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Road transport: reducing emissions post-2020 The new Juncker European Commission, installed in office on the 1st of November of last year seems adamant to continue to push the envelope on more ambitious fuel economy standards post 2020.


At a speech at aN IG Metall conference (Largest German trade Union) in Germany, Miguel Arias Cañete came out strong for more determined fuel economy standards beyond 2020. Here is what he said.


Road transport is a significant source of greenhouse gas emissions in the EU – about one-fifth of the total. And while these emissions slightly fell in 2012, they are still some 20% higher than in 1990.


The most important and cost-effective way to reduce these emissions, is to increase the efficiency of vehicles on our roads.


The EU has taken action with the CO2 emission limit targets we set in 2009 for passenger cars and in 2011 for vans.


We are already seeing the benefits of these targets:


• They have led to innovations by the auto-industry and its parts suppliers. We now have increasingly efficient technologies such as ‘start-stop’ and LED lighting systems. There are more and more eco-innovations and corresponding applications – many stemming from German suppliers and manufacturers – and we can see their technological and commercial benefits.


• What is more important is that vehicle users have saved fuel and therefore money. These savings easily outweigh any increase in the purchase price of a new car. The bonus is that saving fuel also helps reduce our dependency on imported oil, and that money saved at the gas station can be spent in other sectors of the economy.


• We believe that these innovations also help create jobs, be it in the manufacturing of fuel-efficient components or in the wider economy, thanks to the boost from the decreased spending on oil imports.


• What’s more, most of the money we spend on fuel leaves the European economy, whereas most additional money we spend on fuel-saving technologies stays in Europe as revenues for the technology suppliers.


The targets have worked. In fact, our policy has been so successful that the target for cars, which was set for 2015, and the target for vans, set for 2017, were already achieved in 2013. A new car today emits on average 20% less CO2 than in 2007.


If we can maintain this downward trajectory, we are on track to meet the new targets for 2020 – 95 grams of CO2 per kilometre for cars and 147 grams for vans.


A cause for concern, though, is that we are seeing a growing difference between the emissions measured in laboratory and on the road in the real world. This is an issue we need to tackle.


Now, it is time to look beyond 2020. Both Regulations on


emission limits request the Commission to review the legislation by the end of 2015.


The United States and Canada already have ambitious targets for 2025. India has set a target for 2021.


If the EU is to retain its competitive advantage, we have to continue to drive innovation in CO2 saving technologies. New targets will help to do this. And they will have to be set early enough to allow parts companies and auto-manufacturers the lead time to develop new vehicles.


We have started our reflection on the post-2020 regime. What is important for us is to ensure a holistic approach. As you know, the Juncker Commission is organised in project teams that are jointly responsible for specific projects. This allows us to work together, beyond the traditional silos approach. Transport is a prime example. To achieve our decarbonisation goals, we need a joined-up approach that addresses all the relevant aspects: regulation on emissions, alternative fuel infrastructure, test cycle, e-mobility, etc.


It is also important to note that CO2 Regulations apply to manufacturers regardless of where they make their vehicles, so they do not have an adverse impact on EU manufacturing. A recent study explored this issue and concluded there were no direct impacts.


• Another important area is the development of electromobility. Here, too, it is essential to work together and look at all parts of the puzzle – components, standards, electrification of cars, infrastructure, and so on.


Some people think that the recent decrease in oil prices will have a negative impact on electric cars. Personally, I am convinced that this will not be the case.


New targets will trigger innovation and investments, but we do not yet have a clear view on the timing and the winning technologies – for example how the shares of electric, plug-in- hybrid or hydrogen vehicles will develop.


That is why, in the design of future regulation, we are taking a technology neutral approach. Manufacturers must be able to choose the most cost-effective ways to meet emission targets.


I understand the challenge for industry. Companies must take strategic long-term investment decisions, and their staff will be impacted as well. Effective retraining will be important to ensure competitiveness and social equity. In this context, IG Metall will play an instrumental role.


• A third issue we have to address is the testing procedure. I already mentioned that the success of our CO2 legislation risks being undermined by the fact that the results measured in the laboratory do not correspond to what drivers are experiencing.


Our regulations have to be effective ‘when the rubber meets the road’. Artificial values harm the environment and climate, mislead consumers and have a distorting impact on tax revenues.


Continued on page 56


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LUBE MAGAZINE NO.126 APRIL 2015


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