Creating a market for clean vehicles

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1 Gustaf Landahl City of Stockholm SIDAN 1 Creating a market for clean vehicles

2 Sustainable transport by Carrots & Sticks! Sticks Environmental zones for lorries and busses Congestion taxation Carrots Improved cycle lanes Increased public transport use smart cards & ticketing travel guarantee New ways of transport Car-sharing clubs Better information Adaptive traffic signals Goods logistics Clean vehicles Page 2

3 Page 3

4 Definition of a clean vehicle Local Emissions (PM, NOx) Biodiesel Diesel Petrol E 95 Biogas H2, electricity (water power) E85 Petrol (electric hybrid) electricity (EU mix) CNG LPG Global effect (CO2) Source: Miljöfaktabok för bränslen, IVL Svenska miljöinstitutet 2001 Page 4

5 Introduction of new technologies Page 5

6 The 3 phases of the market introduction of clean vehicles in Stockholm Creating a framework Supporting a developing market Sustaining the self supporting market and expaning it to new categories of vehicles and fuels Page 6

7 Changing legislation through key meetings with national government 1999 Councillors meet Minister of the Environment Reduce company car tax to conventional car equivilent (in 2001 extended to a discount for clean vehicles) 2003 Councillors meet Minister of Finance The need for more financial incentives for clean cars (introduced 2006) The need for long-term tax exemptions for clean fuels This resulted that ethanol and biogas were exempted from fuel taxes for 5+5 years. The need for harmonized and simplified regulations for clean cars (a common definition was adopted in 2006) Page 7

8 Getting vehicle models on the market Common procurements Citroën Berlingo electric 1997 Fiat 600 electric 1997 Ford focus FFV 2001 VW Caddy Ecoflex 2007 Ethanol buss-buyers consortium 2008 VW CADDY ECOFLEX FORD FOCUS Page 8

9 Creating a infrastructure Biogas from sewage Uppgrading Distribution Dispensers Page 9

10 Sales of biogas fuel in Stockholm Milj. Nm Breakthrough in taxi and company market Agreement with public transport Agreement with biogas distributor 0 Pilot plant Åkeshov plant Henriksdal plant Long term tax exemption Page 10

11 Filling stations for E85 in Sweden Ford Focus procurement Tax exemption of fuel SAAB & VOLVO Renault, Peugeot, Citroën, VW 500 Law on renewables at stations Page 11

12 Growing number of filling stations! Sweden (June 2007) Gas 80 Etanol 900 Stockholm (June 2007) Biogas 11 Etanol 120 From April 2006 all large fuelling stations need to provide one renewable fuel (out of 4 000) stations in 2009 Page 12

13 1) Municipal fleets of heavy vehicles - limited number of filling stations - large environmental impact Page 13

14 2) Demand clean vehicles in the whole city fleet The Stockholm City council has decided: All new vehicles that are bought to the city fleet in Stockholm should be clean 100 % clean vehicles in the city fleet by 2010 Page 14

15 3) Demand clean transport in PROCUREMENTS of ALL transport services - i.e taxi, goods distribution Page 15

16 4. Promote to other users National incentives Tax incentives 85 % of all vehicles bought by state administrations should be clean Skr for private users buying a new clean car. Local incentives Clean cars are demanded in various procurements free parking no congestion charging information sales promotion & market research web-portal: newsletter test fleet Clean taxi cars cut the line at Arlanda Airport Page 16

17 Sales of Clean vehicles Sweden & Stockholm region Market share(%) 40% 35% 30% 25% 20% 15% 10% 5% 0% 18,5% Target 2010 Citycars Ethanol Biogas Forecast El & hybrid Swedish total Page 17

18 Greenhouse gas reduction -achievements and goals- Ton CO 2-ekv per inh. & year ,3 4,5 4,0 3, Fossil fuel free År Real Development Goals Page 18

19 Conclusions Both carrots and sticks are required Clean vehicles are important Local authorities can be key players to start a market development Procure transport services Vehicle fleets Infrastructure Incentives Neutral information European effort is important: Initial national subsidies and tax relieves Standard for fuels Common definition of clean vehicles Certification of biofuels Page 19

20 Range with 50 to spend using Ford Focus FFV Germany Madrid Basque Sweden Petrol E85 with taxes E85 without taxes Italy UK Netherlands Kilometers Page 20

21 THANK YOU! Gustaf Landahl Page 21

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