For the first time ever the European Commissions is proposing a greenhouse gas emissions target for transport. But how is transport going to provide the services that our society needs while minimising its environmental impacts? This is the theme for the Transport White Paper launched in 2011. TERM 2011 and future reports aim to deliver an annual assessment on progress towards these targets by introducing the Transport and Environment Reporting Mechanism Core Set of Indicators (TERM-CSI). TERM 2011 provides also the baseline to which progress will be checked against, covering most of the environmental areas, including energy consumption, emissions, noise and transport demand. In addition, this report shows latest data and discuss on the different aspects that can contribute the most to minimise transport impacts. TERM 2011 applies the avoid-shift-improve (ASI) approach, introduced in the previous TERM report, analysing ways to optimise transport demand, obtain a more sustainable modal split or use the best technology available.