Green mobility: how the transition is reshaping urban space

The participants first assessed the current state of the transition, and their verdict was unequivocal: the process is anything but linear. “The pace of the shift to electric mobility varies widely and depends on the type of green transport,” explained Christophe Gurtner, CEO and founder of Forsee Power, a company specialised in manufacturing batteries for electric vehicles.

A Multi-Speed Green Mobility

In the two-wheeler segment, Gurtner observed a sharp uptake of electric bikes in urban areas for journeys up to 20 km—driven notably by growing restrictions on car use in city centres. This trend is increasingly encroaching on the market for both electric and combustion-engine scooters.

“The switch from combustion to electric often means doubling or even tripling the price, which inevitably changes the target demographic,” Gurtner noted. “As a result, people looking to move away from combustion engines are turning to electric bikes instead. We’re essentially witnessing the collapse of the scooter market, for both thermal and electric models.”

When it comes to private vehicles, the transition is more complex. Here, cost is not the main barrier—habits are. “Resistance to change is largely tied to concerns around range and charging infrastructure,” Gurtner added. “In cities and on highways, it’s not a major issue—there are charging points everywhere. But in smaller towns and rural areas, it’s a real challenge.”

For Jean-Philippe Desmartin, Head of Responsible Investment at Edmond de Rothschild Asset Management, the early wave of adopters has now reached its limit. “In the beginning, it was driven by first movers—mainly affluent populations opting for electric vehicles,” he said. “That’s less true today. We now need to move to the next phase.”

In contrast, urban utility vehicles—such as delivery vans—are transitioning faster, as their routes are predictable and allow for overnight charging.

The picture is more mixed for heavy-duty vehicles. While trucks—whether urban or long-haul—are slower to adapt, public transport is showing more promising results. According to Gurtner, nearly a third of the French bus fleet now runs on low-carbon energy.

Adapting Cities and Industry to New Mobility Models

Beyond fleet-specific issues, the rise of low-carbon mobility presents broader challenges—particularly the need for cities to evolve. This is especially true for older, historic urban centres, which must work within the constraints of existing infrastructure. According to Gurtner, cities must adopt a multimodal mindset—combining bikes, trams, trains, and other transport modes.

Another major challenge is retooling industrial systems that have been shaped around combustion engines for over a century. This shift requires significant investment and time. European industry, which long resisted change, is now lagging behind—especially compared to China.

This reality is echoed by Emmanuel Robinet, Portfolio Manager at CDC Croissance. While EV penetration is increasing in Europe, he noted, it remains lower than initially expected. “In 2024, we’re looking at penetration levels around 12–13%,” he said. “That’s far below what was originally projected. As public market investors, we’re seeing a glaring lack of investment opportunities in the space.”

More fundamentally, Robinet sees a disconnect between the investment horizons of financial markets and the timelines needed for businesses driving the transition. “We lack long-term investors who are willing to commit equity over several years,” he said. “Most investors have relatively short-term objectives—they’re unwilling to wait more than five years for returns.”

To address this, his firm advocates for the creation of new savings products specifically designed for long-term investment horizons. “This would allow us to raise capital over longer timeframes and re-engage long-term investors—those whose timelines are better aligned with the development needs of transition-focused companies.”

Partnering with the Public Sector

For Edmond de Rothschild Asset Management, private investors have a key role to play alongside public authorities in financing the energy and environmental transition.

“The responsibility of private investors is all the more important given the tight fiscal conditions faced by many governments, particularly in France,” Desmartin stressed.

“We take a holistic approach,” added Alexis Bossard, International Equity Portfolio Manager at Edmond de Rothschild AM. “Our goal is to support the entire French and European ecosystem linked to the energy transition. While the current environment is not particularly favourable, the balance of our strategy has enabled us to deliver financial performance and meet our clients’ return expectations.”

Reinventing Urban Space

Despite the barriers, the shift to low-carbon mobility also opens new investment avenues for financial stakeholders.

One example is the growing appeal of urban space freed up by reducing parking—both underground and above ground. “Underground car parks could be repurposed to serve as charging hubs for electric buses or delivery vehicles,” explained Alphonse Coulot, co-founder of the Road Decarbonisation Alliance and lecturer at HEC. “But it’s vital that this is done clearly—so everyone can easily identify spaces dedicated to cars versus other uses.”

Where tensions do exist between cars and other forms of mobility, cities are beginning to innovate. Coulot cited several Italian cities as examples. “These typically congested Latin-style cities have repurposed parking spaces as commercial or cultural areas—cafés, temporary stalls, or even spaces for queueing and coat check areas at cultural venues.” This approach helps declutter indoor spaces and makes public venues more functional.

In France, however, these uses have largely remained limited to cafés and restaurants.

“Who Gets the Space?”

Ultimately, participants agreed that sustainable urban mobility can only succeed with the right infrastructure—adequate charging points and well-located car parks, especially in the suburbs.

“The city of Strasbourg is a strong example,” said Gurtner. “Its star-shaped tram network connects to car parks where people from surrounding villages can park and switch to public transport. It works—especially because the city is bike-, tram- and bus-friendly.”

However, Coulot warned against placing park-and-ride facilities too close to city centres—a mistake made in the 2000s and 2010s. “If they’re too close to the city, they don’t encourage people to leave their cars early in the journey,” he said. “We need to put them further out. When they’re close to home, people are more inclined to park there and continue their trip using other modes of transport.”

Coulot concluded by emphasising that most of the technical solutions already exist—the real challenge is political: “The question now is simply this: who do we give the space to.”