University of California Institute of Transportation Studies

A rapid transition to a near-zero-emission transportation system in California and Europe will require rapid uptake of transportation technologies, changes in transportation services, and investments in associated infrastructure. These in turn require policy innovations. This report compares California and EU policies across three broad areas: 1) greenhouse gas (GHG) targets for 2030 to 2050; 2) progress on reducing GHG emissions from different transportation modes; and 3) current strategies and policies to achieve targets. Differences by region and across major modes are identified. Strategies cover electrification, uptake of hydrogen, aviation and shipping fuels, and modal shifts. Policies include regulatory requirements (fuel economy and CO2 standards, fuel standards); incentive programs, including taxation, feebates, and others; direct investment programs; equity considerations and environmental justice-related initiatives. In both geographies, a range of impactful policies are in place. However, these fall short of guaranteeing that targets will be met, and more actions will likely be needed. Some possibilities are presented, with a particular focus on pricing strategies.