Opinion of the Economic and Social Committee on the 'Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions on Transport and CO2 - Developing a Community Approach` (1999/C 101/05)

On 3 April 1998 the Commission decided to consult the Economic and Social Committee, under Article 198 of the Treaty establishing the European Community, on the above-mentioned communication.

The Section for Transport, Energy, Infrastructure and the Information Society, which was responsible for preparing the Committee's work on the subject, adopted its opinion on 16 December 1998. The rapporteur was Mr Colombo.

At its 360th plenary session (meeting of 28 January 1999) the Economic and Social Committee adopted the following opinion by 90 votes to one, with two abstentions.

1. The aims of the Communication

1.1. This Communication is the European Commission's first practical response to the Kyoto conference of 10 December 1997. The European Union played a key role at that conference in determining a global strategy for curbing man-made climate change to safeguard the future of the planet.

1.1.1. The Communication's ambitious objective is to curb CO2 emissions while improving transport efficiency.

1.1.2. The document fits into the wider context of rationalizing the use of energy resources with a view to maintaining production levels, mobility and quality of life while consuming less energy.

1.2. The sectoral repartition of the Kyoto target is another area that will need to be tackled. The present Communication does not address that complex and sensitive issue.

1.3. The Commission presents two strategies:

- In the short to medium term: full exploitation of the potential results already available on the basis of decisions that have already been adopted.

This involves obtaining substantial immediate environmental benefits from transport policy, by applying the technologies available and promoting and developing more environmentally-sound forms of transport. Appropriate fiscal and pricing measures must also be applied.

In addition, strong encouragement should be given to complementary measures under appropriate national and regional policies.

- In the long term (after 2010): the large-scale introduction of new technologies associated with fuel cells and alternative fuels. This policy, based on far-reaching scientific and technological change, must be backed by major investment in research and development, starting with the opportunities offered by the European Union's imminent Fifth Framework Programme.

1.4. In this context, the Commission lists a series of initiatives which, if implemented in a uniform and coordinated fashion, could yield benefits and stem further increases in CO2 emissions. The Kyoto summit's objectives call for an overall reduction in greenhouse gas emissions of 8 % from 1990 levels, by 2010 or thereabouts. It should be noted that the Energy/Environment Council of October 1990 set the objective of stabilizing CO2 emissions at 1990 levels, by the year 2000 ().

2. General comments

2.1. The Economic and Social Committee welcomes the Commission Communication and takes the view that respect for the principle of sustainable development requires a shift in the development trend of the transport sector, involving a substantial investment of resources. Transport policy must be dovetailed synergically with all other policies, including those conducted at regional and urban level.

2.1.1. Furthermore, immediate legislative action must be taken in the area of environmental protection, to ensure that agreements in principle such as those arrived at in Kyoto are not followed by the repeated postponement of practical measures.

2.1.2. An ambitious project on this scale will require the commitment and participation of all those involved, including the public, who will have to change their habits, as the proposed measures, which will be analysed in detail, are likely to lead to a review of traditional patterns of mobility.

2.2. A variety of substances contribute to the greenhouse effect, including methane (CH4) and nitrous oxide (N2O). However, it is well known that carbon dioxide emissions are the primary cause. CO2 is the natural product of the combustion and fermentation of all organic substances. The level of CO2 in the atmosphere increases in proportion to the quantity of fossil fuel burned and thus - regardless of efficiency - to energy consumption. The International Energy Agency predicts a significant increase in world levels over the coming decades. Forecasts suggest an increase of close to 50 % between 1990 and 2010. Three-quarters of that rise will be attributed to developing countries (China, South-East Asia, etc.). Coal consumption in China alone is set to soar from 1 to 3 billion tonnes a year ().

2.3. Reducing CO2 thus implies reducing energy consumption, inter alia, by using alternative fuels which have less impact on the environment. Road transport is a logical main focus for action as it is a major source of CO2 emissions, which increased more rapidly than GDP over the 1985/1995 period; however, it must be remembered that action is also needed in the other sectors which contribute to CO2 emissions. The Commission document highlights the transport sector's level of CO2 emissions compared with other sources of pollution, as well as the proportion of CO2 emissions arising from road transport compared with other modes of transport. The percentage share of goods vehicles increased significantly during the 1985/1995 period, a fact matched by the considerable increase in tonnages transported over the same period.

2.4. Attention must also be paid to the countries of Eastern Europe, whose transport systems, once run on a centrally planned basis and relying predominantly on rail transport, are in a state of flux. Worryingly, rail transport is in steady decline in favour of road transport, while in cities public transport is losing ground to private transport. The fact that Community funding largely targets roads is no help (). Therefore, the accession negotiations must not centre solely on pure economics but must also provide for specific commitments to apply existing Community legislation, and, in particular, a sustainable transport sector policy to stave off market distortions and uncontrollable effects.

2.5. The transport sector as a whole has become an increasingly crucial tool in social development as a result of the removal of borders, just-in-time delivery, the rise in SMEs [70 % of capacity ()], and the transition from an industrial-type economy to a liberalized service-based economy. As a result, road freight contributes significantly to GDP and employment, currently the Union's central concern. In spite of the efforts made to apply transport strategy and policy in line with the principles outlined in successive green and white papers, mostly produced in the 1990s, and in spite of Council commitments, the situation has failed to change over the years. Furthermore, road transport has steadily expanded its presence on the market.

2.6. For some time, there has been a trend in Community legislation as a whole towards focusing on environmental protection as a priority, seeing it as a genuine opportunity to promote environmentally sound development rather than as an obstacle to progress.

2.7. Initial action must focus on the development of a strategy to curb the constant rise in emissions of the main greenhouse gases (CO2-CH4-N2O), a concern shared by the entire international scientific community. Their theories on the risks facing the Earth, starting with climate change, are backed up by a mass of scientific data. The only way to avoid further environmental risks to the planet is practical action and definite results. What is needed is a holistic policy approach based firmly on the search for technologically advanced solutions. It is unwise to rely solely on more immediate solutions such as the use of taxation which, if used in isolation rather than as part of a global approach, could have a negative impact on industry and production.

2.8. This major objective will call into question the conventional wisdom behind development models in the transport sector, and produce a new European dimension to establish proper resources for social, civil and technological development. The European Commission, firms and social groupings must join forces to review the issue of logistics, internally at organizational level within companies (use of telematics for logistics management) and externally with local cooperation to reduce transport density.

2.9. The objective is a crucial one. There would appear to be no choice but to make transport policy the priority, as transport generates high levels of CO2 emissions while being a linchpin sector involving vast numbers of users. The Community must attempt to attain a high level of environmental protection and improvement for current and future generations, while maintaining its competitive edge in international terms.

2.10. The following table illustrates the pre-Kyoto scenario and makes a plausible forecast for future development. It also points up worrying trends, which call for maximum attention to be focused on this economically vital sector.

>TABLE>

2.11. The need for a series of immediate actions and practical pointers in the transport sector to curb CO2 emissions is also justified by the length of time required to achieve significant results in the area. The reasons include the absence of radically innovative technology that is both environmentally viable and cost effective, and also the long average life-span of vehicles, which can be replaced only gradually over time.

2.12. The environment must have priority, even when it comes to improving the future mobility of people and goods. However, results will not match expectations unless the European proposals are founded on a broad social and political consensus, going beyond the European dimension, as environmental protection is a global policy by definition. An innovative all-encompassing vision is required to balance the primary and ineluctable need to protect the environment with the need to develop the economy and trade.

3. Specific comments

3.1. First of all, there must be no doubt that whereas the Community has a definite responsibility for defining the general framework for action, direct targeted action must be up to individual Member States, which must commit themselves to taking appropriate action in accordance with the subsidiarity principle. Economic assessments and eco-balance sheets taking account of the pros and cons of each initiative should be conducted at Community level. Although the grounds for the Commission's statement that 'at Community level, the policy of internalizing all external costs of transport would reduce CO2 emissions on average by 11,5 %` () are unclear and in spite of the fact that the costs and possible loss to sectoral competitiveness have yet to be assessed, it is clear that it would be much easier to draw up an eco-balance sheet - and would enhance intermodal competition - if external costs were internalized for all modes of transport.

3.2. Urban traffic would appear to pose the most serious problem. In this respect, the Commission green paper () is as important as ever. Action must be taken on traffic flow and congestion, taking appropriate decisions at local level on a case by case basis (intelligent traffic lights, park and ride facilities, sensible use of personal vehicles). The agreement which the Commission has concluded with vehicle manufacturers () deserves approval and support. This aspect is crucial and will probably lead to the use of small power units offering limited speed. Moreover urban transport has by far the highest external costs (). It is therefore essential to promote public transport and make it more attractive. A major effort must be made with the freight companies and their customers to rationalize logistics and commercial facilities, and thus distribution procedures. Specific town planning measures (loading and unloading points) are also needed. Action must be taken to rationalize and regulate physical distribution for freight transport in urban areas. The damage is caused not so much by traffic as by stop and go driving, random parking for unloading, and distribution schedules (). For instance, goods deliveries during rush hours are a source of pollution and congestion.

3.3. Measures already agreed on for freight transport () must be implemented. The issue must be addressed in a more general way, as a combined road/sea and road/rail strategy is required to redress the modal balance. That will involve restructuring road haulage firms to prepare them for combined transport, with a view to increasing efficiency and consolidation. Rail companies must be willing to rise to the commercial challenge. Furthermore, road freight efficiency must be increased by, for instance, cutting down on empty running and promoting across-the-board use of telematics. Provision must be made for road-freight handling equipment using intermodal terminals with a low environmental impact and a greater maximum authorized weight (), applying for instance the modular concept provided for in Directive 1996/53 () for the Union's most northerly countries.

3.4. Air transport () is a highly sensitive issue. The figures given in the Communication are all the more significant when considered in relation to the number of passengers and quantity of goods carried. The fact that air transport accounts for 12 % of all CO2 emissions in the transport sector is significant in itself. Focused intervention is needed in this area, including the promotion of cooperation and alliances between airlines, an improvement in air traffic management systems, and appropriate attention to aircraft occupancy/use rates.

3.5. Rail transport () does not appear to generate any particular problems, at least in terms of CO2 emissions, although the Commission's figures do not show the impact of electricity generation. The necessary subsidies for combined transport have, sad to say, proved for the most part insubstantial. This sector too requires Community intervention but the Community's finances are minimal. Suffice it to say that only ECU 6 million is available for the 1998 PACT () programme. The development of rail transport will require the harmonization of technical standards, interoperability and the option of a single tariff for international journeys.

3.6. Maritime and inland waterway transport are two extremely energy-efficient modes which can help to improve freight and passenger mobility. However, the drive to reduce greenhouse gas emissions must be extended to all international shipping. The viability of our planet poses a challenge which has to be addressed at global level.

4. Conclusions

4.1. The Committee welcomes the Commission Communication and takes the view that respect for the principle of sustainable development requires a shift in the development trend of the transport sector, involving a substantial investment of resources.

4.2. Reducing CO2 implies reducing energy consumption, inter alia, by using alternative fuels which have less impact on the environment. Road transport is a logical main focus for action as it is a major source of CO2 emissions, which increased more rapidly than GDP over the 1985/1995 period; however, it must be remembered that, action is also needed in the other sectors which contribute to CO2 emissions.

4.3. What is needed is a holistic policy approach based firmly on the search for technologically advanced solutions. It is unwise to rely solely on more immediate solutions such as the use of taxation which, if used in isolation rather than as part of a global approach, could have a negative impact on industry and production.

4.4. There is no doubt that whereas the Community has a definite responsibility for defining the general framework for action, direct targeted action must be up to individual Member States. Economic assessments and eco-balance sheets taking account of the pros and cons of each initiative should be conducted at Community level. It is clear that it would be much easier to draw up an eco-balanced sheet - and would enhance intermodal competition - if external costs were internalized for all modes of transport.

Brussels, 28 January 1999.

The President

of the Economic and Social Committee

Beatrice RANGONI MACHIAVELLI

() OJ C 139, 6.5.1997, p. 14.

() World energy forecasts. International Energy Agency - Paris 1994.

() The railways are not currently equipped to meet the growing demand for transport resulting from the requirements of mobility and economic development. The attraction of private vehicle ownership, with cars as status symbols, also plays an important role.

() OJ C 19, 21.1.1998, p. 25.

() The purpose of this table is solely to highlight the need to give priority attention to the transport sector.

() COM(1998) 204 final, pt. 2.9.

() OJ C 212, 22.7.1996, p. 77.

() The agreement between the Commission and the European Automobile Manufacturers Association (ACEA) provides for a limit of 140 g/km for CO2 emissions by 2008, i.e. a reduction of approximately 25 % on 1995 figures. The Commission must check periodically that manufacturers are complying with their commitments.

() OJ C 56, 24.2.1997, p. 31.

() CONFETRA - Conf. Trasporti-ufficio studi, Milan, January 1994.

() OJ C 19, 31.1.1998, p. 25; OJ C 95, 30.3.1998, p. 21; OJ C 89, 19.3.1997, p. 18; OJ C 56, 24.2.1997, p. 31.

() OJ C 261, 19.8.1998, p. 10.

() OJ C 295, 22.10.1994, p. 72.

() OJ C 95, 30.3.1998, p. 59; OJ C 73, 9.3.1998, p. 66; OJ C 56, 24.2.1997, p. 26.

() OJ C 206, 7.7.1997, p. 23; OJ C 153, 28.5.1996, p. 16.

() PACT: Pilot Actions in Combined Transport.

APPENDIX to the opinion of the Economic and Social Committee

The following amendment was approved by at least a quarter of the members present but defeated during the debate:

Point 3.4

Replace last sentence by the following:

'Here intervention is particularly needed to improve air traffic control systems.`

Reason

The lack of competition resulting from excessive cooperation between airlines is already a problem. We should not give further encouragement to such alliances. There is nothing to show that increased economies in this sector would produce environmental benefits that outweigh the risks that even weaker competition can be expected to bring in its wake.

Result of the vote

For: 24, against: 48, abstentions: 6.