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Tong et al. Carbon Footprints 2025;4:2 https://dx.doi.org/10.20517/cf.2024.44 Page 3 of 18

[8]
technological innovation and new business model development .

The current low-carbon transition of the automobile industry focuses on electrification and energy
substitution. This shift is a pivotal response to the global challenge of reducing greenhouse gas emissions
[6]
and mitigating climate change . Electrification involves the transition from traditional internal combustion
engines (ICEs) to electric vehicles (EVs), which include battery electric vehicles (BEVs), plug-in hybrid
electric vehicles (PHEVs), and fuel cell electric vehicles (FCEVs), whose lifecycle GHG emissions highly rely
on the regional energy system . Energy substitution, on the other hand, refers to the replacement of fossil
[9]
fuels with renewable and sustainable energy sources for the entire transportation and manufacturing
sector . This includes the use of biofuels, synthetic fuels, and hydrogen produced from renewable energy,
[10]
as well as renewable sources of electricity for EVs. By prioritizing electrification and energy substitution, the
automotive industry aims to achieve a significant reduction in GHG emissions, improve air quality, and
contribute to a more sustainable transportation system .
[11]

[7]
However, the transformation of the energy system alone is not enough . The potential to significantly
reduce the lifecycle emissions from the automotive industry through the construction of a closed-loop
supply chain has been widely recognized, from lifecycle cost and GHG emission of a vehicle , to the
[12]
recycling of key raw materials such as scrap steel , scrap aluminum , and scrap plastics , as well as
[13]
[15]
[14]
battery recycling [16,17] . According to China Automotive Data Co., if the automotive industry could achieve
carbon neutrality by 2050, the proportion of GHG emissions during vehicle manufacturing to total lifecycle
GHG emissions will rise to 66% by 2060 , almost double the current status. The potential of a circular
[18]
economy for GHG emission reduction is of increasing significance in automobile producers’ low-carbon
strategy , besides securing supply for various critical metals for the surging markets .
[7]
[16]
Furthermore, the development of low-carbon transportation necessitates not only the transition to cleaner
vehicle technologies but also a holistic approach that reduces the overall demand for vehicle products
through technological innovation, business model transformation, and urban planning reforms .
[19]
Technological innovation plays a crucial role in enhancing the efficiency and sustainability of transportation
[20]
systems . Advancements in intelligent transportation systems (ITS), for instance, enable more efficient
traffic management, reducing congestion and minimizing the need for additional vehicles [21,22] . Autonomous
vehicles and shared mobility services can further optimize vehicle usage, as they allow for more flexible and
[23]
efficient transportation options that cater to varying passenger demands .
In general, the shift toward a circular economy in the transportation sector could be achieved through
various pathways, including promoting practices such as vehicle sharing, leasing, and the reuse and
recycling of vehicle components . By extending the lifespan of vehicles and maximizing their utilization,
[17]
the demand for new vehicle production can be curtailed, thereby lowering GHG emissions associated with
manufacturing processes . On the other hand, urban planning is equally important in shaping low-carbon
[24]
transportation systems . Compact, mixed-use urban development could encourage walking, cycling, and
[25]
[26]
the use of public transportation, reducing the reliance on private vehicles . The integration of green
infrastructure, such as bike lanes, pedestrian pathways, and public transit networks, further supports
sustainable mobility options [27,28] . Additionally, the implementation of congestion pricing, low-emission
zones, and incentives for low-carbon transportation choices can effectively reduce vehicle demand and
promote environmental sustainability [29,30] . Collectively, these strategies aim to create a transportation
system that is more efficient, sustainable, and resilient.