Pathways to Low Carbon Transport in the EU

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1 Pathways to Low Carbon Transport in the EU Vasileios Rizos CEPS CEPS, Brussels 02 July

2 CEPS Task Force Report on Transport and Climate Change Participants from car, logistics, rail and oil industries, national and international agencies officials, business associations, NGOs and academic experts Based on evidence Four meetings with discussion 02/07/13 2 Centre for European Policy Studies (CEPS) Place du Congrès 1, 1000 Brussels, Belgium

3 The ambitious 60% GHG reduction objective is possible but requires step-wise immediate action!

4 The greatest potential for CO 2 gains in transport lies in new low-carbon technologies, both fuels and vehicle technology The key policy for reducing GHG emissions in road transport is the steady tightening of emissions standards in line with the technological frontier Clear-cut standards will create regulatory certainty for product developers and manufacturers

5 mg/km Standards have worked to date Total reduction of total NOx and particles (PM10) (specific emissions x km travelled) EU emission standards developments for diesel-powered passenger cars (mg/km) CO NOx PM HC+NOx 0 Euro 1 (1992) Euro 2 (1996) Euro 3 (2000) Euro 4 (2005) Euro 5 (2009) Euro 6 (2014) Source: Eurostat, European Environment Agency Source: CEPS Task Force Report

6 Policy is the key Key policy instruments are already in use: Standards Fiscal and financial incentives Labels Fuel taxes Structure of incentives needs to be aligned across the EU!

7 Car labelling across the EU Vehicle CO 2 ratings across European countries Tested CO 2 emissions (gco 2 /km) France UK Belgium Switzerland Germany Spain Absolute Values Relative values Smart Fortwo MHD Ford Focus 1.6 TI-VCT Lexus RX450h 98 A A A A C C 139 C E C B D A 148 D F C A A A Source: International Energy Agency

8 Incentives would need to be Technology neutral The market forces will select in the long run the most efficient technologies Well-to-wheel (full life-cycle) Progressive Predictable

9 Transport system can become more efficient Higher load factors/occupancy rates, co-modality combining different modes of transport, better urban planning and better logistics Information and Communication Technologies (ICT) and eco-driving systems have a great potential for improving transport flows and contributing to significant energy savings

10 Illustrative pathways for achieving the required CO 2 reduction from transport % % % % % % % % 0.00% Source: CEPS Task Force Report TOTAL Transport Volume Efficient Transport System Eco-driving Pathway A: Strong contribution from low-carbon technologies Pathway B: Weaker contribution from low-carbon technologies Low Carbon Fuels, Engines 60% CO 2 emissions reduction in 2050/1990 levels equals about 70% reduction/2005 levels Volume: Changes in demand Efficiency: Higher occupancy rates/load factors, modal swift to more efficient transport, more efficient logistics Eco-driving: Better traffic flow Low Carbon Fuels, Engines: Energy & Carbon efficiency improvements 02/07/13 Centre for European Policy Studies (CEPS) 10

11 Action now! 15 measures to be immediately taken

12 Thank you!