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EU policy recommendations

European policymakers aim to maintain and improve Europe’s transport networks, while reducing climate change risks in a cost-effective manner. As the European Union develops its decarbonisation of transport agenda, how can it ensure the EU’s future emissions reduction goals are reached while providing the mobility Europeans need for a secure economic future?

  • Market based solutions rather than mandates are the most effective way for the transport sector to achieve EU policy objectives for emissions. Technology-neutral policies will support innovation, letting the free market drive the choice of transport solutions.
  • Evidence-based policy will take a holistic view of transport emissions, analyzing “well to wheels” impact and taking into account realistic projections for technology development.
  • GHG pricing should be determined by markets to ensure a uniform and predictable cost across all sectors, and provide a cost signal to consumers and investors. Funds generated through a revenue neutral policy should be used equitably to encourage economic growth.
  • A GHG emissions fee on transport fuels would be the preferred market based policy option meeting our policy principles. The price component of the GHG emissions fee would be linked to the Emissions Trading System (ETS).
  • Transport under ETS cap could be another market based mechanism for reducing transport emissions.
  • Near term cost effective emissions reduction is likely easier found in other sectors of the economy. However, a market based policy will allow fuel and technology options in transport to compete.

Our 5 transport policy principles guide our approach to Keep Europe Moving:

Policy principles