Investing in impact: the return on investment of cycling infrastructure

What if someone told you that investing in cycling infrastructure could generate not just financial returns but also social and environmental benefits? The logical answer: invest!  

At EIT Urban Mobility active mobility investments, particularly in cycling, are a key priority. The widespread use of the bicycles, whether for a single trip or as part of a multimodal journey, presented immense impact potential.  

As an impact investor, EIT Urban Mobility looks beyond financial returns.  In this article, we will delve into the financial, social and environmental returns on investment (ROI) of cycling infrastructure to demonstrate the true power of the pedal. 

The cycling economy  

Investment and outcomes  

According to the European Cyclists Federation, EU Member States have allocated a total of €3.21 billion for investment in cycling infrastructure between 2021 and 2027. This planned investment can be viewed holistically as one part of the larger costs and benefits of the sustainable urban mobility transition. 

The long-term financial savings of such an investment are significant. Cycling adds €150 billion annually to the European economy, with over €90 billion attributed to environmental, health and mobility benefits. Conversely, motorised road transport costs the EU €800 billion annually in negative externalities. 

In the United Kingdom, the economic benefits of active mobility are similarly strong. A report which details investment and financial returns of cycling infrastructure, produced by the UK Department for Transport found that every £1 invested in active travel generates £6 in economic returns. Additionally, cycling infrastructure requires significantly less maintenance than roads designed for heavy vehicles, making it a cost-effective long-term solution. 

Boosting local economies 

A prime example of cycling’s economic impact is EuroVelo, an extensive network of dedicated cycleways and routes connects Europe’s most distant geographies. This investment helped generate an estimated 2.3 billion cycle tourism trips annually across the EU adding up to a total economic value of €44 billion. When fully developed, the European Parliament estimates that the EuroVelo network will create an additional €7 billion in direct annual revenue. This cycle tourism is also linked to the creation of approximately 525,000 jobs in the EU alone.  

Breakdown of annual spending by cycle tourists: 

• €14–15 billion spent on day trips 
• €2–3 billion spent on short cycling trips 
• €6–7 billion spent on cycling trips of 3+ nights 

EU Member States who have collaborated on this infrastructure are integrating it within their national frameworks, showing its impact and influence. The State of National Cycling Strategies in Europe report finds that 13 EU Member States refer to EuroVelo in their national cycling strategies, recognising its economic and social value. 

Healthcare savings 

Cycling significantly contributes to public health in the EU in a multitude of ways. Research from the European Cyclists’ Federation has found that regular cycling prevents approximately 18,110 premature deaths annually, equating to an economic benefit of €52 billion per year. Additionally, cycling has positive outcomes for brain function. The same research shows that regular cycling reduces the risk of Alzheimer’s disease by 29% and cognitive decline by 26%.  

In France, cycling helps prevent 1,919 premature deaths and 5,963 chronic disease cases annually. However, disparities remain, as men benefit disproportionately due to higher cycling rates, highlighting the importance of inclusive mobility initiatives and startups. 

The role of cycling in easing transport poverty 

In addition to reducing congestion, creating faster commute times and keeping us healthy, cycling has as definite social impact. Well-planned cycling infrastructure connects lower-income communities to essential services, employment hubs and educational institutions which may not be present locally. Targeted urban planning initiatives prioritise safe and direct cycling routes that link disadvantaged areas with key destinations, fostering social mobility.  

Bike-sharing programmes further reduce barriers to mobility by providing an affordable alternative to personal bike ownership. For example, Barcelona’s Bicing service has 526 stations situated around the city, allowing residents to navigate the city for as little as €35 per year. 

Environmental returns 

While the social and health benefits of cycling are typically less well-known, the environmental benefits of choosing to cycle over a car might be more familiar. Even so, the statistics provide a reminder of the power of our choices. 

According to The Benefits of Cycling, cycling in the EU saves over 16 million tonnes of CO2 equivalents annually, comparable to the total yearly emissions of Croatia. In financial terms, this translates into savings between €600 million and €5.63 billion, depending on the social cost of carbon. 

Cycling also improves air quality by reducing CO2 emissions. The reduction of air pollution across the EU is valued at €435 million annually. A notable example is Seville, where expanded cycling infrastructure led to a reduction of annual nitrogen dioxide levels, tackling one of the leading causes of premature death in Europe (400,000 per year). 

Impact: more than financial 

While financial return on investment is often the primary focus of investing, true impact investing considers broader benefits, such as social equity, public health, and environmental sustainability. At EIT Urban Mobility this holistic approach drives investments, prioritising those that are good for both people and the planet. For the second year in a row, the organisation has been recognised as Europe’s most active investor in European mobility with every investment aligned with impact goals.  

To learn more about EIT Urban Mobility’s investment approach and how it supports startups, visit our Support to Startups page.