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From T&E’s blog‘The Chinese see electric as a solution to the polluted air in their cities and a key plank of their industrial policy. In Europe we persist with 20th century dirty diesel engines for our cars’http://transenv.eu/1RWVRYb

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BULLETIN

WEB HIGHLIGHTS

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+ Biodiesel 80% worse for climate than fossil dieselIndirect land-use change an even bigger cause of emissions than first thought, according to long-delayed EU study page 2

No. 245, April 2016

‘Weak’ ship efficiency targets not driving improvementsNewly-built ships covered by the standard have similar performance as those not covered page 2

Trucks’ €143bn cost to societyOnly 30% of lorry costs, which include road repair, health effects and climate impact, are repaid, says study page 5

Natural gas not a ‘bridge fuel’ to cleaner trucks and cars, study findsSwitching to gas-powered vehicles largely ineffective in cutting GHGs and NOx page 4

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Biodiesel’s lifecycle emissions exceeding fossil diesel’s

Illustration by Gaby Goldberg, http://raymond.com.ar/

The phenomenon of indirect land-use change (ILUC) is an even bigger cause of emissions from regular biofuels than first feared. That’s the dramatic finding of a study for the European Commission that was published last month after much delay.

ILUC occurs when the increased consumption of biofuels means more land must be cleared to grow food crops, leading to the destruction

of carbon sinks. The latest research assesses the total direct and indirect land-use change emissions due to additional biofuel cultivation to satisfy EU policy. The emissions are up to four times worse than originally feared, according to the study.

The so-called Globiom report, authored by IIASA, Ecofys and E4tech, is the first major EU-sponsored report on the climate impact of its biofuel policy since 2011. In that year research first confirmed the ILUC impacts of EU biofuels policy and served as a basis for reform of that policy.

Last year that 2011 research finally resulted in a 7% cap on biofuels made from food crops in transport fuel.

Numerous requestsThis latest report was only published after numerous requests for ‘access to documents’ by industry and civil society and was eventually released too late to influence a now-closed public consultation on the EU Renewable Energy Directive.

Now the latest figures indicate that land-use change (LUC) emissions from biodiesel produced from palm oil is responsible for 231 grammes of carbon dioxide equivalent per megajoule of final energy – more than four times greater than estimated just five years ago and 2.5 times the total lifecycle emissions of fossil diesel. LUC emissions from biodiesel from soy are almost three times higher than the previous estimate. Biodiesel made from virgin vegetable oil is expected to have a 70% share in Europe’s biofuel market in 2020.

Overall, LUC emissions from biodiesel made from vegetable oil exceed not just total emissions from fossil diesel but also those from bioethanol. This is largely due to vegetable oils commonly being grown in the tropics, leading to a high risk of tropical deforestation and associated peatland drainage.

Perennial plantsThe report also finds that energy from plants that are not harvested annually, such as willow, switchgrass and poplar, score far better and even have negative LUC emissions. This is because their roots are allowed to develop and store car-bon, meaning that cultivation of these plants typ-ically stores more carbon than leaving the land untouched.

The report will be one of the key documents in-forming bioenergy policy for the 2020-2030 pe-riod for which the Commission is planning a legis-lative proposal, due in late 2016.

The very first tests of cars’ ‘real-world’ CO2 emissions have revealed gaps between official and actual emissions of 36-56% – very similar to those of other on-road fuel efficiency databases.

Three models were tested by PSA Peugeot Citroën, under a protocol devised with T&E, on public roads near Paris with passen-gers, luggage loads, use of air conditioning and other real-life driving condi-tions.

When tested a Peugeot 308 1.6l diesel model recorded a fuel efficiency rating of 5.0 litres per 100 km, or 20 km/l, compared to just 3.2 litres in the official NEDC tests. A Citroën Grand C4 Picasso delivered 5.6 l/100 km (17.8 km/l) in real-world conditions, compared to 4.0 litres in the official tests. The DS3 model consumed 4.9l/100km (20.4 km/l) versus 3.6 li-tres in the NEDC tests. By the summer the French group will publish the actual consumption of 30 models from the Peugeot and Citroen ranges.

PSA Peugeot Citroën is the first carmaker to carry out such tests and the first results are compa-rable to those obtained from independent cus-tomer surveys.

Biofuels’ climate impact even greater than feared, finds long-awaited study

Car CO2 gap of up to 56% in first real-world tests

Newly-built ships covered by the design fuel efficiency standard have much the same efficiency

performance as those not covered, ac-cording to a new independent study. This is because the current targets are too weak, say T&E.

The International Maritime Organisation’s (IMO) design fuel efficiency standard – known as the EEDI – is not stimulating the uptake of new technologies or driving effi-

‘Weak’ ship efficiency targets not driving improvements

continued on page 3

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ciency improvements, finds the report by CE Delft. At least two-thirds of containerships, half of general cargo ships and a quarter of tankers launched in 2015 already overshoot the requirement for 2020 without using in-novative new technologies.

T&E and Seas at Risk (SAR), the NGOs which commissioned the study, said this shows that the standard will not encourage uptake of new technologies, but only prevent a re-turn to the worst designs of the past. T-he efficiency gains recorded are part of a recog-nised historical trend for ship design efficien-cy to fluctuate according to economic cycles and fuel prices.

The IMO is currently reviewing the standard but this is in danger of being shut down with-out any strengthening of the efficiency tar-gets. The ease with which ships over-comply exposes the weakness of the targets and the urgent need for continuing the review when the IMO’s environment committee meets from 18-22 April and tightening the require-ments, said T&E and SAR,

T&E’s shipping policy officer, Sotiris Raptis, said: ‘The tightening of requirements for the design efficiency of new ships is the first test of the IMO’s climate ambition after Paris. Missing this boat until the next review in six years’ time would seriously undermine the efforts of countries that committed to strive towards the 1.5 degrees target.

‘Those countries that supported the Paris Agreement, not least EU countries, should not stand by and see this ambition set aside at IMO.’

While reducing design speed is a very effec-tive way of improving efficiency, the study also found there has only been a modest cut in the average design speed of new vessels, and that is largely limited to container ships.

So with efficiency improvements via new technologies and speed reduction largely untapped, there remains considerable po-tential for further design efficiency improve-ments. But these will not be taken up unless the IMO incentivises them through a stricter EEDI requirement, said T&E and SAR.

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OPINION

A series of well-publicised and completely unpublicised events over the past month have shed

further light on the future of energy in transport – or rather, they should shed such light. The question is whether Europe is noticing.

Silently, the European Commission upload-ed on 10 March an explosive report on the climate impact of its biofuel policy. Silently because a close look yields a damning verdict: in 2020 biofuels in Europe are expected to increase instead of reduce greenhouse gas emissions. This further strengthens the findings from an earlier study which had been the basis of current EU policy. Biodiesel made from vegetable oil leads to greenhouse emissions almost twice those of fossil diesel. We need to phase it out as soon as possible.

Bloomberg released a report on the future of electric cars, stating that the price of batteries had dropped by two-thirds since 2010. This equates to a decrease of 20% per year. These are stunning numbers and the end is not in sight, leading Bloomberg to predict the beginning of the end for internal-combustion vehicles to occur at some point in the 2020s.

In China 52,000 electric cars were sold in

January and February 2016. This is on track to smash Europe’s 59,000 in the whole of 2015 by a factor five or so.

And of course there was the event every mainstream newspaper and website cov-ered – Tesla’s unveiling of its electric Model 3, leading to an eye-watering 276,000 pre-orders from enthusiasts who had to stump up $1,000 for the honour to be first in line to get a car at a point almost two years from now.

And where is Europe? The most hopeful answer is: waking up from a long winter sleep – it’s spring after all. Even Dieter Zetsche, head of arch-conservative Daim-ler, seems to be coming to terms with the idea that electric cars might be interesting. Maybe the Tesla Model S outselling any Mercedes model with a comparable price tag in the US has something to do with it?

We have yet to see or hear any signs of ambition from the the European Commis-

sion, which should be publishing before the summer break a communication on the decarbonisation of transport.

A consultation on renewable energy policy after 2020 suggested new biofuel blending mandates (dubbed ‘incorporation obliga-tions’) at a time when that same Commis-sion was sitting on the study – mentioned above – that emphatically concludes that the current mandate is a bad idea.

A recent gas strategy says it would be an excellent ‘green’ idea to use natural gas in transport – although a study Ricardo Energy & Environment recently carried out for us says that ‘it is difficult to justi-fy supporting the use of this fuel in the road transport sector’ given the tremen-dous cost and and virtually non-existent benefits.

It is not too late for Europe to wake up from its winter slumber – but the clock is ticking.

By Jos DingsT&E Executive Director

Europe asleep at the wheel on the road to cleaner transport?

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Natural gas is not a ‘bridge fuel’ to a cleaner future for cars and trucks – as the fossil fuel industry claims – because it would be largely ineffective in cutting greenhouse gas (GHG) emissions and air pollution, an independent study has found. Instead petrol-hybrid, electric and hydrogen cars deliver much greater climate benefits.

Considering the emissions from extraction to vehicle tailpipe, there are no GHG savings in

shifting from diesel cars and trucks to compressed or liquefied natural gas (LNG) cars and trucks, according to the research. Also, compressed natural gas-powered cars (CNG) offer almost no extra air pollution benefits compared to petrol ones. While CNG cars emit less NOx than diesel engines, the introduction of real-world tests and future tightening of emission standards will greatly reduce that advantage.

The results come as the European Commission released a proposal to guarantee its gas supply security and is preparing another one to implement the

EU’s 2030 climate targets for the transport, buildings and agriculture sectors. It is also developing a communication to decarbonise the road transport sector, to be announced this summer.

Carlos Calvel Ambel, T&E’s transport and energy analyst, said: ‘Natural gas is not a ‘bridge fuel’, but an expensive dead-end on the road to decarbonising transport. Europe is in danger of repeating past fuels mistakes with promoting diesel and biofuels that have proved costly and harmful.’

Emissions and methane leakage during the extraction, production and transport of gas ensure that gas-powered trucks and buses would always result in higher overall GHG emissions than conventionally powered ones. Gas trucks also have only minor impacts on air pollution compared to the new Euro VI-standard trucks now on sale.

T&E said there was no justification for the lower fuel duties enjoyed by gas around Europe or the public money many governments are now considering investing in gas refuelling infrastructure.

Carlos Calvel Ambel added: ‘We need to tackle truck CO2 emissions but gas is not the answer. Gas trucks are no better on air pollution and are worse for the climate.

Governments need to stop wasting taxpayers’ money on convincing hauliers to invest in a technology that isn’t going anywhere.’

In the shipping sector, LNG burns significantly cleaner than heavy fuel oil (HFO) and marine gas oil (MGO). While the study finds clear air pollution advantages from using LNG, its GHG emissions benefits are highly dependent on methane slip at the production, distribution and operational levels. It recommends measures to control methane slip be taken.

LNG ships would require the development and upgrading of infrastructure, incurring infrastructure and capital costs of around €170 per tonne of LNG, according to the consultants’ cost analysis. This is compared to €10 per tonne for existing HFO and MGO infrastructure, a very significant difference which T&E says should not be funded from the public purse as it would constitute another fossil fuel subsidy.

However, a mandated shift away from oil products towards gas would help address the most pressing environmental concerns over Arctic shipping, such as oil spills and black carbon emission deposited on ice, the study noted. The use of LNG in polar waters was not investigated in detail.

Natural gas not a ‘bridge fuel’ to cleaner trucks and cars – study

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Trucks cost society €143 billion a year across the EU through damage to infrastructure and health as well as congestion, climate change and other effects.

The impact of heavy-duty vehicles is assessed in a new independent study for T&E which also finds

that only 30% of these costs are covered by fuel excise duties, vehicle taxes and infrastructure charges.

Trucks, which account for around one-quarter of road transport’s climate emissions, cost €17 billion in global

warming impacts, according to the study. Heavy-duty vehicles’ air pollution impacts are assessed, mainly due to health effects. Trucks cause more than 40% of transport NOx emissions in Europe. Their biggest cost is €58 billion a year in road damage across Europe.

T&E said the EU should seek to lower trucks’ climate impact by differentiating truck tolls on the basis of their CO2 emissions when the European Commission revises the road-charging, or Eurovignette, directive in late 2016 or early 2017. Also, time-based charges should be phased out for encouraging inefficiency – the more you drive the

less you pay – and distance-based tolls introduced as they promote cleaner and more efficient logistics.

Samuel Kenny, freight and climate officer at T&E, said: ‘The Commission has a unique opportunity this year to make these CO2 reductions much greater by enabling countries to differentiate their tolls based on the fuel efficiency or carbon emissions of trucks.’

T&E also said the EU should increase the caps at which countries can charge trucks based on air pollution. This would enable countries to promote the uptake of cleaner vehicles.

The study was published as Belgium introduced a distanced-based truck toll, which T&E welcomed as a fair way to ensure that trucks pay for a bigger share of the damage they cause. The new road-charging scheme tolls a typical highway truck at between 13-15 cent per km in Belgium, which is similar to German truck-toll levels but far below the 36 cent/km paid in Austria.

Belgium’s scheme also has a higher toll for Brussels than interurban areas to encourage more efficient use of cleaner trucks in a city that suffers from heavy congestion and poor air quality. This urban-interurban differentiation is a first for Europe. Belgium’s toll also issues a challenge to its neighbour Holland – which is now a ‘no-toll island’ in Central Europe – to implement a similar system.

Trucks’ €143bn cost to society not being repaid – study

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TRANSPORT & ENVIRONMENT 2nd floor, 18 Square de Meeûs1050 Brussels, BelgiumTel: +32 2 851 02 02info@transportenvironment.org

CO-EDITORSEoin Bannon and Chris Bowerseditor@transportenvironment.org Tel & fax: +44 1273 813331

T&E gratefully acknowledges funding support from the European Commission

Road charging for lorries has been in-troduced in Russia, with environmental groups hoping it will bring a shift in freight from road to rail, even though that is not the government’s intention.

Launched in November, the scheme was planned to charge all trucks over 3.5 tonnes, but the starting limit was raised to 12 tonnes, and applies only to federal highways. Any revenue after payment of a guaranteed sum to the private company operating the scheme goes to the federal budget, with the intention of using it to maintain roads.

T&E’s Russian board member Alexander

Fedorov said: ‘The idea behind the charg-ing scheme was not environmental at all, but in a country where it’s very difficult to get environmental policies, we are happy to see the benefits from this charge. As there are often no alternative roads to federal ones, we hope road charging will redirect goods transport onto Russia’s extensive system of railways.’

Opposition to the scheme has been considerable, with two strikes by lorry drivers, and delays in the imple-mentation of electronic onboard devices used to calculate the money payable. The tariff is now €0.05 per vehicle kilo-metre.

Russia introduces truck tolling

Is this dieselgate 2.0?

A German trade body has uncovered evidence of a lorry exhaust manipulation scam ‘on an industrial scale’. Research by Camion Pro, which represents road transport operators, suggests around 20% of lorries using German roads have had their NOx emissions reduction tech-nology manipulated by a scam that is rife in eastern Europe, causing increased pollution and losses of income from the German motorway toll scheme.

Its conclusions confirm the ‘urgent sus-picion’ that organised crime in eastern Europe has set up a steady income stream from manipulating the emissions of lorries. In a statement headed ‘Exhaust Emis-sions Scandal 2.0’, it says a manipulation industry has grown up, in which differ-ent companies compete in the market place to provide the best technology. It is estimated the technology could save €3,000 per lorry per year, on a low risk of being caught.

Are the first meaningful European NOx limits for shipping in sight?

Limits to nitrogen oxides (NOx) emissions from ships using the Baltic and North Seas moved a step closer with a decision by countries bordering the Baltic to apply for NOx limits in designated ‘emission control areas’ (ECAs).

The rules on ECAs allow for NOx limits, but the North Sea and Baltic Sea ECAs do not currently restrict emissions. Now the Helsinki Commission – grouping the nine countries with Baltic coastlines – and the EU have agreed to apply for strict NOx emissions limits to apply in the Baltic, to halve the 13,000 tonnes of airborne nitrogen deposited each year.

The application is expected to be con-sidered in October.

Setback for the Alps as Swiss road tunnel referendum passed

Switzerland has voted in favour of building a second road tunnel through the Gotthard alpine mountain. In a referendum in late February, the Swiss electorate voted by 57% to 43% to approve the new tunnel, despite the Swiss constitution committing the country to shifting goods transport from road to rail.

The vote is widely seen as part of a polit-ical swing to the right, accompanied by a weakening of public willingness to support environmental measures.

T&E’s two Swiss member organisations say they will now focus their efforts on ensuring the promised modal shift takes place once a new transalpine rail axis comes into operation in July.

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BEYOND THE BRUSSELS BUBBLE

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The Bulletin is the official news sheet of Transport & Environment. It appears 10 times a year.