The main purpose of the investment is to reduce carbon emissions from transport in Arad, which will lead to the development of an attractive and efficient public passenger transport system, thus facilitating the sustainable transfer of a share of the modal share of private passenger transport to public transport. The acquisition of new rolling stock and modernisation of the existing one will reduce energy consumption and at the same time improve the quality of public transport services in the municipality, and thus reduce carbon emissions and noise pollution, resulting in the improvement of the surrounding environment and the increase of the inhabitants’ well-being. The implementation of this project will contribute to increasing the interest in tram transport and the efficiency of public passenger transport, which will lead to the transfer of travel by private car to clean modes, thus creating the conditions for reducing CO2-equivalent emissions from transport. The Sustainable Urban Mobility Plan of Arad Municipality (PMUD) provides in the selected scenario investments related to the renewal of the material park of Arad Municipality both through the acquisition of new trams and the modernisation of 20 trams. The rolling stock renewal projects are also included in the Sustainable Urban Development Strategy of Arad. They were also selected and prioritised by the Urban Authority of Arad in the FESI DJ, thus demonstrating their importance for the development of sustainable urban mobility of Arad.