Increasing the global share of renewable transport

David de Jager (Operating Agent, IEA-RETD)

Huib van Essen (CE Delft)

Tammy Klein (Stratas-Advisors)

(Interim) Results of the next generation policy instruments

for renewable transport (RES-T-NEXT)

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Next generation policy instruments for renewable transport (RES-T-NEXT)

Climate change: RES-T are essential

RES-T is requires changes in three main dimensions:

Vehicles

Infrastructure

Availability of RES-T energy carriers

Barriers differ per option and can change over time

Policies needed to overcome these barriers

Hen-and-egg: Actors do not share the same believe on winning powertrain technologies

A wide variety of policy instruments are currently in force; some are more successful than others

What innovative policy instruments accelerate the deployment of RES-T

Background

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Provide recommendations for next generation policy instruments and strategies to increase RES-TAspect Included

Renewable energy sources for transport (RES-T)

• Renewable electricity• Biofuels (both liquid and gaseous) • Hydrogen

SectorTransport sector including the dependencies between the transport sector, the energy sector, and industry

Transport modes• Passenger transport (cars, two wheelers and buses) • Urban freight transport (light commercial vehicles / light trucks)

Policy measures

• Financial incentives• Regulations• Awareness/information related policies• Public procurement and PPPs• Transport and Spatial policies

Geographical scopeIEA-RETD member countries (Canada, Denmark, France, Germany, Ireland, Japan, Norway, and United Kingdom) and other relevant countries (e.g. USA, Japan)

Time horizon• Short term: up to the next 5 years• Mid-term: 10-15 years• Long term: 30-40 years

Study objective & scope

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RES-T-NEXT Study - Outline

Background and objectives

Transport pathways and their advantages/disadvantages and barriers

Key policies currently used to promote RES-T (case studies)

Policy assessment

Policy recommendations for each pathway

Conclusions

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Three different pillars and different stakeholders in the chain

Key policy instruments to promote RES-T

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Type of instrument Case

Financial instruments

(1) Incentives in energy taxation -

(2) Incentives in vehicle registration taxes Norway

(3) Incentives in company car taxation The Netherlands

(4) PPPs and subsidies for energy infrastructure Japan / California (hydrogen)

(5) Incentives in (urban) road pricing and tolls UK (London)

Regulation

(6) Fuel regulation EU: FQD (implementation in

Germany) / California: LCFS

(7) Renewable energy mandates EU: RED (implementation in Italy)

(8) Regulation of charging/fuelling infrastructure Sweden (for biofuels)

(9) CO2 regulation for road vehicles EU: CO2 & cars regulation

(10) ZEV mandates California

Traffic management and land-use policies

(11) Incentives in parking policies Graz (Austria)

(12) High Occupancy Vehicle (HOV) Lanes Incentives -

(13) Urban access restrictions China

Other policies

(14) Information provision

(on locations of alternative energy infrastructure,

payment services and CO2 footprint of fuels offered)

-

(15) Green public procurement Japan

(16) Pilots / demonstration projects -

(17) Policies to increase RE consumption -

Overall policy strategy Brazil: ethanol program Proálcool

Policy instruments (shortlist) and case studies

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Different policies targeted to different pillars and affect different stakeholders in the chain

Key policy instruments to promote RES-T

Naam spreker/datum

FEDERAL / UNION

NATIONAL / STATE

LOCAL

PPPs & subsidies

for infrastructure

HOV lanes

incentives

USERS

INDUSTRY

Vehicles

Energy

infrastructure

Energy

carriersFuel regulation

RE mandates

Green Public Procurement

Pilot/demonstration

projectsPilot/demonstration

projects

Energy taxation

Vehicle

registration taxes

Urban road

pricing & tolls

Parking

policies

ZEV mandates

Urban access

restrictions

Information provision

Company car

taxation

Policies to

increase RE consumption

Information provision

CO2 regulation

road vehicles

Subsidies for

RenewableEnergy

Production

Regulation of

energy infrastructure

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Policy assessment criteria

Key policy instruments to promote RES-T

Criteria Definition

Increase in

alternative energy carriers

Strength of the incentives to stimulate alternative energy carriers, and where possible the results (i.e. share of alternative energy carriers).

Increase in renewable energy

Impact of the policy instrument on the use of energy carriers in transport are made from renewable energy sources

GHG emissions reduction

GHG emission reduction (TTW and WTW) realised by the instrument in relative (e.g. % reduction in the region) and absolute terms (e.g. in g/km)

CoverageCoverage of the instrument; instruments which influence a large share of the

supplied energy, infrastructure, or vehicle fleet of a particular region can have a potentially larger effect on RES-T/GHG emission reduction

Cost effectivenessNet costs to society in terms of euro per tonne of CO2-eq, which is very case-specific

Ease of implementation

Difficulty of implementing the policy instrument (government perspective)

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Technology development, learning curves and economies scale expected to improve range while reducing cost; financial incentives can help

Policy strategy: battery-electric

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Policies should for the short to medium-term primarily focus on supporting market introduction, testing and pilots

Policy strategy: Hydrogen

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Main challenge for the short to medium term is the availability of sustainable biomass feedstock and need for long-term policy framework

Policy Strategy: Biofuels

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Relevant for all technology pathways and must be taken into consideration

Cross-cutting issues

•Targeting specific groups may be required or more effective

Generic policies or targeting specific user groups?

•Policies must preferably be technology neutral, but not always possible (e.g. for energy infrastructure)

Technology neutrality

•Balance between short term cost effectiveness and stimulating innovation for meeting long term targets

Costs-effectiveness vs preparing for long-term transition

•Continuity is a must; long-term foresight requiredDealing with uncertainty

•Policies must be consistent and aligned to achieve objectives

Consistency and alignment of policy instruments

•Must be taken into account, especially governance structures

Differences between regions

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Battery-electric, hydrogen and biofuels can help achieve RES-T and therefore, climate goals

Conclusions

RES-T is essential to achieve climate goals

Battery-electric is most promising pathway, though hydrogen is a feasible and complementing pathway too

Biofuels is easier to implement but concerns remain on GHG emission reductions and sustainability

Each pathway requires policies at different administrative levels

Policies need to be coordinated, harmonized and continuous, providing regulatory and investment certainty

For additional information on RETD or RES-T-NEXT

Online: www.iea-retd.orgContact: info@iea-retd.org

THANK YOU!