Revised proposal for a Directive of the European Parliament and of the Council on the promotion of clean and energy efficient road transport vehicles
Date: 2007-12-19
Institutions: European Commission
Subjects: energy consumption, environmental policy, motor vehicle, motor vehicle pollution, pollution control measures, reduction of gas emissions, road transport

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 19.12.2007 
COM(2007) 817 final 

2005/0283 (COD) 

Revised proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL  

on the promotion of clean and energy efficient road transport vehicles 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

The Commission's 2001 White Paper on the European transport policy for 2010 [COM(2001) 
370:  "European  Transport  policy  for  2010:  time  to  decide"]  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  mid-term  review 
[COM(2006)  314:  “Keep  Europe  moving  –  Sustainable  mobility  for  our  continent”] 
announced that the EU will stimulate environmentally friendly innovation i.a. by successive 
Euro norms and by the promotion of clean vehicles on the basis of public procurement. 

The Green Paper on energy efficiency [COM(2005) 265: "Energy Efficiency or Doing More 
With Less"] proposed 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. The 
following  Action  Plan  [COM(2006)  545:  "Action  Plan  for  Energy  Efficiency:  Realising  the 
Potential"]  confirmed  that  the  Commission  will  continue  its  efforts  to  develop  markets  for 
cleaner, smarter, safer and energy-efficient vehicles through public procurement. 

There  is  considerable  potential  for  reducing  energy  consumption  and  the  emissions  of  CO2 
and pollutants from vehicles. However, broad market introduction of technologies with better 
performance  is  often  hampered  by  high  initial  cost  and  therefore  insufficient  customer 
demand. 

Manufacturers are also unlikely to produce special vehicle series to respond to only local or 
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  should  then  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  promote  the  market  introduction  of  clean  and  energy 
efficient  vehicles  and  contribute  thereby  to  energy  efficiency  in  transport  by  reducing  fuel 
consumption,  to climate protection  by reducing CO2 emissions and to improving air quality 
by reducing pollutant emissions. This is particularly relevant for agglomerations and zones in 
difficulty  to  meet  the  requirements  of  the  Air  Quality  Directive  (Directive  96/62/EC  on  air 
quality and Directive 1999/30/EC on limit values of pollutants in ambient air). 

The  Commission  had  made  a  proposal  for  a  directive  on  the  promotion  of  clean  vehicles 
through public procurement on 21 December 2005 [COM(2005) 634]. This proposal focussed 
on  heavy  duty  vehicles  and  required  a  certain  quota  (25%)  in  the  procurement  of  these 
vehicles for public transport service complying with the existing Enhanced Environmentally 
friendly Vehicle (EEV) standard of Community legislation on pollutant emissions. 

The  Council  and  the  European  Parliament,  in  First  Reading,  supported  the  objectives,  but 
proposed a broader approach, both in the range of vehicles covered and the objectives, which 
should  include  energy  efficiency  improvement  and  CO2  emission  reduction,  in  addition  to 

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pollutant  emission  reduction.  The  European  Parliament  Committee  on  the  Environment, 
Public  Health  and  Food  Safety  (ENVI)  adopted  a  legislative  Resolution,  rejecting  the 
Commission proposal, on 21 June 2006. 

The European Council, in its meeting on 8-9 March 2007 in Brussels, emphasised that the EU 
is committed to transforming Europe into a highly energy-efficient and low greenhouse-gas-
emitting  economy.  Additional  legislative  measures  on  the  reduction  of  CO2  emissions  from 
cars have been announced by the Commission in its Communication on the new Community 
strategy  in  this  field  [COM(2007)  19].  Promotion  of  clean  and  energy  efficient  vehicle 
procurement can contribute to attain these objectives. 

The Commission has therefore announced a revised proposal on green public procurement of 
road transport vehicles in the Green Paper on Urban Transport [COM(2007) 551: "Towards a 
new culture for urban mobility"]. It proposes that "a possible approach could be based on the 
internalisation  of  external  costs  by  using  life-time  costs  for  energy  consumption,  CO2 
emissions, and pollutant emissions linked to the operation of the vehicles to be procured as 
award  criteria,  in  addition  to  the  vehicle  price.  In  addition  public  procurement  could  give 
preference to new Euro standards. The earlier use of cleaner vehicles could then improve air 
quality in urban areas". 

The Green Paper on Urban Transport also notes the support of stakeholders during the public 
consultation for a support of the market introduction of clean and energy efficient vehicles by 
green public procurement. Considerable net economic gain for vehicle operators and society 
can be obtained with the approach proposed.  

This  Directive  is  expected  to  result  in  the  long  term  in  lower  costs  of  clean  and  energy 
efficient vehicles through economies of scale, wider deployment of these technologies, and a 
general improvement in the environmental performance of the whole fleet.  

•  General context 

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]  refers  to  the  development  of  cleaner  vehicles  and  traffic  management  in 
urban areas and encourages public procurement as a means of promoting eco-innovations. 

The  Commission  proposal  for  an  EU  energy  policy  [COM(2007)  1:  “An  energy  policy  for 
Europe”]  proposed  an  EU  commitment  to  achieve  at  least  a  20%  reduction  of  greenhouse 
gases by 2020 compared to 1990. Binding targets of further improvement of energy efficiency 
by  20%,  a  level  of  20%  of  renewable  energy  and  a  10%  biofuels  share  in  the  motor  fuel 
market in the EU by 2020 have been proposed, i.a. to improve security of energy supply by 
diversifying the fuel mix. 

The  High  Level  Group  on  competitiveness,  energy  and  the  environment,  in  its  report  of  27 
February  2007,  recommended  that  "private  and  public  procurement  should  take  account  of 
full  lifetime  costs  with  emphasis  on  energy  efficiency.  Member  States  and  the  EU  should 
develop  and  publish  public  purchasing  guidance  on  how  to  move  beyond  lowest  price 
tendering of more sustainable intermediate goods in line with public procurement directives".  

This  proposal  responds  to  the  wishes  of  Council,  Parliament  and  stakeholders  to  promote 
clean  and  energy  efficient  vehicles,  and  the  recommendations  of  Member  States  and 

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stakeholders  for  a  technology-neutral  approach  and  contributes  to  the  priorities  set  in  the 
context of the Lisbon Strategy. 

•  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 standard implemented is the Euro 4 
standard  for  passenger  cars  and  Light  Duty  Vehicles,  as  from  January  2005.  Euro  5  for 
passenger cars and Light Duty Vehicles will come into force in 2009, and Euro 6 in 2014. For 
Heavy Duty Vehicles, Euro IV standards are in force from October 2005, Euro V will enter 
into  force  in  2008,  and  a  proposal  for  a  new  Euro  VI  standard  is  being  prepared  by  the 
Commission.  Preference  for  the  latest  Euro  standards  in  public  procurement  could  help  an 
early market introduction of cleaner vehicles. 

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  their  limit 
values are lowered from January 2010. 

Restrictions on the free circulation of vehicles are being imposed by an increasing number of 
cities in order to reduce emissions. Faster introduction of cleaner vehicles could help public 
bodies to meet the obligations arising from the Air Quality Directives and support sustainable 
mobility in urban areas. 

•  Consistency with other policies and objectives of the Union 

The  proposal  will  be  complementary  to  EU  measures  on  pollutant  emission  standards,  CO2 
emission  reduction  through  setting  of  fleet  limits,  labelling,  and  fiscal  measures,  and  on 
promotion of the market introduction of alternative fuels, such as biofuels, and contribute to 
achieve the targets set for overall energy efficiency improvement. 

The new Community strategy on CO2 emissions from cars has been outlined in a Commission 
Communication of February 2007 [COM(2007) 19]. A legislative framework should ensure to 
reach the objective of 120 g CO2/km by a combination of vehicle technology improvements 
and an increased use of biofuels. The third pillar of the Community strategy to reduce CO2 
emissions  from  cars  concerns  the  use  of  fiscal  measures  for  promoting  less  carbon  dioxide 
emitting passenger cars. According to the Commission proposal for a Directive [COM(2005) 
261],  registration  and  annual  circulation  taxes  should  at  least  partially  be  based  on  CO2 
emissions.  Furthermore,  consumer  information  on  CO2  emissions  should  be  provided  in  the 
sale  rooms  and  the  Commission  is  considering  the  revision  of  the  Directive  relative  to 
consumer information on fuel efficiency and CO2 emissions to improve the effectiveness of 
vehicle  labelling.  This  proposal  on  the  promotion  of  low-CO2  emission  vehicles  through 
public procurement will re-enforce the other measures already under way.  

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The  impact  of  Intelligent  Car  Technologies  on  cleaner  and  more  efficient  mobility 
[COM(2007) 541] could be enhanced through the support of public procurement for clean and 
energy efficient vehicles. 

Improvement of conventional and development of 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  actions  on 
alternative  fuels  and  vehicles,  such  as  biofuels,  natural  gas,  liquefied  petroleum  gas  (LPG), 
vehicles  powered  by  electrical  motors,  hybrid  (combustion/electrical  engine)  vehicles,  and 
hydrogen/fuel cell vehicles. 

The  promotion  of  clean  and  energy  efficient  vehicles  through  procurement  for  public 
transport  services  stimulated  by  this  initiative  will  accelerate  the  market  development  for 
these technologies and contribute to energy saving, climate protection and the improvement 
of  air  quality.  There  may  be  competitiveness  benefits  to  reap  on  global  markets  for  public 
transport services. 

2. 

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

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  and  energy  efficient 
vehicles. 

Consultations have been carried out in the frame of expert studies on different approaches for 
this legislative initiative and enlarged for the revised proposal. They were accompanied by a 
Commission internal interservice group. Public hearings have taken place with stakeholders 
and national experts. Extended information was collected through questionnaires in the frame 
of  the  expert  studies  and  through  public  consultation  on  internet  in  the  frame  of  the 
preparation of the Green Paper on urban transport. Bilateral contacts have also been engaged 
with  stakeholders  in  order  to  share  information  and  deepen  the  discussion  on  possible 
approaches.  

The  revised  proposal  on  the  promotion  of  clean  and  energy  efficient  vehicles  has  been 
presented  and  discussed  in  the  interservice  group  on  the  preparation  of  the  Green  Paper  on 
Urban  Transport  and  in  interservice  groups  on  related  topics,  such  as  general  green  public 
procurement  and  public  procurement  policies  and  in  public  conferences  with  stakeholder 
participation.  

Summary of responses and how they have been taken into account 

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

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Support for the proposal of promotion of clean and energy efficient vehicles through public 
procurement has been expressed at all stages of the consultations. Inclusion of external costs 
as award criteria and early application of new Euro standards were broadly supported. 

•  Collection and use of expertise 

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. 
The ExternE study1, the Clean Air for Europe (CAFE2) programme of the Commission, and 
the HEATCO study3 have provided information on the costs of emissions of CO2, NOx, non-
methane hydrocarbons, and of particulate matter. Costs are taken at present value to keep the 
award procedure simple. 

Methodology used 

Different  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. 
Technology  neutral  approaches  considered  an  internalisation  of  costs  for  fuel  consumption 
and CO2 and pollutant emissions into the vehicle procurement.  

Main organisations/experts consulted 

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). 

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

Summary of advice received and used 

The principal conclusions were that this directive could have a positive impact on the market 
of  clean  and  energy  efficient  vehicles  and  on  the  environment,  and  that  it  could  support 
industry in the development of clean and energy efficient technologies. A technology neutral 
approach was recommended in order to allow flexibility for industry to adjust to technical and 
economic progress. 

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P.  Bickel,  R.  Friedrich,  ExternE,  Methodology  2005  update,  European  Commission,  Luxembourg, 
2005. 
M. Holland, et al., CAFÉ 2005a, AEA Technology, Didcot, 2005. 
P. Bickel, et al., Stuttgart, 2006. 

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Internalisation  of  external  costs  in  the  procurement  decision  process  was  considered  an 
effective  economic  approach,  which  would  improve  market  transparency  on  the  operational 
and societal costs of road transport vehicles and could have the potential for wider application 
by fleet managers, business, and private customers. 

Means used to make the expert advice publicly available 

Preparatory discussion papers and minutes of meetings and conferences have been provided 
on internet to all organisations involved and the wider public.  

•  Impact assessment 

The main policy options are voluntary agreements, information dissemination, and regulatory 
actions.  The  no-policy  case  provides  a  benchmark  against  which  the  other  policy  scenarios 
should be compared. 

–  Voluntary  agreements  imply  an  uncertainty  on  the  result and difficulties in 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 transport operators and this would mean that its effect 
on the overall market would be much smaller than a general obligation. Another 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 and energy efficient 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  with  the  aim  of  orienting 
procurement decisions. 

–  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 the 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  the  lack  of 
knowledge  barrier  and  increase  the  public  sector's  procurement  of  clean  and  energy 
efficient vehicles.  

–  An explicit requirement that public procurement of road vehicles takes into account energy 

consumption, CO2 and pollutant emissions.  

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

Conclusion 

The  impact  assessment  has  shown  that  a  positive  impact  on  environment  and  on 
competitiveness of European industry can be expected. The largest economic gain would be 
obtained  with  mandatory  inclusion  of  external  costs  as  award  criteria  in  all  procurement 

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decisions.  Vehicle  owners  would  directly  profit  from  the  energy  saving  over  the  long  term, 
which would greatly exceed a possibly higher vehicle price. An additional benefit to society 
is obtained from the avoidance of CO2 and pollutant emissions. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Summary of the proposed action 

Operational  lifetime  costs  of  energy  consumption,  CO2  emissions,  and  pollutant  emissions 
shall  be  included  as  award  criteria  for  all  procurement  of  road  transport  vehicles  by  public 
authorities and by operators providing services under a contract with a public authority and 
also  for  all  procurement  of  road  transport  vehicles  for  the  provision  of  public  passenger 
transport  services  under  licence,  permit  or  authorisation  by  public  authorities.  Operational 
lifetime  costs  means  the  monetised  values  for  energy  consumption,  CO2  emissions,  and 
pollutant emissions that are linked to the operation of the vehicles to be procured, calculated 
in accordance with the methodology set out in this Directive. 

•  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,  regional,  and  national  level.  Action  on 
these levels only, however, would risk fragmentation of the internal market and lead to high 
costs  and  prevent  economies  of  scale.  Vehicle  manufacturers  are  also  unlikely  to  produce 
special  model  variants  to  respond  to  limited  market  demand.  Automotive  industry  produces 
for  a  highly  integrated  EU-wide  market.  Support  to  the  development  of  clean  and  energy 
efficient  vehicle  markets  should  therefore  be  harmonised  on  EU  level  to  provide  a  cost-
effective frame for industry. 

Wider  application  of  green  public  procurement  using  harmonised  criteria  at  EU  level  could 
provide  the  market  with  significant  assurance  for  the  future  of  clean  and  energy  efficient 
vehicles and thus provide a real stimulus to vehicle manufacturers. This could help to improve 
the economics of the production of these vehicles considerably by reaching a critical mass to 
achieve economies of scale. 

Focused  public  procurement  on  a  European  level  would  also  be  a  logical  follow-up  to 
Community funding of clean and energy efficient vehicle development, 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 and energy efficient vehicles for public transport and for 
the provision of infrastructure for alternative fuels.  

Public bodies and private operators collectively procuring clean and energy efficient vehicles 
under  the  same  terms  of  reference,  would  provide  a  significant  stimulus  to  vehicle 

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manufacturers and provide assurance of a market for these types of vehicles, as stated in the 
Action  Plan  on  energy  efficiency.  The  high  visibility  of  public  transport  vehicles  could 
stimulate  a  wider  uptake  by  other  market  participants  of  this  approach  for  internalising 
external costs in procurement decisions 

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  commercial  vehicles,  35 000  lorries  and  17 000  buses  for  the  EU.  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  and  energy  efficient  vehicles  cannot  be  sufficiently 
achieved by the Member States individually, but requires action at Community level in order 
to provide a critical mass of vehicles for cost-efficient production by European industry. 

The  inclusion  of  lifetime  costs  of  energy  consumption,  CO2  emissions,  and  pollutant 
emissions  in  the  procurement  award  criteria,  even  when  mandatory,  does  not  preclude  the 
inclusion of other award criteria deemed necessary by the public bodies.  

The proposal therefore complies with the subsidiarity principle. 

•  Proportionality principle 

This  Directive  introduces  a  harmonised  methodology  for  clean  and  energy  efficient  vehicle 
procurement for public transport services. The application is left optional in a first phase and 
becomes  mandatory  only  after  a  transition  period,  allowing  for  smooth  introduction.  The 
application of the methodology for clean and energy efficient vehicle procurement does not 
preclude the inclusion of other award criteria deemed necessary by the public bodies. 

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

•  Choice of instruments 

Proposed instrument: a directive. 

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

A  mandatory  approach  on  the  implementation  of  a  harmonised  methodology  for  the 
internalisation  of  external  costs  is  essential  to  ensure  legal  certainty  for  clean  and  energy 
efficient  vehicle  procurement  and  to  create  the  necessary  incentive  for  manufacturers  to 
develop clean and energy efficient vehicles along the same conditions for a broader market. 

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4. 

BUDGETARY IMPLICATION 

Limited  costs  will  arise  from  reporting  on  the  application  of  the  Directive  and  from 
organising meetings of a Committee in case of a revision of the technical data in the Annex of 
this proposal. 

5. 

ADDITIONAL INFORMATION 

•  Review/revision/sunset clause 

The proposal includes a review clause with a comitology procedure. 

•  Correlation table 

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. 

•  Detailed explanation of the proposal 

Article 1 defines the objective of the Directive. 

Article 2 requires the inclusion of the operational lifetime costs of energy consumption, CO2 
emissions,  and  pollutant  emissions  as  award  criteria  in  the  procurement  of  road  transport 
vehicles  by  the  competent  public  authorities  and  by  operators  providing  services  under  a 
contract with a public authority. Member States shall also ensure application of these criteria 
to all procurement of road transport vehicles for the provision of public passenger transport 
services under licence, permit or authorisation by the competent public authorities. 

Article 3 defines the methodology for the calculation of operational lifetime costs of energy 
consumption, CO2 emissions and pollutant emissions of road transport vehicles. 

Article 4 foresees adaptation by a Committee of the data used for the calculation of lifetime 
costs of energy consumption, CO2 emissions and pollutant emissions of vehicle operation. 

Article  5  provides  for  assistance  by  a  regulatory  Committee  with  scrutiny  by  the  European 
Parliament. 

Article  6  creates  an  obligation  for  the  Commission  to  report  on  the  application  of  this 
Directive,  to  assess  the  effects  of  the  Directive  and  to  propose  possible  further  actions  as 
appropriate. 

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

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2005/0283 (COD) 

Revised proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL  

on the promotion of clean and energy efficient road transport vehicles 

(Text with EEA relevance) 

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 Commission4, 

Having regard to the opinion of the European Economic and Social Committee5, 

Having regard to the opinion of the Committee of the Regions6, 

Acting in accordance with the procedure laid down in Article 251 of the Treaty7, 

Whereas: 

(1) 

(2) 

(3) 

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

The Commission Communication entitled "A sustainable Europe for a Better World: 
a European  Union  strategy  for  Sustainable  Development"8,  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 

laying  down 

Decision No 1600/2002/EC of the European Parliament and of the Council of 22 July 
the  Sixth  Community  Environment  Action  Programme9 
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. 

4 
5 
6 
7 
8 
9 

OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
OJ C , , p. . 
COM(2001) 264. 
OJ L 242, 10.9.2002, p. 1.  

EN 

11 

   EN 

 
                                                 
(4) 

(5) 

(6) 

(7) 

(8) 

The  Commission  Communication  “An  energy  policy  for  Europe”10  proposed  an  EU 
commitment  to  achieve  at  least  a  20%  reduction  of  greenhouse  gases  by  2020 
compared  to  1990.  Binding  targets  for  further  improvement  of  energy  efficiency  by 
20%, a level of 20% of renewable energy and a 10% biofuels share in the motor fuel 
market  in  the  Community  by  2020  have  been  proposed,  i.a.  to  improve  security  of 
energy supply by diversifying the fuel mix.  

The Commission Communication on an "Action Plan for Energy Efficiency: Realising 
the  Potential"11  announced  that  the  Commission  will  continue  its  efforts  to  develop 
markets  for  cleaner,  smarter,  safer  and  energy-efficient  vehicles  through  public 
procurement and awareness-raising. 

The mid-term review of the Commission's 2001 Transport White Paper “Keep Europe 
moving  –  Sustainable  mobility  for  our  continent”12  announced  that  the  Community 
will  stimulate  environmentally  friendly  innovation  in  particular  by  successive  Euro 
norms and by the promotion of clean vehicles on the basis of public procurement. 

The Commission presented a comprehensive new strategy to enable the EU to reach 
its  120  g/km  objective  for  CO2  emissions  from  new  passenger  cars  by  201213.  A 
legislative  framework  was  proposed  to  ensure  vehicle  technology  improvements. 
Complementary measures should promote the procurement of fuel-efficient vehicles. 

The  Green  Paper  on  Urban  Transport  "Towards  a  new  culture  for  urban  mobility"14 
notes the support of stakeholders for promoting the market introduction of clean and 
energy  efficient  vehicles  through  green  public  procurement.  It  proposes  that  "a 
possible  approach  could  be  based  on  the  internalisation  of  external  costs  by  using 
lifetime costs for energy consumption, CO2 emissions, and pollutant emissions linked 
to  the  operation  of  the  vehicles  to  be  procured  as  award  criteria,  in  addition  to  the 
vehicle  price.  In  addition,  public  procurement  could  give  preference  to  new  Euro 
standards. The earlier use of cleaner vehicles could then improve air quality in urban 
areas". 

(9) 

The  CARS  21  High  Level  Group  report  of  12  December  2005  supported  the 
Commission's  initiative  on  the  promotion  of  clean  and  energy-efficient  vehicles,  on 
condition that a technology-neutral and performance based approach is taken. 

(10)  The High Level Group on competitiveness, energy and the environment, in its report 
of 27 February  2007,  recommended that private and public procurement should  take 
account of full lifetime costs with emphasis on energy efficiency. Member States and 
the  Community  should  develop  and  publish  public  purchasing  guidance  on  how  to 
move  beyond  lowest  price  tendering  of  more  sustainable  intermediate  goods  in  line 
with public procurement directives. 

10 
11 
12 
13 
14 

COM(2007) 1. 
COM(2006) 545. 
COM(2006) 314 
COM(2007) 19. 
COM(2007) 551. 

EN 

12 

   EN 

 
                                                 
(11)  Clean  and  energy  efficient  vehicles  initially  have  a  higher  price  than  conventional 
ones.  Creating  sufficient  demand  for  such  vehicles  should  ensure  that  economies  of 
scale can lead to cost reductions. 

(12)  Procurement of vehicles for public transport services can make a significant impact on 

the market if harmonised criteria are applied at Community level. 

(13)  The biggest impact on the market, together with the best cost/benefit result is obtained 
through mandatory inclusion of lifetime costs for energy consumption, CO2 emissions, 
and  pollutant  emissions  as  award  criteria  in  the  procurement  of  vehicles  for  public 
transport services. 

(14) 

Including  energy  consumption,  CO2  emissions,  and  pollutant  emissions  in  the  award 
criteria  does  not  impose  higher  total  costs  but  rather  anticipates  lifetime  costs  in  the 
procurement  decision.  Complementary  to  the  Euro  emissions  standard  legislation, 
which  sets  maximum  emission  limits,  this  approach  monetises  the  actual  pollutant 
emission and does not require any additional standard setting. 

(15)  The  ExternE  study15,  the  Clean  Air  for  Europe  (CAFE16)  programme  of  the 
Commission,  and  the  HEATCO  study17  have  provided  information  on  the  costs  of 
CO2,  NOx,  non-methane  hydrocarbons,  and  particulate  matter  emissions.  Costs  are 
taken at present value to keep the award procedure simple. 

(16)  Mandatory  application  of  criteria  for  the  procurement  of  clean  and  energy  efficient 
vehicles does not preclude the inclusion of other relevant award criteria. It also does 
not  prevent  the  choice  of  retro-fitted  vehicles  upgraded  for  higher  environmental 
performance. 

(17)  This Directive should not prevent contracting authorities and contracting entities from 
giving preference to the latest Euro pollutant emission standards in the procurement of 
vehicles for public transport services before these standards become obligatory. 

(18)  Power  should  be  conferred  on  the  Commission  to  adapt  the  technical  data  for  the 
calculation  of  the  operational  life-costs  of  road transport vehicles established by this 
Directive. Since those measures are of general scope and are designed to amend non-
essential  elements  of  this  Directive,  they  must  be  adopted  in  accordance  with  the 
regulatory  procedure  with  scrutiny  provided  for  in  Article  5a  of  Council  Decision 
1999/468/EC  of  28  June  1999  laying  down  the  procedures  for  the  exercise  of 
implementing powers conferred on the Commission18.  

(19)  Since  the  objective  of  promoting  clean  and  energy  efficient  vehicles  cannot  be 
sufficiently  achieved  by  the  Member  States  individually,  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. 

15 

16 
17 
18 

P.  Bickel,  R.  Friedrich,  ExternE,  Methodology  2005  update,  European  Commission,  Luxembourg, 
2005. 
M. Holland, et al., CAFÉ 2005a, AEA Technology, Didcot, 2005. 
P. Bickel, et al., Stuttgart, 2006. 
OJ L 184, 17.7.1999, p. 23.  

EN 

13 

   EN 

 
                                                 
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 the inclusion of operational lifetime costs of energy consumption, CO2 
emissions,  and  pollutant  emissions  as  award  criteria  in  the  procurement  of  road  transport 
vehicles,  by  contracting  authorities  or  contracting  entities  within  the  meaning  of  Directives 
2004/17/EC19 and 2004/18/EC20 or as criteria for the purchase of such vehicles by operators 
under  contract,  licence,  permit  or  authorisation  granted  by  public  authorities,  in  order  to 
promote clean and energy efficient vehicles. 

1. 

2. 

3. 

1. 

Article 2 
Procurement of clean and energy efficient vehicles  

Member  States  shall  ensure  that,  no  later  than  from  the  date  referred  to  in  Article 
7(1),  the  contracting  authorities  or  contracting  entities  within  the  meaning  of 
Directives  2004/17/EC  and  2004/18/EC  use  the  methodology  defined  in  Article  3, 
whenever  they  apply  operational  lifetime  costs  for  energy  consumption,  CO2 
emissions,  and  pollutant  emissions  as  award  criteria  for  the  procurement  of  road 
transport vehicles. 

Member  States  shall  ensure  that,  no  later  than  from  1  January  2012,  all  public 
procurement  of  road  transport  vehicles  by  contracting  authorities  or  contracting 
entities  within  the  meaning  of  Directives  2004/17/EC  and  2004/18/EC  includes 
operational  lifetime  costs  for  energy  consumption,  CO2  emissions,  and  pollutant 
emissions  of  road  transport  vehicles  as  award  criteria,  following  the  methodology 
defined in Article 3.  

Member States shall ensure that, no later than from 1 January 2012, all purchase of 
road transport vehicles for the provision of public passenger transport services under 
licence,  permit  or  authorisation  granted  by  public  authorities  includes  operational 
lifetime  costs  for  energy  consumption,  CO2  emissions,  and  pollutant  emissions  of 
road transport vehicles as criteria, following the methodology defined in Article 3. 

Article 3 
Energy and environmental costs as award criteria in the procurement of vehicles 

For the purposes of this Directive, operational lifetime costs for energy consumption, 
CO2 emissions, and pollutant emissions linked to the operation of the vehicles under 
procurement shall be monetised and calculated following the methodology set out in 
points (a), (b) and (c).  

19 
20 

OJ L 134, 30.4.2004, p. 1. 
OJ L 134, 30.4.2004, p. 114. 

EN 

14 

   EN 

 
                                                 
(a)  The lifetime cost of the energy consumption for the operation of a vehicle shall 

be calculated using the following methodology: 

– 

– 

– 

the fuel consumption per kilometre of a vehicle according to paragraph 2 
of his Article shall be converted into energy consumption per kilometre, 
using  the  conversion  factors  of  Table  1  in  the  Annex  for  the  energy 
content of the different fuels; 

a  single  monetary  value  per  unit  of  energy  shall  be  used.  This  single 
value shall be the lower of the cost per unit of energy of petrol or diesel 
before tax when used as a transport fuel; 

lifetime  cost  of  the  energy  consumption  for  the  operation  of  a  vehicle 
shall  be  calculated  by  multiplying  the  lifetime  mileage  according  to 
paragraph  3  by  the  energy  consumption  per  kilometre  according  to  the 
first  indent  of  this  paragraph,  and  by  the  cost  per  unit  of  energy 
according to the second indent of this paragraph. 

(b)  The lifetime cost for the CO2 emissions of the operation of a vehicle shall be 
calculated by multiplying the lifetime mileage according to paragraph 3 by the 
CO2 emissions in kilograms per kilometre according to paragraph 2, and by the 
cost per kilogram taken from Table 2 in the Annex. 

(c)  The lifetime cost for the pollutant emissions of the operation of a vehicle shall 
be  calculated  by  adding  up  the  lifetime  costs  for  emissions  of  oxides  of 
nitrogen, non-methane hydrocarbons, and particulate matter. The lifetime cost 
for  each  pollutant  shall  be  calculated  by  multiplying  the  lifetime  mileage 
according to paragraph 3 by the emissions in grams per kilometre according to 
paragraph  2,  and  by  the  respective  cost  per  gram  taken  from  Table  2  in  the 
Annex. 

2. 

Fuel consumption, CO2 emissions, and pollutant emissions per kilometre for vehicle 
operation  shall  be  based  on  standardised  EU  test  procedures  for  the  vehicles  for 
which such test procedures are defined in EU type approval legislation. For vehicles 
not  covered  by  standardised  EU  test  procedures,  comparability  between  different 
offers shall be ensured by using widely recognised test procedures, or the results of 
tests  for  the  authority,  or  in  the  absence  of  these,  information  supplied  by  the 
manufacturer. 

3. 

Total lifetime mileage of a vehicle shall be based on the technical specifications used 
in the procurement. In their absence, it shall be taken from Table 3 in the Annex. 

Article 4 
Adaptations to technical progress 

The adaptations to technical progress of the data for the calculation of the operational lifetime 
costs  of  road  transport  vehicles  as  set  out  in  the  Annex,  designed  to  amend  non-essential 
elements of this Directive, shall be adopted in accordance with the regulatory procedure with 
scrutiny referred to in Article 5(2). 

EN 

15 

   EN 

 
Article 5 
Committee  

1. 

2. 

1. 

2. 

1. 

The Commission shall be assisted by a Committee. 

Where  reference  is  made  to  this  paragraph,  Articles  5a(1)  to  (4)  and  7  of  Decision 
1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.  

Article 6 
Reporting and review 

Every two years, with effect from the date referred to in Article 8, the Commission 
shall prepare a report on the application of this Directive and on the actions taken by 
individual Member States to promote the procurement of clean and energy efficient 
road transport vehicles. 

The  report  shall  assess  the  effects  of  this  Directive  and  the  need  for  further  action, 
and include proposals as appropriate. 

Article 7 
Transposition 

Member  States  shall  bring  into  force  the  laws,  regulations  and  administrative 
provisions  necessary  to  comply  with  this  Directive  by  18  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. 

This Directive is addressed to the Member States. 

Article 9 
Addressees 

EN 

16 

   EN 

 
Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

EN 

17 

   EN 

 
 
 
ANNEX 

Data for the calculation of external lifetime costs of road transport vehicles for the 
purpose of this Directive 

Table 1: Energy content of motor fuels 

Fuel 

Diesel 

Petrol 

Natural Gas 

LPG (liquefied petroleum gas) 

Ethanol 

Biodiesel 

Emulsion fuel 

Hydrogen 

Energy content  

36 MJ/litre 

32 MJ/litre 

38 MJ/Nm3 

24 MJ/litre 

21 MJ/litre 

33 MJ/litre 

32 MJ/litre 

11 MJ/Nm3 

Table 2: Cost for emissions in road transport (in 2007 prices): 

CO2 

NOx 

NMHC 

Particulate Matter 

2 €cents/kg 

0.44 €cents/g 

0.1 €cents/g 

8.7 €cents/g 

Table 3: Lifetime mileage of road transport vehicles 

Vehicle category 
(M  and  N  categories  as  defined  in  Directive 
2007/46/EC) 

Lifetime mileage  

Passenger cars (M1) 

Light commercial vehicles (N1) 

Heavy goods vehicles (N2, N3) 

Buses (M2, M3) 

200 000 km 

250 000 km 

1 000 000 km 

800 000 km 

EN 

18 

   EN