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Thomas Puls Expertise 25. June 2020 Compendium: For Better CO2 Regulation of Motor Vehicles in Europe

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.

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For Better CO2 Regulation of Motor Vehicles in Europe
Thomas Puls Expertise 25. June 2020

Compendium: For Better CO2 Regulation of Motor Vehicles in Europe

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German Economic Institute (IW) 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.
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For Better CO2 Regulation of Motor Vehicles in Europe
Thomas Puls Expertise 25. June 2020

Thomas Puls: For better CO2 regulation of motor vehicles in Europe

Expertise

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German Economic Institute (IW) German Economic Institute (IW)

Thomas Puls Expertise 25. June 2020

Compendium: For Better CO2 Regulation of Motor Vehicles in Europe

Thomas Puls Expertise 25. June 2020

Compendium: For Better CO2 Regulation of Motor Vehicles in Europe

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How Much Do Infrastructure Problems Affect Businesses in Germany? Results of IW Surveys
Thomas Puls / Edgar Schmitz IW-Trends No. 4 22. November 2022

How Much Do Infrastructure Problems Affect Businesses in Germany? Results of IW Surveys

In recent months, closed motorways, congested seaports and cancelled freight trains have combined with already high energy prices and material shortages to cause exasperation in Germany’s business community.

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Thomas Puls Expertise 13. September 2022

Compendium 5.2: CO2 Regulation of Road Transport in Europe

With the Compendium CO2 Regulation in Europe, the IW has been providing the interested public with a comprehensive collection of data on the development of CO2 emissions from passenger car traffic in the European Union, as well as on the applicable regulatory ...

IW

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