Motorization Management and the Trade of Used Vehicles : How Collective Action and Investment Can Help Decarbonize the Global Transport Sector

Globally, the transport sector contributes almost one-fourth of total carbon dioxide emissions (CO2). The road transport sector is responsible for more than 77 percent of transport-related CO2 emissions globally, with light-duty road vehicles (LDVs) encompassing passenger cars, SUVs, and pickup trucks accounting for as much as 40 percent. Therefore, decarbonizing road transport is one of the most critical challenges of the coming decade. The development objectives that encompass sustainable mobility go well beyond mitigation and adaptation to climate change, including expanding access to economic opportunities and enhancing road safety, strengthening community resilience, and improving air quality, among others. Due to high levels of motor vehicle ownership and use, the transport sector's carbon footprint per capita in high-income countries (HICs) is an order of magnitude higher than in low- and middle-income countries (LMICs). Even as HICs are poised to adopt a less fossil fuel-intensive fleet in the coming years, the obsolete, less safe, and more polluting vehicles that are displaced may make their way to LMICs to meet their increasing demand for motorization. As motorization in LMICs increases, addressing the trade and quality of used vehicles and managing motorization throughout the vehicle lifecycle are critical for decarbonizing the road transport sector and achieving other sustainable development goals. If these impacts can be successfully managed, then the global trade in "good quality" used vehicles can be an important component in promoting sustainable transport and can also benefit the wider economy through industry and technological transition, job creation, and lowering vehicle operating and maintenance costs