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Dr2 Consultants’ Breakfast Meetings: Key Takeaways

Cities have an important role to play in the reduction of greenhouse gas emissions and in reaching the goals of the European Green Deal. In its Sustainable and Smart Mobility Strategy, the European Commission calls on cities to be at the forefront of the transition towards more sustainability, and it sets itself the goal of achieving 100 European climate-neutral cities by 2030. In this context, Dr2 Consultants organized a series of 30-minute breakfast meetings on sustainable and smart mobility in European cities. During these sessions, Dr2 Consultants has been engaged in lively one-on-ones with several European and business stakeholders to discuss topical subjects in EU urban mobility, especially focusing on the challenges that cities need to overcome to become climate neutral and stimulate automated and shared mobility.

General takeaways

The COVID-19 pandemic has been a major challenge for everyone, and will likely impact the way people live, and in turn mobility trends. During lockdowns, people have witnessed less congested and less polluted cities, and will want the benefits to remain in the post-COVID period as well. On the other hand, many urban inhabitants have felt smothered in cities during lockdown and are now looking to move away, especially with the increase of teleworking allowing them to live further away from work. This also has the potential to impact mobility trends.

Zuzana Pucikova – Head of EU Public Affairs at Uber

On the industry side, there is a role to play in offering solutions for smarter and more sustainable mobility in cities, and especially in offering alternatives to single-occupancy vehicles. In this sense, the European Commission’s approach in the European Sustainable and Smart Mobility Strategy recognizing ride-hailing as key, safe and sustainable mobility solutions as well as clarifying legal status of ride-hailing platforms offers the right framework for the development of ride-sharing companies, such as Uber.

The work of transit agencies has been especially important, shifting from a role of transport provider to mobility manager. The pandemic is an opportunity to integrate and complement transit networks with services such as Uber, with authorities now taking a holistic approach to making transport more accessible, equitable and efficient. This enables them to be much more ‘nimble’, and address the challenges of today and tomorrow;

Given the urgent need to reduce transport emissions and to drive green recovery, Uber committed to becoming climate neutral by 2030 across the US, Europe and Canada, and by 2040 for the rest of the world. Across seven key European cities it aims to become 50% electric already by 2025. However, in order for transport to become more sustainable, we need to reduce the reliance of households on private cars.

Tom Berendsen – Member of European Parliament for CDA/EPP

In order to boost the uptake of smart and sustainable mobility solutions within cities, the EU should provide the right set of regulations and a framework for businesses, establishing product standards. The EU level is also where best practices should be shared.

The most efficient way to stimulate sustainable and smart mobility within cities is to adopt a bottom-up approach, focusing on city planning. Indeed, cities are best placed to know the needs of their inhabitants. Therefore, when preparing regulations, the EU should listen to cities’ experiences and ideas. Moreover, traditional modes of transport will need to cohabit with new “smart” systems of mobility. To ensure a smooth cohabitation, there is a need for test areas that can only be implemented within cities, to learn from the problems raised there and take the appropriate measures at European level.

To ensure the mass uptake of more sustainable mobility by citizens, for example of electric vehicles, it is necessary to provide affordable and easily accessible infrastructures (e.g. sufficient charging points). The development of such infrastructures are projects of common European interest, as we need to ensure that the knowledge and skills needed exist within the EU, and that we are not dependent of foreign actors.

Isabelle Vandoorne – Deputy Head of Unit B.3 at DG MOVE

The European Sustainable and Smart Mobility Strategy has the double objective of contributing to the objectives of the European Green Deal through the greening of the transport sector, and of digitalizing mobility. The Strategy adopts a holistic approach, considering not only urban mobility but also peri-urban and rural areas and how to connect them. Especially considering the impact of the COVID-19 pandemic on the future of work, which will see telework more widely accepted, and office areas maybe displaced from inner cities to peripheries. In order to improve commuting, proper infrastructures are needed, including functioning multimodal hubs.

In ten years’ time, cities will be more livable. The decrease in number of cars and traffic will leave more space for inhabitants and for other modes of transport.

Regarding the uptake of Mobility-as-a-Service (MaaS), the Commission will organize a forum, in a format similar to the Digital Transport and Logistic Forum (DTLF), to bring all stakeholders to the table.

As mentioned in previous meetings, urban planning is at the core of sustainable and smart mobility. That is why the Commission is in the process of revising its 2013 Urban Mobility Package, to enhance its scope. The Urban Mobility Package includes guidelines from experts on the overall development of urban plans for mobility, as well topical guidelines of relevant arising topics, such as MaaS.

One of the key aspects to boost the digitalization of the transport sector is the creation of a European Mobility Data Space, whose components are described in the European Data Strategy. In order to deliver in time (2021-2022) on its commitments, DG MOVE has reorganized its internal digital task force to coordinate with all units within the DG, in order to adopt a common approach. Moreover, a special expert group has been created to reflect on the EU Mobility Data Space, which has the particularity of covering a variety of sub-mobility data spaces for all the different modes of transport. DG MOVE, in collaboration with DG CNECT, will elaborate interfaces to make these bubbles interact with each other.

Finally, the Commission, and especially Thierry Breton, Commissioner for Internal Market, have always had the ambition to ensure that the skills and jobs needed to develop technologies exist within the EU, so that the bloc is not dependent on external actors. This is always taken into consideration by the Commission when proposing legislation. The Commission relies on the excellence of EU industries, notably through partnership programmes, such as Horizon Europe.

Daan van der Tas – Project Leader for Mobility-as-a-Service and Shared Mobility, City of Amsterdam

  • Amsterdam, who is evolving like an international city, is witnessing an important increase of activity in its narrow streets, with an ever-growing supply of different modes of transport. Rethinking mobility systems is relevant not only in terms of clean air but also considering the impact of mobility on public spaces. The main goal of the city of Amsterdam is to reclaim public spaces from cars and alleviate pressure on roadways, for example by expanding the use of its waterways, which are currently mostly used for leisure.
  • With regards to micromobility, Amsterdam is being very cautious, considering that when e-mobility solutions first appeared a few years ago, the city was completely overrun by e-bikes flooding the streets. Amsterdam has now re-introduced e-scooters and is slowly reintroducing e-bikes. In Amsterdam, this needs a special adaptation since most people already own a bike, if not several.
  • In cities of the future, there will be much less room for cars, private or shared, whether for circulation or parking, as we will see an increase of micromobility solutions. Transport systems will also be increasingly digitalized. Additionally, all mobility within Amsterdam will be CO2-neutral by 2030.

  • Shared mobility services raise several challenges, but they can be easily resolved. For example, Amsterdam is working on resolving the conflict between taxis and private ride-hailing platforms such as Uber by developing virtual queuing solutions. Additionally, although micromobility solutions raise certain criticism (safety issues, being discarded anywhere in the streets and taking up space on sidewalks), their advantages outweigh the disadvantages if they can prevent polluting cars or motorbikes being purchased and used.
  • As the mobility system will be increasingly digitalized, data-sharing will become increasingly important. Data will also be needed to understand how mobility systems are running. A mutual understanding will need to be found with industry partners to encourage them to share their data. If an understanding can’t be found, cities will have to rely on legislation, including legislation passed at EU level.
  • Amsterdam is at the forefront of developing Mobility-as-a-Service (MaaS), and has started several pilot projects in the city, notably the MaaS Amsterdam Zuidas, which allows people to reach Amsterdam’s large financial and business district south of the city with MaaS solutions. The city is also investigating a country-wide permit for ride-sharing companies so they can offer rides across cities.

What can Dr2 Consultants do for you?

Over the last years, Dr2 Consultants has built up a track record in advising a broad range of transport clients in navigating the EU ecosystem. Would you like to know more about how your organization can make the most out of the upcoming regulations included in the European Sustainable and Smart Mobility Strategy? Feel free to reach out and discuss opportunities over a (virtual) coffee.

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Smart mobility within cities: benefits and challenges

Cities have an important role to play in the reduction of greenhouse gas emissions and in reaching the goals of the European Green Deal, since cities are responsible for about 72% of all greenhouse gas emissions, a considerable part of which comes from urban transport. In its Sustainable and Smart Mobility Strategy, the European Commission calls on cities to be at the forefront of the transition towards more sustainability, and it sets the goal of achieving 100 European climate-neutral cities by 2030, with a big role for innovative digital solutions. Dr2 Consultants will take you through the key trends and challenges in the transition to smart and sustainable mobility in European cities.

Why does smart mobility in cities matter?

The idea behind the concept of smart mobility is to limit the use, or replace altogether, privately owned gas-powered vehicles by providing easily accessible, cheap, and sustainable alternatives, as well as using technology and digitalization, specifically Intelligent Transportation Systems (ITS), to collect, process and spread information in order to manage mobility more efficiently. The main objectives of smart mobility are to reduce traffic congestion and air and noise pollution, increase safety, improve transfer speed, and reduce transfer costs between different modes of transportation. Smart solutions for mobility are also recognized as essential to further decarbonize the transport sector and reach the ambitious emission reduction goals the EU institutions have set.

In practice, cities have a variety of options to implement smart mobility with solutions fitting for their residents. The concept of smart mobility promotes a wide range of alternative modes of transportation, from privately owned or shared bicycles to electric scooters, buses, metros, taxis, car-sharing, and ridesharing. For example, the city of Paris has bet on the development of a widespread bike-sharing system, with 15,000 electric or regular bicycles available to users all throughout the city.

Dr2 Consultants recognizes that digitization and especially data management are a big part of smart mobility, allowing to smoothen traffic as well as offering integrated solutions to users. For example, some cities collect data to provide real-time information allowing travelers to adapt their route to avoid congested areas. Other examples include connected traffic lights adjusting their timing to respond to real-time traffic or connected cars able to identify and direct the driver to the nearest available parking spot.

Heightened ambition

The European Commission’s recently published Strategy for Sustainable and Smart Mobility proposes several measures to make the transition to carbon-neutral smart cities a reality. The Strategy recognizes the need for clearer guidance in mobility management and urban planning, to adapt the shifts in transportation habits as well as provide the most adequate sustainable mobility options. In it, the European Commission identifies several concepts which can be added to cities’ policy toolboxes to decarbonize urban mobility in a smart way.

The strategy encourages the development of Mobility as a Service (MaaS) as an alternative to the use of private cars. Dr2 Consultants has identified MaaS as a very important area in the field of digitization of mobility, as it integrates different forms of transport into a unique digital service, easily accessible on-demand. It provides, within a single application and through a single payment channel, access to various forms of transport such as public transport, ride- or bike-sharing, and car rental. The city of Helsinki has for example made available to its inhabitants the Whim app, which allows to plan a trip and pay for all modes of public and private transportation existing within the city, from train to bus, to carshare and bikeshare.

Additionally, the Commission notes the increased use of shared and collaborative mobility services as alternative to private cars or packed public transport, such as shared cars, shared bikes, or ride-hailing, through intermediary platforms like Uber or Lime. Shared mobility and micro mobility devices currently remain highly unregulated and raise important safety issues.  To ensure the safety of such services and the level playing field between intermediaries, the Commission will put forward measures on on-demand passenger transport and ride-hailing platforms. Moreover, the Commission will issue guidelines to support the safe use of micro mobility devices such as e-bikes, scooters, or e-skateboards.

Finally, the growth of the e-commerce sector, even more so due to COVID-19, has seen an increase in deliveries. This raises the needs for multimodal logistics solutions, to avoid unnecessary delivery runs and congestion. According to the Commission, cities’ urban plans should accelerate the deployment of zero-emission solutions, such as cargo bikes or automated deliveries through drones. For cities crossed by rivers and other waterways, those should be used to relieve traffic congestion pressure from streets and roads. In Amsterdam, for example, the municipality uses electric boats to transport goods across the city, using the city’s wide network of canals. Delivery service provider DHL also uses the canals to facilitate deliveries, thanks to floating distribution centers.

Challenges in implementing smart mobility solutions within cities

Even though the advantages of the rollout of smart and sustainable mobility in cities are clear, there are still several challenges that need to be overcome to make the most out of the transformation of the mobility system.

Users

However, Dr2 Consultants recognizes that the biggest obstacle to the introduction of smart mobility solutions remains the users themselves. Complaints when municipalities decide to reduce speed limits or turn streets into pedestrian areas, are frequent. Especially when the implementation of smart mobility strategies requires significant changes to cities’ infrastructure, from bike lanes to electric charging points, which ask for heavy investments and public work, inhabitants seem less acceptant.

Security and Privacy

Smart mobility resting mostly on collection and use of data to feed Intelligent Transport Systems, raise the usual concern for security and privacy. Therefore, properly securing such systems is extremely important to avoid data breaches or misuse of data collected. Ensuring their security also contributes to increasing citizens’ trust in data-sharing, ensuring a widespread collection of data necessary to have the most up-to-date and relevant information, and in turn provide the most precise service.

Deployment of 5G networks

Additionally, the increased automation needed for smart mobility solutions relies on the widespread deployment of wireless mobile telecommunication systems, and especially newly introduced 5G systems, capable of supporting extremely high level of interconnections and uninterrupted data exchanges. The deployment of 5G networks is not equal within territories, and said networks also need to be properly secured. The Commission aims to tackle these challenges in its 5G Action Plan (published last year).

Accessibility

Increased digitalization of mobility also needs to consider accessibility, keeping user demand in mind when designing new urban plans and innovations, for elderly and disabled people. Not everyone knows, can or has the devices needed to use an app to plan their trip or book multimodal tickets. If accessibility is not at the core of urban planning, the solutions and innovations proposed risk not being widely deployed, limiting the potential benefits.

Dr2 Consultants’ Breakfast Meetings

Between 3 February and 17 March 2021, Dr2 Consultants organized a series of Breakfast Meetings on sustainable and smart mobility. During these lively one-on-ones several European and business stakeholders shared their vision on EU urban mobility challenges. Our guest speakers included Zuzana Púčiková (Head of EU Public Policy at Uber), MEP Tom Berendsen (NL, EPP; member of the EP’s Regional Development Committee and substitute in the Transport Committee), Isabelle Vandoorne (Deputy Head of Unit DG MOVE B.4 on Sustainable and Intelligent Transport) and Daan van der Tas (Lead Mobility as a Service & Shared Mobility at the Municipality of Amsterdam). You can read the main takeaways from our Breakfast Meetings here.

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Summer recess – what’s next?

As EU leaders agreed on a new proposal for the new Multiannual Financial Framework and the Recovery Plan on 21 July, the European Parliament was given good food for thought over its summer recess. However, the new long-term budget is not the only priority on the EU agenda. The Commission is already chewing on a series of proposals to be expected later this year and in 2021. In fact, now is the moment to deliver input on some key, planned legislative proposals, as the Commission launched a series of public consultations that are open until after summer. Let’s have a look what is next after the 2020 summer recess.

Transport: smarter and greener

The green and digital transition as the twin priorities of the Von der Leyen Commission are also reflected in the upcoming transport initiatives. To deliver the ambitious European Green Deal climate neutrality objective, the mobility sector needs a 90% emission reduction by 2050. The Strategy for Sustainable and Smart Mobility, expected towards the end of the year, will be the overarching strategy for the delivery of the twin transitions in this area. Stakeholders can contribute to the public consultation until 23 September.

Expectedly, the strategy will include the integration of alternative fuels, in line with the recently published hydrogen strategy that already outlines a pathway for the deployment until 2050 in all modes. The strategy is also complemented by the upcoming FuelEU initiatives for the maritime and aviation sector. The FuelEU Maritime initiative, aimed at boosing alternative fuels in shipping specifically, is open for feedback until 10 September. The public consultation on ReFuelEU Aviation, initially planned for the first quarter of 2020, is still to be expected ahead of the Commission proposal this year.

Sustainability: a bigger role for tax

Taxation will become a more important instrument for the Commission to align consumer choices and business investments with its climate targets. On 23 July, public consultations on both the revision of the Energy Taxation Directive and the creation of a Carbon Border Adjustment Mechanism were launched. Having been unchanged since its adoption in 2003, the Energy Taxation Directive will be subject to a thorough review. The exact changes are yet to be determined based on the consultation outcome, however, what is clear is that it will include a correction of the minimum taxation rates for electricity, gas, and coal, as well as a tax exemption reduction for fossil fuels. The proposal, which is part of the European Green Deal, is scheduled for June 2021. The consultation is open for feedback until 14 October.

In addition, the Commission proposes a Carbon Border Adjustment Mechanism to prevent ‘carbon leakage’. This ‘CO2-tax’ internalizes emissions in the price of a product, so production does not shift to countries with lower climate ambitions. The exact instrument is still to be determined, and could take the form of an EU-wide import tax or an extension of the Emmission Trading System (ETS). The latter has already seen critical responses, as this may not be in line with WTO rules. The Commission plans to scrutinize the issue and present a proposal later this year. The revenues would directly contribute to the ‘own resources’ of the EU budget for the next seven years that would help finance the new €750 billion recovery plan. Stakeholders can deliver their contribution to the plan until 28 October.

Digital: fit for the COVID-19 reality

Following its pledge to make Europe ‘fit for the digital age’, the Digital Education Action Plan and the Digital Services Act are also high on the Commission’s agenda. The Digital Education Action Plan, due to be published in September this year, will be part of the Next Generation EU program. The COVID-19 crisis has seen schools and universities close their doors and increasingly turn to remote, digital teaching. The Action Plan aims to promote high-quality and inclusive education and training in the post-COVID digital reality. Feedback on the proposal can be delivered until 4 September.

Part of the Next Generation EU financing is the digital tax element of the Digital Services Act, to be presented by the end of 2020. The Digital Services Act is an attempt to regulate online platforms when it comes to illegal goods, product safety, political advertising and offensive content. The initiative may face intense debates before its approval, as previous attempts to implement an EU-wide Digital Taxation mechanism have so far been unsuccessful. The consultation remains open until 8 September.

Next steps

The Commission’s proposals on the above initiatives are expected before the end of 2020, except for the Energy Taxation Directive which is due in June next year. From the above-mentioned public consultations, it is evident that the European Commission is gearing up for a busy end-of-year period. Early (proactive) action is desirable for stakeholders that aim to represent their interests on these files, which will also be closely examined by the European Parliament and Council of the EU in 2021 (and later).

Want to know more about the upcoming initiatives, COVID-19, or other files that might affect your business? Please contact Dr2 Consultants to see what we can do for you.