1. TRT Trasporti e Territorio 1 Energy and Environmental Aspects of the Transport Policy Silvia Maffii TRT Trasporti e Territorio Srl, Milan - Italy Bruxelles, 11 December 2007 TRADE UNION VISION ON SUSTAINABLE TRANSPORT TRANSPORT AND ENVIRONMENT & INFRASTRUCTURE FINANCING AND THE ROLE OF THE STATES

2. TRT Trasporti e Territorio 2 Key facts About one third of the final energy consumption in the EU-25 is related to transport (excluding maritime transport and pipelines) Road transport is by far the dominating sector consuming nearly 83% of the energy used for transport purposes. The transport market today is almost entirely (97%) dependent upon oil-based fuels and is responsible for about 70% of the final oil demand in the EU-25 Transport sector contribute to EU overall GHG emissions (CO 2, CH 4, N 2 O) in the EU-27 for a 24,1% Transport contribution to air pollution is also significant

3. TRT Trasporti e Territorio 3 Key facts Absolute change of CO 2 emissions by large key source categories 1990 to 2005 for EU-15. in CO 2 equivalents (Tg)

4. TRT Trasporti e Territorio 4 Evolution of freight and passenger transport compared with growth in GDP, 1995-2004/5 (1995=100) GDP Growth 2,3 % Freight transport 2,8 % Passenger transport 1,8% Trends in transport demand Source: DG Energy and Transport, reported in Eurostat, Panorama of transport (2007) The transport sector exhibited the highest growth in energy demand between 1990 and 2004 (2.0% per annum) Improvements in fuel efficiency were offset by increases in passenger and freight transport demand

5. TRT Trasporti e Territorio 5 Trends in transport demand Relevance of urban areas Half of the trips made by European citizens (per year and per capita) 5 km long. About 75% of km travelled in EU conurbations are made by car and, on a daily basis, 60% of all kilometres travelled by car are made for trips within 30 km and 37% are made for covering distances within 10 km. Passengers on regional and commuter railway trips represent by far the biggest share of all rail trips in Europe: they account for about 90% out of the total number of rail passengers (including long distance trips) and 50% of the total number of passenger kilometres per year

6. TRT Trasporti e Territorio 6 Source:ACEA European Automobile Industry Report Technology innovation and increasing in energy efficiency have been remarkable but were not used to decrease energy consumptions: improved efficiency system have been compensated by a growth in traffic demand and by the increase of bigger and more powerful cars reported in the road Innovation in vehicles technology Passenger car weight trends

7. TRT Trasporti e Territorio 7 According to DG TREN estimates the predominant role of the transport sector in final energy demand growth is projected to continue under baseline assumptions in the horizon to 2010 (1.4% annually) beyond 2010 the combined effect of decoupling and technological progress will lead to a deceleration (0.6% pa) and even a decline in 2020-2030 (- 0.1% pa) Energy consumption in the transport sector Forecast of energy demand in transport in EU-25 in Mtoe

8. TRT Trasporti e Territorio 8 Transport impact: GHG Emissions Total domestic GHG emissions (CO 2, CH 4, N 2 O) in the EU-27 were 5,180 million tonnes (Mt) CO 2 -equivalents. Domestic transport accounted in the for 961 Mt, international aviation and maritime transport accounted for additional 285 Mt. Contribution of each single transport-related category to the sector’s grand total (emissions from domestic transport and bunker fuels)

9. TRT Trasporti e Territorio 9 Contribution of different modes Emissions from road transportation 1990 - 2005

10. TRT Trasporti e Territorio 10 Contribution of different modes CO 2 emissions from Aviation in EU-15 and new EU-12 Member States 1990-2005

11. TRT Trasporti e Territorio 11 Contribution of different modes CO 2 emissions from maritime transport in EU-15 and new EU-12 Member States 1990-2005

12. TRT Trasporti e Territorio 12 Air pollutants emissions

13. TRT Trasporti e Territorio 13 Policy actions Potential measures for air pollutants and GHG emissions reduction in the transport sector canbe clustered according to their main characteristics, impacts, leverages, modes concerned... Technological improvements (vehicles and fuels) Pricing and taxation Long distance travel Liveable cities (urban policy) Information Communication Technologies ICT Eco-friendly behaviour Logistics Air and Maritime

14. TRT Trasporti e Territorio 14 Technological improvement (Vehicle and fuels) Policy actions

15. TRT Trasporti e Territorio 15 Pricing and taxation Policy actions

16. TRT Trasporti e Territorio 16 Long distance travel (passengers and freight) Policy actions

17. TRT Trasporti e Territorio 17 Liveable cities (urban policy) Policy actions

18. TRT Trasporti e Territorio 18 ICT (Information Communication Technology) Eco-friendly behaviour Policy actions

19. TRT Trasporti e Territorio 19 Logistics Air and Maritime Policy actions

20. TRT Trasporti e Territorio 20 Policy packages ambitious fuel-efficiency targets improved emission standards for vehicles and fuels, the right price signal for all modes, supports to behavioural changes The need of a consistent mix of policies To reduce GHG, energy consumption and air pollution in the European transport sector a coordinated combination of individual policies is necessary The policy mix should cover all modes of transport and should include

21. TRT Trasporti e Territorio 21 Policy packages Accompanying measures Efficiency vehicles and engine Energy innovation TaxationPricing

22. TRT Trasporti e Territorio 22 5. Policy packages and recommendations Only one… Policy mix Taxation Pricing Accompanying measures Technologies vehicles and fuels

23. TRT Trasporti e Territorio 23 3.…. Critical issue Recommendations Concentrate on the most critical areas Give priorities to the short term policies Increase fuel efficiency for all modes of transport Get the prices right Introduce innovative demand management measures Support modal shift through pricing and soft measures Induce a more efficient organisation through pricing policies and soft measures Promote more responsible behaviour of road users

24. TRT Trasporti e Territorio 24 3.…. Critical issue Urban areas (congestion, pollution, social impacts,…) Interurban corridors where intra EU and international trips take place Environmental sensible area (Alpin, Baltic See,….) Source: European Environment Agency, 2006 PM10 Values in EU, 2004 Recommendations Concentrate on the most critical areas

25. TRT Trasporti e Territorio 25 Recommendations Focus on increasing fuel efficiency for all modes of transport, especially air and road transport Reduce the emission target for passenger car fleet to 120 g CO 2 per vehicle kilometre by 2012 and to 100 by 2020 and extend such an approach to cover trucks, aircraft, vessel Concentrate on policies that produce results in the short term, including incremental improvements of the current technologies, use of electric and hybrid vehicles, train, vessels Increase fuel efficiency for all modes of transport

26. TRT Trasporti e Territorio 26 Recommendations Passengers and freight should face the full cost of travel and feel the consequence of their decision General reform of taxation in the transport sector, clearly based on CO 2 emission and other environmental emissions Congestion charge in urban areas and congested corridors Pricing and taxation policies designed to provide strong incentives to shift toward better performing vehicles in all transport modes (pay as you drive) Get the prices right

27. TRT Trasporti e Territorio 27 Recommendations On the supply side through the introduction of the Carbon Allowance Reduction System (CARS) Manufactures and importers will be required to pay financial penalties in proportion to any exceedance per car sold of the emissions limits, which may be offset by redeemable credits awarded to newly registered passenger cars of the same manufacturer with emission below the limit value curve Introduce innovative measures based on the “emission trading” approach

28. TRT Trasporti e Territorio 28 Recommendations On the demand side through “tradable mobility credits” that are differentiated according to several dimensions like the vehicle type (size, emission class), but also the supply of alternative modes, which can be used both for private car driving in the tolled areas and for riding public transport. Introduce innovative measures based on the “emission trading” approach

29. TRT Trasporti e Territorio 29 Recommendations Urban and metropolitan areas suffer of high levels of pollution and at the same time alternatives modes to private transport are already available (public transport, cycling, walking). A combination of pricing policies (congestion charging) and improvements in the public transport supply can significantly reduce emissions, particularly if public transport service enhancements are achieved through short-term measures, fleet renewal, bus priority, information technologies etc. Support modal shift through pricing policies and soft measures: passengers

30. TRT Trasporti e Territorio 30 Recommendations For long distance freight transport, truck-km charges have shown to be able to induce a process of rationalisation of distribution systems and logistics organisation, and thus to reduce distances optimise routing, load factors and occupancy rates Induce a more efficient organisation through pricing policies and soft measures: freight

31. TRT Trasporti e Territorio 31 Recommendations Develop eco-drive procedure in the road transport sector (freight and passenger) to reduce emission and consumption De marketing of cars, support to car sharing and car pooling initiatives, support to green logistics, promoting eco drive ITS are all soft measures that might play a highly positive role in strengthening the positive impacts of other hard measures and in some cases in mitigating the negative ones Promote more responsible behaviour of road users

32. TRT Trasporti e Territorio 32 Thank you Silvia Maffii TRT Trasporti e Territorio Srl, Milan maffii @ TRTtrasportieterritorio.it