This report, commissioned by the Dutch Ministry of Transport, examines the post-Kyoto climate policy perspectives for the traffic and transport and mobility sector. The greenhouse emissions of this sector continue to rise sharply and there are few who see this trend essentially changing in the foreseeable future. Fundamental choices must therefore be made. How ambitious a stand should the Netherlands adopt in international climate negotiations? Should the country base domestic climate policy on future international CO2 trading prices? And, following on from there: what fraction of the domestic target should be allocated to the transport sector? The report goes on to explore the economic and environmental consequences of a domestic climate policy designed for maximum cost-effectiveness across the various segments of the transport and mobility sector.