Reducing greenhouse gas emissions in the transport sector –Successful national policy instruments from across Europe

REDUCING GREENHOUSE
GAS EMISSIONS IN THE
TRANSPORT SECTOR
SUCCESSFUL NATIONAL POLICY
INSTRUMENTS FROM ACROSS EUROPE
Energy Innovation Academy
26 February 2019
Korinna Jörling
Navigant

2
1. Context: the BEACON project
2. Trends and challenges in the transport sector
3. Norway: Incentives for e-mobility
4. France: Bonus-Malus Scheme
5. Q&A
AGENDA

3
5. Q&A
AGENDA

4
Overview of Work Packages and Responsibilities
BEACON IN A NUTSHELL
National climate policy instruments
Exchange with municipalities
Knowledge Management & Communications
Exchange with schools
Project Goal: to strengthen bi- and multilateral cooperation and
create common ambition to realise the Paris Agreement
Duration: April 2018 – March 2021 (3 years)

5
Connecting 34 municipalities and 55 schools across Europe
GEOGRAPHIC SCOPE
Germany
6 Partner countries (Portugal,
Poland, Czech Republic,
Romania, Bulgaria, Greece)
5
5 20
15
5
5 10
9 12
5
55 Schools
34 Municipalities

6
EXCHANGE OF GOOD PRACTICES IN
NATIONAL CLIMATE POLICY
Sector Country Policy
Bonus-Malus Scheme
Incentives for E-mobility
Company car taxation
Modal shift
Energy Performance Certificate Database
Energy transition tax benefit
Innovation cluster
New Green in Savings Programme
Latvian Baltic Energy Efficiency Facility (LABEEF)
Slovak Sustainable Energy Financing Facility (SlovSEFF)
Tax reduction for energy savings
Energy Efficiency Obligation
CO2-Tax
ClimateChange Agreements
Action Plan Aquatic Environment
Biomethane support
GHG Action Plan
Agrocovenant
22
Key question:
What are sector-
specific policy
instruments in other
EU Member States
(+ CH and NO) from
which Germany can
learn to improve its
climate policy?

7
EXCHANGE OF GOOD PRACTICES IN
NATIONAL CLIMATE POLICY
Sector Country Policy
Bonus-Malus Scheme
Incentives for E-mobility
Company car taxation
Modal shift
Energy Performance Certificate Database
Energy transition tax benefit
Innovation cluster
New Green in Savings Programme
Latvian Baltic Energy Efficiency Facility (LABEEF)
Slovak Sustainable Energy Financing Facility (SlovSEFF)
Tax reduction for energy savings
Energy Efficiency Obligation
CO2-Tax
ClimateChange Agreements
Action Plan Aquatic Environment
Biomethane support
GHG Action Plan
Agrocovenant
22
Key question:
What are sector-
specific policy
instruments in other
EU Member States
(+ CH and NO) from
which Germany can
learn to improve its
climate policy?

8
5. Q&A
AGENDA

9
More than a third of EU-wide ESD-emissions
come from the transport sector.
THE TRANSPORT SECTOR

• More than a third of EU-wide ESD-
emissions come from the transport
sector
• 97% of sector emissions are from road
transport
• Share of electric vehicles is at 0,3%
(2017)
• Share of biofuels is at 6,7% (2015)
10 THE TRANSPORT SECTOR: KEY INDICATORS
97%
1% 2% 1%
Fuel combustion in road transport
Fuel combustion in railway transport
Fuel combustion in inland waterway transport
Fuel combustion from other transport systems
Source: Eurostat 2015
Sector emissions from fuel combustion

• Absolute emissions in
transport have sunk by ca.
6% between 2005 and
2015
• Emissions have increased
up to 2007 and since 2013
• Emission intensity of
passenger kilometre was
reduced by 9%
• Intensity of energy
consumption in transport
was reduced by 3% EU
wide
11
TRANSPORT SECTOR EMISSION
DEVELOPMENTS IN THE EU
-14%
-12%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
EU DE FR NL NO SE CHNODE
Development of absolute emissions in the transport sector 2005-15
Increases in efficiency have not offset the increasing transport
performance
Source: Eurostat 2015

12
5. Q&A
AGENDA

13 NORWAY: INCENTIVES FOR E-MOBILITY
• Electric vehicles (BEV and PHEV) are incentivized by a policy
mix of national and municipal instruments
• Introduction of individual policy instruments since 1994
• Combination of financial and non-financial instruments
• Policy instruments are constantly adjusted and updated
• Target: 2020-target of 85 g CO2e per pkm
Introduction

14 NORWAY: INCENTIVE FOR E-MOBILITY
Volkswagen Golf
~EUR 31,000
Volkswagen e-Golf
~EUR 27,000
Financial
incentives
Exemption from registration tax
Exemption from VAT on leasing and vehicle purchase (25%)
Reduction of company car tax
Reduction of annual road tax
Exemption from tolls and ferry rates
Free public parking
Non-
financial
incentives
Special license plates
Right to use bus lanes
Policy mix
Vehicle price for the end customer

• Share of BEV and PHEV of new
registrations is at 39% (2017)
• Total fleet share of BEV and PHEV:
5% (2017)
• Reduction of greenhouse gas
emissions from the transport
sector by 3.6 % (2015-2016)
• 2020-target of 85 g CO2e per pkm
in new vehicles was reached in
2017 (compared to 118.4 g in EU)
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2012 2013 2014 2015 2016 2017
BEV Germany PHEV Germany
BEV Norway PHEV Norway
Source (European Alternative Fuels Observatory 2017)
BEV and PHEV share of new registrations
Impacts

• Policy instruments are embedded in a national strategy
• Political consensus and high public acceptance
• High GDP helps to finance the subsidies
• High share of single- and two-family houses, where charging at home is possible
• High share of renewable energy in the electricity allows for high emission
reduction potential
• High distribution grid capacity due to electric heating makes grid extension costs
less relevant
• Reduction of local air and noise pollution
• High total cost for the state and municipalities
• Traffic congestion on bus lanes
• Public charging infrastructure in cities presents a bottleneck
• Motorized individual transport is incentivized instead of public transport and
cycling
?
Success factors and challenges

17
5. Q&A
AGENDA

18
• Introduction of the Bonus-Malus scheme: 1st January 2008
• Initial target set in 2007: reduce average CO2/km
149g CO2/km in 2007
130g CO2/km in 2020
• Instrument targets the customer at the point of his
purchasing decision
• Multiple adjustments since the instrument‘s introduction
FRANCE: BONUS-MALUS SCHEME
Introduction

19 FRANCE: BONUS-MALUS SCHEME
• Customers of purchased and
leased vehicles pay a fee (malus) or
receive a bonus at the point of
registration
• Bonus and malus depend on the
vehicle‘s CO2 emissions
<20g/km: + EUR 6,000
120g/km: - EUR 50
140g/km: - EUR 1,050
185g/km: - EUR 10,500
• Malus payments refinance bonus
payments
Source (ICCT, 2018)
EUR
120 g threshold (2018)
Functioning of the instrument

20
• In 2017, average emissions for new
registrations reached 111g CO2/km
(149g CO2/km in 2007)
149g CO2/km in 2007
111g CO2/km in 2017
95g CO2/km in 2020?
• Estimates from the French Ministry
for the Environment: instruments
in the transport sector (including
the Bonus-Malus system) will save
5.5 Mt CO2e until 2020
(Total emissions from private
vehicles in 2015: 66 Mt CO2e)
FRANCE: BONUS-MALUS SCHEME
2016 sales
distribution
2008 sales
distribution
Source (ICCT, 2018)
Impact

• Straight-forward incentive system for customers
• „Polluter pays principle“
• Support from the French automobile industry
• System can be designed to be cost-neutral
• Automobile industry is incentivized to develop low emission vehicles.
21 FRANCE: BONUS-MALUS SCHEME
?
Success factors and challenges
• Fine-tuning the instrument: Finding the right balance between bonus and
malus
• Particulate matter emissions are not considered, which creates a relative
incentive for Diesel cars

22
Feel free to get in touch with us after the presentation
QUESTIONS AND ANSWERS
A
Q

24
Connect with us to maximise Navigant‘s impact
WAYS TO CONNECT WITH BEACON
Visit the BEACON page on the EUKI website:
www.euki.de/euki-projects/beacon
Follow us on Twitter:
@EUKI_Climate
Download BEACON
publications
Sign up for the EUKI newsletter
Email us at BEACON_HelpDesk@navigant.com

26
Arnsberg
Eberswalde
Pirna
Ritterhude
Rosbach
Schwäbisch Hall
Bielawa
Cieszyn
Jasło
Sztum
Zamość
Central & Eastern European group
Bielefeld
Bottrop
Donauwörth
Agios Dimitrios
Dorida
Farsala
Kalamata
Syros-Ermoupoulis
Ansião
Coruche
Loulé
Setúbal
Viana do Castelo
Southern European group
Connecting small and medium-size municipalities in 7
countries
EXCHANGE WITH MUNICIPALITIES
Milevsko
Písek
Prachatice
Přeštice
Rožnov pod Radhoštěm
Alba Iulia
Buzău
Deva
Râmnicu Vâlcea
Zalau
Municipalities in bold are participants in BEACON‘s city partnerships.

27
Project specs
BEACON IN A NUTSHELL
Project title Bridging Europeanand Local Climate Action (BEACON)
Client German Federal Ministry for the Environment, Nature Conservation, and Nuclear
Safety (BMU) Referat IK II 5 for European Climate & Energy Policy
Duration April 2018 – March 2021 (3 years)
Budget €8.7 million
Scope Berlin, Germany
Target countries: Poland, Czech Republic, Bulgaria, Romania, Greece, Portugal
Implementing
organisations
DE: Navigant
DE: adelphi research gGmbH
DE: UnabhängigesInstitutfür
Umweltfragen
PL: The Associationof MunicipalitiesPolish
Network (PNEC)
CZ: SEVEn
BG: National Trust Ecofund Bulgaria (NTEF)
RO: Energy Cities Romania (OER) &
ENVIRONAssociation
GR: Centre for Renewable Energy
Sources and Saving (CRES)
PT: FCiências.ID– University of
Lisbon
Network partner: Energy Cities
Targetgroups Municipalities(e.g. public officials,technical staff,administrators),educational
institutions(e.g. pupils, teachers, administrators),national governments

28
Connecting 11 partner organisations
GEOGRAPHIC SCOPE
Germany
Partner countries
Network partner

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