In transport decarbonization, the whole ecosystem is important

Transport decarbonization in Latvia is developing in the passenger car sector, with electric cars becoming increasingly popular. However, the next challenge is heavy transport and the entire ecosystem needed for the transition to sustainable mobility.

In Latvia, the process of replacing passenger cars is progressing successfully, with more and more electric cars being introduced. We have participated in organizing larger marketing campaigns to promote the mobilization of electric cars in the passenger car sector. The heavy vehicle sector has so far been neglected, and the European Commission now plans to pay increased attention to it. The most important point in Latvia as well is to advance the entire ecosystem – additional electricity generation capacity, subsidies for car purchases, and the development of charging infrastructure. It is a complex task to strengthen the entire electric vehicle ecosystem,” adds Armands Gūtmanis, head of the Latvian Sustainability Cluster.

On June 24 in Brussels, the discussion ‘Beyond Cars: Driving a Sustainable and Competitive European Automotive Ecosystem’ took place, where industry representatives, politicians, and experts spoke about how Europe can ensure a sustainable and competitive automotive sector. The discussion confirmed that the automotive industry is no longer just about cars — it is a whole ecosystem that encompasses innovation, supply chains, infrastructure, and social justice.

One of the main conclusions is that electrification is an important direction, but it cannot be the only answer. Heavy commercial transport, logistics, and municipal machinery also require other solutions, such as renewable energy sources and hydrogen technologies. Some industry manufacturers are already prepared for this — for example, Volvo, Scania, Mercedes-Benz, Renault Trucks, and others offer a wide range of zero-emission vehicles, while municipal equipment manufacturers are actively introducing electric street sweepers and waste collection vehicles.

The main unanswered question of the discussion remained infrastructure. Charging stations and hydrogen refueling networks are developing too slowly to keep up with the availability of technology. If the state and the private sector do not invest, there is a serious risk that the sustainable transition will remain only on paper.

The exchange of views also highlighted the importance of regulation and the circular economy. For example, the new rules on vehicles at the end of their life cycle set stricter requirements for recycling and place greater emphasis on the reuse of components. The tire industry also calls for clear criteria to ensure that recycling is effective and takes place within Europe.

An important aspect is the social dimension — a ‘just transition.’ Green technologies must not make mobility inaccessible to people with low incomes or burden small and medium-sized enterprises. That is why European policy must be based on a balance between stricter environmental goals and practical support instruments.

This discussion showed that the transport sector of the future will be much more than just cars. It will be a broad, connected, and sustainable ecosystem that will determine not only how we move forward, but also how we will live and work in Europe in the years to come.

Reference: Beyond Cars: Driving a sustainable and competitive European automotive ecosystem - PubAffairs Bruxelles (2025)