Opinion of the European Economic and Social Committee on an Energy mix in transport
Date: 2008-02-13
Institutions: European Economic and Social Committee
Subjects: climate change, energy policy, greenhouse gas, hydrogen, motor fuel, reduction of gas emissions, transport policy

C 162/52

EN

Official Journal of the European Union

25.6.2008

The spread of dematerialised content,

4.4.2
in particular
when it is the product of digitalisation, must not be allowed to
prevent lending libraries from pursuing their educational role.
Economic and technical models for the circulation of digitalised
content must therefore take into account the role of lending
libraries and enable them to continue in that role, in the context
of closed circuits (intranets) and as part of the lending service to
library members.

4.5 Ensuring service users have local access

Lending libraries

4.5.1
should be able to supply their
members with local access to dematerialised content through
in the same way as for material
closed circuits (intranet)
content;
i.e. with computer work stations, printers, software,
high-speed connections, assistance and coaching. The initial and

on-going training given to librarians and the organisation of
their work must from now on take dematerialised content into
account.

4.6 Organising events and coaching for access to digitalised and

dematerialised content for the general public

In the absence of training and information, the general
4.6.1
public tend to view PCs, which are increasingly common fixtures
in homes, as sources of multimedia recreation, unaware of the
cultural, educational, teaching and information resources avail-
able on the Internet. In the same way that lending libraries use
events to offer all ages an active interface with books and
reading, they must take responsibility for coaching and events
on dematerialised content.

Brussels, 13 February 2008.

The President

of the European Economic and Social Committee

Dimitris DIMITRIADIS

Opinion of the European Economic and Social Committee on an Energy mix in transport

(2008/C 162/12)

In a letter dated 19 March 2007 the European Commission asked the European Economic and Social
Committee, under Article 262 of the Treaty establishing the European Community, to draw up an explora-
tory opinion on an:

Energy mix in transport.

The Section for Transport, Energy, Infrastructure and the Information Society, which was responsible for
preparing the Committee's work on the subject, adopted its opinion on 18 December 2007. The rapporteur
was Mr Iozia.

At its 442nd plenary session, held on 13 — 14 February 2008 (meeting of 13 February), the European
Economic and Social Committee adopted the following opinion by 130 votes to 11 with 8 abstentions.

1. Conclusions and recommendations

— promoting environmental

sustainability and combating

climate change.

1.1
The Committee is pleased to respond to the request from
the Commission Vice-President and Commissioner responsible
for Transport, Jacques Barrot, to draw up an opinion on the
energy mix in transport, being convinced of the need to build
up an on-going dialogue between the Commission and the
Committee, representing organised civil society.

The Committee agrees with the conclusions of the spring

1.2
Council, which highlighted the following priorities:

— increasing security of supply,

— ensuring the competitiveness of European economies and

the availability of affordable energy,

1.3
Guideline policies for the most appropriate energy mix
must, therefore, be based on these priorities, as already put into
practice by the Commission in its communication on fuel
targets 2001-2020.

1.4 While believing that oil will remain the main transport
fuel for many years to come, and that natural gas — also a non-
renewable resource — will be able to supplement and partly
replace oil-based products, the EESC considers a sharp increase
in funding for research into the production and use of hydrogen
therefore
and second-generation agro-fuels

to be vital.

It

25.6.2008

EN

Official Journal of the European Union

C 162/53

welcomes the initiative on the part of the Commission, which
decided on 9 October 2007 to finance a Joint Technological
Initiative worth EUR 1 billion for the 2007-2013 period, and
echoes the calls from businesses and research centres engaged in
developing hydrogen use for the Council and Parliament to
speed up the process of adopting the proposal.

1.5
Growing public concern over climate change, together
with the risks associated with the rising average global tempera-
ture — which, in the absence of specific action, could increase
by between 2 and 6,3 °C, points to the need for a reinforcement
of all appropriate means of countering the negative effects of
greenhouse gas emissions
into the atmosphere. The EESC
appreciates the work of the EAA and its major contribution to
disseminating data and reporting on the progress of measures
to combat atmospheric pollution.

1.6
The EESC agrees with the conclusions of the Environ-
ment Council of 28 June 2007 and supports the proposal for
the Commission to review the 6th environmental action
programme in the light of the priorities identified:

— tackling climate change,

— halting the loss of biodiversity,

— reducing the negative impact of pollution on health,

— promoting sustainable use of natural resources and sustain-

able waste management.

1.7 Means to achieve these aims are being studied in all
transport sectors, and the main European agencies are gearing
their efforts to securing practical results in a few years. The deci-
sion to apply the system of emission certificates to air transport,
whose contribution to the production of greenhouse gases is
increasing, will enable the development of new fuels to be
stepped up. Some companies are already examining the possibi-
lity of using agro-fuels, as the results with hydrogen are still
only partial and hydrogen-based alternatives remain a long-term
prospect. Large naval engines are more easily converted to
mixed fuels with lower carbon content, while in the rail sector a
combination of electricity and developing renewable sources
will certainly boost
the existing outstanding environmental
performances.

1.9
The EESC is convinced that the future of transport neces-
sarily lies in the progressive decarbonisation of fuels, and should
achieve zero emissions. H2 production using renewable energy,
such as biomass, photolysis, thermodynamic or photovoltaic
solar energy, wind power or hydroelectric energy is the only
option which amounts to more than a ‘green daydream’. As an
energy storage element, hydrogen allows energy supply, which is
periodic by nature (night/day, yearly cycles, etc.), to be brought
into line with variable, de-coupled energy demand.

1.10
The development of combustion and traction technolo-
gies has triggered the rapid spread of hybrid vehicles. The most
appropriate solution for reducing emissions seems to be fully
electric traction, entailing the development of electricity genera-
tion from renewable sources, or hybrid use of natural gas and
hydrogen, at least for as long as significant availability exists.
Another
intermediate possibility might be the use of a
hydrogen/methane blend, with low hydrogen content. This
method represents an initial step towards the use of hydrogen in
mobility.

1.11
The use of hydrogen as an energy carrier adapted to
transport purposes — albeit subject to the limitations identified
at present — represents a challenge for the future, and the
possibility of seeing vehicles running partly or fully on hydrogen
may become a fact in only a few years, provided that research
continues to be supported by the national and European autho-
rities. In this context, the results of the CUTE (Clean Urban
Transport for Europe) project are encouraging.

1.12
As it has previously said in relation to energy efficiency,
the EESC considers that it would be most helpful to have a web
portal, where university research and national, regional and city-
based experiments could be shown to a broader audience, and
in particular local administrators. The EESC considers that in
order to obtain an optimal energy mix, a proper mix is neces-
sary in transport, boosting the efficiency of hydrocarbons and
transport priorities. While awaiting reliable and efficient produc-
tion of hydrogen, the use of electricity, generated from renew-
able sources, cannot be delayed. The challenge facing transport
is to make increasing use of electricity, as soon and wherever
possible.

1.8
The best fuel is fuel that is saved. In the EESC's view, the
decisive choice on the most suitable energy mix — a choice
which should increasingly be elevated to the rank of a com-
munity policy — must take account of all these factors, with the
health and wellbeing of European citizens, and of the planet,
clearly coming first. Tax policies and incentives, recommenda-
tions and regulations must always reflect
this priority, by
favouring the most eco-compatible and economically sustainable
option. Savings must be made for the benefit of public trans-
port, alternative means of transport and economic and social
policy choices that boost individual mobility while reducing the
unnecessary movement of goods.

1.13
The EESC would underline the importance of informing
and involving civil society which, through its patterns of beha-
viour, is contributing to the achievement of consumption reduc-
tion objectives, and is helping to support research and innova-
tion regarding clean, sustainable fuels. These choices should be
mainstreamed into European and national policies, emphasising
the added value represented by the Member States' capacity for
cooperation and cohesion. This entails upholding common
values and a European social model which is alert to the protec-
tion of environmental assets, the health and safety of its citizens
and those living and working in the Union, and which is
concerned with the living conditions of humanity in general.

C 162/54

EN

Official Journal of the European Union

25.6.2008

2. Introduction

3. Climate change

Commission Vice-President and Commissioner for Trans-
2.1
port,
Jacques Barrot, has asked the European Economic and
Social Committee to draw up an opinion on an Energy mix in
transport.

2.2
The Committee shares the Transport Commissioner's
concerns regarding fuel supplies and the need to bring forward
research and studies on possible solutions relating to develop-
ments in transport policy and the need to adopt measures
regarding the relevant fuels.

2.3
The contextual challenges the EU faces with regard to
achieving full compliance with the Kyoto protocol objectives,
the urgency of climate change, reducing its energy dependence
on third countries, pursuing options implemented in line with
the Lisbon agenda, achieving the objectives of the Transport
White Paper and developing co-modality, and energy efficiency
options, make this a central issue in the EU energy strategy.

2.4
Back in 2001, the Commission pointed to the need to
tackle the issue of the fuels mix, in its communication on fuel
targets 2001-2020, setting out a number of objectives for non-
oil fuels, and considered the following scenario to be possible
and compatible:

— natural gas could increase its market share to approximately

10 % by 2020,

— hydrogen is the potential

future main energy carrier.

Its

share of fuel consumption could reach a few percent,

— biomass-to-liquid (BTL)

fuels could largely enhance the
market share of agro-fuels beyond 6 % by 2010, with the
maximum potential for all biomass-derived fuels being esti-
mated at about 15 %,

— liquefied petroleum gas (LPG) is an established alternative
motor vehicle fuel with scope for additional market share,
possibly up by 5 % by 2020,

— in brief, alternative fuels have the potential to increase their
market share in the coming decades and, in the long term,
to exceed the 20 % target indicated for 2020.

3.1
A growing body of scientists now agree that the climate
is directly affected by greenhouse gas emissions. During the
20th century, the average temperature has risen by approxi-
mately 1 °C. A number of scenarios based on current climatic
models reflecting trends of global GHG emissions are being put
forward predicting that the average global temperature could
rise by 2 °C to 6,3 °C, with devastating effects on the weather,
sea levels, agricultural production and other economic activities.

3.2
The Environment Council held in Luxembourg on 28
June 2007 reaffirmed the relevance of the 6th Environmental
Action Programme and the Commission's proposal for a mid-
term review, emphasising the four priorities it sets out: tackling
climate change; halting the loss of biodiversity; reducing the
adverse effect of pollution on health; and promoting the sustain-
able use of natural resources and managing waste sustainably.

3.3
The Environment Council endorsed the strategy for an
integrated climate and energy policy and the need to open nego-
tiations to achieve a comprehensive post-2012 agreement by
2009. In a statement to the High-level meeting held on 27
September 2007 in New York, the President of the European
Council, José Sócrates said that ‘The UN climate change process
is the appropriate forum for negotiating future global action. In
this context, the Bali Summit (3) at the end of this year stands as
a milestone, where we expect the international community to
launch an ambitious roadmap for negotiations on a global and
comprehensive climate change agreement’. The presence of the
United States, which only overcame its reservations about parti-
cipating in mid-October, and its vote in favour of the final reso-
lution, have significantly strengthened the decisions taken, given
the economic weight of the United States and its responsibility
for greenhouse gas emissions.

3.4
The Environment Council emphasised the importance of
internalising environmental costs as well as energy consumption
costs in order to achieve long-term sustainable policies. Equally
important is the increased use of market instruments in environ-
ment policy, including taxes, levies and emission certificates, for
the benefit of
the environment. Eco-innovation should be
rapidly integrated on a large scale into the impact assessments
of all relevant EU policies as well as wider and more effective
use of financial instruments, especially in connection with fuel
and energy consumption.

2.5
The EESC welcomed this communication, and in a
previous own-initiative opinion (1) singled out the development
of natural gas (2), research into crop-based fuels, and improving
the energy performance of fuels currently on the market as the
best way to diversify supply and, at the same time, reduce green-
house gas emissions.

(1) OJ C 195 of 18.8.2006, p. 75-79.
(2) The development and promotion of alternative fuels for road transport

in the European Union (OJ C 195 of 18.8.2006, p. 75-79).

3.5
On 29 June 2007, the Commission adopted its Green
Paper on adapting to climate change. During his presentation of
the Green Paper, EU Environment Commissioner Stavros Dimas
set out a number of practical and immediate measures for
adapting to the climate change that was already underway.
Rising temperatures, flooding and torrential rain in the north,
drought and heat waves in the south, endangered ecosystems,
new diseases were just a few of the problems mentioned in the
text.

(3) United Nations Climate Change Conference in Bali, December 2007

25.6.2008

EN

Official Journal of the European Union

C 162/55

3.6
‘Adapt or die’ — according to Dimas, this was the choice
facing some of Europe's sectors. Agriculture, tourism and energy
would suffer devastating consequences and we needed to act
now in order to limit future economic, social and human costs.

90 % of the increase in emissions between 1990 and 2010 and
could be one of the main reasons why the Kyoto objectives
willnot be met. Road passenger transport is set to rise by 19 %,
whereas road haulage should increase by over 50 %, according
to the Commission's estimates.

3.7
The document puts forward a number of practical solu-
tions: reducing water waste, building dykes and flood barriers,
developing new crop protection techniques, protecting the
populations most affected by climate change, adopting measures
to safeguard biodiversity. Nevertheless reducing CO2 emissions
remains the key objective for EU countries.

4. The European Council

4.1
The Spring 2007 European Council discussed energy and
the climate and proposed adopting ‘an integrated climate and
energy policy’, identifying it as an absolute priority and stressing
‘the strategic objective of limiting the global average temperature
increase to not more than 2 °C above pre-industrial levels’.

The Energy Policy for Europe (EPE) clearly sets out a

4.2
strategy based on three pillars:

— increasing security of supply;

— ensuring the competitiveness of European economies and

the availability of affordable energy;

— promoting environmental

sustainability and combating

climate change.

4.3 With regard to transport policy:
‘The European Council
stresses the necessity of an efficient, safe and sustainable Euro-
pean transport policy. In this context, it is important to proceed
with actions to increase the environmental performance of the
European transport system. The European Council notes the
European Commission's ongoing work regarding the assessment
of external costs for transport and their internalisation’. The
European Council of 21 and 22 June took note of the Commis-
sion's intention to come forward no later than June 2008 with
a model for assessing internalisation for all modes of transport
and mapping out further steps consistent with the ‘Eurovignette’
Directive, by extending, for instance, the field of application to
urban areas, making all
infrastructure
subject to tolls.

types of vehicles or

5.2
Another sector to have experienced exponential growth
is aviation transport, which registered an 86 % increase in emis-
sions between 1990 and 2004 and makes nowadays 2+ % of
global emissions.

TERM 2006 (Transport and Environment Reporting
5.3
Mechanism) (5) considers that the progress made by the trans-
port sector in 2006 is still unsatisfactory. The report examines
the mid-term review of the 2001 Transport White Paper, which
could bring improvements or negative effects depending on
level. The EEA
how it is interpreted at national and regional
considers
the mid-term
that, concerning the environment,
review changes the focus from managing transport demand to
addressing existing negative side effects, i.e. transport demand
growth is no longer explicitly identified as one of the main
environmental
issues within the transport sector. Key issues
such as climate change, noise and landscape fragmentation
caused by excessive transport infrastructure still hinge on the
need to manage transport demand. This is something which the
White Paper appears to have failed in this respect.

5.4
Another significant point raised in the report is transport
subsidies, which in the EU amount to around EUR 270–290
billion. Almost half this amount is spent on road transport, one
of the least eco-friendly modes. ‘Transport contributes to several
environmental problems such as climate change, air emissions
and noise and is at the same time favoured by significant subsi-
dies. Road transport receives EUR 125 billion in annual subsi-
dies, most of it as infrastructure subsidies, assuming that taxes
on road transport are not regarded as contributions to finance
infrastructure. Aviation, as the mode with the highest specific
climate impact, gets significant subsidies in the form of preferen-
tial tax treatment, in particular exemptions from fuel tax and
VAT, which add up to EUR 27 to 35 billion per year. Rail is
subsidised with EUR 73 billion per year and benefits the most
from other on-budget subsidies. For water-borne transport,
EUR 14 to 30 billion in subsidies have been identified. (Size,
structure and distribution of transport subsidies in Europe EEA)’.

5. Greenhouse gas emissions

According to the Annual European Community green-

5.5
house gas inventory 1990-2005 and inventory report 2007:

5.1 With regard to emissions, transport is currently respon-
sible for 32 % of total energy consumption in Europe and 28 %
of total CO2 emissions (4). The sector is believed to account for

— EU-15 GHG emissions decreased by 0,8 % (35,2 million

tonnes CO2 equivalents) between 2004-2005

(4) The EEA (European Environment Agency) recently published its annual
report on Transport and Environment: on the way to a new common
transport policy, which assesses the performance and efficiency of the
transport sector in integrating environmental policies and strategies.

(5) The report is published on the website: Annual European Community
GHG inventory 1990-2005 and inventory report 2007, European
Environment Agency, Technical Report No 7/2007.

C 162/56

EN

Official Journal of the European Union

25.6.2008

— EU-15 GHG emissions were 2,0 % lower in 2005, compared

to the Kyoto Protocol base years

— EU-15 GHG emissions decreased by 1,5 % between 1990

and 2005

— EU-27 GHG emissions decreased by 0,7 % (37.9 million

tonnes CO2 equivalents) between 2004 and 2005

— EU-27 GHG emissions decreased by 7,9 %, compared to

1990.

CO2 emissions from road transport decreased by 0,8 % (6,0
million tonnes CO2 equivalents) between 2004 and 2005.

sector.

in the transport

of Europe's energy needs
In its
opinion (7) on the progress made in the use of biofuels, (the
Committee argued that the policy thus far pursued should be
reconsidered, emphasising second-generation agrifuels. At the
same time, the development of second-generation conversion
technologies should be promoted and supported: they can use
raw material
from 'fast-growth crops', based principally on
herbaceous or forestry crops or agricultural by-products, thereby
avoiding the use of the more valuable agrifood seeds. Bioethanol
and its by-products in particular, which are currently obtained
by fermenting (and subsequently distilling) cereals, sugar cane
and beet, may in future be produced from a wide range of raw
materials, combining waste biomass from agricultural crops,
residue from the wood and paper industries, and other specific
crops.

6. Security of primary energy supplies

7. Transport mix

6.1
The European Union depends on imports (91 % of
which being oil) for over 50 % of its energy needs. Unless this
tendency is drastically reversed, this dependence rate will have
risen to 73 % by 2030. The Council, as well as the European
Parliament on several occasions, and the Commission itself have
issue, stressing the need to adopt policy
dwelt on this vital
measures aimed at achieving the highest possible level of energy
self-sufficiency.

In its Resolution on the macro-economic impact of the
6.2
increase in the price of energy (6), adopted on 15 February
2007, the EP noted that the transport sector accounted for 56 %
of total oil consumption. It advocated an EU strategy to phase
out fossil fuels completely, arguing that ‘transport fuel supplies
could be expanded by facilitating the production of unconven-
tional oil and liquid fuels based on natural gas or coal where
this is economically reasonable’. The EP also called for a frame-
work directive for energy efficiency in transport to be adopted
and the harmonisation of passenger car legislation, including an
EU-wide harmonised CO2 based vehicle taxation with labelling
procedures and fiscal
incentives to diversify energy sources.
Finally, the EP called for the development of vehicles with low
CO2 emissions, using second generation biofuels and/or bio-
hydrogen fuels (biomass-derived hydrogen).

7.1
The energy mix in transport is to a large extent deter-
mined by the modes of transport chosen to meet various freight
and passenger journey needs. It is important because different
modes of transport have more or less dependence on hydrocar-
bons. Accordingly, any strategy for the optimum energy mix in
transport must seek to reduce passenger and freight dependence
on fossil fuels.

7.2
The main options for doing this are twofold. First,
changes need to be made in hydrocarbon efficiency and trans-
port priorities; these are discussed elsewhere in the Opinion.
Second, priority must be given to the use of electrical power.
With existing energy sources and the future potential of alterna-
tive energy sources we can be optimistic about the future for
clean electricity supply. The challenge is to use more electricity
in transport.

The transport mode with the greatest electric potential is
7.3
rail, whether for passengers or freight and whether international,
national, regional or urban. The expansion of rail transport
powered by electricity can reduce short haul air traffic,
long
distance road freight transport and bus and car usage generally.

6.3
The crisis with Russia, which culminated in the decision
taken on 1 January 2006 to reduce energy supplies to Kiev, and
endemic political instability in the Middle East, have confronted
Europe with epochal challenges, i.e. successfully ensuring secure
and sustainable energy supplies in anticipation of
increased
future pressure on the demand for fossil fuels.

6.4
At present, European production of alternative and
renewable energy sources for the transport sector is almost
exclusively restricted to biofuels, which currently cover only 1 %

(6) Resolution on the macro-economic impact of the increase in the price of energy

— Rapporteur: Manuel António dos Santos (PES, PT).

In its agenda,

7.4
the European Rail Research Advisory
Council (ERRAC) emphasises the challenges it faces in enabling
rail transport
to triple its freight and passenger volume by
2020. The development of energy efficiency and environmental
issues are at the heart of the initiative. Research under the TEN
projects is focusing on the possible applications of hydrogen
fuel cells, which could be integrated in the traction vehicle elec-
tric system and which would gradually substitute the fossil fuel-
driven locomotives currently in operation.

(7) Communication from the Commission to the Council and the Euro-
pean Parliament Biofuels Progress Report — Report on the progress
made in the use of biofuels and other renewable fuels in the Member
States of the European Union (COM(2006) 845 final), rapporteur: Mr
Iozia.

25.6.2008

EN

Official Journal of the European Union

C 162/57

For

transport will

the foreseeable future air

7.5
remain
dependent on hydrocarbon fuels but the introduction of high
should significantly reduce the
speed train (HST)
services
less than five
number of scheduled flights over distances of
hundred kilometres. Air
than air
passenger traffic, using dedicated transport aircraft. Some of it,
especially commercial mail services, could be diverted in future
to the HST network. This change in the transport mix would be
accelerated by an increase in HST links to airports.

is growing faster

freight

carriers powered by alternative fuels rather like modern submar-
ines, aircraft carriers and ice breakers? That would certainly
change the energy mix in transport.

In the maritime sector,

7.12
technology
platform is developing research in order to improve marine
engine yields overall, reduce drag, and test for alternative fuels,
including hydrogen.

the ‘Waterborne’

The Advisory Council

for Aeronautical Research in
7.6
Europe (ACARE)
is engaged in upholding its own Strategic
Research Agenda, which examines the general issue of climate
change, noise pollution and air quality. The ‘Clean Skies’ Joint
Technology Initiative will explore the best solutions for sustain-
able aviation transport in terms of design, engines, and fuels.
The SESAR project should make it possible to achieve vast
economies by rationalising the air traffic management system
(see EESC opinion).

7.7
National and international road freight traffic is a major
user of hydrocarbon fuels. A 21st century high speed freight
inter-modal nodes could
network operating between major
achieve a material reduction in road freight transport. As the
HST network develops, it could be used overnight for freight
traffic. Such a change in mix would be accelerated by a pricing
strategy for roads, fuels and vehicle licences.

7.8
The European Road Transport Research Advisory
Council (ERTRAC) has also adopted a strategic research agenda,
with the environment, energy and resources as its focal points.
A reduction of up to 40 % in specific CO2 emissions (per kilo-
metre)
for passenger cars and up to 10 % for heavy duty
commercial vehicles by 2020 are among the agenda's foremost
objectives. There is also a specific chapter on fuels.

transport

7.9 Water
is generally supported by public
opinion, whether it be river canal, coastal or oceanic. River,
canal and coastal freight are energy efficient alternatives to road
transport and should be encouraged in the transport mix.

7.10
Intercontinental maritime transport is actually a greater
user of hydrocarbons than aviation and is also growing faster. It
accounts for about 95 % of world trade by volume and it is rela-
tively efficient but it is a serious source of sulphur and nitrogen
oxide emissions.

7.11 With the globalisation of supply chains and the emer-
gence of the Asian economies, intercontinental maritime trans-
port is expected to increase 75 % by volume over the next
fifteen years, with the consequent growth in emissions because
this traffic is diesel powered. With the growth in emissions and
the reducing supplies of hydrocarbon fuels, will we finally reach
an era when long distance freight traffic between major ports
on all five continents is going to be shipped in super-scale bulk

7.13
Passenger cars are multifunctional and indispensable
vehicles which most people need to carry on their daily lives.
Nevertheless, within a strategy to change the transport mix,
there are opportunities to replace urban and suburban bus and
passenger car journeys by electric powered trains and trams.

7.14
The relative energy density of different fuels must be
taken into account when selecting the most appropriate and
efficient ones. Efforts should therefore focus on the use of the
highest energy density fuels. The following table provides exam-
ples of a number of density values, expressed in MJ/Kg.

Fuel

Energy content
(MJ/Kg)

Pumped stored water at 100m dam height

0,001

Bagasse (1)

Wood

Sugar

Methanol

10

15

17

22

Coal (anthracite, lignite)

23-29

Ethanol (bioalcohol)

LPG (liquefied petroleum gas)

Butanol

Biodiesel

Oil

Gasohol or E10 (90 % petrol and 10 % alcohol)

Petrol

Diesel

Methane (gaseous fuel, compression dependent)

30

34

36

38

42

44

45

48

55

Hydrogen (gaseous fuel, compression dependent)

120

Nuclear fission (Uranium, U 235)

Nuclear fusion (Hydrogen, H)

Binding energy of helium (He)

85 000 000

300 000 000

675 000 000

Mass-energy equivalence (Einstein's equation)

90 000 000 000

(1) From Wikipedia: biomass remaining after sugar cane stalks are crushed to

extract their juice.

Source:

J.L. Cordeiro based on IEA and US Department of Energy

C 162/58

EN

Official Journal of the European Union

25.6.2008

7.15
In summary, there are clearly opportunities to change
the transport mix in a way which would have a material impact
on the hydrocarbon dependency of the EU transport sector. The
key to this is the generation of more electricity which will allow
the further development of electric powered transport as well as
providing the energy source for any ultimate development of
hydrogen power.

8. A hydrogen society

8.1
Environmental damage is caused mostly by the products
of combustion of fossil fuels, but also by the technologies used
to extract, transport and process them. However, the worst
damage results from their final use. More specifically, in addition
to carbon dioxide, combustion releases elements added at the
refining stage (lead substances for example) into the atmosphere.

8.2
Global demand of 15 billion tonnes of oil equivalent is
predicted in 2020, with an average rate of growth of more than
2 %. This demand will have to continue being met principally
by fossil sources, currently accounting for between 85 % and
90 % of world energy supply. However, a progressive shift in
focus is already under way regarding low carbon/hydrogen (C/H)
ratio fuels, moving away from carbon to oil and methane, and
i.e. using
gradually progressing towards full decarbonisation,
hydrogen as an energy carrier.

8.3
Interesting data on experiments with hydrogen fuel cell
technology, as applied to public transport buses in Porto, was
presented at a hearing in Portugal. The changing attitude of the
general public towards hydrogen was of particular interest: the
information provided has helped to substantially reduce mistrust
regarding this energy carrier. It should be borne in mind that
hydrogen is not a freely available primary energy vector, but
must be produced by using:

— hydrocarbons such as oil or gas, resources which are still

plentiful but not renewable,

— electrolysis from water, using electrical energy.

Annual world hydrogen production stands at 500 billion cubic
metres, equivalent to 44 million tonnes, 90 % of which is
obtained from the chemical process of reforming light hydrocar-
bons (mostly methanol) or cracking heavier hydrocarbons (oil),
and 7 % from coal gasification. Only 3 % is produced by elec-
trolysis

depends on the development of renewable energies with very
low greenhouse gas emissions.

8.5
The consumption curve has shown that to keep engines
at peak efficiency, even when turning over, considerably greater
higher amounts of hydrogen than of conventional fuels must be
consumed. This clearly demands further thinking on its future
use in urban transport, which entails frequent stops on account
of both traffic and its inherent service patterns.

8.6
It should however be remembered that the Porto experi-
ments were carried out in a much broader context than the
CUTE (Clean Urban Transport for Europe) project. The overall
results of the project differ from those discussed during the
hearing, due to a number of differences concerning terrain,
traffic conditions and methods of use. The project's overall
results are encouraging and also shed light on problems asso-
ciated with its development. The key problem, in the opinion of
the Commission, is an apparent inability among high-level poli-
to grasp fully the potential and advantages
tical
presented by significant progress in the use of hydrogen for
road transport.

leaders

8.7
The most appropriate solution for reducing emissions
seems to be fully electric traction, entailing the development of
electricity generation from renewable sources, or hybrid use of
natural gas and hydrogen, at least for as long as significant avail-
ability exists. Reliable studies on this alternative have not yet
been carried out, but it does appear to be the most efficient,
according to some efficiency and energy potential parameters.

8.8
Another intermediate possibility might be the use of a
hydrogen/methane blend, with low hydrogen content. This
method represents an initial step towards the use of hydrogen in
mobility. It involves few disadvantages: since the distribution
and on-board storage systems are the same, it can be used by
existing cars, yielding performances
to those with
methanes, but reducing emissions and increasing the speed of
combustion, thereby reducing particles and the formation of
nitrogen oxides.

similar

Recent

8.9
research carried out by the Denver Hithane
Project, Colorado State University, and in California, with the
support of the Department of Energy and the National Renew-
able Energy Laboratories, has demonstrated that a blend of 15 %
H2 with CH4 cuts total hydrocarbons by 34,74 %, carbon
monoxide by 55,4 %, nitrogen oxide by 92,1 % and carbon
dioxide by 11,3 %, as reported by a study presented by
ENEA (8).

8.4
Calculations according to the lifecycle method have
shown that the quantity of greenhouse gas emissions produced
when using hydrogen produced by conventional means (i.
e. electrolysis), in the light of the energy mix in Portugal, which
already includes a significant renewable component, is 4.6 times
greater than the emissions from engines using diesel or natural
gas, and three times greater than those from petrol engines. This
the prospects for widespread use of hydrogen
means that

H2 production using renewable energy is the only
8.10
option which amounts to more than a ‘green daydream’. As an
energy storage element, hydrogen allows energy supply, which is
periodic by nature (night/day, yearly cycles, etc.), to be brought
into line with variable, de-coupled energy demand. Hydrogen
should be produced using the least energy-intensive technology,

(8) Ecomondo — Rimini, November 2006 — Mr Giuseppe Nigliaccio

ENEA.

25.6.2008

EN

Official Journal of the European Union

C 162/59

with a full analysis of the production cycle and its match with
the requested energy service. All renewable energies that can be
linked to use in the form of heat, electrical energy or fuel,
should be pursued without passing through the longer hydrogen
cycle, and therefore put into direct use.

8.11
Another factor that should be considered is production
close to consumption, cutting the transport-related costs and
emissions. This theory, which is valid in general, is all the more
valid if applied to energy efficiency,
in view of the costs of
dispersion due to transmission and distribution: in consequence,
the other aspect to be considered is the territorial spread of
production.

Prospects for the use of hydrogen also depend on the
8.12
territorial spread of
the distribution network. As with the
problems encountered with CNG (compressed natural gas),
whose distribution network is extremely patchy and, in some
Member States, virtually absent, distribution centres for vehicles
using hydrogen fuel cells are non-existent. The introduction of
CNG, and further ahead of hydrogen, must be backed up by
mass distribution policies.

8.13
The European Commission has earmarked EUR 470
million to set up the Fuel Cells and Hydrogen Joint Undertaking
(COM(2007) 571 final), on which the EESC is currently drawing
up an opinion. This should speed up the use of hydrogen —
something which is clearly also of
interest to the transport
sector. The Community funding is matched by the same
amount from private industrial sector, providing a total of some
EUR 1 billion to speed up the introduction of hydrogen in
Europe. The fund will finance technology initiatives for produ-
cing hydrogen fuel cells, and a programme of technological
research and implementation. The research is to be carried out
by public-private partnerships in industrial and academic circles,
and will continue for a six-year period. The aim is clear: to put
hydrogen vehicles on the market in the course of the ten years
between 2010 and 2020 — in other words, starting three years
from now.

8.14 Many hydrogen vehicles could be ready to enter the
market today. But there is no common, standard and simplified
procedure for the type-approval of hydrogen powered vehicles.
At present, hydrogen vehicles are not covered by the Com-
munity type-approval
system. Defining European standards
would help to reduce the risk margin in research for car manu-
facturers, as they would be able to assess which prototypes
would have real market potential.

The Zero Regio project, co-financed by the European
8.15
Commission, comprises the construction and experimental use
of two innovative multifuel and hydrogen supply structures, one
in Mantova and the other in Frankfurt, using various technolo-
gical options to produce and supply hydrogen. In Mantova, the
hydrogen is produced within the service station using a 20 mc/
h natural gas reformer. The technology employs a high-tempera-
ture catalyser process with a pre-blended flow of vapour and
natural gas that is converted into hydrogen in a series of steps.

The vehicle fleet currently comprises three hydrogen fuel cell-
drive Fiat Panda cars. There are also plans to supply hydro-
methane. The Mantova and Frankfurt service stations are also
considered to be ‘Green Petrol Stations’, as in order to help
reduce CO2 emissions, they are fitted with photovoltaic equip-
ment of 8 and 20 kWp respectively, capable of generating
renewable source electricity equivalent to approximately 30 000
kWh/year, representing a reduction of about 16 tonnes/year of
CO2 emissions.

8.16
Carbon dioxide capture and sequestration techniques
are very costly and affect final production efficiency, raising
serious issues regarding possible future risks of pollution of
water tables or sudden, massive releases of carbon dioxide. The
idea of producing hydrogen by using carbon is problematic (9).

Recent studies (10) have revealed a hitherto neglected
8.17
problem, i.e. the potential consumption of water if the hydrogen
society develops rapidly. The study is based on current levels of
water consumption by electrolysis production and power plant
cooling systems. The resulting data is worrying since it is esti-
mated that 5 000 litres of water are required to produce one
kilo of hydrogen for cooling alone, and at present efficiency
standards, over 65 kW per kg.

8.18
The use of hydrogen as an energy carrier adapted to
transport purposes — albeit subject to the limitations pointed
out — represents a challenge for the future, and the possibility
of seeing vehicles running partly or fully on hydrogen may
become a fact
in only a few years, provided that research
continues to be supported by the national and European autho-
rities.

8.19
As it has previously said in relation to energy efficiency
(TEN/274), the EESC considers that it would be most helpful to
have a web portal, where university research and national,
regional and city-based experiments could be shown to a
broader audience, and in particular local administrators. The
exchange of best practices is essential for highly subsidiarity-
based policies, i.e. decided at local level.

(9) The currently established technology involves pulverised coal plants
using the classic vapour cycle and processing of the products of
combustion discharged during the procedure. In practice, vapour is
produced at ‘conventional’ pressures and temperatures to drive turbines
in plants which are as yet few and far between. There are currently four
types of plant, in descending order in terms of technological develop-
ment and environmental impact: supercritical and ultra-supercritical
pulverised coal; fluid bed combustion; combined cycle gasification; and
lastly combustion with oxygen. Two solutions exist today which in any
case provide for geological CO2 sequestration; these are coal combus-
tion in boilers, in which oxygen is used to bring about a high concentra-
tion of CO2 at discharge, thereby reducing capture and sequestration
costs; and the use of integration gasification combined cycle technolo-
gies, which produce a synthetic gas which is then purified, therefore
separating the high-grade, combustible part of the CO2.

(10) Webber, Michael E. ‘The water intensity of the transitional hydrogen

economy.’ Environmental Research Letters, 2 (2007) 03400.

C 162/60

EN

Official Journal of the European Union

25.6.2008

8.20
published on the web portal:

The following European average figures

should be

— grams of CO2 emitted into the atmosphere in generating 1

kWh of electricity;

— quantity of CO2 emitted in agriculture and diesel fuel manu-
facture for the production of one litre of diesel substitute;

— quantity of CO2 emitted in agriculture and bio-ethanol
manufacture for the production of one litre of bio-ethanol.

This is the only way of quantifying actual CO2 emissions and
savings and converting kilowatt-hours saved correctly into the
equivalent weight of CO2.

9. General comments and recommendations of the EESC

9.1
In response to Commissioner Barrot's request, the EESC
has drawn up this opinion in order to provide the Commission
and other EU institutions with civil society's views on what
needs to be done to meet the challenges presented by the Kyoto
Protocol.

9.1.1
The EESC considers it essential to combine discussions
on the future fuel mix with a significant change in current
modes of transport, giving preference to urban and extra-urban
public transport, which will entail modernised vehicle fleets and
better infrastructure. The quality and efficiency of rail transport
will have to be improved through investment in infrastructure
and rolling stock and, as a result, the electricity generation
required to sustain the development of rail transport will have
to rely increasingly on renewable energy and low carbon fuels.

9.2
In a previous opinion (TEN/274, rapporteur Mr Iozia),
the EESC had stated clearly that ‘the transport sector has striven
hard to reduce energy use and pollutant emissions, but it is
right to call for a further effort, given that it is the fastest-
growing sector in terms of energy use and a source of green-
house gases’ and that the ‘fact that European industry relies on
third countries for transport fuel increases its responsibility to
make a key contribution to energy efficiency and the reduction
of emissions and gas and oil product imports’.

9.3
The EESC shares and supports the view that efficiency,
security and sustainability will therefore serve as the European
institutions' baseline principles for evaluating the policies to be
followed and the measures to be adopted to promote cleaner
energy use, a cleaner and more balanced transport sector and
greater corporate responsibility in Europe without compro-
mising the competitiveness of European firms, as well as to
create a framework that fosters research and innovation.

The future transport

9.4
therefore have to
include these characteristics: reducing greenhouse gas emissions

fuel mix will

overall; reducing as far as possible energy dependence on third
countries and diversifying energy sources; keeping costs consis-
tent with the competitiveness of
the European economic
system.

10. Challenges relating to the EU transport sector's future

fuel choices: investing in research

10.1
If the absolute priority is compliance with the Kyoto
objectives, the bulk of available public and private resources
should be channelled into research on fuels that fully meet the
indispensable requirements of economic efficiency, environ-
mental sustainability and low emissions for managing eco-
friendly transport.

Cooperation between universities, research centres, the
10.2
fuel industry and manufacturing industry, and the automotive
industry in particular, must be further developed. The Seventh
Framework Programme (7FP) implemented by Council Decision
No 971/2006/EC concerning the Specific Programme ‘Coopera-
tion’, sets leadership in key scientific and technological areas as
one of its objectives. These priorities include the environment
and transport.

10.2.1
traditional
The need to improve the efficiency of
batteries is being neglected. Developing electric cars depends on
reducing the weight and improving the autonomy and perfor-
mance of traditional batteries. The EESC recommends that the
Commission make a specific commitment in this direction.

fossil

In its opinion on the 7FP (11), the European Economic
10.3
and Social Committee expressed its concerns regarding the scar-
city of
fuels, steadily rising prices and the effects of
climate change. It advocated allocating more funds to the energy
sector in general while stressing how the challenge in dealing
with the critical issues in the transport sector could secure suffi-
cient funds, estimated at EUR 4 100 million for 2007-2013.

11. Ensuring the competitiveness of European economies

and the availability of affordable energy

The EESC underscores the fundamental aspect of the
11.1
Union's strategy, ensuring the EU's competitiveness, which is
undoubtedly based on affordable and stable prices. Transport
has always been the only means of transferring freight, passen-
gers and animals to markets. It is now of vital importance to
another crucial European industry, i.e. tourism. The third aspect
of sustainability, price,
is the most complex challenge. At
present, there are no alternative fuels that can compete with oil
and natural gas in terms of price. Despite increases in recent
years, these products are still the most competitive.

(11) Official Journal — 2006/C 185/02, 8/8/2006 (rapporteur: Mr Wolf,

co-rapporteur: Mr Pezzini).

25.6.2008

EN

Official Journal of the European Union

C 162/61

11.2
Nevertheless, while advocating a steady increase in the
use of biofuels and other renewable energy fuels, the EESC
considers it essential to step up applied research into second-
generation agro-fuels, which use waste or non-food biomass,
and are free of the disadvantages of the first generation,
i.e.
those derived mainly from cereals, beet and sugar cane, or from
oilseeds for human or animal consumption (12). The Committee
stresses that the cost assessment should not be restricted exclu-
sively to the cost of the final product. A correct comparison of
costs vis-à-vis fossil fuels must take into account the internalisa-
tion of all external costs (environmental damage,
location of
production sources, processing costs, water consumption and
land use, etc.).

Gradual

substitution, where

11.3
component mixing
processes are not possible, should run parallel to a gradual adap-
tation and/or overhaul of distribution systems that take into
account the physical quality of the new products.

11.4
Although the EESC supports the positive aspects of this
strategy, it is nevertheless aware that it will be expensive, espe-
cially in its initial phases, and therefore liable to reduce the
European system's competitiveness. However, the EESC under-
lines that, in order to avoid this risk and so as not to limit the
global
impact, Europe must spearhead a movement that will
ultimately lead other parts of the planet in the same direction.

The investment

11.5
required in the field of alternative
biomass-derived energy sources must be able to rely on a stable
regulatory framework. This entails adapting directives on fuel to
the new production methods, clear cooperation with the manu-
facturing industries, in order to enable innovation processes to
proceed in line with the industry's true potential. Specific atten-
tion, in addition to 7FP projects, has to be focused on relevant
innovation and research at both central and peripheral levels.

11.6
If the efforts and investment put into developing new
efficient and sustainable fuels are not to be wasted, we need to
bolster these processes with initiatives aimed at increasing the
service speed of vehicles, reducing consumption, taking action,
for instance, on European road junctions that create bottlenecks
in national and urban traffic. The Lisbon public transport
authority Carris, which supplements its traditional trams (the
legendary No 28) with a fleet of eco-friendly buses, has reduced
CO2 emissions by 1,5 %, by means of measures which have
boosted service speeds, such as doubling priority bus lanes.

Brussels, 13 February 2008.

11.7
The Coimbra transport authority, SMTUC, has for its
part experimented with a blue line comprising electrically-
powered buses, which operate in the city centre along reserved
lanes with no specific stops — they may be boarded at any
point. A blue stripe painted on the roadway indicates the route,
partly for the benefit of non-residents and the many tourists
who prefer this type of efficient and clean transport. Coimbra's
trolley buses are also particularly appreciated: thanks to their
back-up batteries, they can avoid traffic congestion by diverting
from their overhead lines. This mode of transport combines
very low levels of atmospheric and noise pollution with a well
above average vehicle service life, absorbing the higher initial
purchasing costs.

11.8
The EESC recommends appropriate tax incentives for
these urban transport vehicles (reduced rates for purchasing eco-
friendly vehicles or, alternatively, special funding for local autho-
lower prices for ecobuses), and publicity campaigns on
rities,
the use of ecobuses, which should be carried out with coordina-
tion at European level, upgrading and expanding park-and-ride
facilities — where necessary stepping up security — and main-
taining low prices, and integrating them with urban transport
facilities, as is already the case in many European cities.

11.8.1
The Green Paper Towards a new culture for urban mobi-
lity COM(2007) 551, published by the Commission on 25
September 2007, looks at these problems and proposes solu-
tions involving support for urban public transport rehabilitation
projects financed under the ERDF and the CIVITAS programme.
The Commission's Green Paper sends out a powerful message
promoting eco-friendly urban transport, and the EESC agrees
with this approach and recommends exploring other practical
initiatives on the basis of positive experiences and through
strengthened cooperation with the EIB and the EBRD.

11.9
The future of urban transport, as discussed in a
previous EESC opinion (13), clearly lies with public transport.
Two research projects, already at the experimental stage, were
presented during the hearings for the present opinion: an elec-
tric minicar, that can be driven without a driving licence, and a
cybernautic vehicle, operated by a complex system of remote
controls, that can run along predetermined routes. These vehi-
cles could be hired for inner city travel, perhaps replacing the
toll charges applicable to bulky and polluting vehicles.

The President

of the European Economic and Social Committee

Dimitris DIMITRIADIS

(12) See EESC opinion TEN/286 following the plenary session of 24/25

October.

(13) OJ C 168 of 20.7.2007, p. 77-86.