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Paving the Way to Carbon-Neutral Transport: 10-Point Plan To

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Paving the Way to Carbon-Neutral Transport: 10-Point Plan To Paving the way to carbon-neutral transport 10-point plan to help implement the European Green Deal January 2020 CONTEXT The transport sector is responsible for 22.3% of total EU greenhouse gas (GHG) emissions, with road transport representing 21.1% of total emissions. Breaking this down further, passenger cars account for 12.8% of Europe’s emissions, vans for 2.5%, while heavy-duty trucks and buses are responsible for 5.6%. Transport is therefore a key focus and driver for climate protection measures. The European Automobile Manufacturers’ Association (ACEA) strongly believes that carbon-neutral road transport is possible by 2050. This however will represent a seismic shift, requiring a holistic approach with increasing efforts from all stakeholders. * All CO2 equivalent ** Industry = ‘Manufacturing industries and construction’ + ‘Industrial processes and product use’ Source: European Environment Agency (EEA) AUTO INDUSTRY CONTRIBUTION Investing €57.4 billion in R&D annually, the automotive sector is Europe's largest private contributor to innovation, accounting for 28% of total EU spending. Much of this investment is dedicated to clean mobility solutions. The automobile industry embraces the Paris Agreement and its goals. Manufacturers also support the climate protection initiatives of the European Commission, such as the ‘Clean Planet for All’ strategy, provided all stakeholders contribute their share and the achievements to date are taken into account. ACEA’s 10-point plan to help implement the European Green Deal – January 2020 1 ACEA members are fully committed to deliver the ambitious 025 and 030 C2 reduction targets. In order to provide legal certainty for the industry as it moves towards carbon neutrality in 050, the 2022/2023 timeline for the revies of the regulations should be adhered to (as as endorsed by the European Council in December 201). The regulatory frameork must provide medium- and long- term stability for the planning of future investments. A lot will be delivered by the industry over the coming decade: • y 030, C2 emissions from ne passenger cars ill have to be cut by more than 0% from a 2005 baseline • Emissions from light commercial vehicles ill have to go down by 1% between 2021-203. • A 30% reduction is epected for heavy-duty vehicles by 2030 compared to a (still unknown) 201 baseline. THE CHALLENGES Reduction new-vehicle CO2 emissions offset by growing transport demand In million metric tonnes Source European Environment Agency (EEA) The strong reduction in new-vehicle C emissions achieved over the past decade – driven mainly by engine and vehicle efficiency improvements – is however being offset by five key challenges. ACEA’s 10-point plan to help implement the European reen Deal – January 20 2 Challenge 1: Growing demand for transport • Both r assengers nd eight (which s s n conomi ndicator). GROWING DEMAND FOR TRANSPORT Source: European Commission, EU ransport n Figurs tatistical ocketbook 019 Challenge 2: Customers holding on to their vehicles for longer • Meaning hat t aks or tim to see h full otential h lates technologies n European oads. Source: ACEA Vehicls n s - Europe 019 Trucks edium nd eavy-duty ommercial ehicls ACEA’s 10-poi la help impl h Eropea ree al – January 20 3 ource: European Environment Agency (2000-2005 IHS (2006-2017) Challenge 3: Low consumer acceptance of zero- and low-emission vehicles • Although owing, their share of he market, s ell s o th verall fleet, s stil w ue their higher prices as well as ‘inconvenience’ issues (eg range anxiety). Source: ACEA Vehicls n s - Europe 019 Trucks edium nd eavy-duty ommercial ehicls ACEA’s 10-poi la help impl h Eropea ree al – January 20 4 Challenge 4: The lack of charging and re-fuelling infrastructure • Missing or all categories o alternatively-powere vehicles. Challenge 5: Lack of real market acceptance/demand for new zero- and low-emission technologies for commercial vehicles • Especially fro operators in the heavy-duty long-haul transport segment. • This oes not apply to city buses, where a combination of avourable circumstances has create viable business cases. 10-POINT PLAN TO HELP IMPLEMENT THE GREEN DEAL n order to reuce CO2 emissions rom the entire transport sector in the ost cost-eicient way over the long term ACEA akes the following 10 policy recommendations: 1. Technological neutrality must be maintaine in order to relect the diverse reuireents o ierent vehicle segments and the many use cases o customers. • The Commission should refrain from (directly or implicitly) mandating certain technologies or speciic vehicle segments. • t should also aintain the integrity of the European single arket y discouraging national and local bans on specific technologies which can deliver further CO2 improvements. 2. A more holistic approach to carbon neutrality should tacle the use of vehicles in the current fleet It will therefore require a smart combination of efficient vehicles (‘tank-to- wheel’) as well as an increasing move towards low-caron energy carriers used or transport (‘well-to-tank’). • ACEA ebers are ully committed to urther lowering emissions of new vehicles an are striving to reach the C targets set recently or passenger cars, vans an heavy- duty vehicles or 030. hese targets should remain on a tank-to-wheel basis • In addition to continuously iproving vehicle eiciency, a concept of a ‘well-to-wheel with split responsibilities’ could be applied post-2030 to properly account or the perormance of oth vehicles and energy carriers. This woul allow for istinct responsiilities or the automotive (tank-to-wheel) and energy and uel sectors (well- to-tan). t woul also recognise alternative, low-caron and renewable uels as eing key in the transition to net-zero emissions. As such, they should e promoted in uture. • All energy carriers should be part of a stronger EU Emissions Trading System (ETS) that applies a carbon price at a level that rives real change. any of the vehicle- eiciency technologies that will e neede to reach the industry targets are euivalent to a carbon price of well above €250 per tonne CO2 (the current ETS price is around €25). ACEA’s 10-point plan to help impleent the European reen eal – January 20 5 . With respect to the fuel sector, progress in vehicle efficiency should be accompanied by policies supporting a reduction in the HG intensity of fuels, such as: • Chanes in fuel taxation and supporting schemes at the E and national levels. This would ive positive price signals to consumers, encouraging the use of renewable fuels as well as other fuels with low net-carbon emissions. • Policies stimulating higher renewable content in fuels These could for eample be included under a revised uel Quality Directive, by setting more ambitious targets for advanced renewable transport fuels in the enewable Energy Use irective, and/or via other supportin instruments. • roviding meaningful incentives across sectors to create sufficient aret demand and critical volumes for renewable, carbon-neutral fuels. With respect to alternative fuels a dense EU-wide networ of charin points and re- fuelling stations – suitable for passener cars and commercial vehicles – must urgently be deployed. This is one of the most important enabling conditions for achieving carbon neutralit. • There should be an ambitious review of the lternative Fuels nfrastructure irective (AFID), setting mandatory targets for chargin points and re-fuelling stations at the ACEA’s 0-point plan to help implement the European reen eal – January 2020 6 nationa vel with clear rcement easurs. mart harging should so e promoted. 1234 • Th A eview should ake ccount of h specific requirements of the heavy-dut sement, s heir eeds n erms charging/fuelling capacity and ocation f infrastructure differs greatly om cars. • I s lso ucial a he infrastructure is well aintained and an relied pon o actually work; oo ft users ounter roblems ith s roper unctioning. 5. Giv th lack any common EU r lobal ethodology, s ell s h involvement many sectors or hich he automobile industry s ot directly responsible cluding some ouside e E), the life-cycle assessment should not be taen as the basis for any mandator, regulator tarets for ehicl manufacturers. • This would ead he untenable situation here the automobile industry would e responsible for very aspect f he supply chain, cluding hose not under s ontrol. • Furthermore, n-sge elated reenhos as missons eg rom roduction or recycling re already largely overed under ther schems, like e E ES. 6. European support for research and innoation s ssential, t nly i relation o ero- an low-emssion ehicles, ut so or developing w-carbon solutions and urther improving h efficiency o h internal ombustion ine. • In ddition, he potentia f carbon apture and utsation echnologies should be further searched. 7. New echnologis, oth trification nd arbon-neutral s, ar exps and ill remain so r h forseeabl future. To sr that th pac o eet enewal does ot slow down consistent incentive schemes for oth h users o assenger ars and the perators of ommercia ehicles should e put lace (aso onsidering he residual alue). hs could include a evision h European rgy taxation sysem. • It ill ourag a swifter fleet renewal in vehicle segments, ccelerating e uptake o ew echnologis. • It nsure tha ero- and w-emssion ransport s viable for businesses, becomin th better ption n spit o igher otal osts wnership. C-differentiation oad chargs r heavy-duty vehicls nder h Eurovignett Directiv would lay an importan ole in is egard. The prematur phasing-out r emoval ustomer ncentivs seriously mpacts h market uptak alternativ vehicls, s as e seen n several ountries. 1 ACEA-Eurelectric-Transt Environment oint stement, eptember 019 2 ACEA-Hydrogen Eur joint stement, ctober 019 3 ACEA-Liquidgas Europe-UEI-ePUE-E oint stement, 4 nuary 020 4 ACEA-NGVA-EA oint stement, 20 nuary 020 ACEA’s 10-poi la help impl h Eropea ree al – January 20 7 8.
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