Despite substantial progress over the past years, road transport still remains one of the most energy-consuming (30% of total EU consumption) and the highest contributor to pollutant emissions in Europe. As a complement to emission legislation, the EU has set out a strategy for encouraging the development and uptake of green vehicles which have a much lower environmental impact throughout their lifecycles. This comprehensive strategy was laid down in a 2010 Communication entitled “European strategy on clean and energy efficient vehicles” which identified the main actions to be taken by the European Commission (EC) including regulatory initiatives, support to research & innovation or consumer information measures. Over the years, the identified actions have gradually been implemented and completed by the EC and the 2010 strategy updated.

1. Green Vehicles
State of Play and Future Outlook
European Sustainable Energy & Climate Policy | Friday 22nd May 2015

2. 1. Introduction: Key Challenges for Road Transport
2. EU Emissions Targets for Road Transport
3. What Are “Green Vehicles”?
4. The EU Strategy on “Green Vehicles”
5. EU Regulatory Initiatives
6. Guidelines and Non-Legislative Measures
7. Support to Research & Innovation
8. Conclusions, Next Steps and Questions
ummaryS

3. 1. Introduction: Key Challenges for Road Transport
 Emissions:
- Transport represented ¼ of EU greenhouse gas emissions (GHG)
emissions in 2012.
- Road accounts for 72% of the total transport GHG emissions.
Aviation
13%
Navigation
14%
Rail
0%
Others
1%
Road
72%
EU28 Transport GHG emissions (2012)
Industry
18%
Transport
24%
Energy
Industries
29%
Residential
&
Commercial
13%
Agriculture
11%
Other
5%
EU GHG per sector (2012)

4. 1. Introduction: Key Challenges for Road Transport
 Emissions:
- GHG from transport (including international aviation and maritime
transport) increased by +34% between 1990 and 2008.
- Since 2008, GHG started to decrease but transport emissions in 2012
still 20.5 % above 1990 levels
- Other pollutants (mainly NOx, PM/PN) are also a major concern.

5. 1. Introduction: Key Challenges for Road Transport
 Oil dependence:
- Oil represents 94% of energy consumed in transport
- 84% imported for up to € 1 billion/day: 2.5% GDP deficit in trade balance
- Road transport accounts for 73% of total demand in 2012.
- Total road transport energy consumption in 2012 was +22% vs. 1990.

6. 2. EU Emissions Targets for Road Transport
 The EU has adopted over the years a comprehensive framework of
emission reduction targets for the transport sector.
 White Paper on Transport (2011) objectives:
- 2030: -20% GHG emissions vs. 2008 level
- 2050: -70% GHG emissions vs. 2008 level (-60% GHGs vs. 1990 level)
 New 2030 Climate and Energy Policy Framework (Oct 2014):
- Binding EU target of -40% GHG reduction by 2030 vs. 1990 level
- Including -30% GHG emissions by 2030 compared to 2005 from non-ETS
sectors (incl. transport)
- 27% share of renewable energy consumed in the EU in 2030 (to be reviewed by
2020, having in mind an EU level of 30%)
How can “Green Vehicles” contribute to meeting
those objectives?

7. 3. What are “Green Vehicles”?
 Definition of “Green Vehicles”:
Motor vehicles producing less harmful impacts to the environment than
comparable conventional internal combustion engine vehicles.
 They can be operated by using alternative fuels:
- Electricity: Electric motors used for propulsion. Several technologies are
available on the market:
• Plug-in Hybrid Electric Vehicle (PHEV) & Hybrid Electric Vehicle (HEV)
• Fuel Cell Electric Vehicle (FCEV), Battery Electric Vehicle (BEV)
- Hydrogen: Chemical energy of hydrogen to mechanical energy either by
burning hydrogen in an ICE or by reacting hydrogen with oxygen in a fuel cell
to run electric motors (FCV or HICEV)
- Biofuels: Alternative to fossil fuels. A broad range of biofuels exist.
- Compressed Natural Gas/Liquefied Natural Gas: Used as an alternative
to fossil fuels
- Liquefied Petroleum Gas: Used to fuel internal combustion engines.

8. 3. What are “Green Vehicles”?
 Estimated benefits of “Green Vehicles”:
- By replacing oil with alternative fuels and build up the necessary
infrastructure, the EU could save € 4.2 billion per year in 2020,
increasing to € 9.3 billion per year in 2030.
- ‘Greening' cars could generate about 700,000 additional jobs by
2025 (source: European Climate Foundation)
- Hybrid configurations, combining internal combustion engines and
electric motors, can save oil and reduce CO2 emissions by
improving the overall energy efficiency of propulsion (up to 20%)
- Fostering the market uptake of electric and fuel cell vehicles,
including plugin hybrids would already decrease CO2 emissions
by 0.3% by 2020.
- Member States aim to have 8-9 million EVs on the road by 2020.

9. 4. The EU Strategy on “Green Vehicles”
 One cannot talk about a single act but rather about a comprehensive
framework combining both regulatory & non-regulatory measures to foster
the market uptake.
 This patchwork of measures can be divided into three main sections:
- Regulatory initiatives;
- Guidelines and other non-legislative measures;
- Schemes to foster research & innovation.
 The EU Strategy as regards “Green Vehicles” has been laid down by the
Commission in three different layers:
- Communication “A European strategy on clean and energy efficient vehicles”
(2010)
- White Paper “Roadmap to a Single European Transport Area” (2011)
- Communication “Clean Power for Transport: A European alternative fuels
strategy” (2013)

10. 4. The EU Strategy on “Green Vehicles”
 EC Communication “A European strategy on clean and
energy efficient vehicles” (2010)
 2 angles:
Promoting clean and energy efficient vehicles based on conventional internal
combustion engines
Facilitating the deployment of breakthrough technologies in ultra-low-carbon
vehicles
 Among the key measures listed:
- Reduction of LDV/HDV emissions (CO2, noise, RDE, MAC)
- Support to research and innovation in green technologies
- Guidelines on financial incentives & Amendment to Car Labelling Directive
- Launch EU-wide electro-mobility demonstration project
- Issue standardisation mandate to develop standardised charging interface

11. 4. The EU Strategy on “Green Vehicles”
 White Paper “Roadmap to a Single European Transport Area”
(2011)
 Aims at building a vision for a competitive and sustainable transport
system by 2050 – now under mid-term review
 One objective as regards “Green Vehicles”:
1. Halve the use of ‘conventionally-fuelled’ cars in urban transport by 2030;
phase them out in cities by 2050; achieve essentially CO2-free city logistics in
major urban centres by 2030.
 Lists future initiatives (mostly repeated from the 2009 Communication):
• Public procurement strategies to ensure rapid up take of new technologies;
• Rules on the interoperability of charging infrastructure for clean vehicles;
• Guidelines and standards for refueling infrastructures;
• A strategy for near- ‘zero-emission urban logistics’ 2030

12. 4. The EU Strategy on “Green Vehicles”
 Communication “Clean Power for Transport: A European
alternative fuels strategy” (2013)
 Released as part of a package together with a legislative proposal for the
development of alternative fuels to solve the "chicken and egg" problem
(infrastructure vs. market uptake)
 Acknowledges that there is no « single fuel solution »
 Addresses the key issue of standards and requires the implementation of
common technical specifications for alternative fuels
 Reiterates need for guidelines on financial incentives for consumers
 Calls for Horizon 2020 to prioritise projects for alternative fuels

13. 5. EU Regulatory Initiatives
 Directive 2009/33/EC on the promotion of clean and energy-
efficient road transport vehicles:
- Aims at a “broad market introduction of environmentally-friendly
vehicle” through public procurement
- Contracting entities and operators covered by the public procurement
Directives and the public service Regulation when purchasing road
transport vehicles must take into account:
• Energy consumption
• CO2, NOx, NMHC and particulate matter emissions
- 2 options when proceeding to public procurement:
• Setting technical specifications for energy and environmental performance
or;
• Including energy and environmental impacts as award criteria in the
purchasing procedure

14. 5. EU Regulatory Initiatives
 Directive 2014/94/EU on the deployment of alternative fuels
infrastructure (or “DAFI”):
 Background:
- Legislative proposal published in Jan 2013 as part of the “ Clean Power
for Transport Package”
- Directive adopted in Oct 2014
- Member States are given until 18 November 2016 to transpose the
provisions of the Directive into national law
 Objectives:
- Create a single market for alternative fuels for transport in Europe and
lower down the dependence of transport on oil
- Boost development of electric and CNG vehicles (in priority)

15. 5. EU Regulatory Initiatives
 Content
- Requires Member States to develop national policy frameworks outlining
their national targets & objectives, and supporting actions for market
update of green vehicles
- Sets out common standards for technical infrastructure specifications
across Europe as from 18 November 2017 (“Type 2” or “Combo 2”)
- Paves the way for setting up appropriate consumer information on
alternative fuels, including a clear and sound price comparison
methodology
 Amendments to proposal:
- MS opposed binding 2020 targets for number of recharging stations and
CNG fuel stations for cars (10% of publicly accessible)
- Some MS can opt to include hydrogen-refuelling stations and should
ensure a sufficient number of stations are available by 2025

16. 5. EU Regulatory Initiatives
 Next steps:
- Mandate will be given to CEN to develop standards for plugs on electric
cars
- Member States should submit their national policy frameworks by Nov
2016
- EC shall submit to EP and Council a report on the assessment of the
national policy frameworks by Nov 2017
- Member States should submit their report on the implementation of its
NPF by Nov 2019
 Timeline

17. 6. Guidelines and non-legislative measures
 Guidelines on Financial Incentives for Clean and Energy
Efficient Vehicles (SWD(2013) 27):
- Aim to ensure that MS do not violate the principles of the Internal
Market and are in full compliance with the existing State aid rules
- Apply to light-duty vehicles (cars and vans), heavy-duty vehicles
(buses and trucks) as well as two/three-wheelers and quadricycles
- Only consider CO2 emissions
Mandatory principles Recommended principles
Non-discrimination Technological neutrality
Community type-approval legislation Common performance-criteria
State aid rules & Public Procurement Proportionality
Notification under Directive 98/34/EC Size of incentive
Link to CO2 limits in the EU legislation

18. 6. Guidelines and non-legislative measures
 Urban Mobility Package (2013)
- 4 documents including one Communication and three Staff Working
Docs
- Recalls the pre-requisites for setting up urban road charging schemes:
• No discrimination based on nationality of the user, Member State of vehicle
registration, or origin or destination of the transport
• No overcharging or discrimination of occasional users
• Clear and transparent information is available to users
• Payments can be made easily 24 hours per day
• Board units required for electronic fee collection must be interoperable
across the EU
- Aim is to provide support & guidance to cities in order to reach the
White Paper on Transport objective of “achieving essentially CO2-free
city logistics in major urban centres by 2030”

19. 7. Support to Research & Innovation
 Horizon 2020:
- EU Framework Programme for Research and Innovation
- € 6 339 million for “Smart, green and integrated transport” between
2014-2020 with three headers:
• Mobility for Growth
• Green Vehicles
• Small Business and Fast Track Innovation for Transport

20. 7. Support to Research & Innovation
 European Green Vehicles Initiative (EGVI)
- European Green Vehicles Initiative is a contractual public-private
partnership between industry and Commission’s DGs
- Aims to identify research and innovation activities to be proposed for
financial support under Horizon 2020 (2014-2020)
- Continuation of the European Green Cars Initiative (2009-2013) but
broader scope to encompass all vehicle types

21. 8. Conclusions, Next Steps and Questions
 Today’s Context:
- EU ambitious CO2 emissions markets for LDV – super credits
- Norway and Netherlands leading
- PHEV and HEV leading technology on the market
- Upcoming models launched suggest a diversification of EV
powertrain portfolio: BEV, PHEV, FCEV (2016), REEV
 Potential threats on EV market
- EV adoption is driven by Regulation (legislation on emissions and
tax), Member States retain power over financial incentives
- Deployment of Alternative Fuels Infrastucture is unsufficient to
change customers’ habits
- Improvement of technology for BEV to allow more autonomy to
drivers

22. 8. Conclusions, Next Steps and Questions
 Future of the EV Market:

23. 8. Conclusions, Next Steps and Questions
 Next steps for Green Vehicles at EU level:
- Review of the Transport White Paper (2015):
• Taking stock of the implemented initiatives & re-evaluating
objectives
• Setting new objectives for the horizon 2030-2050
- Proposal for Road Package (2016):
• Will include initiatives to foster a « fair and efficient pricing for
sustainable transport revision of the Eurovignette Directive and
framework to promote European electronic tolling”
• Possibly including new framework for congestion charges with
pricing depending on vehicles’ environmental performance

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