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Slide 1: Michael P. Walsh International Consultant Chairman, Board of Directors, ICCT CSE Roundtable: Is clean diesel a myth or a solution? Delhi, India 10 December, 2007

Slide 2: PM Air Pollution in India Cities is Already A Very  Serious Problem; NO2 and Ozone Also Concerns New Diesel Vehicles in India Emit One to Two  Orders of Magnitude Higher PM Than Gasoline Vehicles; At Least Three Times More NOx If ULSD (< 50 ppm S) Was Available, Tight  Standards Requiring Diesels As Clean As Gasoline Would Be Possible Until Then, Diesel Cars Are Not Environmentally  Viable In India

Slide 3: Concentration of PM 2.5 & PM 10 in 2005 Delhi (B.S.Z. Marg) 400 1 300 PM2.5 0.8 PM10 0.6 200 WHO PM2.5 PM 10 & 2.5 WHO PM10 0.4 CONTINUOUS 100 MONITOR AT BHADUR 0.2 SHAH ZAFAR MARG (ITO), 0 NEW DELHI 0 January May September 1 March July November Source: Dr. Sengupta CPCB

Slide 4: RESPIRABLE SUSPENDED PARTICULATE MATTER (RSPM) LEVELS IN AMBIENT AIR 300 4.5 4 Registered Vehicle Population in Millions 250 3.5 200 3 Values in ug/m3 2.5 150 2 100 1.5 1 50 0.5 0 0 1997-98 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 NA NA NA 120 139 127 131 Residential NA NA NA 150 167 140 140 Industrial 200 216 191 180 270 244 228 Traffic Intersection 3 3.2 3.4 3.5 3.6 3.8 4.1 Vehicle Population Residential Industrial Traffic Intersection Vehicle Population

Slide 5: OXIDES OF NITROGEN (NOX) LEVELS IN AMBIENT AIR 100 4.5 90 4 Registered Vehicle Population in Millions 80 3.5 70 3 Values in ug/m3 60 2.5 50 2 40 1.5 30 1 20 0.5 10 0 0 1997-98 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 29 27 29 28.7 33 37.9 40 Residential 35 34 34 29 35 36 42 Industrial 63 60 59 67 75 94 89 Traffic Intersection 3 3.2 3.4 3.5 3.6 3.8 4.1 Vehicle Population Residential Industrial Traffic Intersection Vehicle Population

Slide 6: G ob i 100 150 200 250 300 0 50 Lund dhgar ih LuRa ana ck ipu r Ja Ka now la np nd u r A ha lw r D Jh a e Fa hr ari r ri ad a A dabun a hm edAg d ab ra ad JaSol Vap m ap i A nk nagur al Ind ar es o h re Sawar D Sutna ha r n at B bad hi H De lai G ow lh uw r i a K ah h ol at ki Pa ata t JoNagna C dh da ha N pu nd a r ra sik p Vi V Ku sa kh ara ot r ap na a at Pu si R namne ou C Vad rk 96 ha o el nda Ja digara ba ar h J lp M aipur Delhi u Tr U m ur iv da ba en ip i du H K ru r yd o m R er rb a B yaabaa India (micrograms/m3) an g d RSPM Annual average g ad K Naalo a oz g re hp Ti iko ur tic d oe G An rin aj g concentration during 2005 in ra ul ul a 51

Slide 7: Combustion products Diesel soot Minerals Salt Source: Umweltbundesamt, Wien

Slide 8: Premature Deaths Cancer Developmental Effects Hospitalization Asthma Attacks and Bronchitis 8

Slide 9: 8% 7% 6% 5% All Causes Pulmonary 4% Lung Cancer 3% 2% 1% 0% Journal of American Medical Association, March 2002 9

Slide 10: Clean Diesel or Dirty Diesel? 10

Slide 11: NOx trap in front of CDPF SCR behind CDPF

Slide 12: Clean Vehicle Technologies Are Already Entering The Marketplace EU and US Light Duty Gasoline and Diesel Vehicle Standards Grams/Km 0.3 Gasoline NOx Diesel NOx Diesel PMx10 May/Will Include A 0.25 Number Based PM Standard 0.2 0.15 0.1 0.05 0 Euro 4 2005 Euro 5 2010 Euro 6 2015 US Tier 2 Avg 12

Slide 13: Actual NOx Levels Are Much Higher Than Type Approval Indicates How have specific NOx emissions of diesel passenger cars evolved in the past? 1.00 NEDC CADC 0.90 Limit 0.80 0.70 0.60 g/km 0.50 0.40 0.30 EU 5 0.20 0.10 0.00 EURO 1 EURO 2 EURO 3 EURO 4

Slide 14: Solids Solid Carbon Spheres (SOL) (0.01-0.08 mm) combine to make agglomerates (0.05-1.0 mm) Adsorbed Vapour Phase Hydrocarbons Hydrocarbons Soluble Organic Adsorbed Fraction (SOF)/ Hydrocarbons Particle Phase Hydrocarbons Liquid Condensed Hydrocarbon Particles Adsorbed Sulfate with Hydration Hydrocarbons Sulfate (SO4)

Slide 15: Inlet Outlet

Slide 16: Low Sulfur Fuel is Critical to Get Maximum Benefits Sensitivity to Sulfur With Catalyzed Soot Filters 16

Slide 17: cost Tier 2 Light-duty Total Cost: $11 billion benefit highway Total Benefits: $175 billion Heavy-duty highway Tier 4 nonroad 0 20 40 60 80 100 $ Billion Annually in 2030 17

Slide 18: As Part of An Overall Strategy, Retrofits and CNG Work The Bottom Line: From 1995-2005, Fleetwide PM Reduced 97% While Fleet Grew By 33% PM Emissions Number of Buses (tons/year) Thousands 5 300 PM Buses 4 250 3 200 150 2 100 1 50 0 0 1995 2000 2005 18

Slide 19: Initiative „No DIESEL without Filter“ started Automotive Industry shall only sell diesel cars with soot filters from summer 2003

Slide 21: Greenpeace Germany Demonstrations

Slide 22: Would You Rather Put A Filter on Your Car Or Your Child?

Slide 23: EU and US Light Duty Gasoline and Diesel Vehicle Standards No Unless Grams/Km US Tier 2 or 0.3 Gasoline NOx Diesel NOx Diesel PMx10 Euro 5 Standards 0.25 Apply & 0.2 ULSD Available 0.15 0.1 0.05 0 Euro 4 2005 Euro 5 2010 Euro 6 2015 US Tier 2 Avg 23

Slide 24: 1/1/2006 – New Gasoline Cars Meet Euro 4  standards  1/1/2006 – New Diesel Cars Meet CA LEV2 standards  ULSD (Maximum 50 PPM) Required At Present  Tax Incentive Introduced Dec 1 For 10 PPM Sulfur Limits 24

Slide 25: PM Air Pollution in India Cities is Already A Very  Serious Problem; NO2 and Ozone Also Concerns New Diesel Vehicles in India Emit One to Two  Orders of Magnitude Higher PM Than Gasoline Vehicles; At Least Three Times More NOx If ULSD (< 50 ppm S) Was Available, Tight  Standards Requiring Diesels As Clean As Gasoline Would Be Possible Until Then, Diesel Cars Are Not Environmentally  Viable In India