Transforming Transportation: Clean and Efficient Technologies for Buses. March 14 th, 2018 Africa Clean Mobility Week 2018 Nairobi, Kenya
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1 Transforming Transportation: Clean and Efficient Technologies for Buses March 14 th, 2018 Africa Clean Mobility Week 2018 Nairobi, Kenya
2 Lancet Commission on Pollution and Health: 2
3 Diesel Engines are a Key Target for improving human health The scientific evidence was compelling and the Working Group s conclusion was unanimous: diesel engine exhaust causes lung cancer in humans. -Dr. Christopher Portier International Agency for Research on Cancer. (2012, June 12). IARC: Diesel Engine Exhaust Carcinogenic. JNCI Journal of the National Cancer Institute. Lyon, France: World Health Organization. doi: /jnci/djs034
4 Diesel vehicles taipipe emissions that are regulated by Emission Standards CO, HC Nitrogen Oxides, NO and NO 2 = NOx Particulate Matter (PM)/Carbono Negro (BC)/Polycyclic Aromatic Hydrocarbons (PAH) 4
5 Between 60% and 80% of uncontrolled diesel exhaust is black carbon As a short-lived climate pollutant, BC can cause over 3,000 times as much warming as an equivalent amount of CO 2 over a brief 20-year period
6 What Technologies Deliver Soot-Free Performance? ANY Euro VI or EPA 2010 (or newer) engine OR Filter-equipped diesel + + Gas Engine (Euro VI) Zero Emission Electric Drive
7 Soot-Free Buses 20 Targeted Megacities Casablanca Istanbul Dhaka Mexico City Bogotá Lima Abidjan Accra Lagos Addis Ababa Nairobi Dar es Salaam Bangkok Jakarta Manila Santiago São Paulo Johannesburg Sydney Buenos Aires Committed Commitment Under Development Not Committed Updated SEP
8 Even with high carbon intensity grids, BEBs have lower CO2 compared to diesel buses. Biodiesel - palm oil CNG - fossil Diesel - Euro VI Bio-CNG - maize silage Johannesburg, South Africa Hybrid - Euro VI Casablanca, Morocco Jakarta, Indonesia Sydney, Australia Bio-CNG - landfill/digester gas Biodiesel - plant oils Manila, Philippines Istanbul, Turkey Bangkok, Thailand Dhaka, Bangladesh Santiago, Chile Mexico City, Mexico Biodiesel - animal fats Abidjan, Cote d Ivoire Lagos, Nigeria Buenos Aires, Argentina Dar es Salaam, Tanzania Accra, Ghana Lima, Peru São Paulo, Brazil Bogotá, Colombia Nairobi, Kenya Addis Ababa, Ethiopia ,150 1,070 1,050 1,290 1,210 1,200 1,440 1,430 1,570 1,510 1,680 1,800 1,900 2,290 2,200 2,610 2,350 Diesel Biodiesel (B100) CNG Bio-CNG Battery electric WTW GHG emissions (gco 2 e/km) Figure 9. WTW greenhouse gas emissions of soot-free buses operating in low-speed urban driving conditions in 20 megacities, ranked by climate impact. 8
9 Fleet sizes in targeted cities Dallmann, T. R., Du, L., & Minjares, R. (2017). Low-Carbon Technology Pathways for Soot-Free Urban Bus Fleets in 20 Megacities (No. Working Paper ). International Council on Clean Transportation (Vol. 356, pp ). Washington, DC. Retrieved from 9
10 Global Industry Partnership on Soot-Free Clean Bus Fleets 10
11 Global Industry Partnership on Soot-Free Clean Bus Fleets 1. Commit to make available soot-free engine technology in all 20 targeted cities by Agree to provide a list of soot-free bus models available to each city 3. Announce this commitment publicly 4. Publicly report the number of soot-free buses sold 5. Agree to provide the name and point of contact designated to each city 6. Agree to update this information on an annual basis 1. We commit to make soot-free engine technology available in all 20 targeted cities; where clean fuels are available today, this technology will be available no later than 2018; cities without clean fuels must first make these available. 2. We commit to provide to all 20 cities a list of soot-free bus and engine technology that is available to purchase in each city, including all relevant and publicly available product specifications. 3. We commit to provide to all 20 cities the name and point of contact we designate to advise and consult on product specifications, demonstration, and procurement. 4. We commit to publicly report the number of soot-free buses and engines we have sold in the most recent year. 5. We commit to update this information on an annual basis. soot-free -buses-20-megacities
12
13 Total Cost of Ownership Changes the Financing Perspective e.g. Bangkok, Thailand a) Purchase Price b) Total Cost of Ownership Large bus (12.5 to 15 meters) Large bus (12.5 to 15 meters) Bus purchase price [USD] 400K 300K 200K 100K 0K 0% 2% Euro IV diesel Euro VI diesel 43% 43% Euro VI hybrid Euro VI gas 178% BEV 15-year total cost of ownership [USD] 0.8M 0.6M 0.4M 0.2M 0.0M 0% Euro IV diesel -2% Euro VI diesel -12% Euro VI hybrid -17% -16% Euro VI gas BEV Technology Euro IV diesel Euro VI diesel Euro VI hybrid Euro VI gas BEV Cost component Maintenance Operating Net Inf Acquisition Net Bus Acquisition
14 Governmental and Commercial Sources of Bus Finance Source Examples Financial products Roles Multilateral development banks Climate finance (including for NDCs) National development banks Export-import banks World Bank; Inter- American-, African-, and Asian Development Banks Clean Technology Fund, Green Climate Fund, Global Environment Facility China Development Bank, Bancóldex (Colombia), Development Bank of the Philippines OECD list of official export credits agencies; Berne Union association Concessional loans, grants, guarantees, results-based financing Concessional loans, grants, guarantees, equity Loans to buyers; credit lines to manufacturers Loans, guarantees, and insurance to exporters Commercial banks List of 10 largest banks Loans, lease financing, insurance Manufacturer leasing Scania, Proterra Lease financing for bus, Specialized leasing Connect through infrastructure, or battery; companies manufacturers Bus and infrastructure acquisition and operations Incremental cost of low carbon investments Intermediary for cofinancing, blending of governmental and commercial sources Supports exporters Largest volume of financing Partial or full coverage of purchase cost
15 Actions to Expand Investment in Soot-Free Bus Technology LOCAL Adopt minimum soot-free emission requirements for public procurement of vehicles Request soot-free technology options in public bids Favor least total cost of ownership when comparing competitive bids FINANCE INSTITUTIONS Favor minimum soot-free emissions in finance projects Favor least total cost of ownership in bus procurement Issue guidelines for access to soot-free project finance NATIONAL Euro VI emissions and 10ppm S fuel quality standards HD fuel consumption and CO2 emission standards Low-carbon fuel and infrastructure development 15
16 Further Resources PUBLICATION Financing the transition to soot-free urban bus fleets in 20 megacities PUBLICATION Low-carbon technology pathways for soot-free urban bus fleets in 20 megacities INDUSTRY PARTNERSHIP Global Industry Partnership on Soot-Free Clean Bus Fleets soot-free -buses-20-megacities
17 Thank you! 17
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