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The objective of this study is to provides insights into the functioning of a circular car within a sustainable, circular mobility system and in particular to assess the expected environmental impact improvements of such a system compared to the current mobility model.This report applies the Net Environmental Impact Methodology as outlined by the public UNICORN deliverable (D4.1. This methodology is based on the European Green Digital Coalition’s Net Carbon Impact Assessment methodology and is used to provide insights into the impact improvements related to the transition to a circular mobility system.Corresponding to the industrial use cases in UNICORN, three levels of increasing circularity are defined for this study. This definition is established through a combination of literature research and stakeholder input gathered during a workshop held with industry representatives.The levels were set in such a way as to align with the lifetime optimisation and utilisation improvement pathways of the Circular Cars Initiative (CCI), and these were translated into focus areas of ‘Car sharing and Mobility-as-a-Service (MaaS)’ and ‘Safety & Automation’. The defined circularity levels in this report are: REF – The current car ownership model – Level 1 circularity (CCI) GEN1 – A Vehicle-as-a-Service (VaaS) model – Level 2 circularity (CCI) GEN 2 – An advanced Mobility-as-a-Service (MaaS) model – Level 4 circularity (CCI) Each of these levels is defined in more detail in this report to create clear scenarios that are compared. Boundary diagrams are constructed for the systems to clarify the life cycle steps that are considered in the evaluation. Key variables influencing the scenarios were quantified using literature data. Potential effects of the GEN1 (VaaS) and GEN2 (MaaS) scenarios—enabled by the integration of functional electronic (FE) sensors—were identified and quantified for a city of 500,000 inhabitants. The identified potential effects have been classified as either first-, second- or higher-order effects, in accordance with the requirements of the Net Environmental Impact methodology. The scenarios described in this report directly serve as the basis for the net environmental impact determination of the circularity levels, with the aim of quantifying the environmental benefits resulting from changes in the mobility system.The results demonstrate that the mobility shift, facilitated by FE sensor implementation, substantially reduces the environmental impacts associated with the mobility for a city of 500,000 people. The implementation of FE sensors in vehicles in both VaaS and MaaS, results in a large decrease in net impact for only a small initial impact associated with the production of the FE sensors themselves. The impact reduction resulting from the implementation of FE sensors is system-based; MaaS and VaaS systems favour decentralisation of ownership, thereby increasing material efficiency by increasing the use rate of cars and therefore decreasing the total number of vehicles required. In this case, therefore, the FE sensors act as enablers to generate this mobility system change, which results in the impact reduction.