FUELLING THE CLIMATE 2011 Sustainable Transport in the 21st Century European Perspectives Hamburg, 20 May 2011 Matthew Ledbury, Community of European Railway and Infrastructure Companies (CER) 1 CER
CONTENTS Who is CER Environmental impact of transport The way forward? European targets for 2050 Role of economic tools and the rail sector 2 CER
CER representing European railways in Brussels CER stands for The Community of European Railway and Infrastructure Companies (CER) brings together 75 railway undertakings and infrastructure companies from the EU, accession countries (Croatia, Macedonia and Turkey), Norway, and Switzerland CER is based in Brussels and represents the interests of its members to the European Parliament, European Commission and Council of Ministers as well as other policymakers and transport actors CER s main focus is to promote a strong rail industry that is essential to the creation of a sustainable transport system which is efficient, effective and environmentally sound. 3 CER
Who is CER Environmental impact of transport The way forward? European targets for 2050 Role of economic tools and the rail sector 4 CER
Transport: only sector in which GHG emissions are increasing +25% Sea and IWW; 183 (15%) CO2 emissions 2005 in EU27 (million tonnes) Railways 20 (2%) Other (pipeline) 10 (1%) Road 896 (70%) Aviation 150 (12%) Source: EC 2007 and UIC Energy/CO 2 database 5 CER
Passenger and freight demand projections (EU25) Projections for transport activity if business-as-usual persists and no additional measures are implemented Billion Passenger-km Billion Tonne-km Source: European Environment Agency TERM Report 2010 (EEA 2010) 6 CER
GHG emissions: the problem of transport 1990-2050: EU27 proposed emissions reduction trajectory compared to business-as-usual transport t emissions i growth 7 CER
Who is CER Environmental impact of transport The way forward? European targets for 2050 Role of economic tools and the rail sector 8 CER
Views from the top - 1 European Commission President, Jose Manuel Barroso, September 2009: More work needed on lowering carbon emissions and tackling those from transport in particular is necessary. The incoming i Commission i has to work towards: decarbonising our electricity supply and the transport sector all transport, including maritime transport and aviation, as well as the development of clean and electric cars. 9 CER
Views from the top - 2 European Commissioner for Transport, Siim Kallas, at his hearing before Parliament in January 2010: Decarbonisation is our ultimate goal. This is not debatable. European Commissioner for Climate Action, Connie Hedegaard, in January 2010: I will work towards a comprehensive transport and climate package. 10 CER
Low Carbon Economy Roadmap 2011 The Low Carbon Economy Roadmap, published 8 March: A roadmap for possible action up to 2050 which could enable the EU to deliver greenhouse gas reductions in line with the 80 to 95% target agreed. 11 CER
Transport White paper 2011 EU Transport White Paper,,published 28 March: Calls for a transformation in Europe s current transport system to reach a 60% cut in transport emissions by 2050. Key goals include:- No more conventionally-fuelled cars in cities. A 50% shift of medium-distance intercity passenger and freight journeys from road to rail and waterborne transport. t A 40% use of sustainable low carbon fuels in aviation; at least a 40% cut in shipping emissions. 12 CER
Low Carbon Economy Roadmap recommendations How could reductions in transport be met? Technological innovation the main driver, in particular: Vehicle efficiency through new engines and better design Cleaner energy use through new fuels Better use of information and communication technology However, the role economic instruments can play is recognised: Emissions from road, rail and inland waterways could in fact be brought back to below 1990 levels in 2030, in combination with measures such as pricing i schemes to tackle congestion and air pollution, infrastructure charging, intelligent city planning and improving public transport, whilst securing affordable mobility. 13 CER
Who is CER Environmental impact of transport The way forward? European targets for 2050 Role of economic tools and the rail sector 14 CER
Limits of technical improvements EU Transport GHG: Routes to 2050? study Final report published June 2010 it seems very difficult (if not impossible) to reduce GHG emissions from transport by 50% or more through the uptake of technical options alone. 15 CER
Role of economic instruments: effect of current low prices for road transport EUR per litre petrol equivalent Road is perceived as the cheapest transport mode: Fuel prices largely stable (corrected for inflation) Productivity gains due to modern technology and logistics concepts Important costs are externalized to society If prices are not adjusted, traffic volumes continue to grow unsustainably Source: DG TREN, 2008 16 CER
Road does not cover its costs government revenue hardly covers infrastructure cost 160 EU 27 HGV Revenues and Costs in billion Euro Total costs: 144 140 120 100 80 60 40 Total Revenue: 54 Other Taxes 5 Road tolls 16 20 Fuel Taxes 33? Price Gap CO 2 Emissions 5 Air pollution 16 Noise 18 Congestion 24 Accidents 30 Infrastructure 51 0 Source: Are Trucks taking their toll? (CE Delft, 2009) 17 CER
External costs: an untapped source for investment 100 80 87 Switzerland raised 1 billion in 2008 charging for the external costs of HGVs. Billion pe er year 60 40 20 0 10 1 Switzerland Commision proposal 2008 Full internalisation If all the EU-27 member states implemented the Eurovignette Directive based on the 2008 European Commission proposal, 10 billion could be raised. Full internalisation of the external costs of HGVs in the EU-27 would raise 87 billion. Source: CER calculation 18 CER
Switzerland: Results of the Heavy Vehicle Fee Heavy Vehicle Fee: the central pillar of Swiss policy to transfer freight from road to rail - introduced 2001 Reduced vehicle kilometres: - vehicle kilometres fell by 5% per year in the first two years Efficiency gains: - productivity gains incentivised in transport and logistics sector more companies now cooperate to avoid empty trips Economic impact: - Switzerland has the highest kmcharge in Europe but also became the most competitive economy in the world in 2006-2007 19 CER
Internalisation of external costs would change modal split of freight Source: Internalisation of External Costs on Transport, IWW Karlsruhe 2009 20 CER
Rail sector: environmental impact ENERGY EFFICIENCY: Rail is on average between 2 and 5 times more energy efficient than road, shipping and aviation ELECTRICITY: Rail already relies on electricity for around 80% of its traffic. There are no technical obstacles to a fully electrified rail sector 21 21 CER
Rail sector: environmental targets Rail sector strategy: 2020 and beyond Target 2020 Reduction of specific CO2 emissions from train operation by 30% compared to base year 1990 (measured per passenger-km (passengers) and gross tonne-km (freight)). Target 2030 Reduction of specific CO2 emissions from train operation by 50% compared to base year 1990. not exceeding total CO2 emission from train operation in absolute terms even with projected traffic growth, compared to base year 1990. Vision 2050 European railways will strive towards carbon-free train operation by 2050 22 CER
Switzerland: determined and visionary transport policy has proven effective Development of trans-alpine freight traffic (mil tons / year) Road Road Rail Source: Alpinfo 2006 23 CER
Thank you for your attention! For further information, visit our website: www.cer.be 24 CER