X. Industry, trade, and transport are shaped to support a circular economy, local value creation, and short and resilient logistic chains.

The transport sector’s ability to reduce its consumption of energy and resources, and to curb emissions is conditioned by the transport demand it has to satisfy. Industry and trade policies are to promote more circular and local economies, less de-fragmented value chains and dispersed production sites that allow transport to operate more efficiently. 

The transport industry itself should operate its value chain more sustainably by using resources efficiently and designing components, vehicles and infrastructure for easy and local production, maintenance and recycling. Trade of polluting and unsafe second hand vehicles and components, often exported from the Global North to the Global South, is an irresponsible transfer of negative effects and must be terminated.

Facts and figures

Reduction in material usage: Introducing a circular system could reduce material used in vehicles by 70% by 2050 and avoid 285 million tonnes of CO2 equivalent. (Read more: Ellen MacArthur Foundation)

Catalytic measures

  • Define trajectories to phase out ICE vehicles sales, production, and use
  • Price CO2 and integrate the transport sector to emission trading schemes
  • Phase out fossil fuel subsidies (e.g. diesel privileges)
  • Invest in low-carbon rail freight service
  • Plan integrated and connected Industrial Zones
  • Optimise freight movement through proven measures (e.g. promote load optimisation, reduce packaging, reduce empty moves, load consolidation and asset sharing, vehicle maintenance practices, aerodynamic requirements, etc.)
  • Regulate export and import of second-hand ICE and EV vehicles through emission, safety, and recycling standards
  • Legal mandates for new Zero Emission Vehicles
  • Tax vehicles based on emissions, weight, footprint, and energy efficiency
  • Promote the integration of electric charging and distributed and off-grid renewable energy production
  • Regulate extraction and recycling of raw materials for electric mobility
  • Identify critical services and develop disaster management plans
  • Promote the restructuring of supply chains to reduce freight transport (e.g. nearshoring)
  • Promote the optimization of intermodal solutions: e.g. better integration between road, rail and inland waterways to reduce GHG and increase efficiency (synchromodal, digitalization, etc.)