26 Strategy for clean and energy efficient
vehicles
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9006/10
COM(10) 186
| Commission Communication: A European strategy on clean and energy efficient vehicles
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| Legal base | —
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| Document originated | 28 April 2010
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| Deposited in Parliament | 25 May 2010
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| Department | Business, Innovation and Skills
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| Basis of consideration | EM of 26 May 2010
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| Previous Committee Report | None, but see footnotes
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| Discussed in Council | 25 May 2010
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| Committee's assessment | Politically important
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| Committee's decision | Cleared
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Background
26.1 According to the Commission, the European automotive industry
is a world leader in developing clean and energy efficient technologies
based on combustion engines, but it adds that transport is nevertheless
responsible for about one quarter of EU emissions of carbon dioxide
and contributes significantly to air pollution and related health
problems, particularly in urban areas. It notes that the internal
combustion engine is likely to remain dominant in road vehicles
in the short and medium term, but that alternative fuel and propulsion
technologies are likely to contribute significantly to the Europe
2020 priorities of developing smart and sustainable growth.
The current document
26.2 It has therefore put forward this strategy for encouraging
the development and uptake of clean and energy efficient heavy[106]
and light[107]-duty
vehicles, as well as two and three-wheelers and quadricycles.[108]
It sees the strategy as a vital part of the Europe 2020 flagship
initiative "Resource efficient Europe", which seeks
to promote new technologies to modernise and decarbonise the transport
sector, and as building upon both the European green cars initiative
which was launched as part of the European Economic Recovery Plan[109]
in November 2008, and the existing 2007 strategy[110]
for reducing carbon dioxide emissions from passenger cars and
light-duty commercial vehicles. It also says that the approach
set out will help to boost the competitiveness of the European
industry at a time when its global competitors in both America
and Asia are investing in research into low-carbon technologies
and seeking to develop alternative technologies.
ACTION PLAN FOR GREEN VEHICLES
26.3 The Commission suggests that, in order to achieve these aims,
it is necessary to follow two tracks, namely promoting clean and
efficient vehicles based upon conventional internal combustion
engines and facilitating the deployment of breakthrough technologies
in ultra low carbon vehicles. In particular, it notes that alternative
fuels for internal combustion engines include liquid
biofuels and gaseous fuels, which offer the potential to reduce
the environmental impact of road transport, but which (with the
exception of biofuels) require engines to be modified, a dedicated
on-board fuel storage system, and a sufficiently widespread refuelling
network; that electric vehicles, which it says have significant
potential to address a number of challenges such as global warming
and fossil fuel dependency, are likely to remain a niche market
in the near future, but that sales are expected to expand as battery
technologies improve, provided significant cost reductions can
be achieved through technological improvements and economies of
scale; and that hydrogen fuel cell vehicles, which generate
electricity on board, can deliver similar environmental benefits,
with their deployment alongside battery vehicles being mutually
complementary as they share many similar components.
The regulatory framework
26.4 The Commission notes that the EU's strategy to reduce carbon
dioxide emissions from road vehicles has already achieved much,
with Regulation (EC) No 443/2009 setting performance standards
for new passenger cars, a Commission proposal[111]
to reduce such emissions for light commercial vehicles being currently
under discussion, and stricter emission standards for particulate
matter and nitrous oxides having been introduced for cars, vans
and heavy-duty vehicles.
26.5 It adds that, even though petrol and diesel
internal combustion engines will become less dominant, every available
means must be used to reduce their environmental impact, and it
says that it will:
- propose a Regulation on type-approval
requirements for two-and three-wheelers and quadricycles in 2010
which will set emission standards, and will adapt or develop measures
to take account of new technologies;
- prepare measures to implement Regulation (EC)
No 443/2009 by 2011, including detailed rules on the monitoring
and reporting of data, on the application of a derogation for
small volume and niche manufacturers, on the procedure for approving
innovative technologies, and on the methods for collecting excess
emissions premiums;
- propose detailed rules on the marketing of the
'green additionality' of vehicles to avoid misleading environmental
claims;
- present a proposal by 2011 to reduce fuel consumption
impacts of mobile air conditioning systems;
- propose an amendment of Directive 70/157/EEC
by the end of 2011 to reduce the noise emitted by vehicles;
- ensure that emissions are reduced by proposing
at the latest by 2013 a revised test cycle, including a methodology
for taking into account innovative technologies: and develop a
robust procedure by 2012 to measure emissions, considering the
use of portable emissions measurable systems;
- propose a strategy targeting fuel consumption
and carbon dioxide emissions from heavy-duty vehicles;
- promote additional steps which may help to decrease
emissions from road transport, including Intelligent Transport
Systems (ITS), infrastructure measures, and urban transport management;
and
- ensure implementation of the Community's sustainability
criteria for biofuels, as well as promoting the development of
advanced low carbon fuels and sustainable biofuels and engine
technology capable of using these fuels.
Supporting research and innovation in green technologies
26.6 The Commission observes that, despite recent
technological advances, electrical and hydrogen fuel cell vehicles
are still expensive, and that further research is needed to bring
down costs and improve their range and driveability, including
the development of alternative charging and energy storage technologies.
It also notes that the European Green Cars Initiative is funding
research into electrifying transport, whilst the Fuel Cells and
Hydrogen Joint Undertaking supports research into hydrogen fuel
cell vehicles and infrastructure.
26.7 The Commission says that it will:
- ensure that European research
continues to target low carbon fuels and clean and energy efficient
transport, including the improvement of conventional engines,
alternative battery technologies and hydrogen technologies, with
grants focusing on topics with clear added value at EU level;
- simplify and streamline the administrative rules
for obtaining EU research grants;
- propose a long term research strategy in 2011
in the Strategic Transport Technology Plan and in the Communication
on Clean Transport Systems; and
- explore with the European Investment Bank the
continuation of support for research and innovation projects to
promote clean and energy efficient automotive products.
Market uptake and consumer information
26.8 The Commission notes that green vehicles are
still significantly more expensive, and that appropriate incentives
are needed to improve market uptake, particularly in densely populated
urban areas where pollution is heaviest, but where the greatest
potential exists for the application of new technologies. It points
out, although most Member States have introduced carbon dioxide
based vehicle taxation schemes or other financial incentives,
these vary considerably, and it expresses concern that any benefits
may be outweighed by a detrimental effect on the internal market.
26.9 The Commission says that, if consumers are to
accept green vehicles as real alternatives, they need to be sufficiently
well informed to make the necessary comparisons, and that it will:
- present guidelines on financial
incentives to consumers to buy green vehicles in 2010, and encourage
coordination of demand-side measures adopted in Member States,
ensuring that any benefit accruing to industry is in line with
existing State Aid rules;
- work on a revision of the energy taxation Directive,
to provide better incentives for the efficient use of conventional
fuels and the gradual uptake of alternative low-carbon emitting
fuels;
- take action to ensure more coordination and improve
the overall effectiveness of vehicle taxation measures taken by
Member States to promote green vehicles;
- monitor the implementation of Directive 2009/33/EC;
- launch a research project on consumer expectations
and buying behaviour, and test ways of comparing clean and energy
efficient cars with conventional vehicles;
- propose an amendment to Directive 1999/94/EC
on car labelling; and
- launch an EU-wide electromobility demonstration
project in 2011 to assess consumer behaviour and usage patterns,
to foster user awareness of all types of electric technology,
and to test new developments in the area of standardisation for
electric vehicles, with future initiatives being targeted on those
urban areas which have sustained air quality problems.
Global issues
26.10 The Commission notes that the EU industry is
competing globally, and that, if the benefits of open world markets
are to be secured, this requires a reduction in tariffs and the
removal of unnecessarily restrictive technical regulations. It
also says that regulatory convergence with the EU's main commercial
partners should be sought wherever possible, and that fair and
open access to the new (and rare) raw materials needed for electric
and hydrogen fuel cell vehicles is important. It says that it
will:
- engage in international standardisation
activities and regulatory dialogues with the EU's main commercial
partners, and provide technical assistance to non-EU countries
to promote trade and prevent market-distorting rules on green
vehicles;
- continue to take regulatory cooperation initiatives
to promote harmonised regulations at global level with countries
which are not contracting parties at United Nations Economic Commission
for Europe (UNECE); and
- support access to materials in short supply through
the raw materials initiative.
Employment
26.11 The Commission says that, if manufacturers
are to have a suitably skilled workforce, it is essential to manage
restructuring and anticipate the (currently rare) skills needed
to design and produce innovative vehicles. It says that it will:
- establish a European Sectoral
Skills Council, aiming at creating a network of Member States'
national observatories; and
- target use of the European Social Fund starting
in 2011 to encourage retraining and upskilling.
Mid-term review of carbon dioxide emissions legislation
26.12 The Commission suggests that an objective of
the review will be to provide the automotive industry with the
planning certainty as to the long-term target, suggesting that
any new carbon dioxide standards should be based on the full potential
of different technological options in order to drive innovations.
It also says that an overriding objective will be to ensure that
any support mechanisms for ultra-low emission vehicles do not
weaken the incentive for emission-reduction from the existing
fleet of conventional combustion engine vehicles.
26.13 It says that it will:
- review Regulation (EC) No 443/2009
by 2013, looking at the modalities of reaching the 2020 target
for passenger cars and the long-term perspective for 2030, whilst
building on the experience gained from implementing the short
term targets; and
- review the modalities of reaching the long-term
target to reduce carbon dioxide emissions from light commercial
vehicles (vans) by a date to be determined.
SPECIFIC ACTIONS FOR ELECTRIC VEHICLES
Placing on the market
26.14 The Commission notes that common (type approval)
rules have already been set out for hydrogen powered vehicles,
gas fuelled vehicles and biofuels, and that these are needed for
electric vehicles too, so as to provide legal certainty for industry
and protect consumers. It says that, working together with its
international partners, it will:
- propose electric safety requirements
for vehicle type-approval in 2010;
- review other type-approval requirements covered
by Directive 2007/46/EC by 2011; and
- review crash safety requirements, and consider
whether the quietness of these vehicles is potentially dangerous
to vulnerable road users by 2012.
Standardisation
26.15 The Commission says that common standards should
allow all electric vehicles to be charged and have access to the
electricity grid anywhere in the EU and to all types of chargers,
with investment in electric charging points based on different
standards being avoided as far as possible. It notes that slow
vehicle charging from existing electric sockets is already possible,
but that fast charging requires a dedicated plug and socket, which
needs to be standardised at the EU level to ensure interoperability.
It also believes that the quick adoption of a European standard
would reinforce the global competitiveness of the European industry.
26.16 It says that it will:
- within the framework of Directive
98/34/EC, mandate the European standardisation bodies to develop
by 2011 a standardised charging interface to ensure interoperability
and connectivity, to address safety risks and electromagnetic
compatibility, and to consider smart charging (enabling users
to take advantage of electricity during "off peak hours");
- identify a method to enable that standard to
be adopted by all concerned, including manufacturers, electricity
providers and electricity distribution network operators; and
- constantly monitor global technological and market
developments to update European standards if necessary.
Infrastructure
26.17 The Commission says that, although the entry
into the market of electric vehicles enables consumers to start
charging them from existing power points, a publicly accessible
network of charging points will have to be provided, requiring
significant investment and the definition of standards on safety,
interoperability and payment. It adds that an assessment needs
to be made whether synergies exist between electric and hydrogen
vehicles and their connection to low-carbon electricity sources.
26.18 It says that it will:
- provide a leading role in working
with Member States on the build-up of charging and refuelling
infrastructure in the EU; and
- explore with the European Investment Bank how
to provide funding to stimulate investment in infrastructure and
services build-up for green vehicles.
Energy, power generation and distribution
26.19 The Commission suggests that the impact of
green vehicles with alternative technologies needs to be thoroughly
assessed and compared with that of conventional vehicles using
a life cycle approach, including emissions from electricity generation
as well as the environmental impacts due to the production and
disposal of the vehicle. It observes that electrifying transport
is likely to lead to an increase in overall electricity demand
over time, and that if charging occurred at peak times, this could
require additional, potentially carbon-intensive generation capacity
— a risk it says can be mitigated through smart metering
and appropriate consumer incentives. It also believes that batteries
in electric vehicles could serve as secondary storage capacity
for excess renewable energy if charging was timed to coincide
with off-peak or excess intermittent renewable electricity.
26.20 The Commission says that it will:
- determine and compare the environmental
and carbon footprint of different types of vehicle based on a
life cycle approach;
- evaluate whether the promotion of electric vehicles
leads to the provision of low carbon energy sources in order to
ensure that the electricity they consume is not detrimental to
the low carbon electricity already expected from meeting the requirements
of the Renewable Energy Directive; and
- evaluate the impact of the increased requirement
for low-carbon electricity on the supply system and on the grid.
Recycling and transportation of batteries
26.21 The Commission says that the intensive use
of batteries by electric vehicles has its own environmental implications,
whilst hydrogen fuel cells are likely to involve a high recycling
of some raw materials, given their scarcity and prices. It says
that, when they are no longer of use in vehicles because their
energy storage capacity falls, batteries could be used for other
purposes, such as stationary energy storage in homes, and that
schemes for this 'secondary use' will be considered. It also points
out that the quantity of operational batteries which can be transported
is currently limited by the Directive on transport of dangerous
goods, which contributes to their high cost.
26.22 The Commission will:
- consider what changes may need
to be made to existing legislation in relation to the recycling
of batteries and end of life vehicles;
- promote European research programmes on recycling
and reusing of batteries; and
- review options for changing the rules on transporting
batteries after carefully evaluating the costs and potential risks.
GOVERNANCE
26.23 The Commission says that action in the areas
identified in this strategy requires a high level of coordination
across relevant policy areas, and for stakeholders to put in place
what is needed to give the EU a sustainable transport system with
a competitive industrial base. It adds that this requires discussion
with those who have not necessarily cooperated before, and that,
although it recognises that a number of Member States have launched
national programmes to promote electric mobility, it points out
that, if these are not coordinated, the internal market may be
fragmented, with the risk that the EU could lose its competitive
advantage in this technology.
26.24 The Commission says that it will:
- re-launch the CARS 21 High
Level Group with a revised mandate and extended stakeholder involvement
to address the barriers to the uptake of alternative technologies;
- implement the strategy to reduce carbon dioxide
emissions from road vehicles under the European Climate Change
Programme (ECCP);
- closely coordinate the workflows from ECCP and
CARS 21;
- ensure the integration of this strategy into
the overall EU transport policy; and
- ensure coordination with Member States in order
to avoid fragmentation, to create sufficient critical mass for
the industry, and to monitor national developments.
The Commission concludes by saying that the added
value of an EU strategy is clear, in that it draws together multiple
initiatives and actions and creates a platform to keep the internal
market working properly. It adds that the initiative promotes
better regulation by setting out long-term policy orientations
and increasing certainty for business operators. However, in order
to ensure its successful implementation, the strategy will be
reviewed in 2014 to take stock of progress, to assess how the
market and technologies have changed, and to recommend further
action.
The Government's view
26.25 In his Explanatory Memorandum of 26 May 2010,
the Minister of state for Business and Enterprise at the Department
for Business, Innovation and Skills (Mr Mark Prisk) says that
the UK recognises the benefits that will arise from the Communication's
plan. In particular, the framework for regulatory activity and
standardisation would promote better regulation by setting out
long term policy objectives and should increase certainty for
business, and it would also create a platform to coordinate efforts
within the principles of the Single Market.
26.26 He also points out that new regulatory and
legislative activity would be subject to agreement by Member States
as and when proposals are brought forward by the Commission, and
says that it is important the strategy should provide an appropriate
and technology neutral framework for a range of technologies in
order to achieve environmental and competitiveness goals. However,
he notes that the internal combustion engine will continue to
be predominant for many years to come both in Europe and internationally,
and that continued efficiency improvements to conventional engines
will be essential if the EU is to meet its climate change obligations
to 2020 and beyond. He adds that the UK is committed to European
level research and development, but that this must remain technology
neutral, keeping a range of options open and continuing to look
at supporting projects based on their merits, rather their technology
choices.
26.27 The Minister says that the Communication was
discussed and approved at the Competitiveness Council on 25 May,
but points out that new and amended legislation indicated in it
will be subject to individual scrutiny.
Conclusion
26.28 As will be evident, this is a wide-ranging
Communication on a subject of considerable, social, economic and
environmental significance, and we have therefore thought it right
to report it to the House at some length. Having said that, we
do not think any further consideration of the strategy as such
is needed, given that it has already been agreed by the Competitiveness
Council, and that its very wide-ranging nature would inevitably
give rise to a somewhat unfocussed debate. Instead, we consider
that it would be more sensible that any further scrutiny should
be directed as necessary to the various strands in the strategy,
as and when they are the subject of further proposals or Communications.
We are therefore clearing the document.
106 Buses and trucks (vehicles of categories M2, M3,
N2 and N3 as defined in Directive 2007/46/EC). Back
107
Cars and vans (vehicles of categories M1 and N1 as defined in
Directive 2007/46/EC). Back
108
Vehicles of category L as defined in Directive 2002/24/EC. Back
109
(30213) 16097/08: see HC 19-i (2008-09), chapter 4 (10 December
2008). Back
110
(28366) 6204/07: see HC 41-xvi (2006-07), chapter 10 (28 March
2007). Back
111
(31093) 15317/09: see HC 5-iv (2009-10), chapter 5 (15 December
2009). Back
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