The stringent CO2 cap over the whole EU energy system drives the carbonization of passenger transport via the increased use of biofuels and the adoption of Electric Vehicles (Fig. 2). The latter is dominated by increasing plug-in electric vehicles (PHEV), starting after 2030, delivering 20% of passenger car mobility by 2040 and 75% by 2050. With the current expected cost evolution, battery electric vehicles (BEVs) are not cost-effective even under the strict 70% CO2 cap. Note that the EVs currently being driven in the EU (less than 4000 units) are not considered in the model exercise because their deployment relied on subsidies. The long -term passenger car mobility demand in [C70] is slightly reduced (less than 5% demand in 2050 than in [REF]), as a result of demand-price elasticity due to the strict CO2 cap in 2050