium will cover the following four exploratory topics:
- Accelerating the transition to electrification and alternative fuels;
- Ensuring a just transition to net-zero transport;
- Leveraging digitalization, artificial intelligence, and other integrated system-of-systems technologies to decarbonize transport; and
- Implementing sustainable and resilient land use and transportation system design.
The lead questions for these discussions have been provided in dedicated briefing papers that complement this white paper (see Appendixes B, C, D, and E). Furthermore, another briefing paper (see Appendix F) gives guidance for the integrated review of EU-U.S. collaboration pathways in transportation research at both the policy and program levels, such as giving advice on instruments and tools and making recommendations for common themes in research and innovation.
