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Joint letter by local and regional governments and transport networks call for prioritisation of urban and regional mobility investment in upcoming STIP

3 July 2025

3 min reading time
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In a joint letter to the EU institutions, leading local and regional governments and transport networks —including POLIS,  ICLEI Europe, Eurocities, European Metropolitan Transport Authorities (EMTA), European Cyclists’ Federation (ECF), UITP, and EIT Urban Mobility— have welcomed DG MOVE’s initiative to launch the Sustainable Transport Investment Plan (STIP).

As part of the Commission’s broader effort to boost Europe’s competitiveness, the STIP has the potential to reinforce the critical link between sustainability and economic resilience. The current proposal highlights renewable and low-carbon fuels for aviation and waterborne transport, the deployment of recharging infrastructure, and rail digitalisation.

However, these challenges also affect urban and regional mobility. For this reason, the signatories of the letter argue that only by adopting a transformative approach to urban and regional mobility can the STIP truly become a cornerstone for achieving the EU’s sustainability, equity, and competitiveness goals.

The investment opportunity is considerable: achieving sustainable urban mobility will require €1.5 trillion by 2050, with €500 billion needed for implementation alone. Yet the returns are equally compelling: every euro invested in public transport generates €6.50 in regional economic benefits, and a full modal shift could save individuals up to €15,000 by 2050. The STIP can also act as an investment plan for this approach.

To unlock this potential, STIP must have a strong urban and regional focus. Urban nodes, recognised within the TEN-T framework, will be required to adopt and monitor Sustainable Urban Mobility Plans (SUMPs) from 2027. These will cover entire functional urban areas and demand high-capacity, inclusive mobility solutions to remain competitive.

Investing in sustainable urban mobility will also have positive impacts on the local economy, generating jobs, both directly in operations, construction, and maintenance, and indirectly on sectors such as retail, tourism, and real estate, as well as producing significant external cost savings  through lower pollution, less congestion, and better health outcomes.

Finally, public transport and shared mobility are vital for meeting climate goals, enabling the shift to low-carbon, resilient transport systems. As the EU transitions towards carbon neutrality, the STIP can help establish lead markets for a broad range of European industries, as well as for SMEs and start-ups, positioning cities as hubs of innovation and green development.

To maximise the STIP’s impact on European competitiveness, the letter presents the following key recommendations:

  1. Clearly define the urban mobility scope of STIP.
  2. Promote competitiveness through urban mobility investments.
  3. Establish frameworks to enable investment and implementation.
  4. Link future MFF instruments to STIP urban mobility priorities.

The STIP represents a timely and strategic opportunity to accelerate sustainable transport solutions across Europe’s urban nodes. With complementary strategies, this can be a powerful instrument to support cities and regions, paving the way to achieve meaningful and lasting change.

As Marc Rozendal, Chief Executive Officer at EIT Urban Mobility, highlights: “Cities are where people live, work, and connect—and where Europe’s sustainable future must begin. For the Sustainable Transport Investment Plan (STIP) to succeed, it must place urban mobility at its core. Without strong, targeted investment in cities and regions, we risk missing our EU climate, equity, and competitiveness goals. At EIT Urban Mobility, we know the solutions exist—from clean public transport to innovation-driven ecosystems—and now is the time to scale them. STIP must be more than funding; it must support the transformation in how we move, live, and thrive across Europe”.

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