The climate targets defined in the Paris Agreement are an unique opportunity to reshape policy in the mobility space. As the sector is already facing large changing conditions, electrification of the passenger transport value chain should be seen as an opportunity for innovation and potential sources of renewed competitiveness in the sector. Five innovation opportunities are recognised as the factors that are most likely to have the highest direct benefits on jobs and growth in Europe, while drive emission reductions. These are: electrification of vehicle powertrains, deployment of infrastructure for e-mobility, encourage more shared personal mobility, increased connectivity in the cars value chain and drastic increased use of innovative materials. In the process of shaping policy that can drive the innovation needed in the sector, policy makers have to overcome the risks to innovation. Failure to address some of the challenges to innovation will undermine the achievement of the outcomes required in terms of value and employment creation, and reductions in emissions and resource use. I24c emphasise that to make a break from incrementalism and to enable the take off of radical innovation in mobility value chains, policymakers need to take a proactive approach by designing policies in a manner that acknowledges the risks and opportunities.

This memo is based on a larger report published previously by i24c and Ricardo Energy and Environment. The complete report is available here.