The global transportation sector is facing sustainability challenges that require immediate action towards reducing carbon emissions. EU's push towards increasing renewable energy in the transportation sector is a positive step towards achieving climate neutrality by 2050, however, more needs to be done to make this transition just. These challenges are not only affecting the environment, but are deepening the divide between high-income families, who can more easily afford and access sustainable transportation options, and low-income families, who face barriers due to high costs and limited availability of these green technologies.
Today, the transport sector sector accoutns for around one-fifth of the global carbon dioxide emissions in the world, out of which road travel accounts for one-third. However, the proportion of household budgets allocated to transportation expenses fluctuates, reaching approximately 5% in low-income countries and surpassing 15% in high-income nations.
In this context, Europe's role in the electric vehicle (EV) market is particularly noteworthy. In 2021, Europe accounted for 34% of the global electric vehicles usage, with the sale of 2.3 million units, signifying a 66% growth compared to the figures from 2020. Apart from that, Europe hosted seven out of the top ten global markets for annual electric vehicle (EV) sales in 2021, encompassing Germany, the United Kingdom, France, Norway, Italy, Sweden, and the Netherlands.
This rapid transition represents a barrier to the current socioeconomic divide as economic disparities restrict access to technical developments and sustainable forms of transportation. Consequently, a just transition in transportation has been introduced, being primarily focused on considering human dimensions in achieving mobility transition. The transition encompasses a broad set of initiatives and policies aimed at mitigating the environmental impact of transportation, promoting social equity, and addressing systemic inequalities within the sector. To further combat these accelerating issues, the European Commission has presented a Smart Mobility Strategy that aims to work towards green and digital transformation within the EU.
Navigating the Financial Challenges of the Just Transition
While undoubtedly essential for addressing environmental concerns and promoting social equity, the transition to a more just transportation system poses a significant financial burden to low-income families. This applies to countries in the European Union where the economic strain aggrevates existing socio-economic disparities, potentially leading to increased mobility challenges for marginalized communities. In Denmark, a significant 38.6% of vehicles are electric, and the average net annual income is 39,274 euros. Conversely, Bulgaria has the lowest share of electric vehicles, standing at 4.0%, and a considerably lower average net annual income of only 7,272 euros.
Consequently, the success of a just transportation transition depends not only on environmental and equity considerations but also on the development of targeted policies and support mechanisms to alleviate the financial challenges faced by low-income families. For example, the Norwegian government has been at the forefront of promoting the widespread adoption of electric vehicles (EVs) through a set of incentives. They have implemented a range of financial perks and policies to encourage citizens to opt for EVs, including tax exemptions, reduced registration fees, and toll-free road usage. Moreover, EV owners benefit from reduced or waived annual road taxes and access to special lanes, providing a faster and more convenient commute.
Accessibility in Transportation Policies
Even though just transition and Smart Mobility Strategy are expected to positively impact the transportation sector in terms of the environment, the government still needs to invest in the development of quality transport systems that will be accessible to low-income households. In order to reshape the transportation sector into a genuinely diverse system of sustainable mobility services, the European Commission aims to provide carbon-neutral travel options for journeys under 500km within the EU by 2030. However, to truly realize the intended positive impacts on the transportation sector, policymakers must prioritize investments in infrastructure and services that cater to the needs of low-income households, ensuring that the benefits of a sustainable and smart transportation system are distributed equitably across society.
One country that has been devoted to reducing carbon emissions is Denmark which had implemented a comprehensive and well-integrated approach to promote eco-friendly modes of transport. Copenhagen, the capital city, is renowned for its extensive cycling infrastructure, with dedicated bike lanes and a strong cycling culture. The country has invested in an efficient and widespread public transportation system, incorporating electric buses and trains, as well as supporting the use of electric vehicles.
Apart from that, the French government has introduced the „Solidarity Free Ticket“ that offers discounts or free transportation services for people facing financial difficulties. This initiative includes reduced fares on public transportation, such as buses and trains, to ensure that even those with limited financial means can access essential services and employment opportunities. Taking inspiration from these examples, other nations can begin adopting policies that improve the transportation sector, providing it as a viable alternative means of travel for their citizens.
Implications of the Electric Vehicle Revolution
The transition to electric vehicles may have broader social and economic consequences, particularly in terms of employment. The evolving technologies and manufacturing methods make traditional practices from the 20th century outdated. With fewer moving parts and increased reliance on batteries, there is a shift towards a tech-focused workforce, reducing the need for manual labor. Automakers, anticipating workforce cost reductions, predict a 30% decrease in required workers for electric vehicles (EVs) compared to traditional internal combustion engine (ICE) vehicles.
As EV sales rise, job losses are inevitable, with a study suggesting that if EVs constitute 50% of domestic vehicle sales by 2030, 75,000 auto jobs may be lost. This impact extends beyond blue-collar roles, affecting white-collar jobs in design and engineering, necessitating workforce adaptation and retraining. However, to assist automotive industry workers facing job insecurity, policymakers should endorse and support companies' retraining and ongoing education initiatives. This would allow these companies to maximize the utilization of their skilled and experienced workforce in the emerging production of components for electric mobility.
Balancing Sustainability and Socio-Economics
Esentially, the global transportation sector faces a dual challenge of achieving sustainability while addressing social and economic disparities. In order to successfully switch to renewable energy sources, the government needs to provide infrastructure, incentives and job security, ensuring that the transition is equitable for everyone. Consequently, for the transistion in the transportation sector to be fully just, there should not solely be efforts in reducing gas emissions but the focus must also be shifted towards fully ensuring both social and economic aspects.
