1. Transport and Carbon Finance Part II Dr. Jürg M. Grütter jgruetter@gmail.com www.transport-ghg.com matching transport with carbon finance

2. Feb 11grütter consulting2 AMSIIIC: Electric and Hybrid Vehicles

3. Feb 11grütter consulting3 Problem Areas: Summary Additionality determination Lack of clarity and details of methodology

4. Feb 11grütter consulting4 Additionality: Background Due to transaction costs and limited size of emission reductions per vehicle electric vehicle projects are best clustered around producers. Barriers towards massive sales of electric and hybrid vehicles are: Higher investment Technological barriers including limited range, limited speed, limited payload, limited space Limited market penetration

5. Feb 11grütter consulting5 Additionality: DOE TUEV North asked 9.2010 the EB for a clarification without response to date This has effectively stopped the first 4 electric vehicle projects worldwide, all blocked in the validation stage since more than 1 year

6. Feb 11grütter consulting6 Additionality: Proposed Changes The methodology is applicable to producers of electric/hybrid vehicles as well as to fleet owners. Additionality of projects can be proven through: Higher investment cost Technological barriers Prevailing practice: Projects are considered as additional if the market share of electric/hybrid vehicles of the same vehicle category is less than 5% in the host country where the project is proposed

7. Feb 11grütter consulting7 Further Information CEO grütter consulting: Dr. Jürg M. Grütter jgruetter@gmail.com www.transport-ghg.com