Mar 4, 2019
EIB leveraging finance to connect Europe through cleaner, smarter and safer mobility
The importance the European Investment Bank (EIB) attaches to the transport sector is reflected in the multiple financing facilities set up by the Bank that provide investments for connecting Europe. In early February 2019, the Bank announced having invested over €1 billion through the Juncker Plan, supporting sustainable transport in Europe. Stéphane Petti, transport innovation expert in the EIB Mobility Department, explains what the key drivers and actions of the Bank are…and which distinguish the EIB from many other banks.
By Stéphane Petti, European Investment Bank
Innovative transportation solutions condition for a connected and sustainable Europe in the future
When most of us think what transport might be like in the future, we see perhaps a futuristic, science fiction type world of flying vehicles, super high speed trains travelling faster than airplanes, and perhaps even teleportation. A world where human beings no longer have to drive, and where the use of petrol as a fuel seems like a distant memory. A world of safe, hassle-free and comfortable mobility for all.
Whether you subscribe to that vision or not, the transport business is taking its first tentative steps towards making it a reality. There is a huge variety of new technology being deployed in sectors such as energy, information, communication and robotics, and these are now becoming part of the new world transport. They offer a fantastic opportunity to provide new ways of being mobile and are profoundly transforming the sector.
Not a single month goes by without there being press releases from automotive manufacturers about future production plans for electric or self-driving vehicles. Governments are queuing up with plans to ban petrol and diesel cars in city centres. New companies and projects are emerging that propose alternative mobility models complementing private vehicles ownership and conventional use of public transport.
Transport has played a fundamental role in the development of Europe as we know it today. The political geography and history of Europe makes it a uniquely fragmented continent, which has meant the Member States having to work together to develop integrated transport networks, such as the Trans-European Transport Network (TEN-T), and ensure the requisite level of connectivity, for example through the Connecting Europe Facility CEF).
Transport has a major role in ensuring economic growth and prosperity and has been a very important sector for the European Investment Bank (EIB), representing on average about 20% of the Bank’s overall annual lending in the last ten years. However, with current technology and growing demand, transport does have a cost to society. It creates vast amounts of greenhouse gas emissions, and air pollution kills an estimated 7 million people worldwide every year according to the World Health Organisation (WHO). Furthermore, about 1.3 million people are killed each year in road traffic accidents.
In this context, the EIB’s core mission in transport is twofold:
- to strengthen connectivity of goods and people in Europe through deployment and rehabilitation of physical networks and infrastructure;
- to be instrumental in transforming the sector towards more sustainable transport.
EIB’s approach with respect to supporting this transformation is to identify new ideas and technologies, and support projects, that will most effectively mitigate transport’s wider global impacts.
Cleaner, Smarter, Safer mobility, for all…
CLEANER, SMARTER, SAFER is the Bank’s approach to current developments and future trends in the transport sector.
CLEANER transport is any technology deployed on vehicles or infrastructure that supports a reduction in carbon and other emission types. Decarbonisation and pollutant emissions reduction is a principal EU priority reflected in an increasing number of EU regulations. The decarbonisation of transport is a key part of achieving the targets set out in the Paris Climate Agreement, while reducing the volume of air pollutants is fundamental for improving the quality of our air. The transition to a low carbon and cleaner economy will require significant investment in new technology deployment and new types of infrastructure, estimated to amount to above €650 billion per year for the vehicle stock only during the period 2011–2030.
In the context of cleaner and alternative fuels technology, the Bank launched the Cleaner Transport Facility (CTF) together with the European Commission in December 2016. This is an umbrella initiative primarily to support the deployment of alternative fuel vehicles and their associated infrastructure, such as charging stations. With an initial focus on public transport, the CTF has now had twenty operations since its launch including investments in cleaner vehicles fleet or electric vehicles charging infrastructure, representing EIB financing of about €1.8 billion. There is now a need to accelerate the rate at which cleaner transport technologies are deployed across other transport modes, particularly shipping and aviation.
SMARTER transport projects are those digitally enabled and innovative services that help to make the transport of people and goods more efficient. Digital technology based on collecting, analysing and sharing data is becoming increasingly pivotal across all aspects of transport. As the European Council underlined in its conclusions of 5 December 2017 these new solutions, services and processes are simply of ‘vital importance for the European economy.’ The Bank is already engaged in the financing and development of smarter transport projects, which might be either standalone projects, such as electronic tolling, or a component part of larger infrastructure projects, like the European Rail Traffic Management System.
SAFER transport in all respects is also a key priority for the EU. The Bank is already very active in promoting and supporting the most pressing aspect of it, Road Safety. However, a new technology dimension is starting to play an increasing role, as automation and the development of connected and automated vehicles (CAVs) suggests substantial safety benefits, not only in road transport but also across other modes of transport. Automation and advancements in areas such as drones are considered both smart and safe, as sophisticated and more reliable forms of automated control replace the human error element of transport.
Future evolution of EIB transport financing
The Bank is aiming to support the Cleaner, Smarter and Safer transport projects that will have the greatest impact and contribution to Europe and the wider world.
Some of those developments that we think have a good chance include truck platooning, in which a group (platoon) of trucks follow a lead truck at very short spacing (~10 cm) using cutting edge vehicle-to-vehicle (V2V) communication technology. The early pilot implementations are suggesting promising results. Truck platooning can reduce the number of accidents substantially owing to the autonomous driving technology while it is also possible to achieve substantial fuel economy. The deployment of cooperative Intelligent Transport Systems (C-ITS) infrastructure enabled by the advancements in communications technologies, should develop alongside and allow cooperation between vehicles and roads for safer journeys.
We also expect to see the deployment of autonomous vehicle fleets, last mile public transport shuttle service operating between neighbourhoods and public transport stations. Recent advancements in autonomous driving technologies coupled with public transport labour costs and high volatility in public transport demand, suggest automated shuttles as a promising solution to the last mile problem of passenger transport with a potential to reduce substantially traffic in city centres.
Finally, in a world where the cities are dominated by cars, mobility needs to be more inclusive. Digitalisation is triggering new mobility services that help to make a better use of public space. Relying on a digital platform employing sophisticated matching, dispatching and routing algorithms, new urban mobility services (such as car sharing or ride hailing) are emerging as alternative business models. Further efforts in opening transport data and information, and deliver it through user-friendly interfaces, mobile phone applications or information systems, will enable travellers to make smarter choices about using transport networks. Mobility as a Service (MaaS) is a good example of how a user-centric approach can be implemented in transport and public transport particularly. We expect to see development in these areas as well.
Future transport for all
The history of transport has been largely one of technological innovation, and it is now increasingly advanced and sophisticated, faster and more connected than ever. Travel time has decreased while accessibility has increased. The future of transportation goes beyond technology and self-driving cars, and our collective challenge is to increase mobility for all whilst simultaneously addressing today’s societal needs. It is not enough for transport to be digital, cleaner or autonomous — it needs to be all three to make a lasting difference.
This article was first published on the January-February 2019 issue of the ECA Journal. The contents of the interviews and the articles are the sole responsibility of the interviewees and authors and do not necessarily reflect the opinion of the European Court of Auditors.
