## 6 Critical Analysis of EU Road Transport Policy and Sustainability
### EU Market Dimensions in Road Transport Policy and Sustainability  
The automotive sector contributes 4% to Europe's GDP [30], and 12 million people work in this industry. It also contributes 388 billion euros in tax to the EU. Car availability in the EU has increased due to competitive pricing, growth in the second-hand market and the financial relationship between the manufacturers, their dealers and finance companies [31]. The average engine power in kilowatts (kW) in the EU (here EU refers to the EU-15 and EFTA) increased from 72 to 93 kW between 2000 and 2015. Cars in Luxembourg, Sweden and Germany have an average power of 112 kW, 106 kW and 102 kW, respectively [32]. The highest percentage of 4\(\times\)4s in the EU is in Luxembourg (23%) [33]. Engine displacement and its distribution in the passenger transport fleet also play important roles in determining the emissions of a country. For example, [PERSON] et al. [34] looked at the CO\({}_{2}\) emission factors for gasoline cars in Beijing and found that an engine displacement increase of one level led to an emission factor increase of 56.79 gCO\({}_{2}\)/km. Changes in motorisation patterns can also increase carbon emissions [35]. Luxembourg has the highest rate of motorisation in the EU, while the largest increases in motorisation between 1980 and 2014 were seen in Romania, Poland, Estonia, Greece, Lithuania and Latvia. In contrast, France showed the smallest increase. Controlling and managing the complex passenger car market and all the supply chains is challenging as the stakeholders, their finance companies and car retail dealers are important political stakeholders in the EU. For example, 2012 data on the fiscal income from motor vehicles revealed it was 80 billion euros for Germany and 64.8 billion euros for the UK [36]. Similarly, an income of 71 billion euros each for Italy and France was reported for 2014. The EU's fuel excise duty is higher for gasoline and lower for diesel in all EU member states except in the United Kingdom [36]. The most recent White Paper report on CO\({}_{2}\) emissions from passenger cars in the EU, From Laboratory to Road [37], claimed that the CO\({}_{2}\) emission values of new European passenger cars increased from approximately 9% in 2001 to 42% in 2016. The European Commission produced major initiatives for road transport sustainability in two White Papers in 2001 and 2011. These White Papers focused on promoting an integrated environmental and transport system across the EU [38]. Recently, the European Commission [39] announced its plan to reach a 55% reduction in carbon emissions. This will mean that half of the cars sold in the EU in 2030 will be electric. A road transport emission trading scheme was also announced. These proposals aim to introduce new economic and investment drivers within the EU market. For example, the 2021 Tax Guide [40] of the European Automobile Manufacturer Association stated that the EU's annual fiscal income from the motor vehicles industry was 398.4 billion euros. Sustainability in Road Transport Emissions for 1.5 \({}^{\circ}\)C and 2 \({}^{\circ}\)C Scenarios  
Decarbonisation will build resilient road transport infrastructure and is an important action for combatting climate change and its impact. Policies to decarbonise transport by improving vehicle efficiency and developing technologies such as hybrid, plug-in hybrid and battery electric vehicles (BEVs) will help achieve the carbon targets of the EU and help meet goals 9 and 13 of the Sustainable Development Goals [41]. The carbon emissions produced by the consumption of diesel and gasoline could also be temporarily reduced through changes in fuel excise levies. To further reduce emissions, the EU could restrict the engine sizes of vehicles and leverage the fuel tax and engine power of vehicles. It could also promote competition between internal combustion engine (ICE) manufacturers and the BEV car industry. BEVs and adequate renewable charging infrastructure are an effective path to road transport sustainability.