'if* 
•••tf 
ill, COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 31.03.1998 
COM(1998) 204 final 
l&l 
COMMUNICATION FROM THE COMMISSION 
.Hi: 
»•* 
w 
»*. 
il 
I 
tfe' 
1-
MM TO THE COUNCIL, THE EUROPEAN PARLIAMENT, 
THE ECONOMIC AND SOCIAL COMMITTEE 
AND THE COMMITTEE OF THE REGIONS 
ON TRANSPORT AND C02 
- Developing a Community Approach -

1. INTRODUCTION , 5 
1.1 Current situation, trends and analysis 6 
2. THE COMMUNITY POLICY: AIMING AT SUSTAINABLE 
TRANSPORT 8 
2.1 Road Freight 8 
2.2 Passengers cars 9 
2.3 Rail Freight 10 
2.4 Public Passenger Transport , 11 
2.5 Shipping 12 
2.6 Air Transport 13 
2.7 Intermodality, combined transport and logistics 14 
2.8 Fuel Taxation 15 
2.9 Fair and Efficient Pricing 17 
2.10 Efficient Infrastructure 18 
3. COMPLEMENTARY MEASURES FOR REDUCING CO, FROM 
TRANSPORT 18 
3.1 Measures by national, regional and local authorities 19 
3.2 Land-use planning and transport 20 
4. EFFECTS AND COSTS: AN ASSESSMENT 21 
5. LONG TERM SOLUTIONS 21 
5.1 Further potential for reduction of C02 from transport..... 21 
5.2 Hybrid Cars 22 
5.3 Fuel Cells 22 
5.4 New fuels 22 
5.5 The Role of transport R&D 22 
6. ACTION PLANS AND MONITORING 23 
7. CONCLUSIONS 23 
EXECUTIVE SUMMARY 
The Greenhouse Gas (GHG) emission reduction targets agreed at Kyoto mark an 
important milestone in curbing man-made climate change. But they represent a first step 
only in view of the need to dramatically reduce emissions in the long term in order to 
stabilise the Earth's climate. The European Union has made an important contribution to 
the Kyoto agreement and the Commission is convinced that it should continue to play a 
leadership role. The first priority must, therefore, be to develop a robust, credible and 
cost-effective implementation strategy to reach the Union's Kyoto target. 
This will require action in all sectors of the economy, right across the Union. Particular 
attention will have to be given to transport C02 emissions, which, on unchanged trends, 
will increase further in the order of 40% by 2010 ( compared to 1990 levels). 
This Communication contains elements for curbing C02 emission growth in transport 
building especially on the Common Transport Policy. The Communication takes stock of 
existing Community policy approaches which are expected to contribute to curbing the 
growth in C02 emissions from transport and which in the Commission's view must 
underpin the Community's effort to ensure an adequate and cost-effective contribution 
from this sector to the attainment of the lUJ's commitments made in Kyoto. In addition, 
the emission reduction potential of a certain number of other promising policies which 
could be taken at Community, Member State and local level is assessed. The 
Communication constitutes a first response to the challenge posed by the agreed climate 
change objectives to transport policy and will have to be developed into a comprehensive 
strategy in the light of the elaboration of the Community's post Kyoto strategy, on which 
the Commission intends publishing a text before the Summer. This strategy will also 
have to deal with the question of the sectoral repartition of the Kyoto target, an issue that 
is not addressed in this Communication. 
In the short to medium term, it is proposed as a starting point that the available "no-
regrets" potential is fully exploited by acting on policy approaches which have already 
been developed. These measures are expected to lead to significant economic and 
transport benefits, in addition to which there are also likely to be other environmental 
benefits (notably reductions in "conventional" emissions such as N()x and CO). 
This Communication indicates that up to 2010 growth in C02 emissions could be halved 
by implementing a number of cost-effective policy approaches already outlined by the 
Commission or currently under preparation. I lowever, it should be noted that significant 
policy efforts will have to be made to achieve results in terms of CO, emissions by 2010. 
The Commission is of the opinion that rapid progress on these measures is desirable 
since, otherwise - in view of the significant contribution which transport must make to 
the attainment of the Kyoto target - more costly policies will have to be developed. 
Promising policy approaches include : 
- Improved logistics 
- Strategy to reduce C()2 emissions from passenger cars 
- Revitalisation of railways 
- Promotion of public transport 
- Promotion of short-sea shipping 
- Promotion of intermodal transport 
- Measures to enhance ATM in air transport 
- Fiscal measures in aviation (kerosene taxation, VAT) 
- Stepwise introduction of fair and efficient pricing in all modes of transport 
- Strategic Environmental Analysis of TEN-T transport infrastructure investments 
- Promotion of a series of complementary measures to be taken by national, regional and 
local authorities, including land-use planning. 
In the long term (post 2010), the large scale introduction of new technologies such as fuel 
cells and alternative fuels could more than halve current transport emission levels. 
Although some of these options could reach significant market penetration rates over the 
next decade, it is unlikely that alternative fuels and propulsion technologies on the whole 
can make a significant contribution before 2010 since they are not sufficiently cost-
competitive. However, the preparatory work must begin now. In view o( the significant 
long term potential of alternative propulsion technologies, the Commission intends to 
favour important investments in Research and Development as well as Demonstration. 
The Commission considers that its proposal for the Community's Fifth Framework 
Programme for Research and Development constitutes an important opportunity for 
unlocking this technological potential by making these technologies more economically 
viable. 
Clearly, most of the required measures will need to be implemented by Member States 
and local authorities and will therefore require efforts at all policy levels.To provide more 
transparency and a good co-ordination, objective monitoring mechanisms will, have to be 
created with the support of the Luropcan Environmental Agency. This allows action 
plans to be developed and facilitates an evaluation of the effectiveness of policy actions. 
1 n many cases the proposed measures imply that traditional practices and patterns of 
mobility will have to be reviewed. Whilst this approach is expected to lead to significant 
overall benefits, it is clear that vested interests and rigidities will have to be overcome to 
realise the potential. The Commission, therefore, calls on the Council and the European 
Parliament as well as transport operators, users and workers to take their responsibility 
and act on these proposals at the appropriate level. Change will not be easy. But the 
alternatives to the measures discussed in this Communication would entail significantly 
higher costs without resulting in the transport and economic benefits the proposed 
approach could generate. 
1. INTRODUCTION 
In 1995, CO2 emissions from transport represented 26% of total EU CO2 emissions. 
On unchanged trends, a significant further increase in the order of 40% is expected by 
2010, outstripping growth in ail other sectors. It is clear that, if left unchecked, growth 
in transport CO2 emissions would make it extremely difficult to achieve the CO2 
emission reduction target agreed at Kyoto (an economy-wide reduction of 8% from 
1990 levels by 2008-2012). As part of the Community's post-Kyoto strategy, 
appropriate action on transport CO2 emissions will therefore have to be taken. 
This Communication provides a first assessment of the effectiveness in limiting CO2 
emissions from transport of a range of policies at Community, Member State and 
local levels. These policies have either already been proposed by the Commission or 
are being implemented, or have been shown to have significant CO2 benefits in 
research or in individual projects. Of course, this approach will have to be refined as 
the Community develops its overall strategy with a view to the 1998 Buenos-Aires 
Conference, and the Commission is preparing before the summer a common and co­
ordinated policy approach to achieve this. This Communication, therefore, limits itself 
to identifying a package of measures which will contribute to the reduction of 
transport CO2 emissions and to proposing a process under which actions can be 
developed on different levels. The Commission underlines that further initiatives may 
be needed in the light of the development of the overall strategy to follow up on the 
Community's Kyoto commitments. 
Clearly, all possibilities for implementing no-regrets measures, which lead to benefits 
other than reductions in CO2 emissions, should be taken up in all sectors. As far as 
more expensive measures are concerned, an economically efficient approach will 
have to be developed that reduces emissions most where it costs least. This means 
that, in order to minimise the total burden for the economy as a whole, emission 
reductions will have to take place in such a way that the marginal costs involved are 
equal across sectors and gases. The Commission believes that there exists a 
significant potential for limiting transport CO2 emissions. 
This approach should take ail six gases covered by the Kyoto protocol into account. 
Obviously CO2 is the most important gas as it accounts for about 80% of the total 
global warming potential of all six greenhouse gases. But looking at CO2 emissions 
alone would overestimate the apparent share of the transport sector in total 
greenhouse gas emissions; although there are emissions of greenhouse gases other 
than CO2 from transport (e.g. caused by air-conditioning systems in cars), compared 
to CO2 their importance is relatively small. 
The high growth rate in transport emissions is due to three factors. First, transport is a 
derived demand. Growth in production and consumption , as well as structural 
changes (in land-use, lifestyle, etc.) have led to a more than proportional increase in 
the demand for transport services. Second, due to a progressive shift towards road 
transport the growth in energy demand has been even stronger. Thirdly, transport 
energy demand is currently supplied almost entirely from fossil fuels, mainly oil. 
In the long term, technological progress on alternative propulsion systems and fuels is 
expected to allow significant reductions in emissions at low cost to society as a whole. 
In the meantime priority should be given to the swift implementation of Common 
Transport Policy 
measures which have been proposed or even already adopted, complemented by 
additional measures at different policy levels. A strategy based on packages of 
measures at different policy levels is the most efficient way to achieve a reduction 
in C02 emissions. 
The most important measures are discussed in the following chapters. Where 
possible, an attempt to quantify or qualify the potential reduction in growth has 
been made in a box at the end of the section describing the measure. For a number 
of measures, no estimates are presented; cither because data was not available or 
because these measures only have a small impact on the reduction in the growth of 
C02. Unless stated otherwise, the percentage reductions in C02 emissions indicate 
by how much C02 emissions can be reduced by 2010 compared to the baseline (i.e. 
no additional policy action) forecast for the same year. 
Many of the proposed medium term actions would also help to reduce other 
problems associated with transport, such as congestion, poor air quality and health 
risks, and would, therefore, generate multiple benefits. These other benefits are 
likely to be more readily understood and more visible, and would therefore help to 
ensure rapid adoption and implementation of the proposed strategy. 
1.1 Current situation, trends and analysis 
In the European Union, the share of transport CO, emissions in total 
increased from 19% in 1985 to 26% in 1995. EU transport C02 emissions 
currently account for about 3.5%> of global C02 emissions. 
Whilst in the period 1985 to 1995 economic growth in the EU-15 led to an 
increase in Gross Domestic Product of 26%, CO, emissions from transport 
grew by 37%). One fifth (about 7%) of the CO, growth from transport was 
due to a modal shift to less energy efficient modes of transport, and four-fifth 
(about 30%) to transport growth in general. Total emissions from all other 
sources declined by 5% (see also Annex 1). CO, emissions from non-
transport sectors appear to have been decoupled from economic growth, 
through fuel switching (in electricity generation), structural change 
(industry) and improved energy efficiency (the domestic sector). 
In transport, emission growth outstripped economic growth. In order to 
better understand this development, it is useful to break C02 transport 
emission growth down into its constituent components. In a schematic form 
these may be presented as: 
Ixonomic growth 
Real transport costs, the spatial organisation of economic and social life 
and the role of logistics in the production process. 
The repartition of transport demand over the different modes (influenced 
by relative prices, quality etc.). 
The relation between mileage and transport services (influenced by 
loading ratios, empty running, vehicle sizes etc.) in different modes. 
Fuel economy (unit of fuel use per unit of transport). 
Carbon intensity of different fuels. 
The significant growth in transport CO, emissions can be explained by the 
following factors: first, demand for transport services outpaced economic 
growth, especially in freight, forces driving this process include changes in 
the spatial organisation of economic activities (e.g. the completion of the 
Internal Market), a reduction in real transport prices and changes in logistics 
systems which have generally lead to a substitution of inventories, by just in 
time transport. Secondly, there has been a marked shift away from modes of 
transport that are relatively energy efficient towards road transport. An 
important underlying cause of this modal shift is customer dissatisfaction 
with prices, quality and flexibility of these modes. Since road transport is 
relatively energy intensive, this process has increased energy use per ton of 
freight shipped and passenger kilometre performed. Thirdly, there is 
evidence that the average fuel efficiency of road transport decreased in this 
period due to a shift towards heavier cars, for example as a result of 
improved safety requirements. The relation between tonkilometres and 
mileage in road freight does not seem to have changed much (with about 
30% of the trucks running empty and a loading ratio of approx. 50%>). 
Transport is a derived demand: in addition to action in transport, measures to 
address transport C02 emissions will, therefore, also have to cover areas 
outside the transport sector (e.g. land use planning). 
Bluntly imposed reductions in transport would cause significant economic 
costs in view of the derived nature of transport. The longer-term objective 
should be to arrive al a less transport-intensive path oi' economic 
development primarily through the full internalisation o\' the external costs 
of transport which is likely to induce significant improvements in the 
efficiency of transport operations. Furthermore, a stronger consideration of 
traffic generation effects in spatial planning and the assessment of the 
transport effects of other sectors and sectoral policies should be pursued. In 
addition, the focus should be primarily on areas - such as urban areas or 
major transport corridors or nodes where traffic growth already gives rise 
to an unsustainable situation in terms, for example, or pervasive congestion, 
air pollution or noise. These external costs provide an additional justification 
for measures to be taken and will increase their political acceptability. 
While this Communication focuses on their potential to curb CO, emissions, 
the transport policy measures discussed were primarily aimed at improving 
the efficiency of the transport sector itself and, thereby, on the 
competitiveness of the economy as a whole. In order to render the strategy as 
cost- effective as possible, strong emphasis will have to be put on these 
measures. 
An example of such synergies are policies to address congestion, which 
undermines the efficiency of the transport system and decreases fuel 
efficiency. Addressing traffic growth in such situations (e.g. congested city 
centres) would lead to improvements in travel speeds, reduced pollution and 
significant cuts in CO, emissions provided measures are taken to avoid that 
the newly freed capacity attracts additional traffic. 
In order to properly focus policy efforts it is helpful to differentiate between 
different modes, both in terms of their importance as a source of C02 and in 
terms of growth trends. 
Road is the most important source which largely determines the trend in the 
transport sector: passenger cars account for about 50% of transport C02, and 
road freight for about 35%>. Road transport C02 has increased by nearly 36% 
from 1985 to 1995. Urban traffic is responsible for about half of the road 
transport figure. Air traffic generates only 12% of transport C02, but 
recorded a significant increase (57%) over the period 1985 to 1995 and is 
forecast to grow at 6% per annum. There are of course also the rail, inland 
waterway and maritime transport sectors. These modes are usually less 
energy-intensive (see annex 2). 
Road and air transport are therefore the two main focuses for reducing CO,, 
because of their share in emissions and/or because of their growth trends. 
For inland transport especially, a strategy for reducing C02 emissions can 
build on Community policies already in place and proposed to improve the 
efficiency of the individual modes and to promote a shift towards more 
energy-efficient modes (which will also contribute towards other 
environmental objectives). 
However a cost-effective strategy might also require emission reduction 
efforts for the other modes, especially when these efforts could come as no-
regret options. 
2. THE COMMUNITY POLICY: AIMINC; AT SUSTAINABLE TRANSPORT 
Improving the efficiency of all modes of transport 
2.1 Road Freight 
The potential for better and more efficient logistics is substantial, both in 
terms of the location of production and logistics facilities and could generate 
an improvement in transport operations. Road hauliers can increase the 
utilisation of vehicles and reduce empty running*. A pro-active approach 
could be based on information programmes, promotion of voluntary actions 
and better management practices^. To improve the implementation of 
measures that reduce empty running, transport audits could be incorporated 
within already existing quality certification systems, which might encompass 
' Fstimates tor the t)K freight sector indicate that only around o2 % of the available capacity is used. 
Adding empty running this proportion tails to Tl %. 
- See Action Programme "Freight Inlermodalily" in the Communication from the Commission. 
Intermodality and lntermodal Freight Transport in the luiropean Union A system Approach to 
freight transport. Strategies and action to enhance efficiency, services and sustainability. COM(97) 
243 final of 29.5.1097 
reviews and audits of driver behaviour, routing, scheduling operations, etc. 
The Commission will study the feasibility of better incorporating transport 
considerations into the EMAS and will continue to promote and disseminate 
best practice within the road freight transport sector. 
Improved logistics and more efficient freight operations could achieve a 
reduction in truck operations and vchiclc.km in the order of 10-40 %, with 
an equivalent decrease in C07 emissions. 
This is an example where efficiency improvements in the transport sector 
itself go hand in hand with a reduction in traffic and the associated C02 
emissions: innovative approaches for providing the same transport services 
with less vehicle kilometres. In 1997 Mr Kinnock asked a small advisory 
group to consider the encouragement of the use of Best Practice to reduce the 
impact of freight transport. The report of the advisory group 1 has 
highlighted the potential of measures that could generate significant "no 
regrets" savings in transport movements and fuel consumption in addition to 
very large cost savings to enterprises and shippers. For example, driver 
training can reduce fuel consumption up to 20%, improved lorry 
aerodynamics could lead to fuel savings on trunk routes of up to 19% and 
use of computer routing software can reduce vehicle movements by up to 
20%). The further development of City Logistics can also make a significant 
contribution. Measures to reap this potential should be further developed and 
disseminated. The Commission is currently considering the appropriate 
follow-up to be given to the Advisory Group's report. 
2.2 Passenger cars 
Passenger cars account for about half of transport-related CO, emissions in 
the EU. Passenger car CO, emissions have exhibited a strong growth trend in 
the past and arc expected to grow significantly in the future. The average 
fuel economy of passenger cars improved until the late 1980s under the 
influence of increased fuel prices following the oil crises. However, over the 
last few years, an increase in average fuel consumption has occurred mainly 
due to a trend towards heavier and more powerful cars, for example as a 
result of improved safety requirements. For viable development in the future 
fucl-cfficicnt cars will be needed, which are at the same time safe, reliable, 
environmentally friendly, and which meet consumer requirements in terms 
of transportation needs and affordable prices. A reduction in the average fuel 
consumption of new vehicles can be arrived at in two ways: via technical 
improvements in new models, and by consumers choosing lower 
consumption vehicles ('down-sizing'). 
Against this background, the EU has adopted a strategy to reduce C02 
emissions from passenger cars by improving the fuel economy^ with the 
Report of the Advisory Group on Best Practice and Charges in Freight transport to Neil Kinnock, 
Huropean Commissioner for Transport, March l()9K. 
COM (95) 689 final 20.12.95, Council conclusion of 25.06.96 
objective to achieve an average C02 emission value of 120g/km by 2005 (or 
2010 at the latest) for all new cars. 
The objective is to be achieved by a package of complementary measures : 
(1) an environmental agreement with the automotive industry under which 
the industry would commit itself to reducing the average C02 emissions of 
new cars sold; (2) fiscal measures in the context of vehicle taxation; and (3) 
a consumer information scheme to influence the market. The Commission 
intends to soon put forward legislative proposals for a monitoring system on 
the average C02 emissions from cars and for a consumer information 
scheme. 
The Commission is discussing the possibility of an environmental 
agreement as part of the strategy with the European Automobile 
Manufacturers Association (ACFA). ACEA has recently presented a 
proposal for an agreement which includes a C02 objective of 140g/km for 
2008. The provision of fuels of a sufficient quality to enable the application 
of the technologies needed for the industry to achieve its C02 commitments 
under an agreement, is being examined as well as the effect of the strategy 
on NOx and particulate emissions. 
The objective of the FU strategy to reduce CO, emissions from passenger 
cars corresponds to an improvement in the average fuel economy of new cars 
in the market in the order of 30%. Further analysis undertaken by the 
Commission Services suggests that a promising package complementing an 
environmental agreement with the automotive industry and a consumer 
information scheme is an increase in fuel taxation implemented in 
combination with a vehicle tax related incentive. 
It is expected that, during the period 2000-2010, new technological 
developments arc gradually incorporated into new car models based on the 
internal combustion system. While alternative propulsion and alternative fuel 
based vehicles arc likely to become increasingly available, the scale of their 
introduction in the market is likely to be limited, unless strong government 
action is introduced. 
2.3 Rail Freight 
Unlocking the potential of railways to carry a larger part of freight transport 
is a crucial dimension of ihe Common Transport Policy. The 19% White 
Paper on the Revitalisation of the Community's Railways 1 set out the need 
for the railways to respond better to customers1 needs and to improve their 
performance. 
The intensification of this policy approach in rail transport represents a 
significant potential for cutting CO, emissions. To be successful railways 
will have to be made more responsive to customer needs which will require 
White Paper "A strategy for Revitalising the Community Railways (COM (96) 421 final) 
10 
the introduction of market forces. This should bring about more efficient use 
of existing railway infrastructure as well as a simplification of operational 
procedures. 
The 1997 Communication on Trans-I^uropean Rail Freeways* is pushing 
forward the development of rail freight services ahead of further 
liberalisation: the first freeways are already operational and several others 
are under development. Under this scheme some Member States and 
infrastructure managers' open access to rail networks on a voluntary basis, 
without waiting for changes in Community legislation. 
In order to ensure that the framework conditions for an efficient internal rail 
market are in place, the Commission will come forward with three policy 
packages in the course of 1998. The first will contain guidelines for the use, 
management and pricing of rail infrastructure; the second will comprise rules 
on the financial relationship between the State and the railways, whilst the 
third will set out an approach to further technical harmonisation and 
interoperability in conventional rail. 
Assuming a cross-price elasticity of 0.5 between rail freight and road freight, 
a decrease of 25% in railway freight tariffs (reflecting a corresponding 
increase in efficiency due to improved performance) would allow a 
reduction of C02 emissions from road transport of about 4.5%. In terms of 
C02 emissions from the transport sector as a whole, the reduction would 
amount to 3%. This assumes that all new railway activities would come from 
a modal shift from road.2 
2.4 Public Passenger Transport 
On passenger traffic, the 1996 Green Paper "The Citizens' Network"^ 
examined the potential of public passenger transport as a means of reducing 
congestion, especially in urban areas. Identifying innovative and imaginative 
schemes already in existence, the document pointed the way forward for 
urban transport in different circumstances. 
The forthcoming Communication on Developing the Citizens' Network will 
take these arguments a step further by indicating how a modernised 
regulatory framework can be created at Community level and which actions 
should be developed at local level. An important area is the case of regional 
trains and buses, where both possibilities and needs for a better balancing of 
supply and demand often exist. There are examples where the energy 
consumption and thus CO, emissions per passenger kilometre are very high 
at weekends as well as for early and late departures. 
1 Communication from the Commission. Trans-Kuropean freight freeways. COM/97/ 242 final of29.5.1997 
- Own calculations of the Services of the Commission. 
} The Citizens' Network fulfilling the potential of public passenger transport in Europe. European Commission 
Green Paper. 1996 
11 
1 able 3 in Annex 4 shows that the occupancy rates of vehicles have a very 
strong impact on the energy intensity of passenger transport. When full, a 
small car can even be less energy intensive than a double-decker bus, if the 
bus is only one-quarter full. The inherent environmental superiority of public 
transport depends, to a considerable extent, on the way in which it is 
organised. The Commission-financed ISOTOPE research study showed that 
cost reductions of up to 15% may be feasible from increased operational 
efficiency in urban public transport 1. As these cost reductions reflect mainly 
efficiency improvements, they probably also reduce C02 emissions. 
Therefore, the Commission will further investigate how the functioning of 
market forces in public transport can be improved. 
In the framework of mobility management and mobility behaviour in 
general, the Commission urges business undertakings to look responsibly at 
measures to reduce car use, as well as to encourage alternatives such as paid 
season tickets for public transport for their staff. 
National, regional and local authorities, in co-operation with the business 
community itself, have an important role to play in reviewing the effect of 
subsidies and other financial and fiscal advantages. Company cars, 
allowances for commuting and free parking all encourage rather than 
discourage private car usage. 
To facilitate a changeover from private cars to other types of transport, 
public transport systems need to be improved^. This will provide an 
incentive to relinquish cars and to opt for collective forms of transport which 
have a much lower energy intensity. High quality public transport may also 
help to attract and retain opportunities for job creation in urban centres. 
Efficiency improvements to public transport systems represent an important 
potential for limiting C()2 from transport. For a public transport system to 
become competitive it needs to meet passenger needs together with 
recovering costs and overall efficiency. Changes in behaviour can be further 
promoted by effective information campaigns to encourage drivers to opt for 
public transport. 
2.5 Shipping 
Seaborne transport has a much higher energy-efficiency than other modes of 
transport like air and road. 
The promotion of maritime transport - short sea shipping within the EU -
represents another potential for modal shift in the PTJ, including in its 
peripheral Member States^. A Communication on short-sea shipping 1 
' ISOTOPE : Improved Structure and Organisation of Urban Transport Operations of Passengers in furope. 
*- A yVo shift of passenger ear transport to public transport by bus and rail would reduce C(>2 emissions by 2 % (own 
calculations of the Services of the Commission) 
•' A 1 "» modal shift from road freight transport to shipping would allow a reduction of C(>2 emissions from transport 
h\ 0.2 "n (own calculations of the Services of the Commission) 
12 
outlined the potential of this environmentally friendly mode, and identified 
the gaps which need to be closed in order to make maritime transport a more 
attractive solution. 
The Kyoto Protocol recognises the world-wide character of shipping and 
gives the International Maritime Organisation the task of pursuing a 
limitation or reduction of emissions of greenhouse gases2. The Commission 
fully supports all efforts to be undertaken within the IMO and is of the 
opinion that measures decided in that organisation should not be restricted to 
the shipping industry of industrialised countries (Annex I Countries to the 
Kyoto Protocol). 
In the light of the deadlines in the Kyoto Protocol, an appropriate framework 
should be realised outside the recently finalised Annex V VI of Marpol 
73/783 
2.6 Air Transport 
Air transport has the highest C()2 emissions per passenger kilometre and per 
ton of freight shipped. Moreover, growth in aviation is two to three times 
higher than average growth in transport. 
Although the share in transport emissions is still relatively small (12%), this 
clearly implies that action in aviation is required. The Commission will, 
therefore, in 1998 present a Communication on air transport and the 
environment. This Communication will analyse policy options and present 
recommendations and, where appropriate, proposals for significant 
improvements of the environmental performance of air transport, including 
C02 emissions. Options that will be analysed include stricter international 
emission standards, measures aimed at promoting the efficiency of the air 
transport system, including taxation and charging, and the policies to 
develop alternatives to aviation, where appropriate. 
The present effort to integrate the Air Traffic Management System at a 
European level can also make an important contribution. 
Ideally, the length of a flight should be minimised in terms of time and 
distance. Various constraints, such as route design, national borders, military 
operations, layout of navigational aids as well as weather and other 
environmental restrictions result in increases of flight distances of about 
10%). Significant improvement in CO, emissions from aviation may be 
obtained by improving ATM efficiency. The enhancement of the 
' The Development of Short-Sea Shipping in furope: Prospects and Challenges. COM/95317 final of 5 July 1995 
2 Article 2.2 and 3.2 of Kyoto Protocol 
•' In September 1997 a Conference of the contracting parties to the MAUPOI. 73/7K Convention adopted a Protocol 
adding a new Annex VI "Regulations for the prevention of air pollution from ships" to the MARPOI, 
Convention dealing with (he prevention of air pollution from ships, (ireenhou.se gases are not incorporated in this 
Annex. An ad-hoe resolution invited the IMO to consider CO? emissions. 
13 
performance of ATM systems already mentioned would contribute to 
reducing C()2 emissions in the short term. 
Studies commissioned by ITJROCONTROL suggest that such optimisation 
could contribute to energy consumption savings of about 7%o, thus reducing 
C()2 emissions at an equivalent rate. 
In addition to the fiscal treatment of kerosene used as aviation fuel, the fact 
that VAT is not applied to intra-ITJ air fares may have artificially increased 
demand for air transport. The Commission is examining the VAT regime in 
relation to passenger transport and will present, during 1998, a consultation 
paper on this subject. The Commission is currently also studying the issue of 
kerosene taxation. 
Creating an integrated EU Transportation System 
2.7 Intermodality, combined transport and logistics 
Putting forward a new systems approach, the 1997 Communication on 
Intermodality and Intermodal Freight Transport in the European Union 1 
promotes intermodality as a tool whereby transport services are offered as 
mode-independent door-to-door connections, based on a variety of modal 
transport alternatives. The objective is to develop a framework for optimal 
integration of all modes to enable efficient and cost-effective use o\' the 
whole transport system through seamless, customer-oriented door-to-door 
services, whilst at the same time favouring competition between operators. 
To a large extent, this can be realised by making more effective use of 
existing capacities throughout the transport system. An Action Programme 
was developed by the Commission, setting out the necessary measures for 
the creation of an integrated intermodal transport system^. 
Moreover, the ITJ has invested considerable resources into research and 
development of information systems for road transport. The progressive 
implementation of these systems in the coming years will allow a significant 
improvement in the information flow to car users, allowing them to avoid 
congested areas and thereby increase fuel economy. To limit new induced 
car traffic demand, other complementary measures may be needed (e.g. road-
pricing). 
Traffic management measures improving the How of vehicles in urban areas 
can reduce CO, emissions by 5% to 15%, depending on the local situation. 
1 Communication from the Commission. Intermodality and Intermodal freight Transport in the European Union 
- A system approach to freight transport. Strategies and actions to enhance efficiency, services and 
susiainability. COM(97) 243 final of 29.5.1997 
2 idem 
14 
As urban traffic represents about 30%o of all vehicle traffic, this could 
produce an overall (X)2 reduction from transport of 3%. ' 
Combined transport can make an important contribution to decreasing the 
growth in road transport movements in a cost-effective manner. For long 
haul routes, railways, maritime transport and inland waterway modes have 
consistently better C02 performance than road transport. They should be 
encouraged to take over long haul movements that currently go by road. The 
aim of the Community's PACT programme is to grant financial assistance 
for innovative actions that promote combined transport. Further to the 
Action Programme in the Communication on Short-Sea Shipping, progress 
in developing combined transport will be made through the development of 
European Rail Freight Freeways and by the implementation of an Action 
Programme to improve intermodality. The availability of a network of 
terminals to tranship goods from road to rail and inland waterways is 
obviously of significant importance. Effective realisation of ail planned EU-
terminals would allow a significant growth in Combined Transport, which 
would reduce CX)2 emissions by about 2 - 3%.2 
Efficiency gains that could be realised in an intermodal transport system 
would reduce C02 emissions, e.g. the creation of an integrated logistics 
management system which makes full use of telematics would allow a C02 
reduction of about 4%.-> 
2.8 Fuel Taxation 
Community Directives on the excise duty of mineral oils lay down minimum 
rates of duty which must be respected by the Member States. The 
Commission has made a proposal for a Council Directive to restructure the 
Community framework for the taxation of energy products^. The adoption o( 
the proposal would increase the minimum rate on gasoline by 45% and on 
diesel by 27% by 1998 and by 74% and 62% in 2002. The increase by 2002 
is only indicative and would require a future confirmation by the Council. 
But as most Member States apply tax rates above the EU minimum, the 
direct impact of the proposed Directive on national tax rates would be 
limited. Even though fuel taxation has increased during the last decade, the 
total fuel prices to the consumer have decreased in relation to per capita 
income. Differential treatment favouring public transport over private motor 
vehicles could also be established by refunding part of the fuel duties paid by 
1 Volkswirtschaflliche kosten - Wirksamkeitsanalyse von Massnahmen zur Reduktion dcr COo Emissionen des 
Verkehrs in Osterreich. 
'Volkswirtschaflliche Koslen-Wirksamkeitsanalyse von Massnahmen zur Reduktion dcr C()2-Emissioncn des 
Verkehrs in Osterreich. 
3 Volkswirtschaflliche Kosten - Wirksamkeitsanalyse von Massnahmen zur Reduktion der CO2 - Emissionen 
des Verkehrs in Osterreich 
4p Proposal for setting up a Community framework for the taxation of energy products (COM (97) 30 final) 
15 
operators of public service vehicles. Alternative fuels with lower global 
warming impact couid also be encouraged by reduced rates of fuel duty-. 
The current directives on excise duty on mineral oils lay down minimum 
rates cf excise duly, which must be respected by Member States. They are 
free to apply rates above these minima. However, there is provision under 
article 8 (4) of Directive 92/81/EEC whereby Member Stales can seek the 
approval of the Commission and the Council to depart from the general rules 
in certain circumstances. Most Member States have under this provision 
been authorised to apply rates below the minima on motor fuels used for 
public transport. 
The new proposal has incorporated this provision and provides Member 
States with a number of options enabling them to pursue more ambitious 
environmental policies, without prior Council authorisation. Passenger 
transport or public captive fleets using natural gas and LPG, rail transport 
and navigation on inland waterways may benefit from reduced excise duty 
or motor fuels to encourage their development. There is a similar provision 
for reductions for products from renewable sources with lower global 
warning impact (e.g. road fuel gases and biofuels). Finally, the Proposal also 
provides for the possibility for Member States to reduce their level of fuel 
taxation below the minimum rates to facilitate the introduction of transport 
prising instruments such as road pricing which can address specific transport 
problems more precisely. 
C(J2 emissions from aviation must also be addressed. The Commission has 
suggested that the introduction of a tax on kerosene should be considered in 
the relevant international fora. The effects of such an introduction - at 
international, EU, and national level - is currently being studied by 
independent experts, The Commission has proposed that the Community 
should introduce such taxation within the framework of an ICAO initiative. 
The Commission believes that increases in the Community's minimum fuel 
taxes constitute an important element in a strategy for reducing C02 
emissions from transport. However, where more cost-effective other 
economic and/or fiscal instruments can be introduced, these should be 
implemented where appropriate In those cases the Commission has already 
proposed that Member States should have the possibility to reduce the level 
of fuel taxation below the minimum. 
2.9 Fair and Efficient Pricing 
The Union's objective of ensuring sustainable transport requires that prices 
relied underlying costs to society which would otherwise not be taken into 
account by transport users. These costs include the damage caused to 
transport infrastructure, air and water pollution from transport, CQ2 
Article 8(4) of Directive 92/81/KKC provides that Member States can obtain the approval of the Commission and the 
Council exemptions from the genera! rules under certain circumstances. Most Member States have been allowed 
to apply rates below the minima on motor fuels used for public transport 
16 
emissions, the costs of time delays caused by congestion, transport related 
accident costs (beyond insurance premiums), and the noise "pollution" from 
transport. The 1995 Green Paper on Fair and Efficient Pricing! showed not 
only that taxes and charges are currently not only set in very different ways 
across modes of transport, but also that they do not fully reflect external 
costs in general. 
The varying degrees to which the social costs of different transport modes 
are taken into account lead inevitably to inefficiencies both in the use and the 
provision of transport infrastructure and services. Due to prices that do not 
reflect the underlying social costs, transport demand is too high for some 
modes or for certain times of day. At the same time, public transport services 
or other forms of collective transport may be under-utilised. Competition 
between modes is distorted, and artificial obstacles to the development of 
intermodal transport are created. "Distortions" in demand will almost 
automatically lead to inefficient provision of transport infrastructure and 
services leading to higher overall costs to the society. All these inefficiencies 
impede C02 reduction in transport. 
If designed to reflect the level of costs imposed on the society, differentiated 
charges would be the highest in congested periods and densely populated 
periods and regions (i.e. regions with a high level of C02 emissions), while 
transport in peripheral regions would carry lower charges. 
Road pricing, involving a system whereby the number of kilometres driven 
on different roads is recorded, with tariffs per kilometre set on road type, 
vehicle type and degree of congestion, can be an attractive policy tool for 
curbing congestion and C02 emissions. Advanced technology is now 
becoming available which may make it possible to implement those systems 
on a wide-scale basis with a substantial decrease in the related technical 
costs, making it an economically efficient instrument. 
| At the Community level, the policy of internalising all external costs of! 
transport would reduce C02 emissions on average by 11.5%. In addition to I 
C02 reductions, the net benefit to European citizens from reduced time spent 
suffering congestion, and from decreased accidents, noise and other | 
emissions would range between 28-78 billion ECU per year.2 
2.1® Efficient infrastructure 
Transport problems have often been associated with insufficient 
infrastructure capacity. Whilst building transport infrastructure is a priority 
with Trans-European connections in economically less developed areas, for 
large parts of the HU expanding infrastructure seems nearly impossible due 
! Towards Fair and Efficient Pricing in Transport. Green Paper. COM (95) 6e) i fma! 
- Source: TRKNKN It - Models for transport environment and energy, working paper, (998, KUNKT - Socio­
economic and spatial impacts of transport, working paper 199X. 
17 
to physical, social or environmental reasons. In such cases transport 
infrastructure policy must aim to manage transport demand better. 
With the entry into force of the Maastricht Treaty, additional emphasis is put 
on the development of a Trans-European Transport Network (TEN-T), 
contributing to the overall sustainability of transport systems. By using part 
of the TEN-T budget for projects which permit a modal shift from road to 
other means of transport, a more sustainable transport chain can be 
promoted. In the same way TEN-T implementation in the different Member 
States will give priority to the development and establishment of 
interoperability between national networks, transfer points, nodes and 
terminals as well as to the use of intelligent traffic management systems to 
optimise the use of infrastructure. 
The services of the Commission are developing a methodology for the 
Strategic Environmental Assessment (SEA) of the TEN-T. Systematic 
implementation of this new policy tool would improve the sustainability of 
transport systems, i.a. in terms of C02 emissions, by augmenting the 
importance of environmental sustainability considerations in the selection of 
projects. 
Furthermore, the development of GNSS (Global Navigation Satellite 
Systems), in particular as part of the TEN-T can improve transport efficiency 
for all modes, through more reliable, efficient and highly accurate navigation 
and positioning-fixing services for European and other users. 
The improved transport efficiency and reliability of transport resulting from 
carefully selected investments in transport infrastructure and telematics will 
have a beneficial impact on CO, emissions as demonstsrated in several 
THERMIE projects, provided they don't generate additional transport 
demand. 
3. COMPLEMENTARY MEASURES FOR REDUCING C02 FROM TRANSPORT 
In the preceding chapters the emphasis was mainly put on a series of 
instruments for combating C02 emissions which have been developed under 
the Common Transport Policy since the publication of the 1992 White 
Paper'. 
But in addition lo CTP-driven regulatory and economic/fiscal measures, a 
CO, abatement policy could also benefit from initiatives taken by national or 
local authorities. The need for and the strength of such additional measures 
is likely to be different between Member States according to their specific 
local situation. 
White Paper on the Future Development of Transport Policy COM (92) 494 
18 
3.1 Measures by national, regional and local authorities 
Within the framework of a belter traffic management - often in relation to air 
quality management - national and local authorities can piay an important 
role by contributing to the development uf traffic plans. They are ideally 
placed to deploy measures to discourage the use of the private car and to 
encourage the use o( public transport and alternative forms of transport 
including, in some areas, cycling and walking. 
Measures to control the availability of parking in congested areas can best be 
implemented by local authorities. Higher parking charges may be more 
effective in reducing short range trips into a city centre rather than long 
distance journeys. 
Authorities can restrict certain lanes to high occupancy vehicles in order to 
encourage car-sharing especially during rush hours. Low vehicle occupancy 
means more vehicles on the road, more congestion, higher energy 
consumption and more C02 emissions. However, as is also the case with a 
number of other traffic management schemes, the effect of car-sharing on 
C02 emissions can be diminished by a latent surge in demand provoked by 
increased free capacity. Other measures which could be envisaged by local 
authorities include "Park and Ride Facilities" to encourage people to leave 
their cars on the outskirts of cities and to use public transport to complete 
their journeys, thereby reducing congestion and C02 emissions. 
Various traffic calming measures can also have benefits in terms of C02 
reduction. The systematic introduction of such measures, combined with 
restrictions for cars and lorries (especially in urban areas) may in the longer 
term affect the propensity to travel. By reducing the average speed of traffic 
behavioural changes may be provoked (e.g. a wider use of cycling and 
walking). 
The circulation of lorries in cities creates a specific problem. In some cases, 
City Logistics Systems have been able to reduce the mileage driven within 
city centres by some 60%, as demonstrated by THERMIE programme. 
Under such a system an independent city logistics company collects freight 
from the forwarders' terminals according to a fixed timetable. After sorting, 
the goods are transported to the destinations along optimised routes. The 
system not only reduces C()2 emissions from transport, it also reduces 
uneconomical licet use. 
Technological and organisational measures in transport need to be supported 
and/or balanced by appropriate fiscal/economic instruments. Only a 
combination of measures can produce a substantial reduction of C02 
emissions in cities while also meeting other environmental goals together 
with the need for fair access for all. 
19 
Possible impact of various local measures 1 on total C02 emissions from 
transport (% reductions): 
• promotion of cycling: 4% 
• speed limits and better speed control: 5% 
• information campaigns: 3% 
• higher urban parking charges: 1% 
• restrictions for cars and lorries in cities: 1%. 
3.2 Land-use planning and transport 
Good collaboration between those who are responsible for traffic 
management and land-use planners is important for the long-term efficiency 
of transport systems. Land-use plans should be carefully designed in the 
context of long-term mobility plans. 
By considering where people live and where their professional activities take 
place, land-use planners can make a useful contribution to more efficient 
mobility in terms of trips made, distance travelled and the type of transport 
mode used. As land-use policies have a direct effect on C02 emissions, 
effective long-term land-use planning can influence C02 emissions from 
transport by minimising the need to travel. 
The need to travel can be minimised in several ways: by reducing the 
distance between places of residence, employment and commercial or other 
activities. Urban sprawl has given rise to longer average travel distances per 
trip per person per day. It is clear that land-use planning can also enhance the 
functioning of public transport, by ensuring that trip-generating activities are 
concentrated in locations that are easily accessible by public transport. The 
combination of better traffic management, improved public transport and 
integrated land-use can have an important leverage effect on the efficiency of 
the transportation system and on the demand for mobility. 
Land-use policies are not efficient in reducing C02 unless they are 
complemented by a package of transport policy measures. Emissions per 
capita per day can be reduced to about one third by 2010 using the following 
bundle of measures^ 
increased prices for car use and financial incentives to use more efficient 
cars 
increased inner-city parking charges 
faster public transport (25%) and reducing car speeds by 40% 
land-use management in the periphery in order to reverse the trend of 
urban sprawl. 
1 Volkswirtschaftliche Kosten-Wirksamkeitsanalyse von Massnahmen zur Reduktion der CC^-Emissionen des 
Verkehrs in Osterreich. 
2 IRPUD (1998): Sustainable urban spatial structures. Do we reed to rebuild our cities? 
http://irpud.raumplanung.unidortmund.de/irpud/pro/co2/co2-e.htm. 
20 
4. EFFECTS AND COSTS: AN ASSESSMENT 
Developing a cost-effective approach for transport C02 reduction means arriving at 
a least-cost package of compatible measures which realises a given objective for 
C02 reduction. A given objective for C02 reduction can be achieved by different 
combinations of levels of mobility, carrier energy efficiency and fuel mix. It is also 
possible that changes in one of those three factors will not take place independently, 
but will have feedback effects on the other two factors. These feedback effects may 
be positive but also negative. 
For those reasons any quantitative evaluation of the effectiveness of policy measures 
intended to reduce congestion, energy-consumption and related C02 emissions will 
inevitably be surrounded by relatively large margins of uncertainty. However, by 
bringing together available results from research in this area, it is possible to 
indicate orders of magnitude of expected effects from various policy instruments 
and combinations of them. 
Fully implementing the package of transport policy measures outlined in this 
Communication could reduce C02 emissions from transport by a maximum of 20-
35% in comparison to the baseline. The most important reductions, of up to 7-16%, 
would come from the internalisation of external costs of transport by means of 
efficient pricing (see Annex V). Fully implementing the passenger car fuel economy 
strategy could reduce C02 by 3 to 9% in 2010. Obviously, more important 
reductions in C02 emissions will occur after 2010 with the progressive renewal of 
the car fleet. Revitalisation of railways, the introduction of a modernised regulatory 
framework for public transport and developing intermodaiity and logistics could 
decrease C02 by up to almost 10%. Because of interaction effects between the 
different measures, the total reduction potential is not equal to a simple addition of 
the effects of the individual measures. Moreover, since the implementation of some 
of these measures will require careful preparation and a phasing in, the realistically 
achievable reduction is likely to be of the order of 20-25 %. 
In many cases, these policy measures would also lead to economic advantages for 
society, rather than implying an overall cost. For example, internalisation of 
external costs at Community level would bring about benefits ranging between 28-
78 billion ECU due to less time spent in congestion, decreases in accidents, noise 
and other emissions and better land-use planning. 
5. LONG TERM SOLUTIONS 
5.1 Further potential for reduction of C02 from transport 
There are obviously limits to the fuel efficiency improvements that can be 
gained by further improving the internal combustion engine. For the future, 
the technical answer to the problem of C02 emissions lies in the 
development of alternative propulsion technologies, notably hybrid car 
technology and fuel cells. 
21 
5.2 Hybrid Cars 
In the medium-term, C02 reductions can be obtained by the introduction of 
hybrid cars powered by a combination of a battery and a conventional 
engine. Hybrid technology could provide 20-50% fuel savings in urban 
driving conditions compared to existing vehicles. 
5.3 Fuel CeHs 
Fuel cell technology is a longer-term solution, although several automobile 
constructors are already announcing the commercialisation of such vehicles -
probably on a limited scale - by 2004. Fuel cell vehicles produce electricity 
for an electric motor directly from a chemical reaction. Due to their high 
energy efficiency fuel cells have a high C()2 emission reduction potential. 
The main barrier to the deployment of fuel cells is cost. The main research 
targets within the next five to ten years will be cost reduction, system 
simplification and improved lifetime and reliability. Some of the necessary 
cost reduction is expected to come as a result of volume manufacturing. 
There exists also a need for cheaper materials and low-cost component 
designs. 
5.4 New fuels 
The potential of new fuels, including biofuels\ to reduce C02 emissions 
depends on a number of elements, in particular their production costs, their 
production capacity and the availability of adequate distribution 
infrastructures which should therefore be developed where appropriate. 
In the longer term, technological constraints preventing alternative vehicles 
from competing with conventional diesel and gasoline vehicles will be 
reduced. 
5.5 The Role of transport related R <&1) 
A transport research and development strategy should aim to further develop 
the long-term strategies for sustainable transport. These strategies should 
also address promising solutions that are yet too expensive to be 
implemented in the short term. 
Transport related research in the 4th Framework programme for research, 
development and demonstration has focused mainly on experimentation with 
alternative transport policies, and the development of more energy-efficient 
road vehicles and aircraft. The further development of technologies will 
allow a swift modal shift to rail or shipping. 
1 In the White Paper on Renewable Energy Sources (COM/97/599 final) the Commission puts forward 
an action plan to promote the use of renewable energy. 
22 
Research into technologies which will allow improved batteries, fuel cells, 
transmission and control systems for hybrid vehicles, more energy efficient 
aircraft, etc. is already under way and should shorten the path towards a cost-
efficient implementation of these techniques. Appropriate tools for 
supporting the monitoring of carbon dioxide emissions from transport are 
being developed. It is the intention to continue this process under the Fifth 
Framework Programme for Research and Demonstration (1998 - 2002) 
addressing all elements for establishing a long-term balance between the 
growing demand for mobility and the various environmental, social and 
economic constraints. 
Research into the relationship between transport and the production-
consumption process is expected to provide ideas on how to decouple the 
link between economic growth and traffic volumes. 
To enhance the efficiency of transport special attention will also be given to 
the operational, regulatory and administrative aspects. 
6. ACTION PLANS AND MONITORING 
As the implementation of an efficient C02 policy in the transport sector has to be 
based on a package of complementary measures and concerns many decision­
making levels and actors, a good co-ordination is a pre-requisite for its success. It is 
best supported by action plans at different levels - Community, Member States, 
local government - involving the different stakeholders (e.g. the general public, 
business community). These actions plans should also take into account benefits in 
terms of other transport and environmental objectives which will enhance their 
overall attractiveness. Action plans and their implementation should be supported by 
monitoring mechanisms on the development in transport CO, emissions which 
should also include policy monitoring. 
Action plans at the most appropriate levels should be oriented towards achieving the 
full potential of the package of measures outlined in this Communication. They 
should be based on the identification of measures to be taken and of the responsible 
actors and on an analysis of the effectiveness of the measures. They should lead to a 
consensus between the relevant actors about the sharing-out of responsibilities. The 
implementation of the action plan should be monitored by the responsible 
authorities in co-operation with the other actors involved and reviewed if its 
effectiveness should prove insufficient. 
A more precise definition of these action plans and their contents, including the 
question of possible sectoral targets, can only take place when the overall post 
Kyoto strategy is developed in more detail. 
The Commission - in co-operation with the European Knvironmcnt Agency - is 
currently working on the development of a broader monitoring system on transport 
and environment which will include CO,. 
7. CONCLUSIONS 
On unchanged trends and policies, CO, emissions from transport - road and air 
transport in particular - will continue to rise strongly. If left unchecked, this strong 
23 
growth would pose significant problems for achieving the emission reduction 
objective agreed in Kyoto. Policy action in transport is therefore required. 
The analysis presented in this Communication allows two main conclusions to be 
drawn about how this can be achieved: 
* In the medium term (up until 2010) growth in C02 emissions from transport can 
be roughly halved by fully and rapidly implementing a number of policy 
approaches that the Commission has put forward. Four broad categories of 
measures are crucial in this respect: 
•- Action on passenger car fuel economy 
- Progress with fair and efficient pricing in transport 
- The completion of the internal market in rail transport 
- Measures to better integrate the various modes of transport, both in freight 
and in passenger transport into intermodal transport systems. 
The estimates presented in this paper indicate that, if implemented as part of a 
coherent policy strategy, these measures have the potential to reduce growth in 
emissions by 20-25% below the baseline over the next 15 years, marking a radical 
break in current trends. 
They also have two key characteristics in common: Firstly, they are likely to result 
in significant economic, environmental and transport benefits, because they enhance 
transport efficiency and attainability. Secondly, they require major changes in 
existing policy frameworks and sometimes difficult adjustments in operating 
practices. Together they represent a challenging agenda that clearly cannot be 
achieved overnight. However, the importance of reaching the Kyoto target 
reinforces the need to make more urgent progress on these policies. 
• In the longer term (post 2010) alternative propulsion systems and fuels hold out 
the potential for radical reductions in transport CG2 emissions. Most of these 
options, however, are still too costly and have operating drawbacks. It is 
therefore unlikely that they will be able to make a major contribution to cutting 
emissions from transport before 2010. 
A bold Research and Development programme is needed to resolve these 
problems. That is why the Commission in its proposal for the Fifth Framework 
Programme for Research and Development (FPV) put significant emphasis on 
key actions that will help to address transport policy challenges.. In addition, 
demonstration and experimentation are essential and the Commission is 
assisting Member States and local and regional authorities in this process 
through the ALTHNHR and T13HRM1H programmes. 
24 
Three additional considerations regarding the approach should be borne in mind: 
First, many of the required measures need to be implemented by Member States and 
local authorities. The approach can, therefore, only be successful if supported at all 
policy levels. This will also require that responsibilities for implementation are 
clearly assigned. 
Secondly, although the measures outlined in this Communication are expected to 
lead to significant economic and environmental gains, its implementation will 
require major efforts at all policy levels and will affect both transport workers and 
users significantly. It will only succeed li' h is given the necessary attention and 
emphasis. Therefore, the Commission believes that action plans for C02 reduction 
are needed at different levels, involving all the stakeholders. Alternative approaches 
that do not fit into this framework could also undermine its implementation and risk 
carrying a significant cost. 
Thirdly, monitoring the effects of these policies on C02 emissions from transport is 
essential to evaluate their (cost-)effectiveness and to provide more transparency in 
policy development. Moreover, through the exchange of best practice which this 
process engenders, monitoring and dissemination of results is expected to contribute 
to a more effective policy development throughout the Community. The 
Commission will invite the European Environment Agency to carry out this task and 
report on a regular basis. 
25 
Annex 1 
Table 1 
EU 15 
Mio tonnes CO2 
Total 
Electricity and heat 
Energy Branch 
Industry 
Household 
Transport 
Railways' 
Road transport 
Air transport 
Inland navigation 1985 
2 997.3 
926.2 
126.1 
625.8 
733.9 
585.3 
11.7 
499.7 
61.5 
12.4 Growth 
90/85 
% p.a. 
0.6 
1.4 
0.9 
-1.4 
-2.6 
4.7 
-4.9 
4.6 
5.9 
10.7 1990 
3 087.7 
994.1 
132.0 
581.8 
642.0 
737.8 
9.1 
626.1 
82.0 
20.6 Growth 
95/90 
% p.a. 
-0.3 
-1.0 
1.7 
-2.1 
-0.3 
1.7 
-1.4 
1.6 
3.3 
0.0 1995 
3 047.6 
946.4 
143.4 
523.4 
630.9 
803.5 
8.5 
677.9 
96.5 
20.6 Cjrowlh 
1995/1985 
% p.a.%/period 
0.2 1.7 
0.2 2.2 
1.3 13.7 
-1.8 -16.4 
-1.5 -14.0 
3.2 37.3 
-3.1 -27.4 
3.1 35.7 
4.6 56.9 
5.2 66.1 
Source: EUROSTAT 
Not including emissions due to electricity generation 
JL 
Annex 2 
Table 2 (a) 
Estimated specific emissions of CO, 
Estimate for EU IS 
Passenger C02-emissions in 
traffic gram/passenger.km 
Road Car 125 
Road Bus 45 
Railway 65 
-Air 200 
Freight traffic CQ2-emissions in gram/tom.km 
Road 190 
Rail ~~ To 
Inland 30 
Navigation 
Maritime 2 
Transport 
J? 
Annex 3 
Estimated Average life -cycle CO, emissions in g/km 
0) 
Fuel I Total 
Gasoline 222-282 
Reformulated Gasoline 222-283 
Diesel 173-266 
Liquefied Petroleum Gases 180-203 
(LPG) 
Compressed Natural Gas 164-253 
(CNG) 
Methanol from Coal 424-426 
Methanol from NG 250-252 
Methanol from Wood 65-81 
Ethanol from Sugar Cane 70-123 
Ethanol from Corn 90-263 
Ethanol from Wood ~ 65-81 
Liquid Hydrogen 1CEV 29-88 
Liquid Hydrogen FCEV 48-77 
EV -using electricity 
generated from: 
Coal 224-423 
Oil 214-403 
Gas (CCGT) 134-182 
Nuclear 59-63 
Hydro rencwablcs 44-48 
(I) Source: Policies Measures for Common Section, 
Working Paper 13 L. Michael is, OliCD (Annex I Expert 
Group on the UN FCC) 
JY 
Annex 4 
Table 3 - Primary energy use of different modes of 
transportation at different occupancies, in megajoules 
per passenger kilometre. 
Occupancy 
25% I 100% 
Automobile: 
Diesel under 1.4 litres 2.26 057 
Gasoline over 2.0 litres 4.65 1.16 
Railway: 
German Inter-city 1.14 0.29 
Brussels-Paris TGV 2.86 0.72 
Bus: 
Double-decker 0.70 0.17 
Minibus 1.42 0.35 
Aircraft: 
Boeing 727 5.78 1.45 
Airbus A320 4.02 1.15 
Source: OECD Proceedings. Towards Sustainable 
Transportation. The Vancouver Conference. 
^ of! 
Annex 5 
Cost-efficiency analysis of CQ2 reduction policy 
measures 
In the passenger car sector C()2 policy measures may be taken at low 
cost because car owners do not fully take into account future fuel 
costs when buying a car. This is less likely to occur in the freight 
sector. Calculations with the TTJCARS-model indicate that fine-
tuned combinations of instruments offer the best chances for 
realising more ambitious targets at lower costs. A combination of 
fiscal instruments, i.e. lax incentives and fuel taxation, has been 
identified as being very efficient. Appropriate forms of purchase 
incentivesstrengthen the effect of the fuel tax The main conclusion 
to be drawn from these simulation results is that some combination 
of the two different forms of fiscal instruments would be less costly 
than either alone. 
Simulations of the effect of a decrease in real prices of public 
transport indicate that its efficiency is low. This can be attributed to 
essentially two elements. Firstly, evidence shows that the quality 
and availability of public transport is more important than its price. 
Secondly, the existing low market share of public transport limits the 
relative importance of any measure in this area, especially in the 
short-and-medium-term. 
Using the transport model TRKNfiN' for Brussels and the transport-
land use model Meplan^ for London and south east f ngland, for the 
Helsinki region, the Basque country and Naples region, the cost 
effectiveness of some pricing measures has been analysed. 
The results of the model runs indicate that the most cost efficient 
measure in each case is the policy of internalising external costs. 
C()2 emission reductions range from 7% (Basque region) to 16% 
(Naples region) with benefits ranging between 130-300 MTXTJ per 
year. The benefits consist of decreases in congestion, accidents and 
other externalities and in the Meplan model also of more optimal 
locational choices. 
The results for Brussels show that the internalising of external 
effects could be approximated by a simple cordon toll and 
abolishing unpaid parking. This measure would reduce CO, by 11% 
1 ! RI'NI'.N I! - Models for Transport, linvironment and Knerjiy, (Working Paper, 1998) 
- il !NI{T - Socio-economic and Spalial Impacts of Transport (Working Paper, 1998). 
Jo 
and would benefit the society about 90 MRCU per year. A cordon 
toll with the current parking subsidies would reduce C02 by 7% and 
benefit the society by 70 MliCU. 
A decrease in public transport fares by 25% due to increases in 
efficiency following deregulation would bring about only modest 
decreases in C02, viz. 2-6.4%. This is due to the fact that the new 
passengers come mainly from the slower modes, i.e. cycling and 
walking, and not from car users. The impact on the overall welfare 
of the society is in some cases positive (net benefit of 22 MBCli for 
Brussels) and in other negative (net cost of 3 MBCU for Helsinki 
region) depending on the initial level of public transport utilisation 
and subsidisation. 
Increases m fuel taxes from reducing the existing fixed vehicle taxes 
in a fiscally neutral way would reduce C02 emissions between 0-
4.8%. 
Speed decreases on motorways by 20 km/h would only have a 
limited impact on C02 emissions - reductions would range between 
0.0-3%. The measure would, however, have a small positive net 
impact on the welfare of the society. 
31 
Annex 6 
Table 4: relative capital costs of alternative vehicle 
technologies 
Transport 
technology 
gasoline car 
dicsel car 
LPG car 
methanol car 
ethanol car 
CNG car 
electric 
battery 
module car 
electric city 
car 
hydrogen 
combustion 
car 
fuel cell 
hydrogen 1990 
100 
114 
105 
104 
104 
113 1995 
100 
114 
105 
104 
104 
113 
195 
748 2010 
100 
114 
105 
104 
104 
113 
181 
117 
128 
2541 
Source: Potential from changes in Fuel and New 
Vehicle Technologies for Cars (C.H.S. - K.U. 
Leuvcn, IFP, NTUA) 
Important reductions expected by 2030 
n 
Annex 7 
Table 5: Operational and maintenance costs 
(estimates) 
Transport 1995 (FCU 90/y) I 2010 (\ICV 90/y) 
technology 
gasoline car 456 456 
diescl car "470 "470 
LPGcar "481 "481 
methanol car 473 473 
ethanol car "473 "473 
CNG car ~676 "676 
electric car 700 "420 
fuel cell hydrogen 980 4201 
car 
hydrogen 676 676 
combustion car 
Source: Potential from Changes in Fuel and New 
Vehicle Technologies for Cars (C.E.S. - K.U. 
Lcuven, IFP, NTUA) 
Significant decrease expected by 2030 
33 

ISSN 0254-1475 
COM(98) 204 final 
DOCUMENTS 
EN 07 12 14 15 
Catalogue number : CB-CO-98-236-BN-C 
ISBN 92-78-33141-4 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
^