Why is transforming the transport sector so urgent now?

The transport sector is responsible for 13.7 percent of global greenhouse gas emissions, making its transformation urgent for tackling climate change and meeting the goals of the Paris Agreement.

When it comes to personal vehicles, this transformation has started accelerating in recent years. Electric cars represented more than 20 percent of all cars sold in 2024, with this figure expected to reach 25 percent – 20 million vehicles – in 2025. Public charging stations have also doubled in the past 2 years in response to this growth. When coupled with advancements in renewable energy, these developments can help cut down emissions from the transport sector.

At the same time, decarbonizing the transport sector also addresses several public health crises. Air pollution contributes to 6.7 million premature deaths annually, mostly in low- and middle-income countries, while noise pollution adversely impacts the well-being and quality of life of urban residents. In addition, road traffic injuries claim approximately 1.19 million lives each year, and are the leading cause of death for children and young adults aged 5–29 years. Redesigning transport systems to be cleaner, safer and more inclusive is therefore a critical step not only for climate action, but for protecting human life and public health at scale.

Sustainable transport also makes countries more economically resilient. In a world increasingly shaped by volatile energy prices and inflationary pressure, clean transport systems offer greater long-term stability. Electrified public transport, shared mobility services, and efficient logistics across land, water and air are becoming increasingly cost-effective, with costs continuing to fall as technologies advance and markets mature. Moreover, well-planned networks improve access to jobs, healthcare and education, particularly for women, youth, people with disabilities and underserved communities, while also lowering operating costs. Although upfront investments can be high, electrified and efficient transport systems reduce energy use, cut traffic-related expenses, create new jobs and generate public health savings. Therefore, these investments have the potential to pay for themselves in the medium term.

One way to generate additional investments in sustainable transport is redirecting fossil fuel subsidies. Estimates indicate that fossil fuel subsidies, both explicit (direct public spending) and implicit (externalities like the effects of climate change or premature deaths caused by air pollution), reached US$7 trillion in 2022. Redirecting even a portion of direct fossil fuel subsidies, alongside efforts to internalize external costs through smart pricing and regulation, could help unlock funding for sustainable transport solutions that deliver long-term economic, environmental and social returns. In addition, by lowering dependence on imported oil— which still supplies nearly half of global transport fuel— countries can reduce exposure to fuel price volatility and supply disruptions. This is particularly relevant for Small Island Developing States (SIDS), where imported oil can account for over 75 percent of transport fuel use, making sustainable transport a key driver of energy resilience. This enhances energy security and provides a more stable foundation for long-term investment.

At the same time, sustainable transport improves access to mobility for underserved communities and supports inclusive urban development. It also fosters more resilient cities. This is particularly important as climate change is placing increasing pressure on transport infrastructure. Flooding, heatwaves, sea-level rise and extreme weather events are damaging roads, railways ports and airports – disrupting mobility, supply chains and public services. Building adaptive capacity through climate-resilient planning, infrastructure design and early warning systems is essential to protect investments, safeguard access and ensure continuity of service in the face of growing climate risks.