The European Commission has announced a commitment to spending at least 60% of the EU’s cross-border infrastructure fund on schemes that help the fight against climate change. T&E has largely welcomed the announcement, though it criticised the proposal to count EU funding for gas projects towards the climate spending goals.
Europe has already spent half a billion US dollars on natural gas infrastructure for its shipping sector in order to comply with an EU law – and continuing its roll-out is likely to cost governments and investors $22 billion by 2050, a new study has found. Liquified natural gas (LNG) will reduce shipping emissions by just 6%, at most, compared to the replaced diesel fuel, the research by the UMAS consultancy shows.
In light of the recently adopted initial IMO strategy on reduction of GHG emissions and the Paris agreement, there is a need to better understand the potential market for LNG as a marine fuel, bunkering infrastructure investments required and associated risks in the context of shipping GHG reduction. This report attempts to assess the prospective future public and private financial investments by EU member states into LNG port/bunkering infrastructure consistent with EU plans to foster the widespread uptake of LNG as a means of decarbonising the shipping sector up to 2050. EU member states are mandated to set up LNG port infrastructure under the 2014 Alternative Fuels Infrastructure Directive.
Rolling out liquified natural gas (LNG) infrastructure for shipping in Europe would cost $22 billion and deliver, at best, a 6% reduction in ship greenhouse gas emissions by 2050 compared to the replaced diesel, a new independent study for Transport & Environment (T&E) by the UMAS consultancy finds. To date Europe has spent half a billion US dollars on LNG infrastructure for refuelling ships.
Read Spanish and Italian versions.China has secured €21.7 billion of investment in the past year to manufacture electric vehicles (EV) while Europe secured only €3.2 billion, according to European carmakers’ public announcements compiled by Transport & Environment (T&E). China produces a third more cars than Europe does (23.5 million passenger cars manufactured in 2017 versus 17 million in Europe) and thus the market size can’t explain the huge disparity in investment. China’s ambitious mandate – requiring carmakers to manufacture electric vehicles in its territory – is a key driver of investment in EVs, one which Europe currently lacks.
Mobility is at a crossroads and in each of the key three revolutions, automation, sharing and electrification of cars, Europe is falling behind. China has secured seven times more investments in electric vehicle manufacturing than the EU has in the last year only. Based on public announcements, China has received over EUR 21.7 billion of investment to produce electric vehicles while the EU secured only EUR 3.2 billion, seven times less. Front runners the Volkswagen Group, Daimler AG and Nissan have provided the bulk of the investment in China, driven by the aggressive electric vehicle policy. This policy requires carmakers to obtain credits for the production of EVs that are equivalent to 10% of the overall passenger car market in 2019 and 12% in 2020.
An action plan to drive the production, reuse and recycling of lithium-ion batteries in the EU has been published by the European Commission. T&E has welcomed the strategy, but says parallel measures to ensure carmakers sell a minimum number of electric vehicles are needed if Europe is to make the most out of the economic potential of electric cars.
The European Commision wants 60% of the EU’s key infrastructure fund spent on contributing to climate objectives. It has proposed that the €42 billion Connecting Europe Facility would have €30 billion to co-finance investments in transport, and that funding for electricity transmission, electricity storage, smart grids, renewable energy, rail, and clean urban transport would be considered to be 100% “climate spending”.
Carmakers are still failing to achieve their own sales targets for battery electric and plug-in hybrid vehicles in Europe because they have barely improved the marketing, choice and availability of zero emissions vehicles, a new report shows. While carmakers seek to blame a lack of recharging points and government incentives, market data obtained by T&E shows that for the second year running  they spent miniscule amounts trying to sell electric vehicles – especially in markets where motorists are already willing to consider buying them.