Towards sustainable transport: Focus on freight Nina Renshaw Transport and Environment Open Days, Brussels, 7 October 2008

Austria, Belgium, Croatia, Czech Republic, Denmark, Estonia, France, Germany, Greece, Hungary, Italy, FYROM, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovenia, Spain, Sweden, Switzerland, UK 51 Members – 23 Countries T&E membership

Focus on freight Why focus on freight? Trends and impacts Policy approaches Real life examples Recommendations

Freight transport growth Source: EEA, 2008 Freight transport growth in Europe ( ) + 43% Double the rate of passenger transport growth Outpacing 30% GDP growth Projected growth road freight transport demand ( ) + 52%

Oil consumption in transport Ships Aircraft Rail & inl. shipping Cars Lorries

Modal split Source: Eurostat, Statistics in Focus, 38/ 2008

Comparison climate performance by mode Source: CE Delft, To shift or not to shift, 2003

Transport and climate

Time to tackle demand

Time to tackle demand Vehicles are slowly getting cleaner in terms of air pollution (EURO IV, V…) Painfully slow progress on vehicle noise No rules on trucks fuel efficiency BUTTechnological improvements are cancelled out by traffic growth!

Current prices in freight transport do not include the costs imposed on society: Air pollution, noise, climate change, accidents, congestion EU Treaty Article 174 (2): Polluter-pays principle environmental damage should as a priority be rectified at source and the polluter should pay. … by getting the prices right

Benefits found include: (CH, DE, AT, CZ – Stockholm, London) Better load factor, reduced empty driving Cleaner (newer) fleet composition Reduced emissions Revenues / Fast cost payback No effect on consumer prices But… traffic diversion, modal shift moderate. Km-charges coming soon in HU, SK, FR, SE, NL Experience of km-charging

The Swiss example More efficiency: +16% tkm; -6% vkm Cut emissions: -10% PM; -16% NOx; -4% CO2 Modal split (2007): 64% rail, 26% road Revenue (2006): 900Million 2/3 to public transport fund for alpine rail links, international rail links, noise reduction 1/3 to local authorities

Smart demand management and use of revenues Fee variation by time, place, emissions class EU Recommendation for use revenues to benefit transport sector and optimise transport system - road maintenance, public transport, rail… Also possible: Management by local authorities T&E prefers: Use charges on pollution, congestion etc to decrease taxes on positive inputs, such as employment. Green charges « Double dividend »

Key benefits of road charging Economic –Improved efficiency and innovation in road freight sector –Reduced congestion –Revenues (double dividend) Social –Who suffers from noisy and polluted roads? Who are the victims of climate change? –Reduced pressure on oil prices Environmental –Improved air quality, less noise, reduced GHG emissions, cleaner fleet, local differentiation.

Conclusion: smart charging now! Technology improvements are great news… but not enough, tackling transport demand is unavoidable New Eurovignette Directive currently under discussion: An opportunity to – finally - allow Member States to internalise of external costs in road tolls It can be done: We know why, we know how, we know it works – Why wait?

Thank you