State of the transition

Emissions

  • Road sector emissions were just over 6 Gt CO₂ in 2024, 8% higher than in 2015. Growth averaged only 0.2% annually from 2019 to 2024, down from 1.7% per year between 2015 and 2019.

  • Over 60% of road emissions are from passenger cars or vans, followed by trucks (about one-third), and buses and 2/3 wheelers just 7%.

  • Since 2015, emissions in emerging economies (excluding China) have risen sharply, at over 18%, compared to 2.5% in the rest of the world.

Cost

  • Closing the purchase price gap between electric and conventional cars is essential for mass adoption. Declining battery costs and growing market competition are driving improvements in affordability.

  • Electric car affordability improved across all major markets between 2021 and 2024. In China, around two-thirds of electric cars were cheaper than their conventional counterparts in 2024.

Deployment

  • Electric car sales surpassed 17 million in 2024, growing nearly 30% year-on-year. They accounted for 22% of total car sales, meaning cars overtook 2/3-wheelers as the most electrified road transport segment. Electrification of 2/3-wheelers stagnated at about 15% in 2024.

  • The electric bus and truck market continued to expand, growing by 30% and 75%, respectively. Sales of electric vehicles are highest in China, where around 1 in 10 cars is now electric.

Success statements

Zero-emission light-duty vehicle pledges are translated into policies, and more key markets join heavy-duty vehicle pledges

Why is it important to achieve the success statement to reach the sectoral breakthrough goal?

  • While significant recent growth in electric vehicle (EV) sales is encouraging, it remains uneven across geographies and segments. Governments play an important role in accelerating zero-emission vehicle (ZEV) adoption by setting high-level targets and adopting related regulations for fuel economy or CO2 standards. By working together, countries can amplify the signal for greater ZEV adoption.

  • More effort is needed in translating voluntary targets into deployment policies for the light-duty vehicle (LDV) segment. Around 20% of the global LDV market is now covered by binding policies to achieve 100% ZEV sales on a timeline aligned with the 2015 Paris Agreement. A further 10% of the market has voluntary commitments in place.

  • Heavier segments are at an earlier stage of the transition, with a ZEV sales share of less than 2% for medium- and heavy-duty vehicles (MHDVs) compared to over 20% for the LDV segment. This highlights the need for stronger policy focus on heavier segments, and more collaboration between countries on relevant ZEV targets. Only 20% of the heavy-duty vehicle (HDV) market is covered by ZEV targets, and a far smaller share by policies to implement those targets.

Quantitative indicator for success

  • Share of new LDV sales covered by ZEV enabling policies aligned with the 2015 Paris Agreement.

  • Share of global MHDV markets that have joined ZEV MHDV pledges.

Qualitative examples of collaboration

  • Two new trucking sector members joined the First Movers Coalition, where truck owners and operators commit to making at least 30% of their purchases of new heavy-duty trucks zero-emission by 2030, as well as 100% of new medium-duty truck purchases.

  • At COP 29, Costa Rica signed the ZEV Declaration, which targets 100% ZEV sales of new cars and vans by 2035.

  • In April 2025, a green corridor aimed at supporting zero-emissions MHDVs was announced as a part of the Global Green Road Corridor Initiative. In phase 1, the Mediterranean Corridor will run 1 000 km from Algeciras in Spain to Avignon in France.

  • In April 2025, Montenegro and Peru became signatories of the Global Memorandum of Understanding on zero-emission MHDVs, which now has 40 signatories, representing around 21% of the global MHDV market.

International public and private finance is scaled up in emerging markets and developing economies to support road transport decarbonisation initiatives

Why is it important to achieve the success statement to reach the sectoral breakthrough goal?

  •   At 4%, the share of EVs in new car sales remains lower in emerging markets and developing economies (EMDEs) other than China compared to in advanced economies (13%). Imports of relatively affordable EVs from Chinese car makers are supporting an increase in the sales share in EMDEs, but decarbonisation of road transport remains capital intensive, especially as the cost of capital in EMDEs is higher than in advanced economies.

  • Public finance can also support international collaboration on the growing trade in used EVs, by funding systems to track imports and exports, enforcing standards for vehicle condition, and building local service networks (see next Success Statement). Such investments increase transparency and ensure that used EV flows strengthen, rather than undermine, road transport decarbonisation.

  • Alongside access to finance, EMDEs can benefit from other international support such as assistance to build capacity for policy design and implementation and de-risking facilities to leverage private sector investments.

Quantitative indicators for success

  • International public financing for road transport electrification or charging infrastructure in EMDEs excluding China.

Qualitative examples of collaboration

  • The Global Facility to Decarbonise Transport (GFDT) is a multi-donor trust fund established at COP 26 to provide financial and technical assistance to EMDEs for transport decarbonisation. In 2025, the GFDT selected over 20 projects to receive a total of nearly USD 4.4 million.

  • At COP 27, governments, corporates and financial institutions created the Collective for Clean Transport Finance (CCTF). In 2024, CCTF started designing a potential pilot project with Brazil on demand aggregation for electric buses, which could provide a framework to be replicated in other countries. In 2025, CCTF is working to secure funding to operationalise its flagship projects.

  • At COP 29, companies under the Zero Emission Vehicles Emerging Markets Initiative (ZEV-EM-I) signalled demand for approximately 9 000 electric vehicles in Mexico by 2027; and more than 17 000 electric vehicles by 2030, including freight and passenger vehicles.

Global interoperability enables electric vehicles to charge seamlessly anywhere in the world

Why is it important to achieve the success statement to reach the sectoral breakthrough goal?

  • At present, not all EVs can charge at all public or semi-public stations, due to incompatible connector types, which can vary regionally and by car model, as well as due to proprietary networks. These limitations reduce convenience, create uncertainty for drivers, and can slow adoption.

  • There are seven major connector types for electric cars; J1772 and IEC Type 2 are typically used for slow charging, while the other five are used for fast charging: NACS, CCS, CCS (2), CHAdeMO and GB/T. For charging above 350 kW, two connector types are common: Megawatt Charging System (MCS) and ChaoJi. With new models and charging technologies continuing to emerge, international co-operation is essential to harmonise charging standards in order to prevent waste and ensure usability of cars across different geographic regions.

  • In addition, transparent and simple payment systems are crucial for public charging. Ensuring drivers know the price in advance builds trust in the charging network and encourages wider use.

  • Data sharing and transparency are needed to make chargers easily findable in order to improve accessibility and driver confidence, whether through in-vehicle operating systems, mobile applications or roadside signage.

Quantitative indicator for success

  • Number of connector types

Qualitative examples of collaboration

  • The European Union and the United States issued a joint statement recognising the MCS as adopted by international standardisation bodies.

Battery end-of-life management discussions are translated into national policies and capacity-building initiatives, particularly in emerging markets and developing economies

Why is it important to achieve the success statement to reach the sectoral breakthrough goal?

  • Growing demand for EVs is increasing demand for the critical minerals used in batteries. Battery end-of-life management can provide a significant secondary source of supply of critical minerals that is more sustainable and less geographically concentrated than primary supply. These benefits are greatest when recycling facilities are located domestically.

  • This means that there is a need to develop battery end-of-life strategies, which could call for either new recycling capacity in EMDEs (where imports of used EVs are expected to rise in the coming decade); or plans to send end-of-life vehicles back to recycling centres, such as to the battery or vehicle manufacturer.

  • Collaboration is needed between countries that export EVs and countries where EVs reach end-of-life, as is collaboration on regulatory frameworks and standards for managing the recycling and reuse of EV batteries. Exploratory workshops remain at an early stage (see below) and will need to scale up to translate into sizeable impact.

Quantitative indicators for success

  • Global battery recycling capacity and share in EMDEs.

  • Share of battery demand covered by recycled material.

Qualitative examples of collaboration

  • Progress is underway toward a second release of the Battery Passport indicator framework, data exchange and assurance rulebook, as well as supporting materials, to allow early adoption in support of regulatory requirements, and pave the way for large-scale uptake of Battery Passport certification.

  • According to the United Nations Environment Programme, more than 30 country projects have now included an end-of-life component in their national electric mobility programmes

 

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