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Energy and Environmental Aspects of the Transport Policy

Silvia MaffiiTRT Trasporti e Territorio Srl, Milan - Italy

Bruxelles, 11 December 2007

TRADE UNION VISION ON SUSTAINABLE TRANSPORT

TRANSPORT AND ENVIRONMENT & INFRASTRUCTURE FINANCING AND THE ROLE OF

THE STATES

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Key facts

• About one third of the final energy consumption in the EU-25 is related to transport (excluding maritime transport and pipelines)

• Road transport is by far the dominating sector consuming nearly 83% of the energy used for transport purposes.

• The transport market today is almost entirely (97%) dependent upon oil-based fuels and is responsible for about 70% of the final oil demand in the EU-25

• Transport sector contribute to EU overall GHG emissions (CO2, CH4, N2O) in the EU-27 for a 24,1%

• Transport contribution to air pollution is also significant

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Key facts

Absolute change of CO2 emissions by large key source categories 1990 to 2005 for EU-15.

in CO2 equivalents (Tg)

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Evolution of freight and passenger transport compared with growth in GDP, 1995-2004/5 (1995=100)

• GDP Growth 2,3 %

• Freight transport 2,8 %

• Passenger transport 1,8%

Trends in transport demand

Source: DG Energy and Transport, reported in Eurostat, Panorama of transport (2007)

The transport sector exhibited the highest growth in energy demand between 1990 and 2004 (2.0% per annum)

Improvements in fuel efficiency were offset by increases in passenger and freight transport demand

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Trends in transport demand

Relevance of urban areas

Half of the trips made by European citizens (per year and per capita) 5 km long.

About 75% of km travelled in EU conurbations are made by car and, on a daily basis, 60% of all kilometres travelled by car are made for trips within 30 km and 37% are made for covering distances within 10 km.

Passengers on regional and commuter railway trips represent by far the biggest share of all rail trips in Europe: they account for about 90% out of the total number of rail passengers (including long distance trips) and 50% of the total number of passenger kilometres per year

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6Source:ACEA European Automobile Industry Report

Technology innovation and increasing in energy efficiency have been remarkable but were not used to decrease energy consumptions: improved efficiency system have been compensated by a growth in traffic demand and by the increase of bigger and more powerful cars reported in the road

Innovation in vehicles technology

Passenger car weight trends

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According to DG TREN estimates the predominant role of the transport sector in final energy demand growth is projected to continue under baseline assumptions in the horizon to 2010 (1.4% annually) beyond 2010 the combined effect of decoupling and technological progress will lead to a deceleration (0.6% pa) and even a decline in 2020-2030 (-0.1% pa)

Energy consumption in the transport sector

2005 2010 2015 2020 2025 2030

Public road transport 7.0 7.0 6.7 6.3 5.8 5.3 Private cars and motorcycles 169.3 170.2 164.5 168.9 166.5 159.9 Trucks 119.8 135.6 148.4 156.8 162.4 164.4 Rail Transport 8.9 8.3 7.2 6.5 6.2 6.0 Aviation 50.0 54.2 57.5 60.8 58.9 60.3 Inland Waterways 5.6 5.8 6.0 6.2 6.3 6.4 Trans port sector 360.6 381.1 390.3 405.5 406.1 402.3

Source: European Energy and transport: trends to 2030 - update 2005 - PRIMES baseline scenario

Forecast of energy demand in transport in EU-25 in Mtoe

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Transport impact: GHG Emissions

Total domestic GHG emissions (CO2, CH4, N2O) in the EU-27 were 5,180 million tonnes (Mt) CO2-equivalents. Domestic transport accounted in the for 961 Mt, international aviation and maritime transport accounted for additional 285 Mt.

Road Transportation

896 Mt - 71.9%

Other Transportation10 Mt - 0.8% International

Aviation (bunker fuels)

124 Mt - 10.0%

Civil Aviation25 Mt - 2.0%

Navigation22 Mt - 1.8%

Railways8 Mt - 0.6%

International Maritime

(bunker fuels)161 Mt - 12.9%

Source: based on data from EC GHG inventory 1990-2005.

Contribution of each single transport-related category to the sector’s grand total (emissions from domestic transport and bunker fuels)

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Contribution of different modes

Emissions from road transportation 1990 - 2005

CO2 Emissions

23 2512 12

130

152

1912

117

7

34

19

93

19

120

0

20

40

60

80

100

120

140

160

AT BE DK FI FR DE GR IE IT LU NL PT ES SE GB

Tg

CO

2 eq

uiv

alen

ts

1990 2005

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Contribution of different modes

CO2 emissions from Aviation in EU-15 and new EU-12 Member States 1990-2005

0

20

40

60

80

100

120

140

160

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Mt C

O2

DomesticAviation newEU12

InternationalAviation newEU12

DomesticAviation EU15

InternationalAviation EU15

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Contribution of different modes

CO2 emissions from maritime transport in EU-15 and new EU-12 Member States 1990-2005

0

20

40

60

80

100

120

140

160

180

200

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Mt

CO

2

InternationalShipping NewEU12

InternationalShipping EU15

DomesticNavigationNew EU12

DomesticNavigationEU15

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Air pollutants emissions

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Policy actions

Potential measures for air pollutants and GHG emissions reduction in the transport sector canbe clustered according to their main characteristics, impacts, leverages, modes concerned...•Technological improvements (vehicles and fuels)•Pricing and taxation•Long distance travel •Liveable cities (urban policy)•Information Communication Technologies ICT•Eco-friendly behaviour •Logistics•Air and Maritime

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Technological improvement (Vehicle and fuels)

Policy actions

Reduction of CO2 emissions and fuel consumption

Compulsory targets for CO2 emissions of cars (120g/km) and vans (175 g/km) by 2012, also through Emission Trading Schemes for car manufacturers

Increase efficiency in automotive sector

Reduction of vehicle weight and resistance factors; efficiency requirements automobile air conditioning system

Labelling scheme for tyres Standards to measure tyre rolling resistance 2008 Labelling scheme of car fuels New CO2 labelling scheme for amended car fuels efficiency

directive (1999/94EC) R&D on efficient vehicles Support of project to develop more efficient vehicles Improved fuels Development of the second generation of biofuels and

alternative fuels able to reduce CO2 and air pollution emissions

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Pricing and taxation

Policy actions

Passenger cars taxes linked to CO2 emission levels Fiscal incentives to encourage the cleanest LDV classes

Road vehicles taxation reform

Inclusion of land transport in CO2 emissions trading Application of “Eurovignette” Directive (1999/62) and its amended version (Direct ive 2006/38/EC) Attention to congested corridor and sens ible areas (i.e. Alpine region)

Pricing Interurban Roads

Internalisation of external costs of transport Road pricing in urban areas Congestion pricing, value pricing, road tolls and HOV lanes Tradable mobility credits Tradable permit schemes among car drivers in urban areas

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Long distance travel (passengers and freight)

Policy actions

Rail interoperability Improving the seamless movement of trains across Europe, both on High Speed and conventional rail networks

Harmonised regulation systems Provide fair competition of rail operators across EU Rail efficiency Increase technical unit efficiency of rail Rail passenger services quality Stimulating rail usage by increasing the quality (ro lling

stock, ICT, ticketing, etc.) Intermodal facility for passengers

Develop service integration by mode (train, air, marit ime, road) and trip (long/short distance)

Intermodal facility for freight Intermodal loading units and freight integrators. Freight facility incentives to offset the capital costs of providing rail freight handling and operating facilities

Rail capacity Improve rail capacity by using advantage technology in key corridors (metropolitan areas) and rail bottlenecks

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Liveable cities (urban policy)

Policy actions

Improve public transport services

Systems providing high quality PT service and convenient Light Rail Transit on urban corridors

Regulation incentive effectiveness

Policy changes to encourage transport service competit ion, innovation and efficiency

Park&Ride facilities and access to PT

Providing convenient parking at transit and rideshare stations

Walking and cycle facilities Strategies for improving bicycle transport and walking conditions Develop car sharing and car pooling services as a substitute for private vehicle ownership and encourage ridesharing

Trasport Demand Management

Commuting and school travel planning that encourage more efficient transport mode (shift from car to public transport and environmental mode)

Integrated planning Land use, environmental and transport integration, reduction of urban sprawl, encourage the LEZ (Low Emission Zone)

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ICT (Information Communication Technology)

Eco-friendly behaviour

Policy actions

Real time and pre-trip informat ion

Real time road traffic and PT travel informat ion; travel planning systems to optimise use of combined modes of transport

Teleworking / teleconferencing Use of telecommunications as a substitute for business and commuter t ravels

Telebanking / teleshopping Use of telecommunications as a substitute for physical travel Research and Development Application and technology including Galileo programme

Eco-driving Strategies for improving driving behaviour, energy-efficiency and traffic safety among drivers

De-market ing of car Campaign to de-market cars to change public attitudes and develop environmental cert ification (ecolabels)

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Logistics

Air and Maritime

Policy actions

Logistic management (integrated supply chain)

Strategies to improve the efficiency of freight transport and storage

City logistics (freight distribution centres and regulation)

Strategies to improve the efficiency of freight distribution in urban areas

Increased load factor Strategies to optimise the load capacity of freight vehicles

Operation rules for ports Rules on pilotage, cargo handling, stevedoring Marco Polo Programme Modal shift, catalyst and common learn ing actions Vessel traffic monitoring Monitoring System to prevent illegal d ischarges at sea and

help in recognise ships and their environmental perfo rmances Single European sky Management of air traffic and thereby facilitate further cost

reductions and demand growth Environmentally differentiated charges at terminals

Differentiate terminal fees and charges according to the level of pollutants emitted/discharged and noise produced main ly by ships and aircrafts

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Policy packages

• ambitious fuel-efficiency targets

• improved emission standards for vehicles and fuels,

• the right price signal for all modes,

• supports to behavioural changes

The need of a consistent mix of policies

To reduce GHG, energy consumption and air pollution in the European transport sector a coordinated combination of individual policies is necessary

The policy mix should cover all modes of transport and should include

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Policy packages

Accompanying measures

Efficiency vehicles and

engine

Energy innovation

Taxation Pricing

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5. Policy packages and recommendations

Only one… Policy mix TaxationPricingAccompanying measures

Technologies vehicles and

fuels

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3. …. Critical issue

Recommendations

•Concentrate on the most critical areas•Give priorities to the short term policies•Increase fuel efficiency for all modes of transport •Get the prices right•Introduce innovative demand management measures •Support modal shift through pricing and soft measures•Induce a more efficient organisation through pricing policies and soft measures•Promote more responsible behaviour of road users

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3. …. Critical issue

• Urban areas (congestion, pollution, social impacts,…)

• Interurban corridors where intra EU and international trips take place

• Environmental sensible area (Alpin, Baltic See,….)

Source: European Environment Agency, 2006

PM10 Values in EU, 2004

Recommendations

Concentrate on the most critical areas

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Recommendations

Focus on increasing fuel efficiency for all modes of transport, especially air and road transport

Reduce the emission target for passenger car fleet to 120 g CO2 per vehicle kilometre by 2012 and to 100 by 2020 and extend such an approach to cover trucks, aircraft, vessel

Concentrate on policies that produce results in the short term, including incremental improvements of the current technologies, use of electric and hybrid vehicles, train, vessels

Increase fuel efficiency for all modes of transport

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Recommendations

Passengers and freight should face the full cost of travel and feel the consequence of their decision

General reform of taxation in the transport sector, clearly based on CO2 emission and other environmental emissions

Congestion charge in urban areas and congested corridors

Pricing and taxation policies designed to provide strong incentives to shift toward better performing vehicles in all transport modes (pay as you drive)

Get the prices right

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Recommendations

On the supply side through the introduction of the Carbon Allowance Reduction System (CARS)

Manufactures and importers will be required to pay financial penalties in proportion to any exceedance per car sold of the emissions limits, which may be offset by redeemable credits awarded to newly registered passenger cars of the same manufacturer with emission below the limit value curve

Introduce innovative measures based on the “emission trading” approach

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Recommendations

On the demand side through “tradable mobility credits” that are differentiated according to several dimensions like the vehicle type (size, emission class), but also the supply of alternative modes, which can be used both for private car driving in the tolled areas and for riding public transport.

Introduce innovative measures based on the “emission trading” approach

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Recommendations

Urban and metropolitan areas suffer of high levels of pollution and at the same time alternatives modes to private transport are already available (public transport, cycling, walking).

A combination of pricing policies (congestion charging) and improvements in the public transport supply can significantly reduce emissions, particularly if public transport service enhancements are achieved through short-term measures, fleet renewal, bus priority, information technologies etc.

Support modal shift through pricing policies and soft measures: passengers

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Recommendations

For long distance freight transport, truck-km charges have shown to be able to induce a process of rationalisation of distribution systems and logistics organisation, and thus to reduce distances optimise routing, load factors and occupancy rates

Induce a more efficient organisation through pricing policies and soft measures: freight

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Recommendations

Develop eco-drive procedure in the road transport sector (freight and passenger) to reduce emission and consumption

De marketing of cars, support to car sharing and car pooling initiatives, support to green logistics, promoting eco drive ITS are all soft measures that might play a highly positive role in strengthening the positive impacts of other hard measures and in some cases in mitigating the negative ones

Promote more responsible behaviour of road users

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Thank you

Silvia Maffii

TRT Trasporti e Territorio Srl, Milan

maffii@TRTtrasportieterritorio.it