European Commissioners are coming under unprecedented pressure to set ambitious truck CO2 emissions standards after a rare alliance of global brands, transport companies and hauliers associations last month demanded that CO2 cuts of 24% by 2025 be targeted. In a letter to Commission president Jean-Claude Juncker, Carrefour, IKEA, Unilever, Heineken, Nestlé, logistics giant Geodis, national transport associations and other big players said the target was necessary if the EU was to remain the leader in the fight against climate change.
The biggest failure of the current car CO2 has been the failure to deliver emissions reductions on the road. Whilst new car CO2 emissions measured using the obsolete laboratory test (NEDC) have fallen by 31% since 2000, on the road the reduction is just, 11%. The gap between test and real-world performance has leapt from 9 to 42% weakening the regulation, increasing CO2 emissions and raising fuel bills for drivers. The underlying issue was basing the regulation on laboratory tests. Whilst the new WLTP addresses some loopholes, its introduction also creates new flexibilities that the car industry are planning to exploit to undermine both the current regulation to 2020/1 and proposed future regulations for 2025/30.
As diesel sales slump and those of electric vehicles pass one million, batteries are fast becoming a major part of the EU’s industrial future. It is not just talk this time. Investment is happening: LG Chem is planning for production in Poland and Samsung SDI is doing likewise in Hungary; NorthVolt has just signed a large loan to build a demo plant in Sweden, and Saft, a subsidiary of Total, announced a battery consortium with Siemens, Solvay and MAN. Amidst all this, the environmental benefits of electric cars are under intense scrutiny with news articles on this a regular feature in most EU countries. So, do electric cars reduce car CO2 emissions or do they just shift the problem elsewhere?
Earlier this year, the European Parliament voted on the renewable energy directive (RED). While the outcome was not ideal, we welcomed Parliament’s vote because it caps food-based biofuels, redirects investments into the fuels of the future (electricity, advanced biofuels) and ends support for palm oil biodiesel.
The EU should fill its post-Brexit budget gap with new revenues from taxing transport, which is Europe’s biggest emitter of greenhouse gases, former Italian prime minister Enrico Letta, ex-WTO head Pascal Lamy, former finance minister of Germany Hans Eichel and 14 other economists have told EU leaders. In advocating a green tax shift, they called for a higher minimum tax on road diesel, VAT on airline tickets for the first time and taxing aviation kerosene which is currently exempt. Sustainable transport group Transport & Environment welcomed the letter, citing its own analysis that such a green tax shift would generate additional revenues of more than €50 billion a year which would allow for the income tax burden to be reduced.
Shifting to zero-emission vehicles in Europe will create jobs and drive economic growth, a major new study released today by Cambridge Econometrics for the European Climate Foundation reveals. The analysis, endorsed by Transport & Environment (T&E) and a host of corporations, including from the motor industry, found that moving away from vehicles powered by oil to ones driven by renewable energy will create 206,000 net additional jobs by 2030.
The costs of emissions-free, electric vans are now as low as their diesel competitors. That’s according to a new study by consultancy CE Delft that focuses on the small van segment largely used in cities and which accounts for 40% of total van sales in the EU. The study takes into account purchase price, taxes, fuel bills and maintenance costs over six years, equivalent to a standard lease contract. The rapid fall in battery prices – they dropped by 24% in 2017 alone – is the main factor in making electric vans reach cost parity.
Light commercial vehicles, or vans, are a neglected area of EU road transport policy as they are often exempt from safety and environmental policy such as driving regulations or tolls, compared to their direct competitors, trucks. This enhances their attractiveness and in part explains why their use and emissions are growing. CO2 standards for van makers are much weaker than for cars, as a result van makers do not deploy the same efficient and innovative technologies to vans to lower their emissions.
One billion. That’s how much in euro that Germany’s tax on airline tickets generates every year. A billion is about a quarter of what trucks pay in Maut every year, or about 35 times less than the motor fuel tax.
Airlines lobby group, IATA, claims that aviation produces only 2% of global man-made CO2 emissions. While this is true, they are telling barely half the story. According to Professor Dr Volker Grewe, researcher at DLR and chair for climate effects of aviation at Technical University Delft, air transport’s contribution to climate change is roughly 5%. This is because in addition to emitting CO2, aircraft flying at altitude impact the atmosphere in various ways which have a large, albeit transient, additional warming effect.