Kompendium 5.0 Regulation Section
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Paris Climate Agreement: Immediate change of direction Global emissions in gigatons CO2eq 200 180 Business as usual szenario Today's climate policy 160 Today's climate protection pledges 140 Consistent with the 2° target 120 Consistent with the 1.5° target Historical 100 80 60 40 20 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 2054 2056 2058 2060 2062 2064 2066 2068 2070 2072 2074 2076 2078 2080 2082 2084 2086 2088 2090 2092 2094 2096 2098 2100 Source: Climate Action Tracker Project, September 2019 Regulation 2
Burdensharing: Different sector goals Required reduction performance compared to 2005 in percent ETS* EU-GHG-target Non-ETS + sector (Basis: 2005) sector ► Green Deal: Significant -21% -12% -10% tightening of targets 2020 planned for 2030: ► Commission: -55% 2030 -43% -40% -34% -30% ► Parlament: -65% ► The Non-ETS sector should Green save twice as much in 10 Deal TBA -55% (?) TBA years after 2020 as in 15 2030 years before. How? Emission trading Inclusion of mandatory national targets. ► The effort per ton of CO2 Establishment of a market stabilization Supporting measures, safed will increase reserve for example emission significantly. Avoidance of relocation standards effects Regulation 3
Apart from the amount of emissions: The EU is moving ahead undeterred Long term goals of the EU in percent – base year 1990 + -20% Reduction of greenhouse -21% emissions -40% ► The Commision expects the 2020 climate targets to be 20% largely achieved. Market share of renewables 21% on grosss final energy consumption ► Although the rest of the world 27% has not yet followed suit, the EU plans to tighten ist targets Efficiency target - reduction significantly after 2020. -20% of energy consumption per -17% unit of GDP -27% Target 2020 Forecast 2020 Proposal 2030 Sources: BMWi, UBA, AGEB Regulation 4
WLTP: A new test requires a new limit value setting WLTP – illustration of an average car trip worldwide Low Middle High Extra high 140 The WLTP should apply globally. 120 Through the implementation of the WLTP the test costs of the manufacturers were 100 intended to be Velocity in km/h reduced. 80 60 40 20 0 0 200 400 600 800 1000 1200 1400 1600 1800 Time in seconds + ► A test cycle should enable a legally compliant comparability. ► Today there are different cycles. EU and China use the NEFZ, the USA and Japan have their own tests. ► The informations on the emissions of a car depend heaviliy on the test cycle; they cannot be simply converted. ► In the WLTP, the tests give higher values than in the previous measurement cycle, they are not comparable. ► But: the WLTP will ‘only‘ be a test. It enables comparability under standardized conditions, thus represents an approximation of global driving behavior, but does not determine a value that can be achieved under all circumstances. Sources: EU, UN Regulation 5
RDE Tests: Large spread even with maximum standardization Limits of standardization with the RDE consumption measurement 1 Measuring technology Expected spread of the results: 8 gCO2/km • Standardized PEMS system per vehicle (similiar within the organization performing the measurement) • Calibration of the PEMS system by comparison with test bench measurements. • But: The achievable measurement inaccuracy with current technology is ± 2,5 percent 2 Environment & driver Expected Ein einzelner Wert kann nur einen Mittelwert spread of the results : 10 gCO2/km darstellen. • Defined environmental conditions (moderate temperature, good weather, maximum light wind) • Trained drivers, who orientate themselves on the gearshift point display and create reproducible journeys • But: Even minor deviations, e. g. in wind and driving style, lead to visible scatter. 3 Route Expected spread of the results : 12 gCO2/km • Trips on a reference route with the same trip time and direction. • No fixed time windows but adaptation to comparable traffic volumes on the reference route • But: Traffic density, average speed and start / stop proportions are not reproducible. 4 Vecicle Expected spread of the results : 6 gCO2/km • Comparable vehicles in terms of run-in condition, superstructures, tire pressure, etc. • Comparable vehicle use: payload, electrical consumers, window opening or driving mode. • But: Reactions to environmental conditions (e. g. temperature) influence consumption. Regulation 6
Better regulations: Emission limits for vehicles do not go far enough To reduce emissions, users and the state must also be involved Integrated approach: Include all areas in regulation Total emission in tons = Consumption in liters* Emission factor in CO2/liter * Mileage Car industry State Car driver Optimization combustion engine Infrastructure condition Driving distance (how Alternative fuels Construction sites management much?) Lightweight construction Promotion of low-emission drives Driving style (how?) Electrification of the powertrain and fuels Vehicle selection (with Use of digitization (avoidance of parking search Stock renewal what?) traffic) + ► Vehicle limits regulate only the emission potential. ► Real emissions are determined just as much by user behavior and the infrastructure. Regulation 7
Limit values only affect new cars Inventory is not part of regulation In the EU, a good 15.3 million new In total, around 255 million passenger cars were registered per year in cars are registered in the EU. 2019. Sources: ACEA, 2020; VDA ,2020 Regulation 8
Fewer new registrations in the eastern member states Volume ratio of new registrations to vehicle Country inventory in 2018 Luxembourg 12,7% Share of new registrations Belgium 9,4% Denmark 8,4% < 2,5 percent United Kingdom 7,5% > 2.5 percent Germany 7,3% Sweden 7,3% > 5 percent Austria 6,9% ≥ 7,5 percent France 6,8% Slovenia 6,4% Ireland 5,8% Spain 5,5% Netherlands 5,2% Italy 4,9% Czech Republic 4,5% Portugal 4,3% Slovakia 4,2% Hungary 3,8% Croatia 3,6% Finland 3,5% Estonia 3,4% Latvia 2,4% Cyprus 2,4% Poland 2,3% Lithuania 2,3% Romania 2,0% Bulgaria 1,2% Sources: Eurostat 2020, ACEA 2019 Malta, Greece N.N. Regulation 9
European Burden Sharing in the Transport Sector Reduction targets of the EU-15 countries for the period 2005 to 2030 Netherlands Luxemburg Schweden Germany Denmark Portugal Belgium Finland Greece Austria Ireland France Spain Italy UK 5 0 -5 -10 -15 -20 -25 -30 -35 -40 Reduction Target Status 2017 Source: EU Kommission; EEA (V23) Regulation 10
The strictest CO2 target values for passenger cars apply in the EU In g CO2/km according to New European Driving Cycle (NEDC) Actual values 2002 – 2018 Target values 2020 – 2030 230 210 213 135 205 190 187 130 170 172 120 150 115 130 125 110 117 99 95 105 93 90 81 70 74 59 50 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2020 2021 2022 2023 2024 2025 2030 US EU Japan China* + ► The EU limit is expected to remain the strictest in the world until 2030. ► In the USA, passenger cars account for only about one third of new registrations, the emission value of the light trucks in 2017 was 208.2 g/km, the planned limit value for 2025 was 140 g/km (EU LNfz 2017: 156 g/km; 2025: 125 g/km) ► In 2018, the EU Commission decided to reduce the limit by 15 percent between 2021 and 2025 and to set a minus of 37.5 percent by 2030. ► Under the Green Deal, European targets for 2025 and 2030 are expected to be further tightened. *Without diesel vehicles Source: ICCT, 2020 Regulation 11
In 2019 it looked like the 2021 taget values were far away Data for manufacturers with over 200,000 new registrations in the EU28 Calculation of the target value in gCO2/km until 2019 Calculation of the target value in gCO2/km from 2020 X=130 gCO2/km +0.0457*(Ø New car mass in kg – 1,392.4kg) X=95 gCO2/km +0,0333*(Ø New car mass in kg – 1,392.4kg) 170 120 70 20 -30 Emissions 2019 Target Value 2021 Way to go Source: EEA, 2020 Regulation 12
Emissions from new cars down sharply Average CO2 emissions of new cars 2019 CO2 Emissionen Country in g per km < 100 g per km Netherlands 98.43 Higher emissions Portugal 105.32 in the East. Four EU countries < 110 g per km Malta 109.42 below 110. Denmark 111.89 One below 100 < 120 g pro km Greece 113.75 < 130 g per km France 113.98 Irleand 115.32 ≥ 130 g per km Croatia 115.60 Italy 119.27 Finland 119.40 Spain 119.72 Belgium 121.32 Slovenia 121.52 Netherlands 123.71 EU 28 122.39 Romania 124.34 Sweden 125.48 Austria 126.84 Cyprus 127.69 UK 127.95 Czech Republic 128.65 Bulgaria 130.10 Slovakia 131.22 Hungary 131.84 Lithuania 131.97 Latvia 131.98 Germany 133.00 Poland 133.46 Sources: EEA, 2020 Luxembourg 137.57 Regulation 13
Pooling: Three cross-group associations to date Existing brand pools in the passenger car sector Pool 14 Pool 13 Pool 12 Pool 11 Pool 10 Pool 9 Pool 8 VW Toyota Land- Suzuki Renault Peugeot Mitsubishi Skoda Mazda Rover Suzuki Dacia Opel Corp. Audi Jaguar Thailand Atovaz Citroen Mitsubishi Seat Suzuki Alpine Europe Porsche Magyar Mitsubishi Bugatti Suzuki Thailand Maruti Pool 7 Pool 6 Pool 5 Pool 4 Pool 3 Pool 2 Pool 1 Kia Corp. Hyundai Honda Ford FCA Daimler BMW Kia Czech Motor Werke FCA USA AMG BMW M Slovakia Hyundai Honda UK Ford India Alfa- Rolls- Assan Honda Ford Romeo Royce Hyundai Turkiye Motor Tesla Motor Volvo (ab 2019) (ab 2020) Honda Polestar (from Source: EEA, 2020; Automobilwoche 2020 (from 2020) 2020) Regulation 14
Light commercial vehicles also move into focus Emissions of new registrations in g CO2/km according to New European Driving Cycle Actual values 2009 – 2018 Target values 2020 – 2030 250 166 135 140 103 250 200 200 150 150 100 100 50 50 2023 2020 2021 2022 2024 2025 2030 2006 2011 2016 2000 2001 2002 2003 2004 2005 2007 2008 2009 2010 2012 2013 2014 2015 2017 2018 USA EU Japan China *Without diesel vehicles Source: ICCT, 2020 Regulation 15
LNfz: In 2018, all manufacturers undercut their emissions target Data for manufacturers with over 50,000 new registrations in the EU28 Opel Daimler Ford Werke Volkswagen Nissan Automobile Renault FCA Italy Peugeot Citroen 210 160 110 60 10 -40 Emissions 2018 Target 2018 Difference to the target of the year 2018 Source: EEA, 2020 Regulation 16
RED II: Renewable Energy Directive sets targets for 2030 RED II shifts transportation targets to advanced biofuels and includes PtX 14% Target for 2030 + ► RED II (Renewable Energy Directive) is to be transposed into national 12% law by mid-2021. 3,4% 10% ► Target: 32% of energy consumption of electricity, heat, transport should be renewable in 2030. 1,7% 8% ► Transport target: nominal quota of 14% renewable energy sources in 3,5% transport energy consumption. 1,8% 6% ► Advanced biofuels and biofuels from residues can count double toward the nominal quota. 4% ► Electricity in road transport can be credited 4 times, in rail transport 6% 6% 1.5 times. 2% ► Food-based biofuels should not be expanded and should not exceed a 7% share in any country. 0% ► PtX can be credited if 70% emission reduction is achieved. nominal real ► Calculation method to be available by 01/22. Conventional biofuels Advanced biofuels Biofuels from residues ► With the French electricity mix, 70% is already achieved today. Source: Öko-Institut, 2019 Regulation 17
Those who emit a lot of CO2 also pay a lot Taxation of fuels within the EU in euro cents per liter - Status: 22.02.21 0 30 60 90 120 0 30 60 90 120 Italy Netherlands 111,6 86,8 Belgium 84,5 Finland 102,0 France 83,6 Greece 100,9 Finland 78,8 Italy 100,2 Sweden 78,0 Sweden 95,6 Netherlands 76,9 Portugal 95,0 Portugal 76,5 Denmark 94,0 Ireland 75,6 France 93,6 Denmark 70,4 Germany 88,8 Germany 67,7 Ireland 87,5 Slovenia 67,2 Belgium 83,5 Greece Diesel 66,8 Estonia Gasoline 78,3 Croatia 65,8 Croatia 77,0 Malta 65,7 Slovakia 75,9 Latvia 62,5 Malta 75,4 Hungary 59,7 Latvia 73,7 Cyprus 59,5 Spain 69,3 Austria 59,4 Czech Republic 68,8 Slovakia 58,7 Austria 68,4 Spain 57,9 Lithuania 66,9 Czech Republic 57,0 Luxembourg 65,0 Estonia 56,8 Slovenia 64,4 Lithuania 56,4 Cyprus 61,7 Poland 53,2 Hungary 59,9 Luxembourg 52,0 Poland 57,6 Romania 51,5 Romania 54,6 Bulgaria 48,9 Bulgaria 52,2 Source: EU Kommission DG Transport, Weekly Oil Bulletin Regulation 18
Guiding Instrument for Energy and Industry: The ETS (Cap and Trade) Cap - The state specifies a reduction Volume of certificates in the European Emissions Trading Scheme (ETS) in millions of tons Cap Cap Cap 3. Trading period Reduction rate until 2020 1. Trading period 2. Trading period Reduction rate 2400 -1.74% after 2200 2020 -2.2% 2000 -21% 1800 Target 1600 2030 1400 1200 1000 2005 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2030 + ► Precisely: the emission target of -21 percent is safely achieved by the falling cap. ► Allocation: initially 20 percent auction, to increase to 60 percent by 2020. ► Flexibel: Which trading participant provides the savings is not mandated. Sources: EU, DIW Regulation 19
Guiding Instrument for Energy and Industry: The ETS (Cap and Trade) Trade - Emissions trading ensures efficient distribution of reduction burdens Fall 1: Fall 2: Emission restriction Emissions trading – Certificate price at 30 euros per ton Past Permitted Reduction Total Past Permitted Certificates Reduction Made Reduction Trade Trade Total emissions future costs /ton expendi- emissions future received in costs /ton Reducti costs In tons in Euro expenditure in tons emissions ture in tons emissions tons on after trade in tons in tons in tons Plant 1 5,000 4,500 20 10,000 5,000 4,500 20 1,000 20,000 5,000 Total 500 15,000 Plant 2 9,000 5,000 4,500 50 25,000 5,000 4,500 50 0 0 15,000 10,000 9,000 35,000 Total 10,000 9,000 9,000 1,000 20,000 500 15,000 20,000 + ► In the example, plant 1 makes the entire reduction, but is reimbursed three quarters of the costs through emissions trading. In the example, both plants save several thousand euros compared to an emissions restriction. ► The concrete distribution of the reduction burdens results from the certificate price and the respective reduction costs. ► Participants with high abatement costs co-finance the reduction performance of others. Regulation 20
Emissions trading in road transport: Is it possible? One step toward an integrated approach would be to include road transport in emissions trading. Fuel consumption can be precisely converted into emissions. Heavy trucks cannot be integrated into the existing limit value system - no problem with emissions trading. The question remains as to who should hold the certificates: Upstream – Service station operator Midstream – Car manufacturer For each liter sold, the corresponding certificates must be purchased. When a new car is sold, a quantity of certificates must be purchased that 1L gasoline = 2.3 kg CO2 corresponds to the expected emissions of the vehicle during its lifetime. 1L diesel = 2.6 kg CO2 At 130 g CO2/km and 200,000 km: Certificates for 26 tons + Technically very easy to implement + Few financially strong demanders + Few financially strong demanders + Actual emissions are limited. Inaccurate - A theoretical quantity is purchased. – The manufacturer only determines the emission potential, not the real emissions. – Only indirectly affects the actual polluter of the emissions. The link to the – He only has an indirect influence on the real emissions. motorist is the price signal, as with a mineral oil tax. Regulation 21
Emissions trading: a sensible addition The inclusion of road transport in emissions trading can offer advantages ETS gas station Talerstraße 111, 12345 Entenhausen Gas station no. : 000000000xyz + StNr. Station : 13/456/xyzxyz StNr. Society: 01 234 56789 Document number 1234/005/00001 03.03.2021 9:22 Simple: The necessary certificate quantity per tank filling is easy to Card payment calculate. The necessary purchase can be handled with the fuel bill. Favorable for the driver: At a certificate price of € 30 targeted by *Super gasoline 65.13 EUR A #* the EU for 2020, the liter of gasoline would cost 7 cents more. *Zp 03 43.45 l 1.499 EUR/l #* Favorable for society: The avoidance costs of road traffic per ton are well over € 30. Emissions would be avoided where it is *EU-ETS Emission allowances 3,04 EUR #* C* cheaper. * 43.45l x 2.33 kg CO2/l = 101.24 kg CO2 However, since transport would buy massive amounts of * x 30.00 EUR/Authorization for 1,000 kg CO2 certificates, other sectors would have to reduce significantly more. Gesamtbetrag 68,17 EUR A sense of proportion is needed to prevent the other sectors from being overburdened. Typ Netto VAT Brutto Therefore: Emissions trading is a sensible addition to the current A: 19.00% 54.73 10.40 65.13 limits. C: 0.00% 3.04 0.00 3.04 Thank you for visiting – have a good trip! Regulation 22
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