Opinion of the European Economic and Social Committee on the Proposal for a Regulation of the European Parliament and of the Council on type-approval of hydrogen powered motor vehicles and amending Directive 2007/46/EC COM(2007) 593 final — 2007/0214 (COD)
Date: 2008-07-10
Institutions: Committee on Transport and Tourism, European Economic and Social Committee
Subjects: ESC opinion, European Economic and Social Committee, hydrogen, motor vehicle, opinion, technical regulations, technical standard

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III

(Preparatory Acts)

EUROPEAN ECONOMIC AND SOCIAL COMMITTEE

446th PLENARY SESSION, HELD ON 9 AND 10 JULY 2008

Opinion of the European Economic and Social Committee on the ‘Proposal for a Regulation of the
European Parliament and of the Council on type-approval of hydrogen powered motor vehicles and
amending Directive 2007/46/EC’

COM(2007) 593 final — 2007/0214 (COD)

(2009/C 27/01)

On 14 November 2007 the Council decided to consult the European Economic and Social Committee,
under Article 95 of the Treaty establishing the European Community, on the

Proposal for a Regulation of the European Parliament and of the Council on type-approval of hydrogen powered motor
vehicles and amending Directive 2007/46/EC.

The Section for the Single Market, Production and Consumption, which was responsible for preparing the
Committee's work on the subject, adopted its opinion on 11 June 2008. The rapporteur was Mr Iozia.

At its 446th plenary session, held on 9 and 10 July 2008 (meeting of 9 July), the European Economic and
Social Committee adopted the following opinion with 117 votes in favour and five abstentions.

1. Conclusions and recommendations

for

The EESC approves of the content of the proposed regu-
1.1
lation and welcomes the Community-level establishment of
harmonised standards
type-approval of hydrogen
the
powered vehicles. It endorses the choice of a single Community
procedure to be valid in all Member States as this is simpler and
much less burdensome than 27 different type-approval systems
that would clearly pave the way for unfair competition and frag-
mentation in the internal market.

1.2
The importance of this measure is clear: despite expecta-
tions of considerable growth in the commercialisation of
hydrogen-powered vehicles, there is no type-approval for them
at national or European level. Where individual Member States
have adopted provisional regulations, they differ significantly
from one another.

The establishment of

1.4
these Community standards on
harmonisation is also an important element in guaranteeing
safety for users. Building up their trust is essential in the light of
the predicted increase in the use of this technology. According
the number of hydrogen-powered
to Commission forecasts,
vehicles should reach the one million target by 2020.

1.5
An important example confirming the validity of this
objective and the real possibility of reaching it is that of the
steadily increasing number of taxis with hybrid fuel systems
circulating in New York, where a positive urban policy has
made it possible to marry environmental protection with
market rules. This clearly demonstrates that attempts to build
artificial barriers to the development of this technology often
mask vested interests.

1.3
The regulation must be approved rapidly as it will
provide a definite frame of reference for the sector's companies,
and thus pave the way for the major investment necessary to
develop hydrogen-related technologies. The EESC has endorsed
this strategic choice in recent opinions on the subject, stating
that despite its continuing limitations, hydrogen is the challenge
for the future.

1.6
Reaching this target is essential, as only by making a
decisive move to replace fossil fuels will it be possible to stay on
track with the EU's policies on sustainable development and the
fight against climate change. This goal can be achieved by
means of a gradual shift to the use of hydrogen, second genera-
tion biofuels and other renewable fuels.

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this

support

To provide the fundamental

1.7
long-term
strategy requires will involve specific commitments in the field
of technological research. The EESC therefore calls for the imple-
mentation of targeted research programmes, starting with the
rapid approval of the regulation proposed in COM(2007) 571,
which provides for the establishment of a Joint Technological
Initiative (JTI) based on the establishment of a Fuel Cells and
Hydrogen Joint Undertaking (1). The Committee would welcome
research programmes aimed at finding new means of producing
and using hydrogen and echoes the calls from businesses and
research bodies active in the hydrogen sector for the Council
and Parliament
the necessary
to speed up the approval of
proposals.

1.8
The EESC urges the Commission to start work now on
examining the issue of distribution network coverage, as safe
and efficient storage and adequate distribution systems are
essential elements in the dissemination of vehicles powered by
gas mixes.

1.9
Initially, action should focus on the distribution of LPG
and methane throughout the Community, as though in many
EU countries they are scarce or non-existent these offer the
most immediate and realistic hope of reducing dependence on
carbon-based fuels. This initial drive for newer, safer and more
efficient technologies in the field of storage and distribution
should,
in the near future, facilitate an intermediate phase of
supplying a mix of gas and hydrogen until the final move to
hydrogen distribution.

Steps must be taken to restore the confidence of future
1.10
users and dispel the doubts that still surround hydrogen use.
Widespread information programmes should be planned, with a
clearly argued message, to reassure the public that this tech-
nology has already reached the current safety levels of conven-
tional vehicles.

ment must not obstruct
the European legislative procedure.
Having its own legislative instrument and experience of applying
Community standards will strengthen Europe's presence on all
global bodies, and ensure that the establishment of international
regulations in the field of hydrogen-powered vehicles has more
than one available point of reference to take into account
(Japan).

1.14
The experience gained from having legislation at Com-
munity level and the important results that may stem from a
solid ongoing commitment to technological research could help
to boost the competitiveness of companies already operating in
the vehicle sector, given that major shares of the future market
are staked on the new technologies and fuels.

1.15
In the EESC's view, all this requires bold and timely
decisions, together with a long-sighted strategic vision focusing
on a future scenario where,
in time, hydrogen is destined to
play a major and decisive role.

1.16
The EESC would invite the Commission to reconsider
its proposal to label hydrogen-powered cars, as this could be
identifying them as
seen as criminalising them in some way,
‘dangerous’, whereas their safety test results are on a par with
those for cars powered by other fuels. As an alternative to that
label, the EESC feels it would be more appropriate to identify
the fuel-types of all cars, making them clearly recognisable.

In the absence of a distribution network, to facilitate
1.17
the dissemination of hydrogen-powered vehicles,
the EESC
recommends that the Commission introduce type approval for
small reforming units for the automatic production of hydrogen
from methane (home energy stations or similar facilities). This
could mark the first real step towards meeting the new demand
for hydrogen in the early days, while the ultimate goal must
continue to be that of producing hydrogen from renewable
resources or biogas, by means of photolysis or electrolysis using
electricity generated from renewable sources.

The EESC agrees that the most appropriate legal instru-
1.11
ment to use is a regulation, as this creates a level playing field
for the sector's producers by ensuring that the standards it
contains will be implemented simultaneously in all Member
States.

2. Introduction

The EESC approves of

1.12
the proposal to prepare and
implement basic standards by means of a committee procedure.
It also welcomes the arrangements for a transition period for
the full application of all the standards; this appears necessary
for producers, given the complexity involved.

for

The

starting-point

2.1
regulation in question
(COM(2007) 593 final) is that there are no European standards
governing the type-approval of hydrogen powered vehicles,
despite predictions that the market presence of such vehicles is
set to increase.

the

1.13
The EESC welcomes Europe's presence in the Global
Coordination Group (GCG), which is seeking to establish type-
approval standards at world level (GTR — Global Technological
important.
Regulation), and considers Europe's involvement
However, it would also stress that the search for a global agree-

(1) OJ C 204, 9.8.2008, p. 19.

Neither are there regulations governing this field in the

2.2
EU's individual Member States.

None of the current legislation governing vehicle type approval
includes any general standards for hydrogen powered vehicles,
partly because of their differences compared with vehicles that
run on traditional fuels.

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2.3
A few Member States have adopted provisional regula-
tions that differ significantly from one country to another. If
this situation is allowed to continue, the type approval proce-
dures developed in individual Member States will differ, with the
inevitable consequences of internal market fragmentation and
distorted competition rules, making the real possibility for this
technology to contribute decisively to improving the environ-
ment remote.

2.4
This draft regulation is therefore intended to ensure that
the internal market functions properly and to prevent vehicles
from circulating in individual Member States under differing
type approval standards, leading to imbalances between indivi-
dual producers and paving the way for artificial barriers to trade
in Europe.

The result would be to hinder rather than promote the
2.5
practical development of hydrogen technologies and related
initiatives in Europe, although it is one of the most significant
available alternatives to fossil fuels. The latter still account for
98 % of public and private transport and 50 % of primary
energy sources, a figure likely to increase to 73 % unless there is
a definite decision to diversify.

2.6
This regulation, along with major research programmes
the 7FP, marks an important step
in the sector as part of
towards bringing hydrogen use to the safety levels reached by
traditional
technologies and could also contribute towards
gaining the support of potential users.

2.7
Harmonised standards at Community level for the type
approval of hydrogen powered vehicles would doubtless consti-
tute a decisive step towards securing the necessary consensus
among users. The development of user confidence in the use of
hydrogen is essential if the placing on the market of vehicles
run on alternative low-greenhouse gas emission fuels is to be
stepped up, something that is essential to protect the environ-
ment properly and practically.

The legal basis of the proposal

is Article 95 of the

3.3
Treaty.

The proposal fully respects the principle of subsidiarity as the
political objectives agreed at Community level cannot be
achieved by individual Member States. Furthermore, the proce-
dure prevents the creation of barriers in the single market.

It also preserves the principle of proportionality, its objective
being simply the smooth running of the single market and a
high level of public safety and environmental protection.

The Commission proposes to use a regulation as this will
3.4
ensure that the provisions enter into force in all Member States
at the same time, without having to wait for them to be trans-
posed into national legislation. It should also avoid delays in the
adaptation of type-approval standards and prevent the risk of
provisions being changed significantly during transposition.

3.5
The proposal has been carefully examined by means of a
thorough consultation of all the stakeholders. Beginning with
the ‘Hydrogen Working Group’, the survey involved national
authorities, vehicle manufacturers, vehicle parts suppliers and
industry associations.

3.6

The four options studied were:

— no policy change, i.e. maintaining the status quo;

— legislation at Member State level;

— legislation at European Union level;

3. The Commission proposal

— and a non-regulatory approach, i.e. self regulation.

The draft

3.1
standards valid
throughout the EU for the type approval of hydrogen powered
vehicles.

regulation aims

to set

It amends Framework Directive 2007/46/EC by including
3.2
category M1-M2-M3 and N1-N2-N3 (2) hydrogen powered vehi-
cles fully within the EC vehicle type approval procedural frame-
work and including hydrogen-powered vehicles in all
type
approval related directives and regulations.

(2) M1 vehicles designed for passenger transport, with a maximum of

eight seats in addition to the driver's seat.
M2 vehicles designed for passenger transport, with more than eight
seats in addition to the driver's seat and weighing no more than
5 tonnes.
M3 vehicles designed for passenger transport, with more than eight
seats in addition to the driver's seat and weighing more than
5 tonnes.
N1 vehicles designed for goods transport, weighing no more than
3.5 tonnes.
N2 vehicles designed for goods transport, weighing more than
3.5 tonnes but no more than 12 tonnes.
N3 vehicles designed for goods transport, weighing more than
12 tonnes.

A consultant was then appointed to collate the responses
3.7
concerning safety,
the
various options. The results were then assessed by the main
companies in the automobile sector involved with hydrogen
technology.

technology and the relative costs of

3.8
From this broad consultation process it clearly emerged
that the best course of action would be legislation at Com-
munity level
to establish a type-approval procedure for all
hydrogen powered vehicles.

3.9
To back up this choice, the Commission has presented a
study (3) that argues that introducing even a strict European
type approval process is the simplest and least costly way ahead,
given the theoretical cost of 27 different type-approvals for each
of the individual Member States.

(3) TRL Ltd:

technical and scientific consultancy employed by the

Commission.

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The consultant's assessment was

3.10
submitted to the
Commission, which produced the present proposal on the basis
of the prior consultation work, thus starting the institutional
process.

approval of hydrogen powered vehicles. This marks a step
forwards from the present situation where the lack of legislation
is clearly likely to distort competition and fragment the internal
market. It is important that the regulation is approved rapidly,
not least for reasons of safety and environmental protection.

3.11
According to the Commission, the standards established
in this regulation offer hydrogen powered vehicle users the
necessary guarantees in terms of safety and will contribute deci-
sively to environmental protection.

The concluding objective is that 36 months after the
3.12
entry into force of the regulation, hydrogen systems, all compo-
nents in contact with hydrogen and the related materials used
must comply fully with the standards set out by the regulation.

4. The hearing

4.1
The hearing, attended by the Commission, academics,
vehicle manufacturers involved in developing hydrogen-powered
cars, European associations, consumers and fuel cell producers,
delivered valuable ideas and information on the latest technolo-
gical developments.

It highlighted the importance of public information and
4.2
of events such as the one that has been held for a number of
years in Rome (H2 Roma), introducing the public to the produ-
cers, demonstrating technological developments and raising
awareness of a technology still considered dangerous by most
people. Those present were very interested in the part that the
EESC could play as a cultural mediator.

Companies and consumers underlined the need to be
4.3
able to rely on the safety of vehicles and storage and distribution
facilities, as well as on the availability of hydrogen. Research
should continue with better backing. They welcomed recent
European initiatives promoting fuel cells, with the decision to
finance a Joint Technological Initiative.

4.4
Autonomy tests have shown that hydrogen-powered cars
already have a range of up to 600 km. Further tests are in the
pipeline.

As the hearing showed, hydrogen-powered cars are now
4.5
reality. What are missing however are the
a technological
economic and social conditions necessary to move into the
marketing phase. The type approval regulation will do away
with an initial obstacle.

5. General comments

5.2
In the EESC's opinion, the absence of a definite frame of
reference inevitably tends to discourage the necessary significant
investment
the use of
hydrogen as a fuel for future cars.

in technological development

for

5.3
The regulation appears to be in line with the EU's poli-
cies on sustainable development and with the fight against
climate change, which underpin Community initiatives and
make a vital contribution to the general objectives of the Lisbon
Strategy.

5.4
The EESC is firmly convinced that unless hydrogen
powered vehicles are developed rapidly and on a grand scale
and fossil fuels are gradually replaced the environmental benefits
will be severely limited and thus negligible in quantitative terms.
It would argue that the use of hydrogen, second generation
biofuels and other renewable fuels could make it possible to
further environmental sustainability and to make a strong stand
against climate change.

The EESC maintains that the exciting path towards rever-
5.5
sing the current trend whereby demand for energy is satisfied
primarily by fossil fuels, which currently account for 85-90 %
of world energy supply, will involve the use of hydrogen and a
commitment to research in the field of hydrogen and fuel cells.
Any studies of future prospects must take into account the fact
that the future for fossil fuels is likely to involve shortages and
constantly increasing prices.

The

adopted

EESC recently

an opinion (4)

5.6
fully
supporting the Commission's proposal (COM(2007) 571 final)
to earmark approximately EUR 470 million for a Joint Techno-
logical Initiative (JTI) for ‘fuel cells and hydrogen’, which will
enable the Commission, Member States and the industry to pool
their various resources in a vast research initiative in order to
launch programmes targeting strategic sectors for the diversifica-
tion and future availability of energy.

In a subsequent opinion on the energy mix in trans-
5.7
port (5), the EESC ‘considers a sharp increase in funding for
research into the production and use of hydrogen (…) to be
vital’ 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’.

5.1
The EESC approves of the content of this regulation and
welcomes the adoption of harmonised standards for the type

(4) OJ C 204, 9.8.2008, p. 19.
(5) CESE 1104/2007 (TEN/297), point 1.4. Not yet published in the OJ.

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5.8
Fuel cells are energy converters that reduce the produc-
tion of greenhouse gas and other pollutants considerably. As for
biomass processing, the EESC takes a careful look in the same
opinion at recent progress in the field of new catalysts designed
for fuel cells, which are a highly promising technology for the
supply of clean energy for cars.

fossil

fuels
that

5.9 While stressing that the use of hydrogen in the gradual
is necessary and desirable,
substitution of
the
the aim of bringing hydrogen-
Committee points out
powered vehicles into circulation cannot be achieved without
significant investment in all related fields of research. For this
reason, the EESC would like to see research programmes aimed
at consolidating this strategy.

5.10
The Committee considers that although the high cost of
this process is an issue, it must not be allowed to slow down
technological development in this field. It is keenly watching all
programmes aimed at seeking new eco-friendly ways to produce
hydrogen, given that the current method, whereby over 90 % of
is based on a major
hydrogen is produced from methane,
energy source that is significant but nonetheless finite.

5.11
The EESC would stress that when assessing the costs of
each technological advance, the major sums necessary should be
assessed not just in relation to the admittedly large private
vehicle sector, but also from a strategic,
forward-looking
perspective, taking into account the future benefits that might
arise from the wider use of hydrogen for instance in public and
private transport, goods transport and in trains and water trans-
port, going as far as the possible use of hydrogen in electricity
power stations, though this is a more distant prospect.

The EESC is utterly convinced that

these major
5.12
research programmes develop in the desired way and receive the
necessary political and financial support from all the interested
parties, there is a strong possibility of seeing partially or fully
hydrogen powered cars on the roads relatively soon.

if

5.13
One concrete example of this positive trend is the stea-
dily increasing use of hybrid taxis in New York, where a positive
urban policy has made it possible to marry respect for the envir-
onment with market
rules. This clearly demonstrates that
attempts to place obstacles in the way of the development of
this technology often mask vested interests.

using various production and supply technologies and paving
the way for the future use of hydrogen to power vehicles.

In this light,

5.15
the EESC would once more urge the
Commission to examine the issue of distribution network
coverage for alternative fuel, starting by boosting the distribu-
tion of CNG (compressed natural gas), which in Europe is
distributed on a small scale in a few Member States and is
totally absent in others, with a few positive exceptions, including
Poland.

The field of storage and distribution is a concrete
5.16
example of targeted research in the sector. The need for innova-
tive technology in the field of gas distribution is a fundamental
and critical issue for the dissemination of new vehicles, both in
the intermediate phase of a possible mix of different gases, and
in the pursuit of the ultimate objective of hydrogen fuel.

There is an urgent need here for ever more efficient and
5.17
safe distribution systems, using the experience garnered from
the two plants currently operating in Europe, in Mantova (Italy)
and Munich (Germany), directing research towards increasingly
advanced systems that centre on meeting high standards of
safety and environmental protection.

5.18
For these reasons, the EESC believes that achieving high
levels of safety and efficiency in the storage and distribution of
gaseous fuels is crucial in the current phase, requiring a major
programme to disseminate LPG and methane plants throughout
Europe. This is a more immediate realistic objective when it
comes to reducing dependence on carbon-based fuels, as an
intermediate phase before the definitive stage of distributing
hydrogen. The technologies necessary for storing and distri-
buting gas and hydrogen are very similar, so the development of
the former will inevitably favour the development of hydrogen.

The EESC is aware that the use of hydrogen still poses
5.19
definite problems when it comes to cost and certain elements of
safety. The thorough tests carried out in various countries mean
that the obstacles of the past should now be completely over-
come, bringing hydrogen use to the safety levels achieved by
conventional
and
launching major programmes to provide specific information,
might help to build the confidence of future users, something
that is essential for the definitive relaunch of the use of this
technology.

technologies. Achieving

this objective,

In all

the EESC has
its opinions on the subject,
5.14
supported the choice to use hydrogen, which, despite the
currently known limitations, is the challenge for the future. The
Committee is keeping a close eye on recently planned initiatives

For this reason, it is essential that this hydrogen-based
5.20
strategy be backed up by a thorough information programme to
address and overcome the current doubts of future consumers
who consider hydrogen to be a highly risky product.

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5.21
A well-disseminated information programme must send
out a clear message: hydrogen technology has already reached
the current safety levels of conventional vehicles, even in the
event of accidents. This is key if the Commission's forecast of
1 million vehicles on the Community's roads by 2020 (Impact
Assessment, p. 34) is to be considered credible.

5.22
This regulation setting Community-level harmonised
standards for the type approval of hydrogen powered vehicles is
the first step towards building such a consensus. It should be
supported for the fundamental reason that use of
this fuel
makes a key contribution to environmental protection, as it
does not emit greenhouse gases or
release carbon-based
pollutants.

5.23
The EESC agrees with the choice of regulation as the
legal instrument for the proposal as it creates a level playing
field for the sector's producers by means of the immediate appli-
cation in all Member States of the standards it contains.

The EESC approves of

5.24
the proposal to prepare and
implement basic standards by means of the committee proce-
dure. It also welcomes the arrangements for a transition period;
this reflects the complexity of the technology, which producers
will require some time to apply.

The EESC supports and considers

5.25
the
presence of Europe alongside Japan and the USA on the Global
Coordination Group (GCG) aimed at achieving a world-wide
procedure for the type-approval of hydrogen-powered vehicles.

important

Brussels, 9 July 2008.

5.26
However, the search for a solution at this level must not
be allowed to get in the way of the Community legislative
process, as the time needed to reach an agreement at world
level will be longer than the timeframe for the current regu-
lation. Indeed, once the EU has a specific legislative instrument
and its own experience of implementation, it will have greater
clout at the GCG and will be able to prevent any attempts to
adopt a regulation based on the only experience currently avail-
able, i.e. that of Japan.

5.27
A strong European presence on world decision-making
bodies is also vital for safeguarding the competitive edge of
major vehicle manufacturers operating at European level, which
must not lose touch with developments in a market where a
strong, timely and technologically-advanced presence is key to
winning a major market share in the future.

Type-approval, though just one aspect of the overall
5.28
process, marks a significant step towards the availability of alter-
native fuels that can release Europe from the grip of fossil fuels
and bring major environmental benefits, preparing us for the
time when, sooner or later, that resource will slowly but surely
run out.

5.29
All this calls for bold decisions and a long-term, stra-
tegic outlook, setting sights on the present and also on a future
scenario in which the use of hydrogen is destined to play a
fundamental role.

The President

of the European Economic and Social Committee

Dimitris DIMITRIADIS