The transportation sector faces special challenges in the process of decarbonization, since the need for mobility – both for people and goods – is rapidly increasing around the world, especially in the emerging economies. Because of road traffic’s key position in mobility, the future CO2 regulation of cars and trucks will play a substantial role in climate policy.
Compendium: For Better CO2 Regulation of Motor Vehicles in Europe
Expertise
German Economic Institute (IW)
The transportation sector faces special challenges in the process of decarbonization, since the need for mobility – both for people and goods – is rapidly increasing around the world, especially in the emerging economies. Because of road traffic’s key position in mobility, the future CO2 regulation of cars and trucks will play a substantial role in climate policy.
Core theses: Climate protection
- Europe’s share of the worldwide CO2 emissions is low and continuously decreasing.
- No solution without China: Europe’s reduction of emissions is being eaten up by growth in emerging economies.
- Motor vehicles account for approximately one-seventh of the CO2 emissions in the EU. Their share in transportation emissions is declining.
Core theses: CO2 regulation for motor vehicles
- New vehicles in Europe have become considerably more efficient in recent years.
- CO2 legislation in Europe shows the most stringent target values in an international comparison.
- Europe has once again tightened the reins on the CO2 threshold levels for motor vehicles and is requiring a further reduction of CO2 within an even shorter span of time.
- Even without a further tightening of the CO2 threshold levels after 2020, the motor vehicle industry is still on track to meet the EU’s climate policy targets by 2030.
- Vehicle fleet threshold levels under 95 grams cannot be achieved with conventional engine types, and the market success of alternative engine types is still uncertain.
- EU environmental legislation is not coherent and, for a long time, had other priorities than CO2 reduction. This had various consequences, including an increase of CO2 emissions.
- Today’s CO2 laws regulate only new vehicles, completely disregarding the remaining vehicle fleet.
- An effective reduction of CO2 emissions cannot address new vehicles alone but must take a much broader approach.
Core theses: Balance between climate protection and industrial policy
- The EU is targeting a 20 per cent industry share of GDP for the year 2020. This goal is presently a long way away, since industrial and climate protection policy are not yet aligned.
- The CO2 abatement costs vary greatly between sectors and are most pronounced in the automotive sector.
- Emissions trading as the most economically efficient form of CO2 regulation can easily be applied to road traffic.
Thomas Puls: For better CO2 regulation of motor vehicles in Europe
Expertise
German Economic Institute (IW)
Compendium: For Better CO2 Regulation of Motor Vehicles in Europe
Compendium: For Better CO2 Regulation of Motor Vehicles in Europe
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