Arthur D. Little x POLIS report: Funding Storm Ahead

Public transport and shared mobility are at a critical crossroads. They are expected to play a central role in delivering sustainable, inclusive, and low-carbon mobility—yet they face drastically low levels of funding. Governments worldwide have set ambitious targets for cutting emissions, shifting people away from private car use, and building resilient transport networks by 2050. But existing funding models are ill-equipped to support the sheer scale of investment these goals demand.

As cities continue to expand, pressure on mobility systems is rising fast. The United Nations projects that urban populations will grow significantly by 2050, straining already stretched transport networks. At the same time, policymakers are pushing transitions toward public transport, shared mobility, cycling, and walking to ease congestion and meet climate objectives. While sustainable modes of transport do account for a larger share of urban trips than they did 15 years ago, private cars still dominate the majority of passenger kilometres travelled. The modal shift is simply not happening fast enough.

The transport sector is also failing to cut greenhouse gas emissions at the required pace. Road transport, still largely powered by internal combustion engines, continues to drive emissions upward, while low vehicle occupancy rates worsen congestion, waste infrastructure capacity, and reduce the quality of life in urban areas. Together, these challenges make stronger investment in public transport and shared mobility more urgent than ever.

This report examines the scale of the funding gap facing public transport systems through 2035 and 2045, and the practical ways to close it. Drawing on industry insights and international best practice, it explores both short-term funding measures and long-term investment strategies that can help public transport authorities build reliable, sustainable, and financially resilient networks. Ultimately, strengthening public transport is essential to creating cleaner, more accessible, and more liveable cities while still supporting economic growth and climate goals.

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