Transport poses a dilemma in that it is necessary for economic and social development, yet it is associated with environmental degradation, especially with regard to atmospheric pollution. Demand for transport services is expected to grow considerably as economic growth occurs in developing countries, incomes rise, the trend toward urbanization continues and as the process of globalization moves forward with expected increases in world trade. This report was prepared as an input to deliberations on transport-related issues by the international community and as part of the activities of the joint United Nations/World Bank project entitled Global Initiatives on Transport Emissions (GITE). It is hoped that this report contributes to efforts to achieve sustainable development in the transport sector by the international community and provides information and guidance to policy makers in both developed and developing countries.