Financial and non-financial incentives to foster the adoption of electric vans in Paris. Eleonora Morganti, Ph.D. ENPC-ParisTech

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1 Financial and non-financial incentives to foster the adoption of electric vans in Paris Eleonora Morganti, Ph.D. ENPC-ParisTech

2 Research project Corri-Door project : - deployment of 200 multi-standard and interoperable fast-charging stations along the main French highways - funded by the European Commission (50%) and by EDF-Sodetrel (leader), Renault, Nissan, BMW, Volkswagen and ParisTech Task 4.1 Team: Virginie Boutueil, Fabien Leurent, Eleonora Morganti

3 Objective Discuss measures to foster the adoption of electric Light Commercial Vehicles (e-lcvs) in Paris What is the potential impact on the urban freight system? Focus on vans up to 3.5 t (N1 category)

4 Methodology Dynamic analysis of the surveys of the French Ministry of Transport on the use of LCVs in France (LCVs surveys: 2000, 2005, 2010) Desktop research of publicly available information 14 interviews with actors involved in the transition Respondents France UK Transport operators 5 5 Policymakers and public entities 2 6 OEMs 5 1 Energy sector actors 1 1 TOTAL 14 13

5 e-lcvs in the French market Diesel-powered vans represent the 97% of existing fleet 2014 : 4,485 new e-lcvs 2014 Market penetration : 1,2% (372,000 new LCVs registered in France) New electric vehicle registrations Source: CCFA 2015, AVERE 2015

6 For vans Battery weight/volume reduced payload/load space Limited driving range Lack of maintenance skills Lack of vehicle supply, particularly in the >3.5 t range (ENCLOSE, 2014; EIA, 2015; Noon 2015) Main barriers to adoption For cars and vans 1. high retail prices of vehicles; 2. low level of consumer acceptance; 3. lack of infrastructure for recharging (EU Directive 1014/94)

7 EV global sales Dollars/baril e-lcvs sales vs oil prices Jan.-Sept : 3,120 units Jan.-Sept : 3,104 units E-LCVs Europe Brent price BOP Source: AVERE 2015; US EIA 2015

8 October15th

9 Overview on incentives Type of incentive Specific measure France Ile-de- France Owner incentives Rebate Exemption in registration taxes TVA Use incentives Exemption from motor fuel taxes Non-financial incentives Reduced roadway tolls or taxes Company car tax Free charging Free parking Access to restricted lane Wider time windows Free circulation during high pollution days Not applicable Infrastructure upgrade incentive Installing charging station Upgrade local sub-station Paris

10 Complementary measures Public procurement gives priority to companies using clean vehicles Utilib sharing options for small car derived 50 vehicles; 6eur/h + annual subscription Credits: Mairie de Paris

11 Rebate for electric commercial vehicles Electric/ Hybrid Electric/ CNG Vehicle category National incentive Bonus/Malus scheme City Incentive LCV < 2.5 t Up to 6,300 (27%*) Up to 3,000 (15%*) LCV 2.5 t > 3.5 t Up to 6,300 (27%*) Up to 6,000 (15%*) Heavy duty vehicle - Up to 9,000 (15%*) *max 27% or 15% of the retail price Max one grant per business Only small businesses

12 Trends on LCVs size Distribution of LCVs across Gross Vehicle Mass (GVM) categories GVM category < 1.5 t 31.6% 13.6% 10.2% 1.6< 2.5 t 37.9% 50.3% 47.9% 2.6< 3.4 t 15.5% 19.6% 24.4% 3.5 t 14.9% 16.3% 17.5% 100% 100% 100% SOeS, 2012; Boutueil, 2015

13 Results from interviews Problems related to the payload an electric van: exceeding the authorised GVM Converting a 3.5 t diesel van to electric to the driving licenses regulation and the need of professional drivers (N1 -> N2?)

14 Progressive diesel ban in Paris Plan antipollution de Paris adopted in Feb Source: City of Paris

15 Progressive diesel ban in Paris 1 st phase since Sept Between 8am and 8pm, 7/7 Heavy duty vehicles registered before Jan (Gas and diesel Euro0, 1, 2) 2 nd phase since July 2016 Between 8am and 8pm, 5/7 Registered in Paris: 7,000 LCVs Paris region: 45,000 LCVs Cars and LCVs registered before Oct (Gas and diesel Euro0 and 1) Between progressive phasing out of euro 2 (2001), euro 3 (2006), 4 (2011)

16 Conclusions In an effort to reduce air pollution, Paris set up a strategy to phase out diesel vehicles. These new incentives, together with current buying trends and existing regulation, can have an impact on the urban freight of Paris and may contribute to downsizing of the commercial fleet.

17 References AVERE (European Association for Battery, Hybrid and Fuel Cell Electric Vehicles) - Les ventes de véhicules électriques en hausse en 2015, 9 th October [Accessed: 16 th October 2015] Boutueil, V. (2015), Towards a sustainable mobility system: Leveraging corporate car fleets to foster innovation, PhD dissertation, Université Paris Est, France CFFA (Comité des Constructeurs Français d'automobiles) (2014), L industrie automobile française Analyses et statistiques [Accessed: 8th September 2015] EEA (European Environmental Agency) (2014), Van manufacturers must make new models more efficient by [Accessed: 9 th November 2014] EVUE (2012) Sustainable electric mobility and logistics impact in regional innovation and growth EU (European Union) (2014), Directive 2014/94/EU of the European Parliament and of the council of 22 October 2014 on the deployment of alternative fuels infrastructure. [Accessed: 27 th October 2014] Mairie de Paris, 1st June, 2015 Professionnels : une aide pour acquérir des véhicules propres [Accessed: 9 th October 2015] Noon, US EIA (Energy Information Administration)

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20 LCVs for professional use in France Shorter turnover (2000: 6.8 ys; in ,9 ys) 4-year old or less LCVs represent 46% in 2010 Increasing share of diesel-powered vehicles (2000: 73%; 2013: 93%) Decreased annual mileage (18,700km in 2000; 18,000km in 2010) 23% cover less 50 km per day 32% between 50 and 100 km 18% between 100 and 150 km 27% cover more 150 km 37% of their mileage occurred in an urban environment (in 2010)

21 Trends on LCVs size Distribution of LCVs across Gross Vehicle Mass (GVM) categories GVM category < 1.5 t 31.6% 13.6% 10.2% 1.6< 2.5 t 37.9% 50.3% 47.9% 15% 50% 2.6< 3.4 t 15.5% 19.6% 24.4% 17% 30% 3.5 t 14.9% 16.3% 17.5% 100% 100% 100% SOeS, 2012; Boutueil, 2015 The taking up of passenger-car derived

22 Trends construction (almost 1 in 4 professional LCVs -24% ) wholesale trade, accommodation and food services (almost 1 in 6 professional LCVs -17%) Distribution of total LCVs by vehicle body type (SOeS, LCV surveys) Vehicle body type Ordinary vans 80% 73% 67% Passenger-car derived 12% 18% 23% Other body types 8% 9% 10% All body types 100% 100% 100%

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