Questions and Answers about bahn.corporate with 100% green power

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1 Questions and Answers about bahn.corporate with 100% green power

2 Contents I. Questions about bahn.corporate with 100% green power 4 1. How does bahn.corporate with 100% green power work? 4 2. What does the option of travelling with 100% green power cost business customers? 4 3. Who can use bahn.corporate with 100% green power? 4 4. Which bahn.corporate journeys will be made with 100 % green power? 4 5. Does the new bahn.corporate option with 100% green power replace the former bahn.corporate Eco Plus? 4 6. Why is this offer no longer optional, like the former bahn.corporate Eco Plus (e.g. for business customers who already have their own CO 2 compensation schemes)? 4 7. How does bahn.corporate with 100% green power differ from the former bahn.corporate Eco Plus? 4 8. Do bahn.corporate customers receive proof of their CO 2 savings? 5 9. What benefits does bahn.corporate with 100% green power offer the customers? How can bahn.corporate customers book travel with 100% green power? Will there be any changes in the booking process? BahnCard holders will also travel with 100% green power as from 1 April What do BahnCard holders have to do to obtain a BahnCard or BahnCard Business with 100% green power? Will there be any changes to the design of the BahnCard Business? Will private long-distance journeys made by BahnCard Business holders also automatically be made with 100% green power? Why are only long-distance journeys made with 100% green power? Why is bahn.corporate with 100% green power not being introduced until 1 April 2013? Will Deutsche Bahn now purchase biofuel for its diesel trains? 6 II. Background information and framework for expansion of the green power portfolio 7 1. What are the reasons for Deutsche Bahn s new green power concept? 7 III. How does bahn.corporate with 100% green power work? 8 1. How does Deutsche Bahn plan to increase the share of renewable energy in the traction current mix? 8 2. Are there separate trains for bahn.corporate customers with 100% green power? 8 3. What is the difference between rail travel with 100% green power and CO 2 compensation products? 8 4. Are the CO 2 emissions which occur during electricity generation included in the carbon footprint? 8 5. Where does DB obtain the electricity it uses for its rail services with 100% green power? 8 6. When does Deutsche Bahn purchase the electricity? 9 7. What happens if DB has purchased too much or too little green power because it miscalculated the requirements? 9 DB Vertrieb GmbH; bahn.corporate with 100% green power; V 2.0; edited: P.DVB 2; 18/03/13 2

3 Contents 8. Does this mean the electricity used by DB s other products without the 100% renewable energy label is less green? 9 9. Is enough green power available in the market? Why does Deutsche Bahn not change over to green power for all its long-distance services? From which provider does Deutsche Bahn purchase its renewable electricity? Have the products been reviewed by an independent body? What happens if there is a change in the number of journeys which served as the basis for the calculation? What about the electricity used by the on-board catering services or at the station? Is it also 100% green power? Will the use of e-cars, which already run on 100% green power, impair rail s advantage in terms of climate protection? What experience has Deutsche Bahn already acquired with rail travel with 100% green power? 10 DB Vertrieb GmbH; bahn.corporate with 100% green power; V 2.0; edited: P.DVB 2; 18/03/13 3

4 I. Questions about bahn.corporate with 100% green power 1. How does bahn.corporate with 100% green power work? Employees of companies which are registered bahn.corporate customers make all long-distance journeys with Deutsche Bahn inside Germany with 100% green power and thus improve their company s carbon footprint. Deutsche Bahn calculates the energy required by all bahn.corporate customers for their journeys, additionally purchases this quantity of current from 100% green power sources and feeds it into the traction current grid. 2. What does the option of travelling with 100% green power cost business customers? bahn.corporate with 100% green power does not make any difference to the costs for business customers as it is already included in the conditions of the bahn.corporate programme. 3. Who can use bahn.corporate with 100% green power? Customers who are registered with bahn.corporate and make business trips on long-distance trains operated by Deutsche Bahn will automatically travel with 100% green power as from 1 April Which bahn.corporate journeys will be made with 100 % green power? All Deutsche Bahn long-distance journeys inside Germany with and without BahnCard or BahnCard Business will be performed with 100% green power. Deutsche Bahn long-distance trains include all ICE, IC and EC services. For journeys to other countries, the new system applies to the section up to the border and as from the border on the return journey. It does not apply to DB Regio feeder trains on regional lines, to non-federal railways and transport associations. Nor does bahn.corporate with 100% green power apply to the City-Ticket. 5. Does the new bahn.corporate option with 100% green power replace the former bahn.corporate Eco Plus? The former bahn.corporate Eco Plus was only available to Deutsche Bahn s key account customers. bahn.corporate with 100% green power now covers all business customers who are registered with bahn.corporate. All bahn.corporate customers will now travel with 100% green power as standard on long-distance routes inside Germany. Deutsche Bahn long-distance trains include all ICE, IC and EC services. bahn.corporate with 100% green power will not involve any additional processes for corporate customers and no contracts will be signed for this offer. 6. Why is this offer no longer optional, like the former bahn.corporate Eco Plus (e.g. for business customers who already have their own CO 2 compensation schemes)? After the successful pilot projects for products with 100% green power, such as bahn.corporate Eco Plus, DB decided to make it possible for all bahn.corporate customers to travel with 100% green power. Market surveys and talks with many business customers revealed that this changeover satisfies a very common wish of our customers. In future, business customers who previously used their own CO 2 compensation schemes for rail travel will have no need to make subsequent compensation for the relevant CO 2 emissions and therefore enjoy even more benefits from the new option. 7. How does bahn.corporate with 100% green power differ from the former bahn.corporate Eco Plus? The former bahn.corporate Eco Plus gave key account customers the option of carbon-free business travel. bahn.corporate with 100% green power is no longer an optional offer. Not only key accounts, but all business customers can now make all their long-distance rail journeys inside DB Vertrieb GmbH; bahn.corporate with 100% green power; V 2.0; edited: P.DVB 2; 18/03/13 4

5 Germany (ICE, IC and EC trains) with 100% green power. The additional costs are already included in the conditions of the bahn.corporate programme. 8. Do bahn.corporate customers receive proof of their CO 2 savings? Once a year, bahn.corporate customers will receive a certificate confirming the savings they have made. Deutsche Bahn cooperates with an independent audit organisation, such as TÜV SÜD, for this certification. bahn.corporate customers can use the certificate in their corporate communications. Moreover, bahn.corporate customers will regularly receive an overview of their key environmental performance indicators. 9. What benefits does bahn.corporate with 100% green power offer the customers? By travelling on Deutsche Bahn long-distance trains, bahn.corporate customers support sustainable transport, because this completely avoids the emission of the harmful greenhouse gas CO 2. This has a positive effect on the company s carbon footprint and can be put to good use in its PR activities. Changing over to rail from car or plane for business trips is now even more climatefriendly. 10. How can bahn.corporate customers book travel with 100% green power? Will there be any changes in the booking process? bahn.corporate customers can book their tickets as usual. The booking process will remain exactly the same. 11. BahnCard holders will also travel with 100% green power as from 1 April What do BahnCard holders have to do to obtain a BahnCard or BahnCard Business with 100% green power? They don t have to do anything. Their existing BahnCard or BahnCard Business remains valid and automatically becomes a BahnCard or BahnCard Business with 100% green power. 12. Will there be any changes to the design of the BahnCard Business? All customers who purchase a BahnCard Business which is valid as from 1 April 2013 will receive the card in the new, green design. For reasons of ecology, however, Deutsche Bahn has decided not to replace all existing cards as from the date of changeover. But no matter what your card looks like, as from 1 April 2013 you will automatically travel with 100% green power. 13. Will private long-distance journeys made by BahnCard Business holders also automatically be made with 100% green power? Yes, private journeys made by BahnCard Business holders on long-distance trains will also be performed with 100% green power. The additional costs of the current from renewable energy sources will be borne by Deutsche Bahn as part of the BahnCard with 100% green power product. 14. Why are only long-distance journeys made with 100% green power? Deutsche Bahn operates long-distance services on a purely commercial basis and therefore has the freedom to make its own business decisions. As part of that freedom, the DB Bahn Long Distance Business Unit has decided to push ahead with DB s strategic objective of consolidating its role of eco-pioneer. Regional transport services are ordered by the regional authorities in the Federal Laender and it is up to the individual client bodies to decide which green power products they wish to offer. DB Vertrieb GmbH; bahn.corporate with 100% green power; V 2.0; edited: P.DVB 2; 18/03/13 5

6 15. Why is bahn.corporate with 100% green power not being introduced until 1 April 2013? The changeover to bahn.corporate with 100% green power will lead to a significant increase in the quantities of renewable energies that DB Energy has to procure for DB Fernverkehr. Deutsche Bahn wishes to ensure that its customers actually receive the promised service. This is feasible by scheduling the rollout for 1 April Will Deutsche Bahn now purchase biofuel for its diesel trains? Nearly all the lines used by long-distance trains (i.e. ICE and IC/EC trains) are electrified. Diesel trains account for less than 3% of all journeys. DB therefore includes this diesel consumption when calculating the quantity of green power required for the journeys with 100% green power. This method has been designed in consultation with the Federal Environment Agency and TÜV SÜD. DB Vertrieb GmbH; bahn.corporate with 100% green power; V 2.0; edited: P.DVB 2; 18/03/13 6

7 II. Background information and framework for expansion of the green power portfolio 1. What are the reasons for Deutsche Bahn s new green power concept? The energy turnaround resolved by the government, together with increasing customer demand for green products, also confronts the transport business with a challenge. In rail transport, which is largely powered by electricity, it is feasible to introduce the use of renewable energies at short notice, so that DB could accept this challenge. The Deutsche Bahn climate protection objective currently envisages reducing the worldwide specific CO 2 emissions by the entire DB Group by 20% by the year The new green power concept in the DB long-distance sector goes beyond that target, but does not mean that the target figures for other business units in the DB Group have been reduced. One of the primary objectives of the Deutsche Bahn 2020 strategy is to expand the use of renewable energy. By 2020, renewable energy is to be increased from the present share of 24% to a share of at least 35% in the traction current mix. By 2050, Deutsche Bahn aims to offer CO 2 -free rail transport with 100% renewable energy. The new DB Fernverkehr green power concept, which will be implemented as from 1 April 2013, exceeds the target for raising the share of renewable energy. By doing so, Deutsche Bahn intends to develop its long-distance services into the most climate-friendly transport mode and remain competitive over the long term, thus consolidating its role as eco-pioneer. DB Vertrieb GmbH; bahn.corporate with 100% green power; V 2.0; edited: P.DVB 2; 18/03/13 7

8 III. How does bahn.corporate with 100% green power work? 1. How does Deutsche Bahn plan to increase the share of renewable energy in the traction current mix? The most important energy sources for expanding the share of renewable energy for railway operations are hydroelectric and wind power. In 2011 and 2012, we achieved two milestones when we signed electricity supply agreements with the energy providers RWE and E.ON: as from 2014, 14 hydroelectric power stations on the Rhine, Mosel and Ruhr and as from 2015 other hydroelectric power stations on the Main, Danube, Lech, Isar, Inn and Lake Edersee will supply 900 GWh / 600 GWh current per annum to DB. One of these power stations Albbruck-Dogern in the High Rhine region was modernised and expanded in line with ecological considerations in Deutsche Bahn has meanwhile also placed contracts with three wind farms in Brandenburg and Lower Saxony. Over the next few years, the Deutsche Bahn energy provider DB Energy will conclude further supply agreements on the basis of renewable energy sources. 2. Are there separate trains for bahn.corporate customers with 100% green power? All Deutsche Bahn trains use the same traction current. DB Energy procures the additionally required quantities of electricity for the new 100% green power products from renewable energy sources on behalf of Deutsche Bahn; this current is then physically fed into the traction current grid. Deutsche Bahn guarantees all bahn.corporate customers that the quantity of electricity required for their average journeys will come from 100% renewable energy sources. The quantity of green power purchased for that purpose replaces exactly the same quantity in the conventional traction current mix. Calculation of the required quantity of green power is monitored by an independent audit organisation (e.g. by TÜV SÜD). 3. What is the difference between rail travel with 100% green power and CO 2 compensation products? If we are to protect the climate effectively, we have to stop the continuous increase in the quantity of greenhouse gas CO 2 (carbon dioxide) emitted into the atmosphere. Reputable compensation schemes (such as those run by Atmosfair, myclimate) subsequently compensate for the quantities of CO 2 emissions from power stations, engines and technical processes by supporting climate protection projects elsewhere. However, Deutsche Bahn has deliberately opted not to use a compensation model for rail transport. By procuring the current directly from renewable sources, Deutsche Bahn prevents the occurrence of CO 2 for the railway journey in the first place. In doing so, Deutsche Bahn exploits the inherent advantage of the rail mode in that it can use climate-friendly electricity from renewable energy sources as traction energy for its trains. In other words, no subsequent compensation is necessary. 4. Are the CO 2 emissions which occur during electricity generation included in the carbon footprint? The electricity used for the products with 100% green power is generated solely from renewable energy sources. No CO 2 emissions occur during generation of the electricity. By using the new products with 100% green power, the customer therefore improves his personal carbon footprint. 5. Where does DB obtain the electricity it uses for its rail services with 100% green power? The entire electricity is obtained from green power which is generated primarily at hydroelectric power stations. The origin of the electricity is certified by an independent audit organisation (such as TÜV SÜD) on the basis of the criteria of the Register of Guarantees of Origin of the Federal Environment Agency. There is no internal redistribution of the existing green power used by DB, which means Deutsche Bahn is significantly raising its share of green power. This power is labelled in accordance with DB Vertrieb GmbH; bahn.corporate with 100% green power; V 2.0; edited: P.DVB 2; 18/03/13 8

9 the regulations of the Federal Environment Agency and the process is monitored by an independent audit organisation (e.g. by TÜV SÜD). 6. When does Deutsche Bahn purchase the electricity? Deutsche Bahn purchases its electricity requirements in advance. The quantity of current required for bahn.corporate with 100% green power is calculated on the basis of the anticipated travel requirements of business customers. This ensures that the quantity of green power required for rail travel over the course of the year is actually available in the traction current grid. 7. What happens if DB has purchased too much or too little green power because it miscalculated the requirements? DB Energy, the Deutsche Bahn current provider, plans the purchase of the additionally required green power on the basis of the requirements notified by DB Fernverkehr AG. During the course of the year, checks are conducted at three-monthly intervals to monitor whether the demand for products with 100% green power matches the energy quantities that DB Energy has procured from renewable sources. If DB Energy has not purchased enough energy from renewable sources, additional quantities can then be purchased in the course of the year. 8. Does this mean the electricity used by DB s other products without the 100% renewable energy label is less green? No. The energy quantities needed for our products with 100% green power are purchased over and above our other requirements; there is no redistribution of the share of renewable energy used to date. Irrespective thereof, we aim to meet the corporate target of raising the share of renewable energy for all railway undertakings to at least 35% of the traction current mix by the year Is enough green power available in the market? On principle, there is sufficient renewable energy available in Germany and Europe. The challenge is dealing with the fluctuations when electricity from renewable energy sources (primarily wind and photovoltaics) is fed into the traction current grid, as well as other specific properties of traction current for rail operations which call for particular care in terms of supply reliability. DB Energy signs supply agreements with individual energy providers for the additional quantities of current to be purchased. The quantities specified in these agreements are based on the estimated demand. At the end of the year, a statement of the purchased quantities and the demand for green power products is submitted to an independent audit organisation (e.g. TÜV SÜD) to check that the two figures match. 10. Why does Deutsche Bahn not change over to green power for all its long-distance services? When it comes to supplying railway operations from renewable energy sources, apart from CO 2 - free and ecologically acceptable energy generation, supply reliability for the railway and price aspects also play a decisive role. Not all renewable energies can match the changing electricity requirements of railway operations over the course of the day, as the quantities generated also fluctuate considerably. Furthermore, some technologies such as photovoltaics or geothermal energy as well as the energy storage systems needed to ensure that supply perfectly matches demand, are still more expensive than technologies which are already well developed, such as hydroelectric and, to an increasing extent, wind power. Accordingly, it is not possible to change over all our long-distance services to 100% renewable energies right away on grounds of supply reliability and cost-effectiveness. 11. From which provider does Deutsche Bahn purchase its renewable electricity? Deutsche Bahn purchases its renewable power from different suppliers, depending on its requirements and the available supply in the electricity market. At the end of each year, an independent audit organisation (such as TÜV SÜD) will issue a certificate confirming that the electricity derives from renewable power stations and that Deutsche Bahn has satisfied the requirements DB Vertrieb GmbH; bahn.corporate with 100% green power; V 2.0; edited: P.DVB 2; 18/03/13 9

10 of the Register of Guarantees of Origin of the Federal Environment Agency. Details of the actual supplier and source are specified on the certificate. 12. Have the products been reviewed by an independent body? The origin of the electricity and the entire supply chain from the power station to the train are certified by an independent audit organisation (such as TÜV SÜD), which also audits the method used to calculate the necessary energy quantity. 13. What happens if there is a change in the number of journeys which served as the basis for the calculation? The quality of the power from renewable energy sources and the calculation basis for the products with 100% green power are monitored by an independent audit organisation (such as TÜV SÜD). The figures acquired from years of experience of bahn.corporate customers travel patterns are used to obtain a reliable forecast of the train kilometres that will be travelled, which then serves as the basis for purchasing the energy. In case of any future changes in these parameters, Deutsche Bahn will make the appropriate changes to the calculation basis and the average energy consumption. These parameters will be reviewed at annual intervals. 14. What about the electricity used by the on-board catering services or at the station? Is it also 100% green power? The on-board facilities of our long-distance passenger trains, such as the Bordbistro and the airconditioning, are also supplied with green power through the overhead line and the train pantographs. Station facilities, points and switches and other ancillary equipment are supplied with an electricity mix, where the shares of green power are still lower. 15. Will the use of e-cars, which already run on 100% green power, impair rail s advantage in terms of climate protection? With a share of 24% of renewable energies in the traction current mix, rail already has by far the highest share of renewable energies throughout the entire transport sector. In recent years, Deutsche Bahn has steadily expanded its ecological advantage and will retain that edge in future. The carbon emissions of rail journeys with 100% green power are just as low as those of an electric car that runs on green power. Nevertheless, e-cars are a very interesting mobility option for the pre- and post-rail sections of a journey, which is why Deutsche Bahn has offered Flinkster My Carsharing projects throughout Germany since What experience has Deutsche Bahn already acquired with rail travel with 100% green power? Deutsche Bahn has already offered optional 100% green power products for major corporate customers on long-distance journeys and for freight transport customers since Customers who book bahn.corporate Eco Plus can use Deutsche Bahn to make business trips using traction current which is generated entirely from green power. In the freight transport sector, Eco Plus can be booked as an additional option to any product. On request by the customer, the current required for the transport is completely replaced by 100% green power. In spring 2012, we also offered a trial BahnCard 25 with 100% green power, which enables private customers to travel with power from renewable energy sources every time they make a journey with BahnCard discount. Travel for youth organisations and school trips, tourist RIT tickets and Ameropa tours are already optionally available with 100% green power and will still be offered in future. The rapid transit services in Hamburg and regional services in Saarland already use 100% green power. DB Vertrieb GmbH; bahn.corporate with 100% green power; V 2.0; edited: P.DVB 2; 18/03/13 10