Land Transport

Building a future of zero-emissions transport

The transport sector is the second-largest contributor to global greenhouse gas (GHG) emissions, responsible for: 

• 23% of energy-related CO2 emissions
• 14% of total GHG emissions 

Road transportation (passenger and freight) accounts for 73% of these emissions, making the decarbonisation of transport crucial to achieving the Paris Agreement’s 1.5°C target. 
 

The urgency of decarbonising transport 

As economic growth drives increased transport demand, urgent action is needed to transition to low-carbon solutions. 
 

Key strategies include: 

• Scaling up proven technologies, such as battery electric vehicles (BEVs) and hydrogen fuel cells.
• Improving vehicle efficiency.
• Reducing travel demand and promoting public transport.
• Supporting micromobility, such as walking and cycling infrastructure. 
   

Purpose of the Low Carbon Transport Criteria 

The Low Carbon Transport Criteria provide science-based requirements to guide financial decisions and certify transport projects aligned with the Paris Agreement’s climate goals. 

Based on International Energy Agency (IEA) recommendations, the Criteria emphasize: 

1. Transitioning to zero tailpipe emissions fuels, such as electricity and hydrogen.
2. Using emissions intensity thresholds (gCO2/p-km or gCO2/t-km) where zero-emission technologies are unavailable.
3. Investing in infrastructure for clean energy production and supply, such as electric charging and hydrogen fuelling stations. 
    

Eligible investments 

The Criteria outline two categories of eligible investments: 
 

Automatically eligible 

• Fully electric, hydrogen, or other zero-direct emissions transport, including private vehicles, passenger trains, subways, and trams.
• Supporting infrastructure, such as electric charging and hydrogen fueling stations.
• Public walking and cycling infrastructure.
• Manufacturing facilities for zero-emission transport and components. 
   

Threshold-based eligibility 

• Zero direct-emissions freight rail carrying <25% fossil fuels.
• Hybrid vehicles (excluding trucks/lorries).
• Fossil-fueled public transport meeting strict emissions thresholds.
• Systems promoting efficiency, such as car-sharing, road charging, and public transport utilisation technologies. 
   

Supporting sustainable transport systems 

The Low Carbon Transport Criteria enable investments that: 

• Foster green economic transitions.
• Drive the development of sustainable transport infrastructure.
• Accelerate the transition to zero-emissions mobility.