Decarbonisation of the transport sector through the electrification of vehicles.


Related SDGs


Sustainability challenge and related SDGs:

Since the birth of the "modern" automobile with an internal combustion engine at the end of the 19th century, vehicles have contributed significantly to the increase in carbon dioxide emissions in the atmosphere, making them one of the largest drivers of the climate crisis.

Internal combustion engine vehicles account for almost 16% of total annual greenhouse gas emissions globally, whereas road transport alone contributes roughly 12%. Further, air pollution is becoming a major public health problem. Scientific studies have shown a clear link between air pollution and human health: harmful pollutants such as nitrogen dioxide, carbon monoxide, hydrocarbons, ammonia, and other lesser known but toxic and carcinogenic chemicals cause respiratory and cardiovascular diseases and are responsible for over 50,000 premature deaths per year in Europe alone.

Possible solutions and their contribution to achieving the SDGs

Decarbonizing the transport sector is urgent. Electric vehicles are part of the solution and are becoming increasingly popular. They offer environmental, economic and social benefits, such as reducing air pollution in cities, cheaper mobility and lower CO2 emissions.

#eMobility refers to companies that provide the technology for components or services for electrically powered vehicles or manufacture such vehicles. Concrete examples are battery technology and charging solutions for electric vehicles or electric buses or electric municipal vehicles.

Electric vehicles with energy storage systems require a charging infrastructure. #eMobility supports SDG 7 “Affordable and clean energy” and its sub targets with its advances in energy efficiency. #eMobility is seen as a central component of a sustainable and climate-friendly transport and mobility system based on renewable energies that will support the SDG 13 “Climate Action” target for meaningful climate change mitigation.

Primarily related SDG Targets: 7.1,2, 7.3, 13.2


Investment Rationale and Growth Potential

The share of electric vehicles is still relatively small, but it is rapidly growing. Meanwhile, the peak of the combustion engine may be years behind us. With rapidly changing economics of electric vehicle leading to exceptional growth, the automotive industry is experiencing a revolution in the #eMobility sector. At the same time, global policy makers are aiming to phase out combustion engines over the next few years (the EU will ban new diesel and petrol engines in cars from 2035), which should support #eMobility as a growing investment trend.

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