1. www.rec.org Support points for the opening (1) It’s good that CEE and SEE countries and Turkey are gathered together to exchange good practices in lead phase-out, sulphur reduction and promotion of clean vehicles It is even more important given the EU perspective of SEE countries and Turkey Thanks to UNEP and the Partnership for Clean Fuel and Vehicles and USEPA not only for the financial support but for their active involvement in the preparation of the conference

2. www.rec.org Support points for the opening (2) Significant progress has been achieved in the region since the launching of SILAQ – Sofia Initiative on Local Air Quality in 1995 at the Sofia Environment for Europe Conference: since then all CEE have completely phased out lead and many SEE are on the right track to do it This conference is an opportunity to share the progress done and to understand the challenges that lie ahead: for SEE countries the biggest one is the complete ban of leaded fuel and for CEE ones is implementation of the EU legislation as well as adopting innovative policies for promotion of even cleaner fuels and vehicles

3. www.rec.org Support points for the opening (3) This conference is also an opportunity to set up a network of experts who are working on these issues and who share a common interest The existence of such a network could speed up the improvement efforts and speed up the dialogue between different stakeholders.

4. www.rec.org Project Funded by the USEPA and UNEP Goals: present PCFV, review progress to date, consultation on necessary measures with stakeholders, identification and promotion of follow up tools: -country research -exchange of experience between experts from the region – status, policies, etc. -identification of follow up measures and needs on a country and regional level -synergies with a similar VROM project covering SEE countries

5. www.rec.org Background Covered countries – Estonia, Czech Republic, Hungary, Latvia, Lithuania, Poland, Slovakia, Slovenia Partnership for Clean Fuels and Vehicles (PCFV) Building upon SILAQ – Sofia Initiative on Local Air Quality – launched in 1995 at Environment for Europe Conference SILAQ focus – promotion of unleaded gasoline and reduction of sulphur and particulate emissions SILAQ countries – Bulgaria, Czech Republic, Hungary, Poland, Romania, Slovakia and Slovenia REC’s role – secretarial support to SILAQ Working Group

6. www.rec.org SILAQ Conclusions Key issues needed to be addressed: Ability of domestic refineries to supply unleaded gasoline; Use of unleaded gasoline by local vehicles; Awareness of the public as to the applicability of unleaded gasoline. One of the goals of the workshop is to share possible solutions to these problems!

7. www.rec.org SILAQ Recommendations Public information and outreach campaigns regarding the applicability of unleaded gasoline in older cars; Awareness raising with regard to the health benefits of lead phase-out; Exchange of experiences with other countries; Needs assessment for the development and use of non-lead lubricating additives; Research into the feasibility of using unleaded gasoline in cars with soft exhaust valve seats; Ensuring access to the necessary financial support for refinery modernization; Technological development of refineries; Introduction and enforcement of vehicle emissions and gasoline standards; Modernization of the control system for periodic technical inspection of vehicles; Fitting of cars with catalytic converters and other pollution control devices; Development of the production and distribution systems to improve the supply of unleaded gasoline and lubricating additives; Implementation of policy incentives to increase the market share of unleaded gasoline and speed up the complete phase-out of leaded gasoline; Requirements for lead phase-out in the privatization of refineries.

8. www.rec.org Assessment methodology Timing – May-July, 2005 Based on a common questionnaire Baseline year – 2003 Questionnaire includes 5 main chapters: Personal Information Country Specific Data Air Quality Fuel Quality Vehicle Emissions

9. www.rec.org Basic data CountryTotal consumption of crude oil (in barrels) Sulphur content of crude oil % Energy consumption by transport (tones of oil equivalent) Czech RepublicNo refinery.N/A Estonia40,215,0000.354,600,000 HungaryN/A LatviaNo refinery.926,722 Lithuania54,118,0001.3 – 1.8%1,220,500 Poland48,630,840?13,453,000 Slovakia24 661 3791.43 382 000 SloveniaNo refinery.1,411,000

10. www.rec.org Air Quality Institutions – Ministries of Environment, Ministries of Health, Inspectorates, Institutes. Have been strengthened in the pre-accession period. Legislation – fully transposed Air Quality Framework Directive and daugther directives, Emission into Air Directives: VOC from petrol, VOC from solvents, sulphur content in liquid fuels. Problems with implementation? Primary air pollutant criteria standards – harmonised with EU standards, identical targets, sometimes extended deadlines.

11. www.rec.org Fuel Quality (1) Institutions for fuel quality control – different ministries set policies, control lies with Inspectorates or institutes. Capacity? Legislation – full transposition of relevant legislation: Council regulation 2964/95 on registration of crude oil imports and deliveries; EC Dir. 98/70/EC on quality of petrol and diesel fuels; EC Dir. 2003/17/EC amending 98/70/EC. Problems with implementation? Fuel quality standards are harmonised with EU Directive 98/70/EC on quality of petrol and diesel fuels.

12. www.rec.org Fuel Quality (2) Problems: -insufficient control activities? -financial resources for laboratory tests? -illegal import of low quality fuels from neighbouring countries? -strengthening of institutions? -database of fuel stations?

13. www.rec.org FQ (2) – sulphur and lead content in petrol and diesel – national specifications CountryNat. specif. (max) (mg/kg) – S in petrol Nat. specif. (max) (mg/kg) – S in diesel Nat. specif. (max) (g/l) – Pb in petrol Czech Republic 50 0.005 Estonia N/A 0.005 Hungary N/A 0.005 Latvia N/A 0.005 Lithuania 350 0.005 Poland 1503500.005 Slovakia 1503500.005 Slovenia 1503500.005

14. www.rec.org FQ (s) – lead content in petrol – current status CountriesStatus Czech RepublicBanned leaded petrol in January 2001. EstoniaBanned leaded petrol in May 2001. HungaryBanned leaded petrol in 1999. LatviaBanned leaded petrol in 2001. LithuaniaBanned leaded petrol in 2001. PolandBanned leaded petrol in 2003. SlovakiaBanned leaded petrol in 1995. SloveniaBanned leaded petrol in 1995.

15. www.rec.org Promotion of environment friendly fuels CountriesMeasures Czech Republic  No excise tax on the biofuels.  Production of ultra low-sulphur diesel oil (max. sulphur content of 0.050 g/kg) is planned to be launched in 2005. Estonia Biofuel is free from excise tax. Hungary In the NEP there is a national plan for dissemination of environmentally friendly fuels. Latvia Plans to introduce a discount on excise tax on biofuels. Lithuania  Reduced excise tax for for fuel which meets bio-fuels and bio-oils requirements.  Government subsidies and tax exemption for biofuel production Poland Excise tax differentiation for LPG and exemption on biofuels Slovakia N/A Slovenia  Bio fuels are exempt from excise duty.  Agriculture receives subsidies of 67,000 EUR per year plus an additional 27 EUR per hectare of oil rape used for the production of bio fuel.  Some producers are already selling 5% mixture of bio diesel in the ordinary diesel.

16. www.rec.org Vehicle emissions CountryNumber of vehicles Czech Republic 4,056,000 Estonia 530,900 Hungary 3,761,000 Latvia 848,428 Lithuania 122,763 ? Poland 15,899,000 Slovakia 1,621,000 Slovenia 1,094,000 Diesel passenger cars 10%-25% LDV, HDV, buses – mostly diesel Converters - Slo (72%), Sk (56%), Est (24%) Relatively old fleet – mostly 11- 20 years Own production – Czech R., Hungary, Poland, Slovakia, Slovenia Limitations on import (age cap Cz, ) Catalytic converters required – Slo, Sk

17. www.rec.org Promotion of environment friendly vehicles CountriesMeasures Czech Republic  All newly imported cars have to fulfill Euro III standards and must be equipped with catalytic converters.  25% road tax discount for cars compliant with Euro III.  There is a state subsidy for purchasing environmentally friendly public transport buses Estonia  Obligatory catalytic converters.  In Tallinn there is an initiative to allow free parking for ecological cars with hybrid engines Hungary VAT for alternative fuel vehicles is only 10%. Latvia Lithuania Poland The older the car the higher the excise tax. Slovakia Ban on the import of cars without catalytic converters. Slovenia Environmental Fund of Republic of Slovenia offers loans for buying vehicles powered by electricity or hybrid (electricity and petrol).

18. www.rec.org Issues to be addressed during workshop (1) Present and planned activities in studied topics, esp. lead phase-out and sulphur reduction Refineries’ ability to produce cleaner fuels – financial implications Public awareness on health impact. Measures? Institutional strengthening air quality, fuel quality. Is it needed? What kind? Air quality and fuel quality legislation. Is implementation on track? Transposition for SEE countries?

19. www.rec.org Issues to be addressed during workshop (2) Fuel quality control – laboratories, testing equipment Policy incentives to increase the market share of unleaded gasoline and speed up the complete phase-out of leaded gasoline Specific approach to phasing out leaded gasoline – good examples. How is it done? Promotion of environment friendly vehicles – innovative policies

20. www.rec.org How? Share good and bad country experiences Brainstorm on what has to be done Draft a list of follow up steps and actions Discuss financial needs, capacity building needs Complete research data where it is missing!