Road transport accounts for nearly three-quarters of all transport sector emissions. While electrification is widely seen as the solution, relatively few drivers have so far adopted electric vehicles (EVs). Traditional combustion engines, supported by biofuels and hybrid technologies, are expected to remain in use well beyond 2035, when the EU’s ban on the sale of CO₂-emitting vehicles is set to take effect. These insights come from the report “In the Decarbonization Maze: Where Is Transport Heading in the Era of CO₂ Reduction?” prepared by experts from PwC Poland.
Transport – the EU’s toughest climate challenge
Transport is the only sector in the European Union where total CO₂ emissions have increased since 1990, placing it at the center of EU climate policy. To address this, the EU has set an ambitious target: a 90% reduction in transport emissions by 2050. Meeting this goal will be an enormous challenge, given the sector’s diversity and the varying technical possibilities across transport modes.
There are three broad strategies for cutting emissions: reducing transport demand, shifting freight and passengers from road and air to rail and water, and changing the fuel mix. But as the report notes, there is no “fuel of the future” yet—no universal, cost-effective solution suitable for all forms of transport. To avoid inefficiencies and competition over the same resources, separate, clear, and economically viable decarbonization pathways are needed for road, air, water, and rail.
“The transport infrastructure and value chain developed over the past century are built around conventional fuels. Transforming them will require massive capital investment. Each mode of transport has its own technical specificities and different decarbonization options, which complicates the transition. Moreover, they may end up competing for the same scarce resources,” said Wojciech Słowiński, Partner at PwC Poland.
Road transport: the backbone of EU mobility
Road transport is the undisputed backbone of the EU economy and mobility system, accounting for over 50% of freight transport and nearly 80% of passenger transport. But its dominance comes at a heavy environmental cost—it is the largest source of greenhouse gas emissions in the transport sector.
In 2023, diesel and gasoline made up more than 85% of final energy consumption in EU road transport, while renewables (biofuels and electricity) still accounted for less than 10%. Passenger cars are the largest emitters, responsible for about 60% of road transport emissions, followed by freight transport—both heavy trucks and last-mile deliveries—at around 37%. Urban transport, though less than 2% of total emissions, remains critical for improving air quality in densely populated areas.
EVs as a key solution
Electric cars are emerging as a key solution for passenger transport decarbonization, offering zero emissions at the point of use and lower operating costs than combustion vehicles. In 2023, EVs made up 23% of all new car registrations in the EU.
Although purchase prices remain higher, falling battery costs are narrowing the gap. Since 2013, the average price of batteries has dropped nearly 90%, and in some markets has already fallen below $100 per kWh. In many EU countries, the total cost of ownership of EVs is already comparable to or lower than combustion cars.
“Crucially, many of the changes ahead will depend on individual investment decisions by fuel providers, businesses, and consumers, which are often guided more by economics than ecology. Until now, nearly all low-carbon technologies were promoted, regardless of commercial viability. Now we must focus only on those that both reduce emissions and make economic sense. Our report identifies precisely such technologies—clear pathways out of the decarbonization maze,” said Bartosz Safiejko, Director at PwC Poland.
Poland: slow EV adoption amid an aging fleet
Decarbonizing road transport in Poland faces structural hurdles. The country has one of the oldest car fleets in Europe, dominated by used vehicle imports, most of them older and more polluting. Private cars remain the main mode of transport—7 in 10 Poles use one at least three times a week.
While EV sales are rising quickly—up more than 51% in 2023—market share remains small. Adoption is held back by high upfront costs, limited range in affordable models, and insufficient charging infrastructure.
Energy and infrastructure constraints
The climate benefits of EVs depend on access to zero-emission electricity, which remains limited in many EU countries. Moreover, public charging infrastructure is still unevenly distributed across member states, creating barriers to cross-border travel and slowing adoption.
Source: CEO.com.pl
