The EU Emissions Trading System 2 (ETS2) will be fully operational in 2027 and covers sectors that have historically made limited progress in decarbonisation, including road transportProposed support measures for the sector road transport, selected on the basis of their cost-effectiveness, replicability, scalability and potential for high short-term impact, are primarily aimed at addressing concerns related to charging infrastructure a relatively high costs on zero-emission vehicles (ZEVs) compared to conventional vehicles.

The study identified nine key measures for road transport, which represent a combination of economic (financial) and regulatory instruments:

Key support measures for road transport

1. Emission-based taxes and tolls (bonus-malus): This is a financial instrument (tax incentives) that introduces tax benefits for zero-emission vehicles (ZEVs) and penalties (malus) for internal combustion engine vehicles (ICEVs). These measures target both private and corporate customers when purchasing and registering new vehicles and serve to reducing the difference in the procurement costs of ZEVs compared to ICEV.
2. Reduced and simplified public transport ticket prices: This regulatory measure, such as the initiative KlimaTicket Ö in Austria, aims to simplify and encourage the use of public transport (e.g. through a single nationwide subscription) in order to reduce greenhouse gas emissions and air pollution.
3. On-demand transport: A regulatory instrument that offers a flexible alternative to fixed public transport by adapting services to the current needs of passengers, thereby improving accessibility, especially in underserved or rural areas. It falls under modal shift initiatives.
4. Tax deductibility of company cars based on CO₂ emissions: A financial incentive (tax incentives) that limits companies' access to tax benefits depending on vehicle emissions, in order to motivate them to purchase ZEVs for their fleets.
5. Transparency of prices for public charging: Regulatory measure aimed at increasing price transparency, thereby strengthening competition between charging infrastructure operators and reducing costs for consumers relying on public charging. The AFIR Regulation already sets out requirements for price transparency.
6. Urban transport planning towards modal shift – “Superblock” model: A regulatory and normative measure that consists of creating areas where traffic is restricted and public space is redirected, thereby reducing traffic and promoting a shift to more sustainable modes of transport.
7. Financial incentives for the connection of charging infrastructures for heavy goods vehicles (HDVs), including connection to the grid: Financial support (grants/subsidies) to companies for the installation of charging points, which helps reduce the high initial investment costs, especially for the costs of connecting to the grid.
8. Simplification and harmonization of administrative processes for network connection: A regulatory measure aimed at simplifying and accelerating grid connection and permitting processes to ensure timely implementation of EV infrastructure development.
9. Eurovignette – Truck tolls in favour of zero-emission heavy goods vehicles (ZE HDVs): A charging mechanism that reduces the toll per kilometer for ZE HDVs compared to ICEVs, thus compensating for the current total cost of ownership (TCO) disadvantages for ZE HDVs and internalizing the external costs of ICEVs.

Focus on decarbonizing road transport

The policy mix for road transport includes both economic instruments (e.g. incentive schemes) and regulatory instruments (e.g. standards and requirements).

• These policies are essential for support for the electrification of road transport, which is responsible for around three quarters of all transport-related emissions.
• Three of the nine measures are aimed at change of mode of transport (modal shift) in a shorter time frame, supporting the transition from a car-centric model to more diverse and sustainable mobility options such as cycling, public transport and railway.

A measure with high future potential

In addition to the nine measures mentioned, one option with significant future potential was identified in the road transport sector:

• Development of cycling infrastructure (e.g. Bordeaux model), focused on stimulating a change in transport mode and a significant contribution to decarbonisation efforts. These initiatives, while having limited impact in the short term, can lead to significant impact and improvements in public health and reductions in air pollution. JRi