How To Achieve The Sixth European Environment Policy

Transcription

1 ANALYSIS OF EUROPEAN UNION ENVIRONMENTAL AND ENERGY POLICIES RELATED TO LONG DISTANCE FREIGHT Nihan Akyelken Working paper N 1037 October 2008 Transport Studies Unit Oxford University Centre for the Environment

2 Page 2 of 19 EU Environmental Policies a) Introduction Transport is responsible for more than one fifth of greenhouse gas emissions as well as for a large share of air pollution and noise nuisance. Moreover, transport has a serious impact on the landscape because it divides natural areas into small patches leading to severe consequences for animals and plants. In sum, it is detrimental to environmental sustainability, and the EU has taken several actions in the area, which also affects long distance freight transport. Figure 1: Green House Gas Emissions from Transport, Source: European Environment Agency, June, 2008 EU environmental policies are based on the precautionary and the polluter-pays principles. In the EU context, the precautionary principle is the one that is invoked when urgent methods are needed to protect the environment where scientific data cannot provide a complete evaluation of the threat. Emissions trading system that is used to reduce emissions are based on the polluterpays principle. In order to achieve an effective implementation, there are diverse institutional, financial and management instruments available. The EU also stresses the importance of the involvement of the general public. In fact, there is a considerable amount of EU documents that were published 2

3 Page 3 of 19 in the area. However, this analysis of the EU environmental policies takes its lead from the six Environmental Action Programmes (EAPs), focussing on their direct and indirect impact on long distance freight transport. These are 10-year programmes and strategic policy documents which echo the main elements of current environmental problems and prepare the base for strategic action plan recommendations. The last one of these, the Sixth EAP, which was adopted in July 2002 following the end of the Fifth EAP on December 2000, sets out the EU's priorities for the period from 2002 to b) Overall content of the sixth EAP: Dr. Christian Hey, the Secretary General of German Advisory Council on the Environment, points out that the objectives set by the Sixth EAP are not as ambitious as the ones put forward by the Fifth EAP, which had both global and community level targets covering many areas including transport sector. That was also much more specific. The Sixth EAP is, on the other hand, both more reluctant to set targets and to identify key instruments. He adds that the underlying reasoning is that the important environmental problems, such as climate change, the loss of biodiversity or the over-consumption of resources call for a broader approach than narrow environmental legislation. Additionally, EU enlargements added the need for a general version of the existing legislation. On the whole, the Sixth EAP formulates a framework of general principles and objectives, which is expected to be more specified by precise strategies on key issues, such as pesticides, resources, recycling, soils, the urban environment, the marine environment, and clean air. The German Advisory Council on the Environment evaluates the approach of the Sixth EAP from a policy-maker perspective. They claim that it adopts a very cautious approach. It only identifies themes and principles. They are specified by strategies, which can be seen as sub-frameworks. In the Sixth EAP, four areas are given priority: climate change, nature and biodiversity, the environment and health, and the management of natural resources and waste. Of these, the measures taken for climate change are most related to long distance freight. 3

4 Page 4 of 19 c) Climate Change The EU has committed itself to limiting global warming to a maximum of 2 C average temperature increase. Recent studies, such as the report on the Policies and Measures to cut Greenhouse Gas Emissions by the WWF European Policy Office, suggest that keeping within this threshold requires that global green house gas emissions be cut approximately in half by In fact, global emissions will have to peak and decline in the next one to two decades for temperatures to stay below the 2 C threshold. This consequently indicates that industrialized countries will have to reduce their GHG emissions by approximately 60-80% by 2050 in order to have both genuine economic growth and higher emissions in developing countries. In order to comply with this goal reasoning to tackle climate change, the Sixth EAP wants to achieve the EU's target of reducing greenhouse gas emissions by 8 % by 2008 to 2012 and aims farreaching global emission cuts of 20 to 40 % by This setting is actually the ratification of the Kyoto Protocol agreement. The tools used to achieve these targets include: Implementing international climate commitments including the Kyoto Protocol by improving monitoring of green house gas emissions, Working towards the establishment of a Community framework for the development of effective CO2 emissions trading and examining the results of the European Climate Change Programme. Reducing greenhouse gas emissions in the transport sector (Encouraging a switch to more efficient and cleaner forms of transport including better organization and logistics and inviting the Commission to agree on quantitative environmental objectives for a sustainable transport, which is explained in the analysis of the EU transport policies, are the main tools used to meet this aspect of the target). Identifying and undertaking further specific action, including any appropriate legislation, to reduce greenhouse gas emissions from motor vehicles including nitrogen oxides. Promoting alternative fuels The objective of promoting alternative fuels was followed by the biofuels directive, which is examined in the analysis of EU energy policies. Lastly, according to the programme, it is also important to work on decoupling economic growth and the demand for transport with the aim of reducing environmental impacts. 4

5 Page 5 of 19 d) Nature and biodiversity For the nature and biodiversity areas, the struggle is to prevent and to eliminate the menacing factors to the survival of many species and their habitats in Europe. Measures to prevent industrial and mining accidents are the only aspect of this strategy related to long distance freight transport. The Directive states that promoting Community coordination to actions by Member States in relation to accidents, for instance by setting up a network of exchange of prevention practices and tools and developing further measures to help prevent the major accident hazards with special regards to those arising from pipelines, mining, marine transport of hazardous substances and developing measures on mining waste, is the major roadmap to follow in achieving this target. e) Integrated Pollution Prevention and Control Directive: Integrated Pollution Prevention and Control Directive ('the IPPC Directive') imposes a requirement for industrial and agricultural activities with a high pollution potential to have a permit which can only be issued if certain environmental conditions are met, so that the companies themselves bear responsibility for preventing and reducing any pollution they may cause (Council Directive 96/61/EC). Its aim is to achieve a high level of environmental protection through integrated prevention and control of pollution arising from a wide range of industrial and agricultural activities. The subsidiarity principle, on which the Directive is based, implies that it does not set standards or thresholds for the prevention and control of emissions, or for other environmental aspects, but leaves this responsibility to the member states. The methods used for this directive include integrated approach, best available techniques and flexibility. In addition, the Council Directive 96/61/EC dictates that the decision to issue a permit must contain a number of specific requirements, in particular including: emission limit values for polluting substances (with the exception of greenhouse gases if the emissions trading scheme applies); any soil, water and air protection measures required; waste management measures; measures to be taken in exceptional circumstances (leaks, malfunctions, temporary or permanent stoppages, etc.); minimisation of long-distance pollution; 5

6 Page 6 of 19 release monitoring; all other appropriate measures. This is not directly related with long distance freight, however manufacturing infrastructure for roads and heavy-duty vehicles is affected by this Directive, and so it might have an indirect effect on long distance freight. f) EU Greenhouse Gas Emission Trading Scheme The policies to reduce EU green house gas emissions are one of the key policy priorities for the period up to In January 2005, the EU Greenhouse Gas Emission Trading Scheme (EU ETS) started as the largest multi-country, multi-sector Greenhouse Gas emission trading scheme in the world. It was rooted in the Green Paper on Green House Gas Emissions published in Green house gas emissions, especially emissions of carbon dioxide and methane, are seriously damaging the environment. Under the EU ETS, monitoring and reporting are quite important. The Environmental Research Web describes the system as follows. The cap and trade system has enabled companies to buy extra allowances to emit carbon dioxide over and above their EU-imposed limit. Meanwhile, any company able to keep within its allowance, perhaps by investing in new "cleaner" technology, could trade its spare carbon allocation for cash. The trading, in fact, does not itself reduce emissions. It simply provides incentives to find the lowest cost of achieving a given amount of emissions reductions. The wider the scope of the system, the greater will be the variation in the costs of compliance of individual companies, and the greater the potential for lowering costs overall (Green Paper on Greenhouse Gas Emissions, 2000). Initially, carbon dioxide emissions from large emitters in the power and heat-generation industry were covered only. This amounted to around 45% of the EU s carbon dioxide emissions, or about 30% of its greenhouse gas emissions, according to Environmental Research Web. At the moment, it still does not cover transport and obviously freight, however, the Green Paper mentions household and transport sectors quite often that although they will not be included initially, and they will be covered at later stages. The Green Paper claims that transport sector would have a higher cost of abatement of carbon dioxide. 8% reduction, that the scheme dictates, would be an extremely costly target to meet for such a sector. Furthermore, there has been some recent advancement in the EU ETS of the Sixth EAP. On January 2008, EU announced major changes to its Emissions Trading System (ETS) as well as individual country targets for renewable energy and for greenhouse gas emissions not covered 6

7 Page 7 of 19 by the system including transport. The moves are part of the strategy agreed to on March 2007 of reducing emissions to at least 20% below 1990 levels by 2020, and for 20% of energy consumption across the EU to come from renewable sources by At that time, the EU also had offered to commit to a 30% reduction in greenhouse emissions if other developed countries agreed to join in. The non-covered sectors, including transport, still account for almost 60% of the EU s overall emissions. The Commission proposes that these non-ets sectors should, collectively, cut their emissions by 10% of 2005 levels by The EU will strengthen its Emissions Trading System even further from 2013 by expanding it to include greenhouse gases other than carbon dioxide, such as nitrous oxide and perfluorocarbons, and to incorporate all major industrial emitters, including shipping, freight transport by road, mining and the waste sector (EU ETS: use permit revenues to fund climate change protection). The new measures are also expected to reduce the emission allowances every year so that emission levels covered by the trading scheme will be reduced by 21% from 2005 levels in These policy developments and plans by the EU are supported by recent studies. According to researchers at the Netherlands Environmental Assessment Agency (MNP) quoted by the Environmental Researchweb, emissions of the six greenhouse gases named by the Kyoto protocol would have been 7% higher in 2005 without EU environmental policies in place. And if the EU is to meet its target of reducing emissions by even further in 2020, the impact of EU policy on greenhouse gas emissions will need to increase by a factor of three halfway between 1990 and MNP adds that, for carbon dioxide, the policy impact will need to increase by a factor of almost five, as future emissions reductions are likely to rely more heavily on this gas. g) The Eurovignette Directive (Road charging policy) The Green Paper of 1995 led the EU policy-makers focus on heavy goods vehicles charges. At the time, it was decided that the existing charged did not really reflect the actual costs. The latest version of the Eurovignette Directive was finalized in March 2006, and it is broader than the previous one. It was stated that it would encourage member states to introduce and develop tolls and charges which will make is possible to improve the management of commercial freight traffic, reduce pollution and generate funds for investment in new infrastructure (European Commission, 2006, IP/06/383). This new directive allows the toll to 7

8 Page 8 of 19 be applied to large Heavy-goods vehicles, used for long distance freight, from 2012 as well as allowing greater variation in tolls to reflect congestion. h) Noise Pollution Directive Although not directly, noise pollution directive is another environmental legislation related to long distance freight transport. The EU points to the adverse effects of excessive noise on health and well-being of citizens. According to the European Environment Agency, excessive noise can be quantified as noise above a certain volume threshold (from 60 Ldn db (A)). In 2002, the European Union adopted a Directive setting out a Community approach to the management and evaluation of ambient noise in order to protect public health and welfare. This Directive is aimed at controlling noise perceived by people in built-up areas, in public parks or other quiet areas in an agglomeration, in quiet areas in open country, near schools, hospitals and other noise-sensitive buildings and areas. It does not include noise that is caused by the exposed person him or herself, noise from domestic activities, noise created by neighbours, noise at work places or inside means of transport or noise due to military activities in military areas. Lden is an indicator of the overall noise level during the day, evening and night which is used to describe the annoyance caused by exposure to noise. Lnight is an indicator for the sound level during the night used to describe sleep disturbance. The noise indicators Lden and Lnight are used in the making of strategic noise maps. Since June 2005, every five years, Member States have been required to inform the Commission of the major roads which have more than six million vehicle passages a year, railways which have more than train passages per year, major airports and the agglomerations with more than inhabitants within their territories (Directive 2002/49/EC). The directive also indicates that no later than 31 December 2008, Member States are to inform the Commission of all the agglomerations with more than inhabitants and of all the major roads and major railways within their territories. By 30 June 2012 at the latest, and thereafter every five years, strategic noise maps showing the situation during the preceding year must be made and, where relevant, approved for those agglomerations, roads and railways. The Directives apply to any motor vehicle intended for use on the road, with or without bodywork, having at least four wheels and a maximum design speed exceeding 25 km/h, with the exception of vehicles that run on rails, agricultural and forestry tractors and all mobile machinery. The Directives lay down limits for the noise level of the mechanical parts and exhaust systems of the vehicles concerned. The limits range from 74 8

9 Page 9 of 19 db (A) for motor cars to 80 db (A) for high-powered goods vehicles. This is very likely to have a significant impact on roads and vehicles used for long distance freight. i) Conclusion Overall, the Sixth EAP, together with the supporting measures is a giant step in the EU Environmental Policy. The Environment Policy Review 2006 highlights the political importance of the fight against climate change, with the Commission's tough approach to national allocation plans for under the EU Emissions Trading Scheme clearly demonstrating commitment to reach the Kyoto Protocol targets. The 2007 Environment Policy Review shows that the year 2007 was a turning point in EU environment policy. The main commitments under the Sixth EAP have been delivered and environment issues were firmly at the top of the political agenda. And, as explained in the previous paragraphs, these will have importance implications for long distance freight transport. 9

10 Page 10 of 19 References EU Green Paper on Greenhouse Gas Emissions Trading within the European Union, 2000, EU Action Against Climate Change: 2020 and beyond, Directorate-General for the Environment, 2006, Garnaut Climate change Review, Emissions Trading Scheme Discussion Paper, 2008, aper%20-%20final%20 The European Foresight Monitoring Network, Target 2020: a Quantitative Scenario on Greenhouse Gas Emission Reductions for the EU 25, The Second European Climate Change Programme, 2003, The Directive on Environmental Noise, 2002, The Environmental Research Web, Nash, C., Menaz B and Matthews, B., Inter-urban road goods vehicle pricing in Europe in Road Congestion Pricing in Europe, Edward Elger, European Environment Agency Statistics, June 2008 Sixth Environment Action Programme website, 10

11 Page 11 of 19 EU Energy Policies a) Introduction In order to have an effective response to multifaceted threats of global warming and rising energy prices that lead to problems of competitiveness and security of supply 1 in the energy sector, the EU has made several developments in the area since Accounting for around one third of all final energy consumption in Europe, it is inevitable to sense these developments impact on transport including freight transport, which increases by 2.7 % annually. Figure 2: Final Energy Consumption by sector, 2006 (Mtoe), Source: EEA, 2008 There have been striving targets in several EU documents. In addition to green house gas emissions targets explained further in the analysis of environmental policies, energy efficiency is to increase by 20% by 2020, the share of renewable energy is to be raised to 20% by 2020 and the level of biofuels use is targeted to be at least 10% by To achieve these ambitious targets the SET Plan (Nov, 2007) states that new generations of technologies have to be developed through research as well as setting specific targets. 1 Import dependency on all fuels is 53,8% in EU 27 as of 2006 (Eurostat, May 2008) 11

12 Page 12 of 19 b) Energy Supply and Efficiency When the Green Paper on Energy Security of Supply was published in 2000, the energy dependency in EU-27 was 50%, and it went up to 53, 8% in It is projected to reach 70% by These imports concern almost exclusively fossil fuels. Fossil fuels give rise to many environmental problems connected with their combustion and transport. This was the main reason for publishing this Green Paper. In the Green Paper, geological reasons were stated, i.e., the fact that, in 50 years, there will be almost no more oil or gas. Alternatively, it will be very costly to extract these products, in a way which bears no relation to current prices. In other words, these natural resources exist in finite quantities and people are just wasting them. Transport is the leader in energy demand. It required 300 Mtoe of oil in 1990 and 370,3Mtoe of oil in This accounts for 67% of the final demand for oil, and nearly all of it is dependent. According to the Green Paper, antitrust law, merger regulation and state aid control all contribute to protect competition in energy markets and therefore, as a side effect, to the provision of security of supply in the EU. open access Pan-European networks are the backbone of EU security of supply. use of hybrid vehicles and fuel-cell vehicles should be the centre of attention as well as the need to encourage freight transport shift from road to rail. Green Paper on Energy Efficiency (Doing More with the Less) was published in 2005 focussing especially on how to save energy in transport sector. This stresses the importance of the balance between different modes of transport that was set out in the White Paper that the Commission adopted in 2001 for The paper calls for a discussion on the means to use to achieve high levels of energy efficiency: whether the emphasis should be given to technological innovations setting laws on tyres and engines or regulatory measures such limiting fuel consumption of cars and trucks. According to the paper, the pricing should include all external costs borne by transport. With the convenient policy measures, 45 Mtoe of energy saving in transport is expected to be achieved by 2020, and with additional measures, this figure can go up to 90Mtoe. 12

13 Page 13 of 19 This Green Paper was followed by EU Energy Action Plans. At the time the plans were proposed, energy demand increase cost the EU 0, 5 of GDP / year. Road freight account for 45% of the freight and this was expected to increase by The specific importance of transport for this action plan is the fact that 98% of the energy consumed in this sector is fossil fuel. As transport is also the fastest growing sector in terms of energy use, it is a major source of greenhouse gases and of import dependency on fossil fuels. It is perceived therefore essential to realise the potential for energy efficiency gains in this sector. According to the European Commission, these potentials can be achieved, in particular, by ensuring fuel efficiency of cars/trucks, developing markets for cleaner vehicles, ensuring the maintenance of proper tyre pressure which will definitely has a considerable impact on long-distance road freight, and by improving the efficiency of urban, rail, maritime and aviation transport systems, as well as changing transportation behaviour. Co-modality, i.e. the efficient use of different modes on their own, and in combination, will result in an optimal utilisation of resources, including energy. Promotion of short-sea shipping and the motorways of the sea as well other more environmentally friendly and energy saving modes will contribute to increasing energy efficiency. Tyres and tyre pressure are said to improve vehicle fuel efficiency by more than 5%. Tools involved with these action plans are mainly cost-reflective price signals, improved financing tools and economic incentives targeting all sectors, increased awareness and behavioural change, international partnerships, innovation and technology, emissions trading scheme for aviation, taxation for transport haulage (tank tourism). These action plans also stress the importance of a comprehensive and consistent approach targeting different actors, including motor and tyre manufacturers, drivers, oil/fuel suppliers and infrastructural planners. Labelling fuel efficient tyres or minimum performance requirements for tyres, tyre pressure indicators (dashboard tyre pressure sensors mandatory on cars and freight) are other tools specifically targeted at transport. 13

14 Page 14 of 19 Impact Assessment Report for the Action Plan for Energy Efficiency 2006 states that 405 Mtoe of total energy saving is expected to be achieved for Overall 26% of energy saving in transport is targeted. The saving by fuel-efficient tyres at the right pressure is estimated for light duty vehicles at 5% (4-6.5%). For trucks it is somewhat lower (4%). The potential energy saving is 15 Mtoe. The tyre and rubber manufactures sees five energy saving options related to tyres of light-duty vehicles: 1) tyre sizing by the car producer; 2) tyre design (3-4%); 3) tyre inflation pressure maintenance (1-2, 5% if always on the right pressure) by good tyre pressure facilities at tank stations and by well informed drivers and road pavement roughness (3-7% increase if road surface is not smooth). c) Promotion of Clean Road Transport The Directive on Promotion of Clean Road Transport Vehicles was put forward in December 2005 in order to decrease the negative externalities borne by road transport and to save energy. The Directive provides that public bodies (State, regional or local authorities, bodies governed by public law, public undertakings and operators contracted by public bodies to supply transport services) will be obliged to allocate a minimum quota of 25% of their annual procurement (purchasing or leasing) of heavy-duty vehicles 2 to enhanced environmentally friendly vehicles as defined in the European Performance Standard (EEV) (European Commission, 2005, IP/05/1672). The Commission will examine whether, in a second stage, the quota obligation should be extended to include other vehicle categories. One of the effects of the Directive will be to encourage the development of vehicles adapted to high blends of biofuels. Other examples of the technologies concerned are natural gas, LPG (liquefied petroleum gas), hydrogen, electric motors and hybrid vehicles combining a combustion engine with an electric motor. Quite recently, the EU had a press release on this Directive stating that the Directive leaves full flexibility for distribution of clean vehicle procurements within the category of heavy duty vehicles (The European Commission wants to promote clean vehicles, 2005). 2 Heavy duty vehicles include buses and most utility vehicles, such as refuse collection lorries. 14

15 Page 15 of 19 d) Renewable Energy Roadmap Renewable energy road map, which was proposed in 2006, focused on climate change, increasing oil and fossil fuel dependence and rising energy prices. The underlying motivation was the fact that all these factors are rendering Europe increasingly vulnerable. It encourages proposing strengthening the legal provisions to remove any unreasonable barrier to the integration of renewable energy sources in the EU energy system. According to the Road Map, conditions for grid connections and extensions must be simplified. From a related directive, Intelligent Energy for Europe programme was established to help bridge the gap between successful demonstration of innovative technologies and effective market entrance to achieve mass deployment and to boost large-scale investment across the EU in new and best performing technologies and to ensure that renewable energy is given the highest priority in the sustained efforts to maximise the use of the EU research and technology development programmes in support of zero- or low carbon energy technologies whilst developing synergies with Member States involved in similar development (European Commission, Com 2006). Energy taxation is another form of tools suggested by the Road Map. 12% renewable energy share is targeted by 2010, and by 2020, this is expected to increase to 20% including 10% of biofuels use by e) Use of biofuels 3 Biofuels use is another point that the EU has been stressing. With the significant rise in oil prices and the growing concern about stable, secure and environmentally friendly energy supplies, the promotion of biofuels use in transport is a priority on the European political agenda. According to the JRC well-to-wheels report, the import dependence of petrol and diesel is expected to be 93% by 2030, which was 82% in CO2 emission of petrol and diesel is DME (di methyl ether) is one of the most appropriate biofuels for power generation including heavy duty trucks. 15

16 Page 16 of toe. Natural gas import dependence, which has around 3 toe of CO2 emissions, is predicted to be 84% in 2030, and it was 57% in Today, biofuels are considered as the only way to significantly reduce oil dependence and one of the ways to reduce green house gas emissions in the transport sector. Tools to encourage the use of biofuels involve taxation of energy products and electricity and tax exemptions for biofuels and biofuel obligations (these are legal instruments requiring fuel suppliers to include a given percentage of biofuels in the total amount of fuel they place on the market) The initial target was 2%, calculated on the basis of energy content, of all petrol and diesel for transport purposes placed on their markets by 31 December 2005, 5.75 percent, calculated on the basis of energy content, of all petrol and diesel for transport purposes placed on their markets by Since the 2005 target was not met, the Commission revised the targets: 10% of vehicle fuel is estimated be biofuels by Member States have already set targets for If they all achieve the shares they have targeted, biofuels share in these Member States will reach 5.45% - a shortfall of 0.3% compared to the objective. The experience of 2005 suggests that in practice the shortfall will be rather greater. In 2005, among 21 Member States for which data are available, only two achieved the targets they had set. The average Member State achieved only 52% of its target. Even if the shortfall is only half as much as this in 2010, the Union would only achieve a biofuels share of 4.2% in The conclusion is that 2010 target is not likely to be met. This explains why they now have put 2020 targets. f) Euro VI Standards European emission standards are acceptable limits for emissions of new vehicles sold in EU member states. The emission standards are identified in a series of European Union directives which determine different phases with the introduction of increasingly rigorous standards. The Euro VI proposal of the European Commission specifies the new emission standards for trucks and busses. European Commission believes that there is a need to seek the public s views on the best way forward in the field of pollutant emissions from heavy duty vehicles. The proposal has been developed in the context of the "Clean Air for Europe" (CAFE) programme that provided the technical basis for the preparation of the Thematic Strategy on Air 16

17 Page 17 of 19 Pollution (European Commission, COM (2007) 851 final). CAFE assessed levels of emissions, current and future air quality and the costs and benefits of further measures to improve air quality. Considering this, the Commission has identified several measures which are required in order to attain the necessary air quality levels. Euro VI is one among several such measures that are important to reduce emissions of ozone precursors (such as nitrogen oxides-nox and hydrocarbons-hc) and particulate matter. In general, the Euro VI proposal means that new trucks and busses marketed in Europe beginning in 2014 will emit 67% less particulate matter and 80% less nitrogen dioxide than required by the Euro V standards (European Commission, 2007). As a result, the air quality for these components will improve near motorways. Compared to other measures, Euro VI is one of the most cost-effective ways to improve local air quality (Netherlands Environmental Assessment Agency (MNP), 2007). For PM emissions, open or closed filters are required. To comply with NOx emissions, internal engine measures, such as Exhaust Gas Recirculation (EGR) and after-treatment devices, such as Selective Catalytic Reduction (SCR) will be needed at the current state of the art (European Commission, COD/2007/0295). Dynamometer tests, on road testing and IUC testing are other tools to achieve Euro VI standards for heavy-duty vehicles. 80% reduction of NOx and a 66% reduction of the PM emission limit are targeted relative to Euro V legislation by kt reduction of NOx and 5.0kt reduction of PM are targeted by kt reduction of NOx and 8.3kt reduction of PM are targeted by MNP adds that in 2015, the implementation of the Euro VI emission standards will lead to a reduction of approximately 30% in the number of locations where the air-quality norm for nitrogen oxide is exceeded. In addition, the new standards will contribute to compliance with the recently established PM2.5 air-quality norms, which will take effect in 2015 and The lowered emissions of PM2.5 from vehicles with heavy duty diesel engines will have a positive local effect on human health. This is because people living near motorways will be exposed to lower PM2.5 concentrations. g) Other policies Green Paper on European Strategy for Sustainable, Competitive and Secure Energy was then published in It stated 6 key policy areas: 1. Competitiveness and the internal energy market (no protectionism, completely open markets) 17

18 Page 18 of Diversification of the energy mix. 3. Solidarity 4. Sustainable Development 5. Innovation and Technology 6. External Policy. This Green paper also includes Action Plans on Energy Efficiency, Climate Change Programme, and EU Missions Trading Scheme. (Please see EU environmental policies for expanded ETS). Awareness policies of oil demand are established to provide, from 2007, reliable and transparent energy market data. It is designed as a vital tool in the identification of threats to a secure energy supply for Europe. Weekly oil bulletins that describe the price trends of the main petroleum products and the evolution of the taxation of these products in Member States are published. Energy Market Observatory System (EMOS) are being developed. h) Conclusion In conclusion, the European Commission has made several developments in the energy area affecting long distance freight. Energy road map that promotes to use renewable, the biofuels directive, green papers on energy efficiency and saving are all related to long distance freight either directly or indirectly. However, Euro VI standards are the most related EU measures as for the first time, there is consideration of putting measures on carbon emissions from heavy duty vehicles, which are mainly used for long distance freight. 18

19 Page 19 of 19 References Impact Assessment Report for the Action Plan for Energy Efficiency 2006, Renewable Energy Road Map Renewable energies in the 21st century: building a more sustainable future, European Commission Enterprise and Industry website, uty/public_consultation/index.htm OECD paper from the European Conference of Ministers of Transport, Reducing NOx emissions on the Road, Action Plan for Energy Efficiency: Realizing the Potential [COM(2006) 545], Commission Green Paper, 22 June 2005, "Energy Efficiency - or Doing More With Less" [COM(2005) 265 final], 19