Road transport accounts for roughly 12% of global greenhouse gas emissions, with light-duty vehicles responsible for the majority of those emissions. Decarbonizing the sector requires coordinated action across vehicle manufacturing, charging infrastructure, grid decarbonization, and the social foundations of the shift.

This briefing note supports banks in engaging regulators and shaping an enabling environment for the transition. Structured around an adapted Avoid-Shift-Improve framework, it presents 13 policy recommendations spanning zero emission vehicle (ZEV) mandates, affordability measures, infrastructure deployment, circular economy standards, and just transition, with guidance on how priorities may differ across different types of markets.