Proposal for a Directive of the European Parliament and of the Council on the promotion of clean road transport vehicles {SEC(2005) 1588}
Date: 2005-12-21
Institutions: European Commission
Subjects: environmental protection, motor vehicle, road transport

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 21.12.2005 
COM(2005) 634 final 

2005/0283 (COD) 

Proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL  

on the promotion of clean road transport vehicles 

(presented by the Commission) 

{SEC(2005) 1588} 

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EXPLANATORY MEMORANDUM 

1)  CONTEXT OF THE PROPOSAL 

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•  Grounds for and objectives of the proposal 

The  Commission,  in  its  Green  Paper  on  the  security  of  energy  supply  [COM(2000) 
769:  "Towards  a  European  strategy  for  the  security  of  energy  supply"]  published  in 
2000,  highlighted  the  continuing  growth  of  the  transport  sector  and  the  related  high 
level  of  energy  consumption,  CO2  emissions  and  dependence  on  oil.  The  paper 
emphasised the importance of taking action on the supply side, but also on the demand 
side  in  order  to  influence  demand  for  alternative  fuels  and  technologies.  The 
Commission  committed  itself  to  take  action  to  support  the  development  of  a  new 
generation of vehicles.  

In  2001,  the  Commission's  White  Paper  on  the  European  transport  policy  for  2010 
[COM(2001)  370:  "European  Transport  policy  for  2010:  time  to  decide"]  also  noted 
the  need  for  further  measures  to  combat  emissions  from  transport  and  stated  that  the 
Commission would encourage the development of a market for "clean vehicles". 

The Green Paper on energy efficiency [COM(2005) 265: "Energy Efficiency or Doing 
More  With  Less"]  proposes  concrete  actions,  such  as  the  public  procurement  of  less 
polluting  and  more  energy  efficient  vehicles  in  order  to  build  up  a  market  for  these 
types of vehicles. 

There  is  a  considerable  potential  for  reducing the  emissions of  vehicles. However, at 
the moment these technologies are still more expensive than those used in conventional 
vehicles.  

As far as the European vehicle mass production industry is concerned, manufacturers 
are  unlikely  to  produce  special  vehicle  series  to  respond  to  local  or  even  national 
incentives  aimed  at  improving  energy  efficiency  or  reducing  pollutant  emissions. 
Action at Community level is therefore needed in order to encourage the investments 
required  for  the  manufacture  of  vehicles  that  are  more  energy-efficient  and  less 
polluting. 

The  resulting  increased  demand  would  provide  support  for  vehicle  manufacturers  to 
develop  vehicles  with  better  performances  in  terms  of  energy  consumption  and 
pollutant emissions. This could then allow a turn-around in demand and create markets 
of sufficient size and the necessary economies of scale to broaden industrial production 
to large series. 

The objective of this proposal is to reduce pollutant emissions by the transport sector 
and contribute to the establishment of a market for clean vehicles. This is particularly 
relevant  for  agglomerations  and  zones  in  difficulties  to  meet  the  requirements  of  the 
Air Quality Directive (Directive 1996/62/EC on air quality and Directive 1999/30/EC 
on limit values of pollutants in ambient air).  

An  environmentally  enhanced  performance  standard  has  already  been  established  in 
EU legislation for vehicles above 3.5 t weight for optional use, such as tax incentives. 

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This  proposal  takes  a  next  step  and  uses  the  existing  "Enhanced  environmentally 
friendly vehicle" ("EEV") for Heavy Duty Vehicles, above 3.5 t weight, as defined in 
Directive  2005/55/EC  (OJ  L  275,  20.10.2005,  p.  1)  to  implement  it  on  a  mandatory 
basis for part of the fleet. Public bodies are required to allocate minimum quota of their 
annual  procurements  (purchasing  or  leasing)  of  heavy  duty  vehicles  to  vehicles 
meeting the Enhanced environmentally friendly vehicle performance standard.  

The  clean  vehicle  procurement  obligation  proposed  in  this  Directive  is  limited,  in  a 
first stage, to vehicles above 3.5 t weight in order to allow the smooth introduction of 
environmental  award  criteria  into  the  vehicle  procurement  process  and  to  prepare 
public bodies and industry for a possible extension to other vehicle categories in later 
stages. The impact assessment carried out for this legislative proposal has shown that a 
positive impact on competitiveness of European industry with a net economic gain and 
the  best  cost/benefit  result  can  be  obtained  with  this  kind  of  focused  procurement 
obligation. This category of vehicles includes buses and most utility vehicles, such as 
refuse collection lorries. 

An  extension  of  the  clean  vehicle  procurement  obligation  to  passenger  cars  and  light 
duty  vehicles  based  on  a  thorough  impact  assessment  could  be  considered  at  a  later 
stage, once environmentally enhanced performance standards have been developed for 
them. 

This Directive is expected to result over the long term in a general improvement in the 
environmental performance of the whole fleet through economies of scale, lower costs 
and wider deployment of enhanced environmentally friendly vehicle technologies.  

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•  General context 

The European Council, on several occasions, has committed itself to take measures in 
this area. In particular, the Helsinki European Council in 1999 agreed a strategy on the 
integration  of  environment  and  sustainable  development  in  transport  policy  (Council 
document  11717/99).  Among  the  most  urgent  areas  for  action,  the  Council  identified 
the  growth  in  greenhouse  gas  emissions  from  transport  as  well  as  other  transport 
nuisances. The Gothenburg European Council in 2001 re-affirmed the importance of a 
Community  strategy  for  sustainable  development,  in  particular  with  respect  to  pro-
active measures in the transport sector. 

The Communication of the Commission to the European Parliament and the Council of 
9  February  2005  on  the  review  of  the  Sustainable  Development  Strategy  of  the 
European Union [COM(2005) 37] re-affirmed the importance of a pro-active transport 
policy.  According  to  that  Communication,  the  evolution  of  transport  has  impacts  in 
several  areas,  such  as  the  saturation  of  traffic,  the  health  problems  caused  by  air 
pollutants, and increased CO2 emissions, which in turn impact on the climate change 
objectives  of  the  EU.  The  Communication  refers  to  the  development  of  cleaner 
vehicles and traffic management in urban areas and encourages public procurement as 
a means of promoting eco-innovations, and explicitly recommends a move to "clean" 
buses.  

The European Parliament has also encouraged further action in these areas. In its report 
on  the  Community  action  plan  to  improve  energy  efficiency  in  the  European 

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Community  (A5-0054/2001),  it  argued  that  insufficient  action  had  been  taken  at  EU 
level to address transport energy use. It stated that "experience shows that well targeted 
public procurement programs have the potential of significantly reducing the price of 
energy efficient equipment, which is yet not commercially viable, and thus making it 
competitive  with  conventional  technologies".  It  also  called  on  the  Commission  to 
explore  appropriate  technology  fields  where large-scale procurement  initiatives could 
result in major efficiency gains.  

This proposal responds to the wishes of Council and Parliament to promote clean and 
energy efficient vehicles, and the recommendations of Member States and stakeholders 
for  a  technology-neutral  approach  and  responds  directly  to  the  priorities  set  by  the 
European Council of 22-23 March 2005 in the context of the Lisbon Strategy. 

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•  Existing provisions in the area of the proposal 

EU legislation has regulated vehicle emissions through the so called "Euro" standards, 
with limit values becoming tighter over the years. The latest standards implemented are 
the  Euro  4  standards  for  passenger  cars  and  Light  Duty  Vehicles,  as  from  January 
2005. A proposal for Euro 5 for passenger cars and Light Duty Vehicles will follow in 
2006. Relating to Heavy Duty Vehicles, Euro IV standards are in force from October 
2005 and the Euro V standards will enter into force in 2008. 

The  effect  of  the  measures  on  pollution  levels  from  transport  has  been  significant. 
Emissions of the various regulated pollutants have fallen by between 20 and 50% on 
average since 1995. A further decrease is expected, bringing levels down to 25-50% of 
the 2000 level by 2020 (CAFE - Clean Air For Europe - modelling, 2005). 

However, in many places ambient air quality still does not meet the legal requirements 
set  by  EU  Directives.  Limit  values  for  particulates,  which  came  into  force  from 
January 2005, pose problems and the same may also be expected in future with nitrous 
oxide  when  the  limit  values  are  lowered  from  January  2010.  Restrictions  on  the  free 
circulation  of  vehicles  have  already  been  imposed  by  cities  in  order  to  reduce 
emissions.  

EU  legislation  provides  in  Directive  2005/55/EC  a  definition  of  an  "Enhanced 
environmentally  friendly  vehicle"  ("EEV")  for  Heavy  Duty  Vehicles,  above  3.5  t 
weight,  setting  lower  limit  values  than  envisaged  so  far  for  Euro  V  standards  for 
pollutant  emissions.  Mandatory  introduction  of  enhanced  environmentally  friendly 
vehicles could help public bodies to meet the obligations arising from the Air Quality 
Directives. 

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•  Consistency with other policies and objectives of the Union 

The  proposal  will  be  complementary  to  EU  measures  on  minimum  standards  of 
pollutant  emissions,  on  CO2  emission  reduction  through  voluntary  agreements, 
labelling, and fiscal measures, and on promotion of the market introduction of biofuels. 

This  Directive  is  in  line  with  the  new  Commission  approach  in  the  field  of  vehicle 
taxation.  In  fact,  Directive  2003/96/EC  of  27  October  2003  restructuring  the 
Community  framework  for  the  taxation  of  energy  products  and  electricity  already 

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allows,  under  certain  conditions,  differentiated  excise  duty  rates  for  alternative  fuels 
such as biofuels, natural gas, and LPG. Also, the Commission has recently presented a 
proposal  for  a  Directive  (COM(2005)  261  of  5  July  2005)  requiring  taxation  of 
passenger cars to be based at least partially on CO2 emissions in order to encourage the 
purchasing  of  cleaner  and  more  energy-efficient  vehicles.  It  also  includes,  in  its  3rd 
"whereas",  an  invitation  to  Member  States  to  apply  coordinated  fiscal  incentives  for 
passenger  cars  fulfilling  stricter  than  Euro  4  polluting  emission  limits  and  for 
expediting the placing on the market of cars satisfying future requirements (Euro 5). 

Improvement  of  conventional  and  development  of  the  following  alternative  vehicle 
technologies  have  been  supported  by  Community  funding  from  the  research  and 
technical  development  Framework  Programmes  and  the  Structural  Funds,  and 
promoted by Commission policy papers on alternative fuels: 

a) 

b) 

c) 

d) 

e) 

f) 

Vehicles  using  biofuels,  either  in  high  blends  in  ordinary  vehicles  or  in  high 
blends in specially adapted vehicles. 

Natural  gas  vehicles  powered  by  an  engine  modified  for  the  combustion  of 
methane, the main component of natural gas. 

Vehicles powered by a combustion engine running on liquefied petroleum gas 
(LPG),  consisting  of  a  mixture  of  light  hydrocarbons,  mostly  propane  and 
butane. 

Vehicles  powered  by  electrical  motors  using  energy  stored  in  rechargeable 
batteries. 

Hybrid  vehicles,  using  two  types  of  motors,  a  combustion  engine  and  an 
electrical  motor,  allowing  recovery  of  the  braking  energy  with  storage  in 
batteries. 

Hydrogen/fuel cell vehicles, using hydrogen as an energy carrier either as a fuel 
in a combustion engine or in a chemical reaction producing heat and electricity 
in a fuel cell. 

The  increased  use  of  biofuels  for  vehicles  is  also  an  objective  of  the  biomass  action 
plan, which the Commission has recently adopted (COM(2005)628 final)), and which 
is  to  be  complemented  by  a  Communication  on  biofuels  by  early  2006.  The  rise  in 
biofuels consumption, which the EU wishes to see (with a target of 5.75% market share 
by  2010),  requires  a  stable  framework,  including  increased  market  pull  from 
consumers.  A  larger  number  of  vehicles  suited  for  high  blend  biofuels  would  give 
additional support to a broadening of the biofuel market. 

The  clean  vehicles  procurement  obligations  introduced  by  this  initiative  for  public 
bodies  will  contribute  to  a  general  improvement  of  the  performances  of  the  vehicles 
put  on  the  market,  encouraging  the  manufacturers  to  invest  into  the  development  of 
cleaner technologies. 

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2)  CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

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Consultation methods, main sectors targeted and general profile of respondents 

The  Commission  has  held  consultations  with  stakeholders  and  Member  States  on 
possible  measures  to  promote  the  development  and  market  penetration  of  clean 
vehicles.  Impact  assessments  on  different  approaches,  based  either  on  technology  or 
performance standards have been carried out.  

Consultations have been carried out in the frame of expertise studies realized on two 
different  approaches  for  this  legislative  initiative  and  were  accompanied  by  a 
Commission internal interservice group. A technology oriented approach was based on 
the selection of specific technologies. A technology neutral approach was based on the 
integration  of  costs  for  fuel  consumption  and  pollutant  emission  into  the  vehicle 
purchase cost. Two hearings have taken place with stakeholders and national experts. 
More  extended  information  was  collected  through  questionnaires  distributed  and 
assessed in the frame of the expertise studies. 

Bilateral  contacts  have  also  been  engaged  with  some  stakeholders  in  order  to  share 
information.  

The  initiative  for  legislative  action  on  the  promotion  of  clean  vehicles  has  also  been 
presented to the High Level Group of the CARS 21 group of Commission and industry. 

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Summary of responses and how they have been taken into account 

The  CARS  21  High  Level  Group  of  Commission  and  industry  supported  the 
Commission's  initiative  to  put  forward  a  proposal  on  the  promotion  of  clean  and 
energy-efficient vehicles,  on the condition that a technology-neutral and performance 
based approach is taken. 

Support  for  the  proposal  of  a  procurement  obligation  for  public  bodies  has  been 
expressed  at  all  stages  of  the  consultation,  with  the  recommendation  to  take  a 
technology-neutral approach. 

A  focus  on  part  of  the  market  as  a  kind  of  pilot  introduction  of  the  measure,  which 
would enable to test the methods and the technology requirements, was supported.  

•  Collection and use of expertise 

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Scientific/expertise domains concerned 

The studies carried out provided a qualitative and quantitative analysis of the impact of 
such  an  initiative  through  a  cost/benefit  analysis,  and  collected  data  to  evaluate  the 
general framework of this initiative. 

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Methodology used 

Two  approaches  for  a  legislative  action  have  been  independently  assessed  by  two 
consultants,  COWI,  and  PriceWaterhouseCoopers.  A  technology  oriented  approach 
took  as  basis  the  selection  of  specific  technologies  considered  as  clean  and  energy 
efficient. A technology neutral approach considered an internalisation of costs for fuel 
consumption and pollutant emission into the vehicle purchase cost.  

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Main organisations/experts consulted 

The  European  Automobile  Manufacturers  Association  (ACEA),  European  LPG 
Association  (AEGPL),  European  Association  of  automobile  component  suppliers 
(CLEPA), the oil companies' European association for environment, health, and safety 
in refining and distribution (CONCAWE), representative CIVITAS cities (Stockholm, 
Bremen,  Rotterdam),  DEUTSCHER  STÄDTETAG,  European  Emulsion  Fuel 
Manufacturer's  Association  (EEFMA),  European  Natural  Gas  Vehicle  Association 
(ENGVA),  European  Council  for  Automotive  R&D  (EUCAR),  European  Federation 
for  Transport  and  Environment  (T&E),  International  Union  of  Public  Transport 
(UITP), and European Industry Association (UNICE) were consulted. 

National experts of all Member States were consulted through the Joint Expert Group 
Transport&Environment.  

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Summary of advice received and used 

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The existence of potentially serious risks with irreversible consequences has not been 
mentionned. 

The principal conclusions were that this directive could have a positive impact on the 
market  of  clean  vehicles  and  on  the  environment, that the  effect of such an initiative 
was optimal for certain categories of vehicles, and that it could support industry in the 
development  of  cleaner 
technology  neutral  approach  was 
recommended  in  order  to  allow  flexibility  for  industry  to  adjust  to  technical  and 
economic progress. 

technologies.  A 

Means used to make the expert advice publicly available 

Minutes have been distributed to all organisations involved.  

•  Impact assessment 

The  main  policy  options  considered  were  voluntary  agreements,  information 
dissemination,  and  regulatory  actions.  The  no-policy  case  provides  a  benchmark 
against which the other policy scenarios have been compared. 

Voluntary  agreements  imply  an  uncertainty  on  the  result  and  difficulties  in 
o 
assessing the evolution and the implementation of efforts to reach the objective. They 
are  nevertheless  an  incentive  to  progress  for  manufacturers.  Overall,  a  voluntary 
initiative would only involve a part of public bodies and this would mean that its effect 
on  the  overall  market  would  be  much  smaller  than  a  general  obligation.  Another 

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problem might be that vehicles responding to the procurement initiative might not be 
offered by manufacturers in the whole of the EU. Since the objective of the policy is to 
promote the market for clean road transport vehicles it does not seem effective to pass 
a new voluntary agreement with the car manufacturing industry. A voluntary scheme 
would imply a campaign of information and persuasion to be enforced with the aim of 
orienting purchase decisions. 

o 
Dissemination  of  information  on  using  environmental  criteria  in  the  vehicle 
procurement  process:  this  policy  option  would  not  involve  any  direct  requirements. 
However,  information  and  knowledge  spread  must  be  organised  and  EU  can  provide 
information to the Member States. Access to information will make it easier for public 
bodies  to  take  environmental  criteria  into  account  when  awarding  contracts  and 
purchasing  vehicles.  Availability  of  information  about  technical  characteristics  and 
additional  financial  cost  will  help  decision making  when  procuring  vehicles.  It  could 
help overcoming a lack of knowledge barriers and increase public sectors procurement 
of clean vehicles.  

An  explicit  requirement  that  public  procurement  of  road  vehicles  takes  into 

o 
account energy consumption and pollution emissions.  

Different approaches for a legislative initiative to promote clean road transport vehicles 
have been analysed: a technology neutral approach based on the integration of energy 
and pollutant costs in the procurement decisions; a technology oriented approach based 
on selected technologies; a technology neutral approach based on an existing emissions 
standard. 

The  impact  assessment  has  shown  that  a  positive  impact  on  environment  and  on 
competitiveness  of  European  industry  can  be  expected.  A  net  economic  gain  and  the 
best cost/benefit result can be obtained with a focused procurement obligation on the 
category of vehicles above 3.5 t, which includes buses and most utility vehicles such as 
refuse collection lorries. 

A quota of 25% of clean vehicle procurement would be a good compromise between 
the  objectives  of  large  impacts  on  air  quality  improvement  and  clean  vehicle  market 
development  on  one  side,  and  affordable  extra  investment  cost  and  mass  market 
availability of clean vehicles on the other side. Public authorities still need to be given 
the  flexibility  for  procurement  according  to  specific  requirements  for  which  no  EEV 
vehicles are available yet. 

The  quota  of  25%  in  the  Heavy  Duty  Vehicle  market,  with  a  share  of  1/3  of  public 
procurement,  represents  about  10%  of  the  total  market.  This  would  be  about  the 
minimum  required  for  mass  production  series  large  enough  to  achieve  economies  of 
scale.  Procurement  of  environmentally  better  performing  vehicles  also  should  not  go 
beyond  what  is  required  to  bring  cost  down  in  order  to  optimise  the  use  of  public 
money and confine it to the support necessary to get these technologies economically 
viable so  that  they  are taken  up  by the wider private markets on a competitive basis. 
This broader market uptake will then provide also much larger environmental gains. 

Only  the  Heavy  Duty  Vehicle  sector  with  the  large  market  power  of  public 
procurement offers the possibility of effective market leverage with a reasonably small 

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share of the orders. Therefore the obligation for clean vehicle procurement should be 
limited  to  this  sector  based  on  a  thorough  impact  assessment  in  a  first  stage.  An 
increase of the quota and an extension to other vehicle sectors could be considered at a 
later stage on the basis of the technical and economic development unleashed by this 
initiative.  

The  Commission  carried  out  an  impact  assessment  -  SEC(2005)  1588  -  listed  in  the 
Work Programme . 

3)  LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

Public  bodies  are  required  to  allocate  minimum  quota  of  their  annual  procurements 
(purchasing  or  leasing)  of  heavy  duty  vehicles  to  vehicles  meeting  the  Enhanced 
Environmentally Friendly Vehicle (EEV) performance standard.  

The  clean  vehicle  procurement  obligation  proposed  in  this  Directive  is  limited,  in  a 
first stage, to vehicles above 3.5 t weight in order to allow the smooth introduction of 
environmental  award  criteria  into  the  vehicle  procurement  process  and  to  prepare 
public bodies and industry for a possible extension to other vehicle categories.  

•  Legal basis 

Article 175(1) of the Treaty establishing the European Community 

•  Subsidiarity principle 

The  subsidiarity  principle  applies  insofar  as  the  proposal  does  not  fall  under  the 
exclusive competence of the Community. 

Policies  to  promote  green  public  procurement  and  more  energy  efficient  and  cleaner 
vehicles  have  been  already  adopted  in  some  places  at  local  level.  As  far  as  the 
European vehicle mass production industry is concerned, manufacturers are unlikely to 
produce  special  vehicle  series  to  respond  to  local  or  even  national  incentives. 
Mandatory targets for green public procurement at EU level could provide the market 
with  significant  assurance  for  the  future  of  clean  vehicles  and  thus  provide  a  real 
stimulus  to  vehicle  manufacturers.  This  could  help  considerably  improving  the 
economics  of  vehicle  production  where  a  critical  mass  needs  to  be  reached  to  allow 
costs  coming  down  to  competitive  levels.  Moreover,  this  action  at  EU  level  would 
support  the  competitive  position  of  the  EU  automotive  industry,  as  underlined  in  the 
Commission's 2004 competitiveness report.  

Action on national level only would risk fragmentation of the internal market and lead 
to the development of different mini-series of vehicles responding to different national 
or  regional  requirements.  This  would  lead  to  high  costs  and  prevent  economies  of 
scale.  Cost  for  the  public  would  be  unnecessarily  high,  and  industry  would  be 
disadvantaged in its competitiveness. 

Focused public procurement on a European level offers a sufficiently large market for 
clean  vehicles.  It  would  also  be  a  logical  follow-up  to  Community  funding  of  pilot 

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fleets  of  clean  vehicles,  supported  under  the  Research  and  Development  Framework 
Programmes  and  under  Structural  Funds.  Community  funding,  for  example  the 
structural and cohesion funds could be used to promote the technological developments 
of clean vehicles, for the development of clean public transport in urban areas, and for 
the provision of distribution networks for alternative vehicle fuels.  

The draft Community Strategic Guidelines for Cohesion for the period 2007-2013 state 
that  these  investments  in  clean  transport  could  be  accompanied  by  proper  traffic 
management,  with  particular  attention  to  safety,  in  accordance  with  national  and 
Community standards. National or regional strategies could also take into account the 
need  to  achieve  a  balanced  (and  clean)  modal  spilt  that  serves  both  economic  and 
environmental needs. 

Public  bodies  collectively  procuring  cleaner  vehicles  would  provide  a  significant 
stimulus to vehicle manufacturers and provide assurance of a market for these types of 
vehicles,  as  stated  in  the  Green  Paper  on  energy  efficiency.  With  this  Directive,  in  a 
first  stage, a minimum procurement quota of 25% of clean vehicles is introduced for 
the vehicle categories where public procurement has a significant market share. Once 
market  experience  has  been  gained,  the  procurement  obligation  could  be  extended  to 
all vehicle categories. 

Automotive industry produces for a highly integrated EU-wide market. Support to the 
development of clean vehicle markets therefore should be harmonised on EU level to 
provide a cost-effective frame for industry. Air quality limits are set by EU legislation. 
The  reduction  of  pollutant  emissions  therefore  should  also  be  supported  by  actions 
applicable throughout the Union.  

Total procurement by public bodies accounts for some 16% of EU GDP. Total annual 
vehicle  procurement  by  public  authorities  has  been  estimated  to  be  in  the  order  of 
110 000  passenger  cars,  110 000  light  duty  vehicles, 35 000 lorries and 17 000  buses 
for EU-25. The corresponding market shares are slightly below 1% for cars, around 6% 
for vans and lorries, and around one third for buses.  

A  significant  impact  on  the  vehicle  market  can  only  be  achieved  by  accumulating 
public procurements through harmonised criteria on EU level. 

The  objective  of  promoting  clean  vehicles  cannot  be  sufficiently  achieved  by  the 
Member  States,  but  requires  action  at  Community  level  in  order  to  provide  a  critical 
mass of vehicles for cost-efficient developments by European industry.  

The proposal therefore complies with the subsidiarity principle. 

•  Proportionality principle 

This  initiative  introduces  mandatory  rather  than  voluntary  procurement  actions  for 
public bodies in order to provide market pull for clean vehicles. The Directive sets only 
one single number for the quota of clean vehicles in one vehicle category. 

Member  States  keep  the  responsibility  to  bring  into  force  the  laws,  regulations  and 
administrative provisions necessary to comply with this Directive. 

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Quota  for  only  part  of  the  procurements  (25%)  have  been  introduced  in  order  to 
optimise cost and market impacts, to allow a smooth introduction and to keep margins 
of flexibility for public bodies for procurement according to specific requirements.  

•  Choice of instruments 

Proposed instruments: directive. 

Other means would not be adequate for the following reason(s). 

A mandatory approach is essential to create the necessary incentive for manufacturers 
to develop clean vehicles for a broader market. 

An  obligation  on  public  authorities  to  allocate  a  certain  quota  of  their  annual  road 
transport vehicle procurements to clean vehicles can make a substantial impact on air 
quality  and  provide  the  necessary  support  for  broader  market  introduction  of 
innovative  technologies.  Independent  operators  providing  transport  services  under 
concession  or  permission  of  public  authorities  shall  be  given  similar  obligations  to 
ensure fair competition. 

Mandatory  introduction  of  enhanced  environmentally  friendly  vehicles  could  help 
public bodies to meet the obligations arising from the Air Quality Directives.  

4)  BUDGETARY IMPLICATION 

409 

The proposal has no implication for the Community budget. 

5)  ADDITIONAL INFORMATION 

•  Review/revision/sunset clause 

The proposal includes a review clause. 

•  Correlation table 

531 

550 

The  Member  States  are  required  to  communicate  to  the  Commission  the  text  of 
national  provisions  transposing  the  Directive  as  well  as  a  correlation  table  between 
those provisions and this Directive. 

570 

•  Detailed explanation of the proposal 

Article 1 defines the objective of the Directive. 

Article 2 defines public body and clean vehicles for the purposes of the Directive.  

Article  3  creates  an  obligation  for  Member  States  to  ensure  that  public  bodies  and 
independent  operators  providing  transport  services  under  concession  or  permission 
from a public body allocate a quota of 25% of their total annual purchasing or leasing 
of vehicles with a weight greater than 3.5 t to clean vehicles.  

Article  4  provides  for  the  definition  of  clean  vehicles  in  Article  2,  point  (b)  and  the 

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quota  established  in  Article  3  to  be  adapted  to  take  account  of  technological 
developments, following changes to the definitions of clean vehicles. The Commission 
will be assisted by a regulatory committee.  

Article 5 concerns the creation of a regulatory committee and its rules of operation. 

Article 6 creates obligations for Member States to report on the procurement and the 
stock  of  clean  vehicles  and  for  the  Commission  to  compile  and  publish  this 
information, and to assess the implementation of the Directive as well as actions taken 
by  Member  States  to  promote  the  purchase  and  lease  of  environmentally  friendly 
vehicles of less than 3.5 t and propose possible further actions including an extension 
of the Directive to cover other categories of vehicle. 

Articles  7,  8  and  9  are  the  normal  provisions  relating  to  the  entry  into  force  and 
transposition of the Directive. 

E-22403 

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2005/0283 (COD) 

Proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL  

on the promotion of clean road transport vehicles 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
175(1) thereof, 

Having regard to the proposal from the Commission1, 

Having regard to the opinion of the European Economic and Social Committee2, 

Having regard to the opinion of the Committee of the Regions3, 

Acting in accordance with the procedure laid down in Article 251 of the Treaty4, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

1 
2 
3 
4 
5 
6 

Natural  resources  and  their  prudent  and  rational  utilisation  as  referred  to  in  Article 
174(1)  of  the  EC  Treaty,  include  oil,  which  ranks  first  in  the  European  energy 
consumption but is also a major source of pollutant emissions. 

Commission  Communication  entitled  "A  sustainable  Europe  for  a  Better  World: 
a European  Union  strategy  for  Sustainable  Development"5,  presented 
the 
Gothenburg  European  Council  of  15  and  16 June 2001,  identified  greenhouse  gas 
emissions and pollution caused by transport among the main obstacles to sustainable 
development. 

to 

Commission  Green  Paper  “Towards  a  European  strategy  for  the  security  of  energy 
supply”6 stressed the large potential for energy saving in the transport sector and the 
need for urgent action in the area. It proposed action to encourage the take-up of more 
efficient and less polluting technologies. 

The  Commission  White  Paper  “European  transport  policy  for  2010:  time  to  decide” 
attributes  the  main  responsibility  for  the  continuous  rise  of  transport-related  CO2 
emissions to road transport. The White Paper concluded that measures taken to date to 

OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
COM(2001) 264. 
COM(2000) 769. 

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(5) 

(6) 

(7) 

(8) 

reduce motor vehicle greenhouse gas emissions and European energy dependency had 
proved inadequate. 

laying  down 

Decision No 1600/2002/EC of the European Parliament and of the Council of 22 July 
the  Sixth  Community  Environment  Action  Programme7 
2002 
acknowledges the need for specific measures to enhance energy-efficiency and energy 
saving, the integration of climate change objectives into transport and energy policies 
as well as the need for specific measures in the transport sector to address energy use 
and greenhouse gas emissions. 

Commission Green Paper on Energy Efficiency or Doing More With Less8 proposed 
specific  measures  to  improve  energy  efficiency  in  transport  and  suggested  as  a 
concrete  action  the  public  procurement  of  less-polluting  and  more  energy-efficient 
vehicles in order to build up a market for these types of vehicles. 

The  Community  has  committed  itself  to  an  8%  reduction  in  CO2  emissions  between 
1990 and 2008-2012 under the Kyoto Protocol. Measures relating to energy efficiency 
and renewable energy sources are important elements of the action needed to comply 
with the provisions of the Kyoto Protocol, as provided for in the Communication from 
the  Commission  to  the  Council  and  the  European  Parliament  on  EU  policies  and 
measures  to  reduce  greenhouse  gas  emissions:  towards  a  European  Climate  Change 
Programme (ECCP)9. 

Performance standards should be used for the promotion of clean vehicles. A standard 
for Enhanced Environmentally friendly Vehicles (EEV) has been defined in Directive 
2005/55/EC of the European Parliament and of the Council of 28 September 2005 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  fuelled  with  natural  gas  or  liquefied  petroleum  gas  for  use  in  vehicles10  for 
vehicles  above  3.5  t  weight.  At  present,  this  standard  appears  to  be  the  most 
appropriate to be used for the definition of a clean vehicle in this Directive. However 
the  possibility  of  amending  this  definition  to  take  into  account  the  latest  technical 
progress should be provided for. 

(9) 

Vehicles  with  low  fuel  consumption  or  using  alternative  fuels,  including  biofuels, 
natural  gas,  LPG  or  hydrogen,  and  different  technologies,  including  electrical  or 
combustion/electrical hybrid systems, can contribute to a reduction of emissions and 
pollution. 

(10)  Mandatory  procurement  of  clean  vehicles  should  contribute  to  reduce  pollution  and 
energy  consumption  and  favour  a  faster  market  introduction  of  these  vehicle 
technologies.  

7 
8 
9 
10 

OJ L 242, 10.9.2002, p. 1.  
COM(2005) 265. 
COM(2000) 88. 
OJ L 44, 16.2.2000, p. 1.  

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(11)  This Directive does not prevent Member States from also promoting the procurement 
of  vehicles  with  enhanced  environmental  performance  in  the  categories  below  3.5  t 
weight, by giving preference to the latest Euro pollutant emission standards according 
to Directive 70/220/EEC and, in the category of passenger cars, to vehicles with CO2 
emissions of less than 120 g/km, taking into account all vehicle technologies including 
those based on gasoline and diesel as well as alternative fuels and technologies, such 
as biofuels, natural gas, LPG, hydrogen, and electrical or combustion/electrical hybrid 
systems. 

(12)  Obligations  to  purchase  or  lease  vehicles  should  be  applied  in  a  similar  way  to  all 

providers of public transport services. 

(13)  Clean vehicles have a higher purchase price than conventional ones as the market for 
these  types  of  vehicles  is  not  well  developed.  Creating  a  minimum  demand  such 
vehicles  should  ensure  that  manufacturers  respond  positively,  leading  to  the  market 
introduction  of  more  efficient  and  effective  technologies.  As  demand  grows, 
economies of scale should lead to cost reductions. 

(14)  Higher cost for clean vehicles should not lead to a degradation of the quality of public 
transport services. Financial support from national and appropriate Community funds 
can therefore compensate for the higher procurement costs incurred. A positive overall 
cost-benefit  result  for  society  is  expected  through  a  reduction  of  environmental  and 
health impacts. 

(15)  The measures necessary for the implementation of this Directive should be adopted in 
accordance  with  Council  Decision  1999/468/EC  of  28  June  1999  laying  down  the 
procedures for the exercise of implementing powers conferred on the Commission11.  

(16)  Since the objective of promoting clean vehicles cannot be sufficiently achieved by the 
Member States, but requires action at Community level in order to provide a critical 
mass  of  vehicles  for  cost-efficient  developments  by  European  industry,  the 
Community  may  adopt  measures,  in  accordance  with  the  principle  of  subsidiarity  as 
set  out  in  Article  5  of  the  EC  Treaty.  In  accordance  with  the  principle  of 
proportionality,  as  set  out  in  that  Article,  this  Directive  does  not  go  beyond  what  is 
necessary in order to achieve those objectives, 

HAVE ADOPTED THIS DIRECTIVE: 

Article 1 
Subject matter 

This Directive requires Member States to take appropriate action to ensure that public bodies 
procure a certain quota of clean vehicles.  

11 

OJ L 184, 17.7.1999, p. 23.  

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Article 2 
Definitions 

For the purpose of this Directive the following definitions shall apply: 

(a) 

"Public  bodies"  shall  mean  State,  regional  or  local  authorities,  bodies  governed  by 
public  law,  associations  formed  by  one  or more such  authorities or  one or more of 
such bodies governed by public law; public undertakings. 

"A body governed by public law" means any body: 

- 

- 

- 

established  for  the  specific  purpose  of  meeting  needs  in  the  general  interest, 
not having an industrial or commercial character, 

having legal personality, and 

financed, for the most part, by the State, regional or local authorities, or other 
bodies governed by public law; or subject to management supervision by those 
bodies;  or  having  an  administrative,  managerial  or  supervisory  board,  more 
than  half  of  whose  members  are  appointed  by  the  State,  regional  or  local 
authorities, or by other bodies governed by public law. 

"A  public  undertaking"  is  any  undertaking  over  which  public  bodies  may  exercise 
directly  or  indirectly  a  dominant  influence  by  virtue  of  their  ownership  of  it,  their 
financial participation therein, or the rules which govern it. A dominant influence on 
the  part  of  public  bodies  shall  be  presumed  when  these  authorities,  directly  or 
indirectly, in relation to an undertaking: 

- 

- 

- 

hold the majority of the undertaking's subscribed capital, or 

control the majority of the votes attaching to shares issued by the undertaking, 
or 

can appoint more than half of the undertaking's administrative, management or 
supervisory body. 

(b) 

"Clean vehicle" shall mean a new road transport vehicle complying with an "EEV" 
(Enhanced Environmentally friendly Vehicle) standard as defined in Article 1(c) and 
quantified  in  Section  6.2.1  of  Annex  I  to  Directive  2005/55/EC  of  the  European 
Parliament and of the Council in its current version.  

Article 3 
Promotion of clean vehicles  

Member States shall ensure that a quota of 25% of the road transport vehicles with a 
technically  permissible  maximum  laden  weight  of  more  than  3.5  t,  which  are 
purchased  or  leased  in  a  given  year  by  public  bodies  and  operators  providing 
transport  services  under  concession  or  permission  from  a  public  body,  herein 
referred to as operators, are clean vehicles as defined in Article 2. 

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1. 

2. 

1. 

2. 

Article 4 
Adaptations to technical progress 

The  definition  of  a  clean  vehicle  as  set  out  in  Article  2(b)  may  be  adapted  to 
technical progress in accordance with the procedure referred to in Article 6(2).  

The  quota  of  clean  vehicles  established  in  Article  3  may  be  increased  in  view  of 
technical  progress  and  to  take  account  of  developments  in  the  vehicles  market  in 
accordance with the procedure referred to in Article 5(2).  

Article 5 
Committee  

The Commission shall be assisted by a committee. 

Where reference is made to this paragraph Articles 5 and 7 of Decision 1999/468/EC 
shall apply, having regard to the provisions of Article 8 thereof.  

The period laid down in Article 5(6) of Decision 1999/468/EC shall be set at…[may 
not exceed 3 months] 

3. 

The Committee shall adopt its Rules of Procedure. 

Article 6 
Reporting and review 

1. 

On  an  annual  basis,  with  effect  from  the  date  referred  to  in  Article  7(1),  Member 
States shall compile, for the calendar year concerned, statistics on the numbers and 
relative shares of enhanced environmentally friendly vehicles purchased or leased by 
public bodies or operators. 

Each  year,  Member  States  shall  forward  that  information,  no  later  than  30 
September, to the Commission. 

2. 

On the basis of that information, the Commission shall prepare an annual report on 
compliance with the requirements laid down in this Directive.  

By no later than three years from the date referred to in Article 7(1), the Commission 
shall prepare a report on the application of this Directive and on the actions taken by 
individual  Member  States  aiming  at  the  procurement  of  clean  vehicles  below  3,5  t 
weight. The report shall assess the effects of this Directive, the reporting by Member 
States  and  the  need  for  further  action,  and  make  proposals  as  appropriate,  in 
particular on an extension of the clean vehicle procurement obligation to passenger 
cars and light duty vehicles below 3.5 t weight. 

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Article 7 
Transposition 

1. 

Member  States  shall  bring  into  force  the  laws,  regulations  and  administrative 
provisions  necessary  to  comply  with  this  Directive  by  12  months  from  the  date  in 
Article 8 at the latest. They shall forthwith communicate to the Commission the text 
of  those  provisions  and  a  correlation  table  between  those  provisions  and  this 
Directive. 

When  Member  States  adopt  those  provisions,  they  shall  contain  a  reference  to  this 
Directive  or  be  accompanied  by  such  a  reference  on  the  occasion  of  their  official 
publication. Member States shall determine how such reference is to be made. 

2. 

Member States shall communicate to the Commission the text of the main provisions 
of national law which they adopt in the field covered by this Directive. 

Article 8 
Entry into force 

This Directive shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

Article 9 
Addressees 

This Directive is addressed to the Member States. 

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

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