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Sustainable Mobility: A Complete Guide 

TABLE OF CONTENTS

Sustainable Mobility: A Complete Guide 

Sustainable Mobility: A Complete Guide 

Vantage Updated by Updated Mon, March 11 01:40

It seems like almost every week we hear of new revelations in the tech industry as companies compete to stay ahead in the tech race.  

As we stand on the brink of a technological revolution that will fundamentally alter the way we live, work, and relate to one another, one industry that is poised for unprecedented transformation is mobility. By 2030, the global mobility market is expected to reach $9 trillion [1]

The mobility industry stands as a cornerstone of the global economy, facilitating trade, travel, and connectivity on an unprecedented scale. Yet, as our world grapples with environmental challenges, the concept of sustainable mobility emerges as a crucial imperative. Transportation alone accounts for nearly a quarter of global carbon dioxide emissions from energy [2].  

In this article, we will unearth the concept of sustainable mobility and its growing importance in this rapidly evolving landscape. 

The Mobility Industry and Global Transitions 

The mobility industry, encompassing everything from personal vehicles to public transportation and freight logistics, is a significant contributor to the global economy. Key players range from traditional automakers to tech startups, each vying for a slice of the market pie.  

When speaking about the global economy, the impact of Covid-19 on the mobility industry cannot be overlooked. Many businesses were forced to cease or slow operations, with Automotive original equipment manufacturers (OEMs) and players within the mobility industry being among the hardest hit [3]. And while the transition towards sustainability gradually emerged, the pandemic accelerated this shift, kicking it into high gear.  

The pandemic then became a wakeup call for all industries, prompting re-evaluations of transportation habits and infrastructure. 

Across major world regions, ambitious goals for decarbonisation have been set, prompting a significant shift towards sustainable transportation practices. [4] Europe and China in particular, have seen a significant increase in purchases intent for electric vehicles (EVs), motivated by government incentives and by increased consciousness about sustainability [5]

Additionally, the resurgence of innovations in ACES (autonomous driving, connectivity, electrification, and shared/smart mobility) technology has captured attention, with a staggering $70 billion invested in the first half of 2021 alone [6]

This influx of investment underscores a renewed commitment to revolutionising mobility solutions and embracing a cleaner, more efficient future. 

As the world continues to develop and evolve, sustainability lies at the heart of future mobility strategies. 

What is Sustainable Mobility and Why Does it Matter? 

Now that we know what the world is doing to achieve sustainability, herein lies the question:  what exactly is sustainable mobility, and why does it matter?  

Sustainable mobility encompasses transportation practices that minimise environmental impact while maximising social and economic benefits. By reducing carbon emissions and fostering cleaner modes of transportation, we pave the way for a healthier planet and society. For instance, Copenhagen, a city often hailed as the world’s most bike-friendly, has more bicycles than cars, significantly reducing its carbon footprint. 

Sustainable mobility goes beyond just EVs or bike-sharing programs. It’s about creating a system that provides universal access to safe, affordable, and low-carbon transportation options.  

Traditional transportation methods exact a heavy toll on our environment and public health. Air pollution, exacerbated by vehicular emissions, contributes to respiratory illnesses and climate change. The need for sustainable solutions has never been more urgent. Sustainable mobility offers a transformative solution, not only mitigating these impacts but also unlocking economic opportunities.  

The transition to sustainable mobility also creates jobs in various sectors such as manufacturing, infrastructure development, and services. For instance, the rise of electric vehicles (EVs) has led to an increase in demand for EV manufacturing, charging infrastructure, and maintenance services [7].  

Not to mention, with the rapid rate at which the sustainable mobility market is growing, it offers numerous investment opportunities. Investors can invest in companies that are developing innovative solutions for sustainable transportation, such as electric vehicle manufacturers, renewable energy companies, and technology firms creating smart mobility solutions. 

Reasons to Invest in Sustainable Mobility 

For investors, the rationale for engaging in sustainable mobility ventures is clear. Not only do such investments yield promising financial returns, but they also align with broader societal goals.  

The sector offers a plethora of investment opportunities. 

  1. Renewable energy, a cornerstone of sustainable mobility, is witnessing a surge in demand, driven by the global commitment to reduce greenhouse gas emissions.  
  2. Electric vehicles, another key component of sustainable mobility, are gaining traction due to advancements in technology and increasing consumer awareness about environmental sustainability. The expansion of charging infrastructure to support EVs also presents a significant investment opportunity, as governments and businesses recognize the need to build robust networks to meet growing demand and facilitate widespread adoption. 
  3. Public transportation infrastructure, particularly in urban areas, is attracting significant investment due to its potential to enhance connectivity, reduce congestion, and foster to economic growth. 

Benefits for Investing in Sustainable Mobility 

Investing in sustainable mobility can bring several benefits:  

  • Potential for future returns 
    Large-scale investments in sustainable mobility may potentially yield high returns in the near future. For instance, transitioning to a more efficient and electric vehicle fleet in cities worldwide would require a total incremental investment of $8.6 trillion, but this investment would pay for itself in eight years, with annual returns reaching $320 billion by 2030 and exceeding $1 trillion by 2050 [8]
  • Impact Investment 
    Sustainable mobility is a unique and budding sector for which solutions are critical given projected demographic growth in developing countries. There is a compelling need and opportunity for investment in creative sustainable mobility solutions that have potential for significant impact, particularly in achieving United Nations Sustainable Development Goals (SDGs) [9]
  • Overcoming Investment Barriers 
    Sustainable mobility provides investors an opportunity to overcome investment barriers and support an emergent and impactful sector. The sector requires continued and increased investment from the full spectrum of investor classes if enterprise solutions are to be seeded and scaled effectively in developing countries [10]

Conclusion 

The significance of sustainable mobility extends far beyond mere transportation – it embodies a vision of a more equitable, resilient future. As individuals, businesses, and governments, we must seize the opportunity to prioritise sustainability in our mobility practices and investments. 

To learn more about sustainability mobility and its investment opportunities, head over to The Vantage View, created in collaboration with Bloomberg Media Studios. 

References

  1. Shared Mobility Market Size, Share & Trends Analysis Report By Service Model (Ride Hailing, Bike Sharing, Ride Sharing, Car Sharing), By Channel, By Vehicle (Cars, Two-wheelers), By Region, And Segment Forecasts, 2023 – 2030 – Grand View Research”. https://www.grandviewresearch.com/industry-analysis/shared-mobility-market Accessed 14 February 2024.
  2. “Which form of transport has the smallest carbon footprint? – Our World in Data”. https://ourworldindata.org/travel-carbon-footprint#:~:text=Transport%20accounts%20for%20around%20one,CO2)%20emissions%20from
  3. %20energy.&text=In%20some%20countries%20%E2%80%93%20often%20richer,of%20an%20individual’s%20carbon%20footprint. Accessed 14 February 2024.
  4. “The impact of COVID-19 on future mobility solutions – McKinsey & Company”. https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/the-impact-of-covid-19-on-future-mobility-solutions. Accessed 14 February 2024.
  5. “Transport, Energy and CO2: Moving toward Sustainability – IEA50″. https://origin.iea.org/news/transport-energy-and-co2-moving-toward-sustainability. Accessed 14 February 2024.
  6. “Car buying is on again, and mobility is picking up – McKinsey & Company”. https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/how-consumers-behavior-in-car-buying-and-mobility-changes-amid-covid-19. Accessed 14 February 2024.
  7. “Mobility’s rebound: An industry recovers, but where is it heading? – McKinsey & Company”. https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/mobilitys-rebound-an-industry-recovers-but-where-is-it-heading. Accessed 14 February 2024.
  8. “MALAYSIA’S SHIFT TOWARDS GREEN MOBILITY – Malaysia Investment Development Authority”. https://www.mida.gov.my/malaysias-shift-towards-green-mobility/. Accessed 14 February 2024.
  9. “How to scale-up investment in sustainable mobility – World Economic Forum”. https://www.weforum.org/agenda/2021/09/how-to-scale-up-investment-sustainable-mobility/. Accessed 14 February 2024.
  10. “THE CASE FOR IMPACT INVESTMENT IN SUSTAINABLE MOBILITY – Shell Foundation”. https://shellfoundation.org/learning/the-case-for-impact-investment-in-sustainable-mobility/. Accessed 14 February 2024. 

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