Integrated Approach: A Concept for Sustainable Car-related CO 2 Reduction

Transcription

1 Dr. R. Stromberger, Dr. J. Theis, BMW Group, Munich Integrated Approach: A Concept for Sustainable Car-related CO 2 Reduction Abstract To counteract global warming the Kyoto protocol stipulates reduction targets for anthropogenic greenhouse gases. Demands on the specific emissions sources, in accordance with the reduction commitment made by the EU, result. Hence the European Union s strategy for CO 2 emission reduction is derived for the passenger car sector. The European Commission s European Climate Change Programme demands costefficient measures for CO 2 emission reduction based on the principle of environmental economy. CO 2 emission reductions in the passenger car sector solely focused on further technology related measures can only be realised at considerable costs and are not environmentally economic measures. The Integrated Approach to car-related CO 2 reduction is a holistic approach aiming at attaining higher CO 2 emission reductions at simultaneously lower costs in comparison to solely technological vehicle measures. United activities coordinating all stakeholders are decisive on the path to a sustainable CO 2 emission reduction. The Integrated Approach ensures that Europe s economic strength and ability to compete on global markets are maintained, and also that both the European economy and the automotive industry can contribute to the strong economic zone envisaged by the European Union (Lisbon strategy). The automotive industry is aware of the responsibility it bears and will make its contribution to a sustainable reduction in CO 2 emissions. Furthermore, the automotive industry shoulders activities that are at the topmost cost range in the Integrated Approach. Additionally, a global strategy for a sustainable reduction in anthropogenic greenhouse gas emissions is required, in order to counteract climatic change. Regional part-strategies within the context of a global strategy call for unified package solutions rather than uncoordinated individual measures. The Integrated Approach helps fulfil these demands. 1

2 Introduction In 1990 the Intergovernmental Panel on Climate Change (IPCC, members of the UN World Meteorological Organization) published a scientific report concerning climate change. It declared that with a high degree of probability anthropogenic greenhouse gas emissions (caused by human activity) could be held responsible for climate change. An essential contribution is accounted for by carbon dioxide (CO 2 ), chiefly emitted by the combustion of fossil fuels such as mineral oil, natural gas and coal. A reduction of the CO 2 emissions and therefore, a reduction of the consumption of fossil fuels are considered to be of importance by the community of states. In a first step the European Union approved in 1990 a political agreement to stabilise CO 2 emissions by 2000 at the level they had reached in Following the UN Environment and Climate Conference in Rio de Janeiro in 1992 and the United Nations Framework Convention on Climate Change (UNFCCC), the EU resolved to take further measures aimed at reducing greenhouse gas emissions (CEC, 2005). Furthermore, the EU member states are obliged since 1993 to disclose their national programmes to reducing CO 2 emissions. With the ratification on February 16, 2005 of the Kyoto protocol, dating from 1997, for the first time binding reduction targets for greenhouse gas emissions were established. Therewith, the EU committed itself to lower its anthropogenic greenhouse gas emissions by 8 % within the time frame of 2008 to 2012 compared to the level prevailing in Based on the principle of burden-sharing the EU apportioned the reduction target among its 15 member states. In accordance with the reduction commitment, demands on the specific emissions sources, clustered in sectors, are derived. The specific share of the CO 2 emission sources of the EU-25 member states for the year 2000 is shown in Figure 1. At 34.1 %, the highest proportion of CO 2 emissions originates from the electricity and heat supply industries. The traffic sector (road) accounts for 26.4%, in turn the passenger-car sector amounts to 16 % of the total emissions (TREMOVE, 2004). Household and small consumers 12,6 % Industry 15,0 % Electricity and heat supply 34,1 % Source: CAFE, 2003; TREMOVE, Remaining traffic (railway, navy, aviation), others 11,9 % Passenger traffic (road) 16,0 % Goods traffic (road) 10,4 % Figure 1: CO 2 emission sources in the EU-25 (2000) 2

3 In the traffic sector the German automotive industry took as early as in the 1970s a pioneering role in reducing fuel consumption. In 1978 it embarked on achieving a 15 % reduction in the average fuel consumption of cars sold in Germany up to This commitment was clearly outperformed with a reduction of 23 % (VDA, 2004). In 1995 the German automotive industry undertook a further voluntary commitment. The aim of achieving an average reduction of 25 % in the fuel consumption of new passenger cars reaching the roads by 2005, based on the level of 1990, was also successfully concluded (VDA, 2006). Examination of the entire period from 1978 to 2005 reveals that average passenger-car fuel consumption was reduced by approximately 42 %. This impressive result emphasises the research and development activities and the innovative potential of the German automotive industry. Particularly so, as the continually rising demands of the market for greater comfort and convenience along with new political demands (including emission reduction and safety requirements) resulted in increasing vehicle weight and was contra-productive for fuel reduction efforts. Although reductions in fuel consumption so far have been impressive, the contribution to CO 2 emissions by the transport sector within total CO 2 emissions has not declined. This can be ascribed to the continuing increase in the society s demand for mobility. The movement of freight and people and the need for individual mobility are fundamental preconditions for a functioning macro-economy and make a decisive contribution to the potential increase in net domestic product. The EU s CO 2 reduction strategy At European level restrictions of greenhouse gas emissions emitted by the transport sector began in the 1990 s. As a result an EU strategy for reducing CO 2 emissions from passenger cars was announced in 1995, which envisaged an average reduction to 120 g/km in CO 2 emissions from the new car fleet by 2010 at the latest (CEC, 2005). For the stepwise attainment, the EU in 1998 adopted a threefold approach that is also known as the three pillar strategy (Figure 2): Pillar 1 Voluntary automotive industry commitment: o A voluntary commitment by the Association des Constructeurs Européens d Automobiles (ACEA) to reduce CO 2 emissions from the new-car fleet to an average value of 140 g/km by o A voluntary commitment by the Japanese and Korean automotive manufacturers associations to reduce CO 2 emissions from the new-car fleet to an average value of 140 g/km by Pillar 2 Consumer information: The aim is to inform about CO 2 emissions of cars. With this in mind, EU Directive 1999/94/EC has been passed, which calls for details of the fuel consumption and CO 2 emissions of new cars to be made available to the customer by in particular so-called labelling. Pillar 3 Fiscal instruments: The Commission recently proposed a Directive on CO 2 based car taxation which requests Member States to base car taxation increasingly on CO 2 emissions of cars. The CO 2 based car taxation intends to encourage customers to consider buying more fuel efficient cars. The aim is for motorcar taxes to be harmonised throughout Europe, in order to avoid distorted market 3

4 conditions in the EU due to the member nations differing tax systems. The registration tax is to be replaced in successive stages by an annual tax. EU-Strategy on new passenger car-related CO 2 -reduction Voluntary commitment by automotive industry Consumer information Fiscal instruments pillar model g/km by 2008/2009 Labelling CO 2 based tax Figure 2: EU-Strategy on passenger car-related CO 2 -reduction With regard to the voluntary commitment by ACEA the new-car fleet of European automotive manufacturers declined by approximately 13 % in 2004 compared with 1995 and were thus within the agreed target corridor (ACEA, 2005). The automotive industry s contribution to further CO 2 reduction after 2008/2009 is in the focus of current discussions. The European Commission s proposal envisages a further reduction in CO 2 emissions from the new-car fleet to an average value of 120 g/km by An assessment of this proposal based on the principle of cost-efficient CO 2 emission reduction is currently carried out by the Commission in the context of the European Climate Change Programme II (ECCP). In order to comply with the targets of the Kyoto Protocol, the European Commission undertook the ECCP in 2000 for identifying environmentally acceptable and cost-efficient measures. For this multi-stakeholder approach the potentials of the respective sectors such as energy, transport, industry, agriculture and research need to be considered. The societal mitigation costs (SMC) were applied as an indicator of the cost efficiency of a measure. Hence, for the respective measure the societal mitigation cost of one metric ton (t) of CO 2 equivalent was determined. The ECCP identified a cost-efficient CO 2 equivalent (CO 2 equiv ) reduction potential of double the quantity that would have been needed to achieve the Kyoto Protocol target of approx. 336 Mt CO 2 equiv (ECCP, 2001). The related average societal mitigation costs were quoted as less than 20 /t CO 2 equiv. The societal mitigation cost applied to technical measures taken by the automotive industry, can be defined as a function of the cost of a new technology, the discounted cost savings due to reduced fuel consumption and the future CO 2 reductions, Figure 3. 4

5 CO 2 Societal Mitigation Costs = f (technology costs, fuel cost savings, CO 2 -reduction) [ /t CO 2 ] Technology costs: cost of implementing a new technology on vehicles, including development costs, but without general overheads, anticipated return and taxes. Fuel cost saving: based on the average vehicle lifespan in the EU-15 of approx. 13 years (TRE- MOVE, 2004). Future cost savings discounted at 5 % in relation to the reference date. CO 2 emission reduction: based on the vehicle lifespan. Mileage: 16,000 km (EUCAR, 2001). Figure 3: Method of determining CO 2 societal mitigation costs in the automotive industry This method provides societal mitigation cost values in the range of 400 and 540 /t CO 2 for the ACEA new-car fleet, when considering average CO 2 emissions of 120 g/km in 2012 (Figure 4). The calculation is based on year-2008 vehicle technology status. The value range results from technology cost ranges and their CO 2 reduction potentials. The very high societal mitigation costs in the automotive sector are due to the fact that vehicle technologies are already far advanced. In comparison to this the average societal mitigation costs in the ECCP were below 20 /t CO 2equiv, which corresponds to a reduction potential of double the quantity for compliance with Kyoto. For the passenger car, further CO 2 reduction measures relating to the car can only be achieved at considerable cost. CO 2 SMC [ /t CO 2 ] 540 bis 400 CO 2 SMC = CO 2 Societal Mitigation Costs. Source: ACEA, ,9 CO 2 -Reduction [Mt/a] Figure 4: CO 2 societal mitigation costs for the ACEA new-car fleet with average CO 2 emissions of 120 g/km in 2012, based on 140 g/km in In addition to societal mitigation costs, current discussions also take into account the actual reduction potential, which can be accomplished by the specific measure. This estimate has also been undertaken for the automotive sector. The ACEA scenario shows that the CO 2 reduction potential based on the EU proposal (new car fleet with on average 120 g of CO 2 /km) amounts to approximately 10.9 Mt in 2012 compared with the reference case, if the EU 15 car stock is also taken into account Figure 5. 5

6 For the reference case (continuous blue line) it has been assumed that that the new-car fleet s CO 2 emissions will remain constant from 2008 to 2012 at the level of 2008 of 140 g/km. In this case the annual new-car registrations entering the total car stock lead to CO 2 emissions of approx. 479 Mt in 2012 for the EU-15 car stock. If on the other hand it is assumed that CO 2 emissions from the European new-car fleet will decline from an average value of 140 g/km in 2008 to 120 g/km in 2012, this will result in CO 2 emissions in 2012 of approx. 468 Mt (red dotted line). The CO 2 reduction of 10.9 Mt achieved by mere vehicle technology represents a CO 2 emission reduction in the car stock of approx. 2.3 % in CO 2 Emissions Car Stock [Mt/a] g/km / g/km / g/km / g/km / Mt/a 2003 (ACEA 163 g/km) 2008 (ACEA 140 g/km) 2012 Year Emissions based on New European Driving Cycle (NEDC). Sources: ACEA, Figure 5: Reduction in CO 2 emissions related to CO 2 emissions of the European new-car fleet in 2012, taking the car stock in the EU-15 into account. As the Commission s proposal for an average CO 2 emission value of 120 g/km for the European new-car fleet is focused solely on new cars it amounts to an extremely costintensive individual measure. Mere vehicle-related technology programmes to reduce CO 2 emissions are not cost-efficient emission reduction measures as called for in the ECCP. Integrated Approach chronology In July 2005 the European Commission called for the preparation of an Impact Assessment aimed at assessing the costs and reduction potentials of technologies and measures for the reduction of CO 2 emissions in the automotive sector. Among the activities examined were those forming part of the Integrated Approach, such as vehicle technologies, alternative fuels, CO 2 -based car taxation, consumer information (labelling) and ecodriving. The final Impact Assessment report is expected to be ready in Mai,

7 The setting up of an Integrated Approach work group within the framework of ECCP II emphasises the political acceptance of the Integrated Approach as a sustainable CO 2 reduction concept. The discussions and evaluations on sustainable CO 2 reduction that take place within the work group extend beyond individual stakeholders and sectors. The ECCP II s task consists of identifying environmentally acceptable and cost-efficient measures that will enable the EU to comply with its commitments in accordance with the Kyoto Protocol. The European Commission will probably put forward a light duty vehicle strategy for the reduction of CO 2 emissions in September Reasonable response in the global context Global emission reduction strategies are based on partial strategies at regional levels. Changes in regional demographic and economic development in the course of time must be considered in a global context and taken into consideration when drawing up a global strategy for sustainable CO 2 emission reduction. The significance of these statements is explained below. The USA emit the largest share of anthropogenic greenhouse emissions, followed by the People s Republic of China, Figure 6. In the past 13 years, emissions have almost doubled in the People s Republic of China. However, in the same period the Federal Republic of Germany made exceptional efforts to reduce emissions by 147 Mt (KLIMA, 2005). This shows, that the exceptional efforts in one region were outweighed ten times over by a regional development elsewhere. Nor does this take changes in other developing nations into account. GHG Emissions [Mt CO 2äqu ] to 2003: Mt to 2003: -147 Mt USA China Russia Japan India Germany Canada GB South Korea Italy France Ukraine Spain South Africa Poland Mexico Brazil Industrial nations Developing nations Newly industrializing nations GHG emissions = Greenhouse Gas Emissions. Source: FTD, 2005; IEA, 2002; KLIMA, Figure 6: Anthropogenic greenhouse gas emissions in specific countries 7

8 The total greenhouse gas emissions from EU-25 countries in 1990, converted to CO 2 equivalents, accounted for a 14 % share of total worldwide emissions. In view of the global transition from newly industrialising nations to industrial nations and from developing nations to newly industrialised nations, it must be expected that total emissions from the EU-25 area in 2050 will only amount to approximately 7 % of total worldwide greenhouse gas emissions (CEC, 2005), Figure 7. In view of this significant decline in the proportion of worldwide greenhouse emissions caused by EU-25 countries, the ability of this region to influence the worldwide level of emissions will also clearly decrease. GHG Emissions [Gt Emissionen CO 2äqu ] [Gt CO 2äqu ] EU-25 ~ 7 % EU-25 ~ 14 % Year 1990 Year 2050 Rest of world EU-25 GHG emissions = Greenhouse Gas Emissions. Source: CEC, Figure 7: Proportion of greenhouse gas emissions from EU-25 countries in CO 2 equivalents compared with worldwide emissions in 1990, and anticipated proportion in 2050 It is necessary to question the reasonable character of an individual regional measure, when examined in a global context. In order to achieve a sustainable global CO 2 reduction, unified package solutions rather than individual measures are necessary. However, with its ambitioned target in environmental policy the EU Commission wants to take a leadership role on CO 2 emission reduction. Integrated Approach: a concept for sustainable car-related CO2 reduction The extent to which CO 2 reductions can be achieved in the passenger-car sector on the basis of a cost-efficient CO 2 emission reduction, as presupposed by the ECCP is investigated. This investigation is based on a coordinated approach, combining a vehicle technology programme with other activities capable of reducing CO 2 emissions. Various stakeholders influence CO 2 emissions in the passenger car sector: The automotive industry and its suppliers take the responsibility for vehicletechnology progress. The fuel supply industry determines the environmental-ecological aspects of the available fuel and the respective infrastructure (fuel quality, alternative fuels, refuelling stations). 8

9 Customers significantly influences fuel consumption by their driving behaviour in road traffic The politicians are responsible for the transport infrastructure and traffic management, and impose the overall conditions for a future reduction in CO 2 emissions. The Integrated Approach is a holistic concept with the aim of achieving a higher level of CO 2 reduction at simultaneously lower costs in comparison to the implementation of sole vehicle-technology measures. Unified activities coordinating all stakeholders are decisive on the path to sustainable CO 2 emission reduction, Figure 8. With this concept, the automotive industry takes on its responsibility and will continue to make its contribution to a sustainable CO 2 reduction in the future. Automotive Industry & Supplier Fuel Industry Policy Infrastructure Figure 8: Integrated Approach agreed and coordinated activities involving all stakeholders The automotive industry and its suppliers will make a significant contribution to CO 2 reduction by continuing to develop technologies that achieve the most efficient possible fuel usage and by increasing their share of the market. Figure 9 shows in simplified manner automotive industry s activities devoted to a further CO 2 reduction after 2008.The measures comprise optimizing combustion processes, weight reduction and reduced friction as well as those related to energy management on the car. Aerodynamics Shape, airflow management Driver information devices Gear shift indicator, fuel economy indicator Combustion process Gasoline direct injection, variable valve control, reduced friction Energy management Weight reduction Hybrid, thermo-management High strength steel, aluminium, plastics, composite materials Rolling resistance Low friction tyres, brake drag reduction Improved transmission Reduced friction, longer gear ratios Figure 9: Automotive industry s activities for further CO 2 emission reductions. 9

10 The development and implementation of technologies for alternative fuels, such as biofuels, will be pursued further by the automotive industry. The fuel supply industry can significantly contribute to regional and global CO 2 emission reductions by increasing the market share of alternative fuels, Figure 10. This is in accordance with the aims of the European Commission. Hence, the EU directive from the European Parliament and Council calling for the promotion of alternative fuels lays down target market shares (according to energy content) for fuels (EUDIR, 2003): Target value for 2005: 2 % market share for biofuels Target value for 2010: 5.75 % market share for biofuels In 2005, these fuels reached market share of 1.4 % in the EU-15 (EURACTIV, 2006). Therefore, the actual development is clearly lagging behind the targeted values. As biofuels are cost-efficient means of reducing CO 2 emissions, an increase in their market shares should be striven for. A distinct CO 2 reduction potential can be achieved by fuel blending, which is attained by adding biofuels such as bio-ethanol or bio-diesel to conventional fossil fuels such as petrol (gasoline) or diesel. This is not only beneficial to new cars, but also to all those already in on the roads. Ensuring high fuel quality with the appropriate infrastructure is an important precondition for the CO 2 reduction potential. The current European industrial standards for fuels, EN 228 and EN 590, permit a maximum of 5 % biofuel (related to the energy content) to be added to conventional fuels. Both the fuel supply and automotive industries are considering whether the additive proportion could be increased to a value as high as 10 % related to energy content. Synthetic fuels produced from biomass are claimed to have a high CO 2 reduction potential. Due to their processing method, it is distinctly higher than for conventional biofuels, and makes better use of the limited farmland area available for growing the respective raw materials. Experts have coined the term biomass-to-liquid (BTL) for these fuels. Since their properties are very similar to those of conventional diesel obtained from fossil sources, they could be added to the latter without any limits. The feasibility and promotion of this procedure on a high-volume technical scale and a reduction in the associated production costs by the fuel supply industry are needed. For the relevant research and development activities government support should be given. In addition, further contribution to the reduction of the CO 2 emissions can be delivered by tyres. The automotive industry and its suppliers are endeavouring to increase the market share of low rolling resistance tyres. Tyre pressures exert considerable influence on a cars fuel consumption. Even slight deviations from the correct pressures not only increase fuel consumption, but also represent a threat to road safety. Surveys have confirmed that about 27 % of all road cars do not possess optimal pressures (NHTSA, 2001). About 70 % of the tyres probably run at incorrect pressures (BDM, 2005). Since this applies to the entire car stock, definite CO 2 emission reductions as well as an improvement in road safety could be achieved. The fuel supply industry has an important role in providing and maintaining the infrastructure necessary for checking tyre pressures. In this respect the automotive industry can initiate and carry out information campaigns together with the fuel industry and the political domain/policy makers. 10

11 Automotive Industry & Supplier Further development and market penetration of CO 2 efficient technologies / technologies for alternative fuels Fitting of gear shift indicators / fuel economy indicators Further development and increased fitting of low rolling resistance tyres Measures to optimize tyre pressure Support common initiative to educate drivers on eco-driving Fuel Industry Further increase market penetration of alternative fuels Providing high fuel quality Development and maintenance of appropriate tyre inflation infrastructure Support common initiative to educate drivers on eco-driving Policy Maker Ensure consistency of legislation (consider trade offs with other political aims) Invest to improve road and traffic management infrastructure R&D support for new technologies and new fuels Support initiatives on optimal tyre air pressure Support common initiative to educate drivers on eco-driving Figure 10: Cooperation involving all stakeholders examples of Integrated Approach activities. Driving behaviour in the daily traffic has considerable influence on fuel consumption. Running the vehicle s engine in the optimum operating range (selecting the most appropriate gear) and also a far-sighted driving style, adapted at an early stage to the traffic situation ahead of the car are decisive factors for fuel efficient driving (for instance engine braking, fewer stops and starts in city traffic). If the automotive and fuel supply industries as well as government bodies promote such eco-driving methods, fuel consumption can be significantly reduced and road safety enhanced at the same time. The automotive industry can make an additional contribution by coupling the promotion of eco-driving with the implementation of gear shift indicator and fuel economy indicators in new cars. Driver training is an initial mean of encouraging awareness of efficient driving methods, and the gear shift indicator or fuel economy indicator provides a continual reminder of what has been learned. Policy-makers play a key part in the Integrated Approach. High priority must be given to the demand for consistency in legislation, with the aim of achieving a long-term, sustainable CO 2 emission reduction involving all stakeholders. Another aim should be to ensure that regional targets and requirements remain reasonable in a global context. By coordinating pre-competitive research and development and supporting it financially, policy-makers can make a major contribution to the innovative strength of a region. This is to be retained and extended within the Integrated Approach. When focussing on the automotive sector, areas such as new vehicle technologies and alternative fuels should be specifically mentioned in this context. However, political domain/policy-maker tasks also include improving the traffic infrastructure and traffic management. For example, the extension of green wave synchronised traffic lights in cities could improve traffic flows and in this way reduce fuel consumption. 11

12 Integrated Approach justification and application Figure 11 compares CO 2 societal mitigation costs, based solely on an automotive-industry vehicle technology programme, with those achievable by the Integrated Approach activities as discussed above. Common to all Integrated Approach activities is that they lead to distinctly lower CO 2 societal mitigation costs, when aiming to reach average CO 2 emissions of 120 g/km equivalent than if a vehicle technology programme alone were to be adopted. For the Integrated Approach, an automotive industry vehicle technology programme incurring societal mitigation costs of 200 to 300 /t were assumed. Calculations of CO 2 societal mitigation costs arising from the use of alternative fuels were based on the Eucar survey (EUCAR, 2001). Comparison with the certificate price, of under 30 /t for CO 2, within the European emissions trading during 2005 indicates that extremely favourably priced cost effective CO 2 reduction measures still exist in other sectors. For CO 2 Capture and Sequestration as a mean of subterraneously storing anthropogenic CO 2 emissions, societal mitigation costs of only 20 to 100 /t CO 2 are expected. Integrated Approach activities Examples 540 to 400 EU 120 g/km via vehicle technology only 300 to 200 Vehicle technology programme -25 Optimal tyre pressure to 200 Eco-Driving 5 % Biofuels (diesel & gasoline blend) % Synthetic fuels from biomass (diesel blend) 180 Traffic light synchronization < 20 ECCP (2001) 20 to 100 < 30 CO 2 Capture Prize of & Sequestration CO 2 certificates (in 2005) ECCP = European Climate Change Programme. Source: ACEA, Figure 11: CO 2 societal mitigation costs in [ /t] by a sole vehicle technology programme, compared with Integrated Approach activities and other sectors. From the chart, we can conclude that : CO 2 emission reduction measures in the automotive sector are altogether more cost-intensive than those in other sectors. This is also evidence of the complexity of this issue in the transport sector. the Integrated Approach represents the most cost-efficient procedure for sustained and sustainable CO 2 emission reduction in the automotive sector. 12

13 In addition to the societal mitigation costs the actual CO 2 reduction potentials of the various elements are also significant. A comparison of the Integrated Approach activities reveals that in particular eco-driving measures and the introduction of biofuels, in other words activities involving all stakeholders, could permit sizeable CO 2 emission reductions to be achieved in 2012, since they would apply to the entire car stock, Figure 12. When calculating CO 2 reduction potentials resulting from biofuels and synthetic fuels obtained from biomass, a 5 % blending to the fuel sold in the EU-15 countries has been assumed. If the entire EU-15 fuel requirement including road freight transport is used as a basis for fuel blending, considerably higher reduction potentials result. The entire CO 2 reduction potential from eco-driving activities in EU-15 countries is estimated to be between 35 and 50 Mt annually. Those attainable by means of traffic-light synchronisation are approximated to 4.9 Mt annually (ACEA, 2006). For the chart calculation it has been assumed that 30 % of the potential from eco-driving activities and 50 % of that from traffic-light synchronisation will have been realised by Integrated Approach activities Examples HGV 10,9 12,5 9,5 PC 10,2 5,4 1,0 2,4 EU 120 g/km via vehicle technology only Vehicle technology programme Optimal tyre pressure Eco-Driving 5 % Biofuels (diesel & gasoline blend) 5 % Synthetic fuels from biomass (diesel blend) Traffic light synchronization PC = Passenger Car, HGV = Heavy Goods Vehicle. Source: ACEA, Figure 12: CO 2 reduction potentials in [Mt/y] by a vehicle technology programme compared with those from Integrated Approach activities. By means of coordinated joint activities involving all stakeholders, the total obtainable CO 2 emission reduction is a multiple of that which a sole vehicle technology programme would achieve, Figure 13. In the case of the Integrated Approach activities, as demonstrated in the above example, the CO 2 reduction would be almost four times higher, i.e. 41 Mt, in 2012 than from a mere 120 g/km vehicle technology programme. Furthermore, the average societal mitigation costs of approximately 180 /t would be distinctly lower than the mere vehicle-based measures in a 120 g/km vehicle technology programme, which would 13

14 cost between 400 and 540 /t CO 2. It should be noted that in this Integrated Approach example, the automotive industry assumes responsibility for activities that are at the uppermost end of the cost range. In addition, the potentials would be realised very much earlier. CO 2 SMC [ /t] Vehicle technology programme TLS 120 g/km via vehicle technology only 5 % Biofuels Eco-Driving Integrated Approach % Synthetic fuels Optimal tyre pressure CO 2 Reduction [Mt/a] in 2012 compared to 2008 CO 2 SMC = CO 2 Societal Mitigation Costs. TLS = Traffic Light Synchronisation. Source: ACEA, Figure 13: Integrated Approach functional principle: greater CO 2 reduction at lower average societal mitigation costs Summary As a signatory to the Kyoto Protocol, the European Union (EU) has undertaken to achieve an 8 % reduction in its anthropogenic greenhouse gas emissions by 2008 to 2012, based on the 1990 emission level. As a consequence of the reduction commitment, the sectors responsible for these emissions have been called upon to reduce them. The EU s CO 2 reduction strategy for the automotive sector is derived from this commitment. It rests on three pillars : the automotive industry s voluntary commitment, consumer information and fiscal instruments. Cost-benefit analysis of measures taken in the automotive sector indicates that solely vehicle-related technology programmes for CO 2 emission reduction as demanded in the European Climate Change Programme are no longer efficient in environmentally economic terms. The Integrated Approach is a holistic concept with the aim of achieving a higher level of CO 2 reduction at lower cost. This is to be realised by agreeing and coordinating unified activities that cover all stakeholders and not by calling for individual measures from a stakeholder; with the overall aim being sustainable CO 2 reduction. 14

15 The Integrated Approach can achieve faster and greater CO 2 reductions at maximum cost efficiency, in accordance with the aims of the European Union and with those of the Kyoto targets by The Integrated Approach combines and coordinates the activities of various stakeholders as a means of achieving sustainable emission reductions, in accordance with the European Union s long-term objectives for the period after 2012, and with the aim of reducing the consumption of fossil energy sources in the long term. The Integrated Approach ensures that Europe s economic strength and ability to compete on global markets are maintained, and also that both the European economy and the automotive industry can contribute to the strong economic zone envisaged by the European Union (Lisbon strategy). The automotive industry is aware of the responsibility it bears and will make its contribution to a sustainable reduction in CO 2 emissions. A global strategy for a sustainable reduction in anthropogenic emissions is needed, in order to counteract the climatic change. Regional part-strategies within the context of a global strategy call for unified package solutions rather than uncoordinated individual measures. The Integrated Approach is able to satisfy these demands. For electronic version of this article and presentation see Rubric Research & Development / Publications. 15

16 Bibliography ACEA, 2005 ACEA, 2006 BDM, 2005 CAFE, 2003 CEC, 2005 ECCP, 2001 EUCAR, 2001 EUDIR, 2003 N.N., Monitoring of ACEA s Commitment on CO 2 Emission Reductions from Passenger Cars (2004), Joint Report of the European Automotive Manufacturers Association and the Commission Services, 2005, Brussels. N.N., An Integrated Approach to reduce passenger car-related CO 2 emissions, European Automotive Manufacturers Association, January 2006, Brussels. Stock, K., TPMS System Quick Technical Review, International Energy Agency (IEA), 15/ Mantzos, L., CAFE Baseline Scenario, Clean Air For Europe Programme, May N.N., Report on Demonstrable Progress Under the Kyoto Protocol, Report from the Commission of the European Communities, SEC (2005) 1564, December 2005, Brussels. N.N., European Climate Change Programme, Long Report, June 2001, Brussels. N.N., Well-to-Wheel Analysis of Future Automotive Fuels and Powertrains in the European Context, Well-to-Wheel Report, Version 1b, January 2004, Brussels. N.N., Directive 2003/30/EC of the European Parliament and of the Council of 8 May 2003 on the promotion of the use of biofuels or other renewable fuels for transport, , Brussels. EURACTIV, 2006 N.N., Alternative fuels for transport, KLIMA, 2005 NHTSA, 2001 TREMOVE, 2004 VDA, 2004 VDA, 2006 N.N., Nationales Klimaschutzprogramm ( National Climate Protection Programme ), decision of the Federal German government on July 6, Martin, E., Many U.S. Passenger Vehicles Are Driven on Under-inflated Tires, NHTSA Research Survey Shows, U.S. Department of Transportation, N.N., Tremove 2.2 Model and Baseline Description, December N.N., Auto Jahresbericht 2004 (Annual Report), Verband der Automobilindustrie e.v. (VDA), Frankfurt am Main, July N.N., Automobilindustrie weist VCD-Aussagen als unzutreffend zurück, Verband der Automobilindustrie e.v. (VDA), press release, January 26, 2006, Frankfurt am Main, January