How Toronto Could Save $3 Billion Annually in Productivity Losses by Embracing Micromobility

The Cost of Congestion in Our Growing City

Toronto is a vibrant city, but it is also increasingly gridlocked by traffic. Our current transportation model relies heavily on cars, and as more people move into the downtown area, this dependency comes at a high cost—an estimated $11 billion each year. This figure, reported by the Toronto Region Board of Trade and the Canadian Automobile Association, includes lost productivity, increased fuel costs, and environmental impacts.

In this article, I explore two possible futures for Toronto. One where we maintain our car-dependent approach and watch these costs rise, and another where we embrace micromobility solutions that could save billions, create cleaner air, and make our city more livable.

Scenario 1: Maintaining the Status Quo – Escalating Costs and Worsening Quality of Life

If we continue with our current model, the impact of congestion will grow alongside the population. Here is what we are likely to face:

• Annual Congestion Costs: Right now, congestion costs Toronto about $11 billion each year. If nothing changes, that figure could climb to nearly $15 billion by 2030. This is not just a distant projection; it is a likely reality if car dependency remains the norm
• Environmental and Health Costs: About 40 percent of Toronto’s urban emissions come from transportation. Prolonged idling in traffic contributes to air pollution, which in turn causes public health issues like asthma and cardiovascular disease. Without change, Toronto’s carbon emissions will continue to rise, making it harder to meet climate goals and further straining our healthcare system

Assumptions and Context: These numbers assume we will continue to see increases in car ownership and vehicle usage, similar to recent trends. While more fuel-efficient and electric vehicles could reduce emissions slightly, they will not solve congestion alone.

Scenario 2: A Micromobility-Centric Toronto – Economic and Environmental Gains

Alternatively, imagine if Toronto embraced micromobility: e-scooters, e-bikes, and compact electric vehicles that can ease traffic and improve accessibility without a heavy carbon footprint.

1. Economic Savings on Congestion: The World Economic Forum reports that cities with active micromobility programs reduce congestion costs by up to 30 percent. For Toronto, that could mean saving around $3 billion annually by 2030—funds that could flow back into the economy rather than being lost to traffic jams
2. Reduced Emissions and Cleaner Air: Transitioning to micromobility options for short trips has the potential to lower Toronto’s transportation-based carbon emissions by up to 25 percent. Cleaner air benefits everyone by reducing healthcare costs associated with pollution-related illnesses and by enhancing the overall quality of life
3. Improved Urban Livability and Accessibility: Embracing micromobility also frees up space typically reserved for car parking, creating opportunities for green spaces and pedestrian zones. This transformation has already been observed in cities like Paris, where investments in bike paths and pedestrian-friendly spaces have encouraged more people to move about on foot and have boosted local businesses

Assumptions and Context: These potential savings assume Toronto will invest in necessary infrastructure for micromobility, such as bike lanes and safe pathways, and integrate these options with public transportation. Although not all residents may adopt micromobility, even partial adoption could make a significant impact.

Lessons from Comparable Cities

Toronto is not alone in facing these challenges. Cities like Paris and San Francisco have successfully integrated micromobility, reducing congestion and emissions. For example:

• Paris’ Bike Network: Paris reduced car use in its urban core by investing in a 180-kilometer bike path network, significantly decreasing vehicle traffic and creating pedestrian-friendly spaces. Toronto could benefit from a similar approach, especially by establishing pathways that connect neighborhoods with transit hubs

Last Words: The Case for a Micromobility-Centric Future

Toronto’s reliance on traditional car transportation is both economically and environmentally unsustainable. The potential $3 billion annual savings from reduced congestion, along with the health benefits of lower emissions, make a compelling case for embracing micromobility.

By shifting towards micromobility, Toronto could become a cleaner, more resilient city with reduced congestion, improved air quality, and enhanced quality of life for residents. Proactive investment in micromobility infrastructure is not just an option; it is a necessary strategy to protect Toronto’s future and set a model for North American cities facing similar challenges.