The Transatlantic Trade and Investment Partnership (TTIP) is a proposed free-trade agreement (FTA) between the European Union (EU) and the United States (US) that, if completed, would be the largest bilateral FTA in the world, and transform transatlantic commerce. Trade volumes between the EU and US are very high, energy remains an important exception, largely due to the US ban or limit on crude oil and liquefied natural gas (LNG) exports. Unsurprisingly the focus of EU negotiators is to end these limitations, but if the hope of cheap energy is one side of the coin, there is another: cheaper fossil energy means higher carbon emissions from increased consumption while crowding out renewable sources, all of which runs counter to the EU’s ‘40/27/27’ climate and energy targets for 2030.
The gap between petrol and diesel taxes in Europe is quite unique in the world and is the main reason why diesel engines have taken off in Europe and not worldwide. This study analyses fuel price and tax trends since 1980 and adds a specific analysis of diesel tax paid by trucks. It finds that in 2014 the gap in tax levels for diesel and petrol paid by motorists was €0.14/l, which is 30% lower than petrol per unit of energy or tonne of CO2.
This paper, as well as the attached explanatory briefing, attempts to quantify the challenge for EU member states in reducing transport emissions under the expected 2030 ‘effort sharing decision’ (ESD) and the extent to which CO2 standards for cars, vans and trucks can help achieve those targets. It makes very clear what the impacts are of mandating, or not, improved vehicle efficiency.
The European Union established a 20% target for renewable energy use by 2020 and a 10% target for renewables in the transport sector by 2020. Bioenergy, including solid biomass and waste, is expected to represent 60% of the EU’s renewable energy use and biofuels is expected to cover most of the 10% renewable energy use in transport.
An analysis of EU biofuel policy with recommendations for action.
Biofuels in Europe: An analysis of the new EU targets and sustainability requirements with recommendations for future policy
Cleaner fuels and lower sulphur: A position paper on the revision of Directive 98/70/EC (117KB). By Frazer Goodwin, September 2001. The PDF version of the key recommendations are also available in html format by clicking on the sunglasses icon.
Controlling Traffic Pollution and the Auto-Oil Programme. Authoritative report on air quality issues and the European Commission's Auto-Oil Programme. By Frazer Goodwin, December 1999.
Updated response to the EU's Auto-Oil Programme. By Frazer Goodwin, December 1997