Passenger Car-Related CO 2 a manufacturers view of progress

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1 Passenger Car-Related a manufacturers view of progress Mike Hollingsworth Director - Transport Policy ACEA Rome - 16 February 2006

2 P.2 Content Current Political Measures Reduction from Passenger Cars Emissions Reduction Potential and Cost An Integrated Approach to Meet the Status of the issue

3 P.3 2 Current Political Measures Car Industry Commitments Consumer Information Fiscal Measures R&D support, 10 g/km target for 2008/2009, Fuel consumption and emission, Fuel taxation, Vehicle taxation, 6 th /7 th Framework Programme labeling of cars EU Reduction Strategy for New Passengers Cars

4 P. 2 Current Political Measures ACEA Commitment on Emissions: Reduction, 1995 to 2008 Emission (g /km) Actual Development (ACEA data) Interim Target 2003 (165 to 170g /km) Member State data equals -25% Base year: 1995 ACEA-Target: 10g /km 120 Year

5 P.5 3 The Emission Reduction Potential and Cost of 120 g/km Target for Vehicle Technology Only Further technology measures have limited impact at high cost Overall reductions Vehicle technology Mt/y Assumption: 10 g/km in g/km in 2012 Cost /t 00 to Mt/y Assumption: 10 g/km in g/km in (ACEA 163g/km) (ACEA 10g/km) (120g/km EU policy target) 10.9 reductions Mt/y

6 P.6 An Integrated Approach to meet the An Integrated Approach for reductions of car related emissions will achieve more at lower costs Fuel Industry P.6 Automotive Industry and Suppliers Policy Makers 3-step approach, 1: Identify potential activities to reduce emissions with all stakeholders involved, 2: Identify and compare the costs and reduction potentials of these activities, 3: Identify measures to promote the most cost-effective activities

7 P.7 An Integrated Approach to meet the Step 1: Identify activities to reduce emissions with all stakeholders involved (examples) Fuel Industry Automotive Industry and Suppliers Policy Makers Further increase market penetration of efficient technologies Further increase market penetration of new technologies for alternative fuels Support eco-driving activities Consummer information Further increase market penetration of alternative fuels Support eco-driving activities Improve road and traffic management infrastructure R&D support for vehicle technologies and alternative fuels Support eco-driving activities Consummer information

8 P.8 An Integrated Approach to meet the Step 2: Identify and compare the costs and reduction potentials of these activities (data are indicative only) EU 120 g/km target for vehicle technology only Integrated Approach Activities savings (Mt/y) in 2012 savings (Mt/y) in Mt/y 12.5 Mt/y 9.5 Mt/y 10.2 Mt/y 5. Mt/y 1 Mt/y 2. Mt/y Vehicle technology programme Optimal tyre pressure Eco-driving 5% Biofuels (diesel & gasoline blend) 5% Synthetic fuel from biomass (diesel blend) Traffic light synchronization

9 P.9 An Integrated Approach to meet the Step 2: Identify and compare the costs and reduction potentials of these activities (data are indicative only) Integrated Approach measures (examples) Other sectors comparison (examples) 50 /t to 00 /t 300 /t to 200 /t 300 /t to 200 /t Societal Mitigation costs ( /t ) -25 /t 185 /t 150 /t 180 /t <20 /t 100 /t to 20 /t 30 /t to 8 /t 120 g/km via vehicle technology only Vehicle technology programme Optimal tyre Pressure Eco-Driving 5% Biofuels (diesel and gasoline blend) 5% Synthetic fuels from biomass (diesel blend) Traffic Light Synch. European Climate Change Program (2001) Capture & Sequestration Price of certificates (1 Jan to 1 Oct. 2005), Integrated Approach enables inclusion of activities to reduce passenger car related emissions with lower societal mitigation costs., In other sectors much lower societal mitigation costs.

10 P.10 An Integrated Approach to meet the Step 3: Identify measures to promote the most cost-effective activities (examples) Further development and market penetration of efficient conventional and alternative technologies Fitting of gear shift indicators and fuel economy indicators Improvement and increased fitting of low friction tyres Measures to optimise tyre pressure Support common initiative to educate drivers on eco-driving Automotive Industry and Suppliers Fuel Industry Further increase market penetration of alternative fuels Development and maintenance of appropriate tyre inflation infrastructure Support common initiative to educate drivers on eco-driving Policy Makers Investigate fuel taxation impact on emissions Shift basis of annual car taxation to Invest to improve road and traffic management infrastructure R&D support for new technologies and new fuels Support initiatives on optimal tyre pressure Support common initiative to educate drivers on eco-driving Ensure consistency of existing legislation (consider trade offs with other political aims)

11 P.11 5 Status of the issue, The Integrated Approach was accepted as a suitable way forward within CARS 21, The Commission is investigating the Integrated Approach within the European Climate Change Programme II, ACEA will actively participate in the stakeholder consultations, The Report will be finalised April/May 2006, A revised EU strategy on car emissions is expected in September 2006

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