WRITTEN QUESTION E-1567/00

by Bart Staes (Verts/ALE) to the Commission

(19 May 2000)

Subject: Tax concessions for diesel fuel

More than half the cars sold in the Belgian federation last year use diesel. This makes Belgian the second most diesel-mad country (after Austria). There are scarcely any diesel cars in the Scandinavian countries, the UK and the US.

Diesel emissions are not only the principal source of nitrogen oxide which is one of the key factors in global environmental problems such as ozone pollution and acid rain. What is more harmful are emissions of soot and particulates, or in scientific jargon PM10 (particles smaller than 10 micrometres). Soot particles carry dangerous substances such as heavy metals and carcinogenic polycyclical aromatic hydrocarbons.

The success of diesel in the Belgian federation is due to the difference in prices. Thanks to artificially low levels of duty, diesel is ca. BEF 10 cheaper than petrol, although it costs more to refine diesel than petrol.

1. Does the Commission acknowledge that diesel is the main source of nitrogen oxide? If not, what are the Commission's scientific arguments for not branding diesel as the main source of nitrogen oxide?

2. Does the Commission acknowledge that diesel is one of the key causes of high emissions of soot (PM10)? If not, what are the Commission's scientific arguments for not branding diesel as the main source of high PM10 concentrations?

3. Does the Commission feel that the tax concessions for diesel fuel in the Belgian federation (see above) are in line with the strict emission standards it has defined for the period 2000-2005, given the very high number of diesel cars in the Belgian federation? If so, what are the Commission's grounds for advocating tax concessions for diesel, given that diesel is the main source of nitrogen oxide and is a key factor in high PM10 concentrations? If not, will the Commission take action to end the tax concessions for diesel?

Joint answer to Written Questions E-1318/00 and E-1567/00 given by Mrs Wallström on behalf of the Commission

(5 July 2000)

The Commission does not agree that the problem of air pollution resulting from road traffic can confidently be predicted to have been solved by 2020. Inherent uncertainties in future economic growth, transport demand and technological development as well as evolving knowledge concerning the effects of air pollution on health and the environment prevent such a conclusion from being drawn.

The Commission's current assessment of projected air quality is based on the results of the Auto-Oil II programme. Auto-Oil II has been a technical programme designed to make an assessment of the future trends in emissions and air quality and establish a consistent framework within which different policy options to reduce emissions can be assessed using the principles of cost-effectiveness, sound science and transparency.

The forecasts developed within Auto-Oil II suggest that emissions from road transport of the major known air pollutants will fall to less than 20 % of their 1995 levels by 2020. However, problems with regional ozone, fine particulates and localised high nitrogen dioxide levels are expected to persist.

A number of directives have already been adopted with the aim of reducing emissions from road transport. The Commission intends to adopt a communication within a few months summarising the results of Auto-Oil II and indicating further action that needs to be taken in order to tackle these remaining challenges.

On the specific question of diesel emissions, the Commission would agree that diesel is a major source of both nitrogen oxide (NOX) and PM10 emissions but would not agree that it should be branded as the main source of either pollutant. Although road transport is currently responsible for a large proportion (around 40 %) of current NOX emissions, the Auto-Oil II projections suggest that this share will have decreased substantially by 2010. Other sources such as energy production are expected to take up an increasing share of NOX emissions unless stringent measures are taken. In the case of PM10, road transport is already a relatively small contributor in terms of total emissions, with combustion processes in the energy, industrial and non-industrial sectors and process-related emissions taking up a much bigger share. Diesel exhaust can, however, have a disproportionate effect on urban air quality due to the location of the emissions.

The tax rate for diesel fuel applied in Belgium is compatible with the provisions of Council Directives 92/81/EEC(1) and 92/82/EEC(6) of 19 October 1992, on the harmonisation of the structures and the approximation of the rates of excise duties on mineral oils respectively. The relevant vehicle emission and fuel quality standards

are contained in Directives 98/69/EC(2), 98/70/EC(3) and 1999/96/EC(4). While Directive 98/70/EC does not contain any Article relating specifically to tax incentives, Directives 98/69/EC and 1999/96/EC contain articles that permit Member States to apply tax incentives to encourage the earlier introduction of vehicles that meet future mandatory emission standards and, in the case of Directive 1999/96/EC, a set of emission standards based on best available technology which define a category of vehicle known as enhanced environmentally friendly vehicles (EEV). In addition all three directives contain a number of recitals referring to the use of differentiated excise taxation as an incentive to encourage actions having a positive effect on the environment (use of more advanced fuels, replacement of old vehicles, etc.). Finally, the Commission made a proposal in March 1997 for a directive restructuring the taxation of energy products(5) including diesel, but the proposed directive has not yet been adopted by the Council.

The tax rate on diesel applied in Member States has traditionally been lower than that applied on petrol, reflecting the fact that diesel is the main source of fuel used by commercial vehicles. However, in recent years a number of Member States have modified these taxes to take account of other policy objectives including the reduction of road transport emissions.

(1) OJ L 316, 31.10.1992.

(2) Directive 98/69/EC of the Parliament and of the Council of 13 October 1998, relating to measures to be taken against air pollution by emissions from motor vehicles and amending Council Directive 70/220/EEC (OJ L 350, 28.12.1998).

(3) Directive 98/70/EC of the Parliament and of the Council of 13 October 1998 relating to the quality of petrol and diesel fuels and amending Council Directive 93/12/EEC (OJ L 350, 28.12.1998).

(4) Directive 1999/96/EC of the Parliament and of the Council of 13 December 1999, on the approximation of the laws of the Member States relating to measures to be taken against the emission of gaseous and particulate pollutants from compression ignition engines for use in vehicles, and the emission of gaseous pollutants from positive ignition engines fuelled with natural gas or liquefied petroleum gas for use in vehicles and amending Council Directive 88/77/EEC (OJ L 44, 16.2.2000).

(5) OJ C 139, 6.5.1997.

(6) OJ L 316, 31.10.1992.