Open innovation paves the way for sustainable mobility

Humanity is evolving at breakneck speed, and cities – the main centres of economic activity – are being transformed too. The growth of urban areas poses substantial challenges in the area of sustainability and, because of its social and environmental consequences, one of the main issues is mobility.

Sustainable mobility is a set of policies and strategies aimed at transporting people and goods in a way that minimises the negative impact on the environment and on society. It can be applied to international travel, for example with planes that have lower energy costs, although it is particularly beneficial in the day-to-day life of our cities.

Under the 2030 Agenda, Sustainable Development Goal (SDG) number 11 is dedicated to making cities more inclusive, resilient and sustainable places, as they are currently responsible for 70% of global carbon emissions, despite only occupying 3% of the land on the planet. In addition, this SDG establishes a specific target, 11.2, which focuses on the importance of facilitating access to safe, affordable and sustainable transport systems for all.

A study by the Carlos III Health Institute states that in Spain 10,000 deaths a year are caused by breathing polluted air. The transport sector is responsible for 25% of these greenhouse gas emissions in Spain and almost 40% of the emissions from the diffuse sectors, according to data from the Ministry for the Ecological Transition and the Demographic Challenge. The European Green Pact wants to correct this and proposes reducing emissions by 90% by 2050.

Electrification of private vehicles

Road transport represents some 95% of emissions, while the contribution of other modes of transport is minimal. “We have to take into account that 15% of total CO2 emissions in Spain are due to passenger cars”, notes the Director of Development at the Companies for Sustainable Mobility Forum, May López. In this context, she explains that in addition to using greener vehicles, we also have to travel more efficiently. Remote working and technology could help a great deal, by preventing unnecessary journeys: “We don’t all have to move at the same time, creating traffic congestion that leads to a greater negative impact on the environment and our health”.

López adds that citizens must also be careful with the e-commerce purchases they make, as these generate excessive indirect mobility. “With consumer habits like compulsive shopping, super urgent deliveries, ‘I’ll buy it and return it’ and campaigns like Black Friday, we’re flooding the city with vans”, she explains. For this reason, they have launched EntregaSostenible.org, a movement to promote responsible consumption and encourage sustainable logistics.

At the same time, the establishment of regulations and targets at both the European and national levels and the progressive rejection of diesel has led citizens to start taking an interest in electric cars. A report written by López, ‘The electric vehicle in Spain. Current situation, targets‘, explains that one in every three vehicles registered in Spain last year was of this ilk. While it points to a changing scenario, it warns that many of the cars purchased are non-plug-in hybrids, so they do not fully minimise the environmental impact. “To achieve the climate objectives, such as hitting 5 million electric vehicles in Spain by 2030 – either pure electric or pluggable hybrids – consumers must be well-informed and decision-making be made easier, in order to manage the change”, she explains.

Another drawback to deploying electric transport is, according to Lopez, that the consumer does not have as much control. So the owner of a petrol car can refuel and pay however they want, while the electric vehicle owner has to use certain applications and cards mandated by the supplier. “Any charging station that receives European subsidies should be interoperable”, she declares, alluding to the need for consumer access and compliance with the requirements established by the EU.

What is an ‘e-dealership’?

Moving with the times, dealerships are integrating digitisation to evolve alongside customer needs. As purveyors of mobility solutions, they are going through a period of having to transform their business models, committing to innovation and diversification. In this sense, Niw, an initiative driven by BBVA and Faconauto under the ‘Next Generation EU’ recovery funds, has promoted the new concept of ‘e-dealership’ to boost green and digital mobility.

It is the only marketplace in Spain for second-hand vehicles with an official dealer warranty, where the customer can purchase 100% online. The initiative was present at BBVA’s stand during the 2021 Summit in October, and on Thursday 11th November it will be involved in one of the BBVA Open Innovation InnovaHome Festival events, where the revolution in the automotive sector will be discussed.

The Director of Niw, Maria Moreno explains that the digital platform maintains their commitment to electric vehicles and to promoting sustainable and smart transport: “Thanks to our experience in digitisation, we are working to implement advanced mobility and communication systems, as well as qualified business processes based on smart data and artificial intelligence.”

Moreno emphasizes that, as a new company, innovation and sustainability are in Niw’s DNA. This allows them to provide customers with comprehensive value-added support, whether they are dealerships requiring system optimisation for online marketing or drivers seeking a trusted mobility service.

The website, which has been designed to be accessible, lets customers buy vehicles, try them, reserve them and even finance them with BBVA’s favourable terms, as well as taking out insurance. “BBVA is a natural partner for this project, as it is a bank at the forefront of digital innovation,” says Moreno.

Startups at the service of the environment

The technological capabilities of companies and startups are essential to implement mobility solutions and optimise logistics or deploy fleets of electric vehicles. This is the case of Velca, a Spanish startup that was born in the middle of the pandemic and that aspires to lead the electric motorcycle market.

CEO Emilio Froján decided to found Velca because of his concern for the health of people living in cities. “70% of public space simply cannot be invaded by cars,” he insists. So he decided on electric scooters seen as they do not generate micro-particles and are more accessible in Spain than other vehicles. “Given the legal ambiguity and current infrastructures, we may not yet be ready for a mass rollout of electric scooters,” he explains.

The key to success in the midst of the health crisis has been about “getting a lot of support from people through crowdfunding campaigns and the power of word of mouth, people saying positive things about you”.

Froján clarifies that Velca batteries operate using lithium ion, a material with less of an environmental impact than nickel or lead. He also states that Velca is supplied only by renewable energy providers, and that all its warehouses have a near-zero carbon footprint.

In addition, the startup has reaffirmed its commitment to human health by creating the first Institute for Health in Cities. “We want it to be a social impact project, led by healthcare professionals, and to investigate the consequences of pollution on health, as well as promoting good habits in the population,” Froján maintains.

Transport has an important bearing on achieving sustainable development because of its social and environmental impact, and due to the fact that it is interrelated with virtually all sectors. The associated challenges require technological solutions that can give rise to new infrastructures and services. When public and private entities such as European funds and startups like Niw and Velca join forces with citizen participation, you begin the journey towards sustainable mobility.