COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT Strategy for reducing Heavy-Duty Vehicles' fuel consumption and CO2 emissions
Date: 2014-05-21
Institutions: European Commission
Subjects: commercial vehicle, energy consumption, motor fuel, motor vehicle pollution, reduction of gas emissions













EUR-Lex - 52014DC0285 - EN











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52014DC0285

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT Strategy for reducing Heavy-Duty Vehicles' fuel consumption and CO2 emissions /* COM/2014/0285 final */









1.                    
Introduction
The Commission's Roadmap for moving to a
competitive low carbon economy in 2050[1] and
Transport White Paper[2]
indicate that the transport sector should reduce its CO2 emissions
by around
60% of its 1990 level by 2050. By 2030, to support the recently proposed 2030
climate policy framework objectives[3],
the goal for transport will be to reduce greenhouse gas emissions to around 20%
below their 2008 level. Greenhouse gas emissions from road transport increased
by 29% during the period 1990 to 2007 but have since fallen on the back of high
oil prices, increased efficiency of passenger cars and slower growth in
mobility (by 6% between 2007 and 2011)[4].
About
one quarter[5]
of road transport CO2 emissions are estimated to be produced by
Heavy Duty Vehicles (HDVs). In view of increasing EU freight volumes, these
emissions have been rising until the beginning of the economic crisis. In view
of their absolute size, trend and relative share HDV CO2 emissions
need to be curbed for the targets of the Transport White Paper are to be met.
Car
and van CO2 emissions are measured and monitored under existing
type-approval legislation. However HDV CO2 emissions are not
measured in a standardised way in the EU. This reduces transparency in the EU
market. In contrast, Japan, the US and Canada have already legislated, and China is preparing action, to measure and curb HDV CO2 emissions. This can
affect the relative competitiveness of HDV manufacturing in these different
regions as well as the businesses which rely on HDV transport. In view of this,
EU action on HDV fuel consumption and CO2 emissions is important for
EU competitiveness. 
In
view of these considerations, in June 2007 the Council invited the Commission
"to develop and implement policy instruments and measures to reduce
greenhouse gas emissions from HDV vehicles"[6]. The
Commission, in its April 2010 Communication on "A European strategy on
clean and energy efficient vehicles"[7], announced
that it would propose a strategy targeting fuel consumption and CO2
emissions from HDVs. 
The
objective of the strategy is to curb HDV CO2 emissions in a
cost-efficient and proportionate way for stakeholders and society. It should
provide stakeholders with a clear, coherent policy framework and indicate
likely regulatory developments, thereby facilitating decision making and
investment planning.
2.                    
The need for action to curb HDV fuel consumption and
co2 emissions
2.1.                
 Heavy-Duty
Vehicles' CO2 emissions trends are unsustainable
Since
the mid-1990s and until the start of the economic crisis HDV freight transport
has grown steadily driven by GDP growth while HDV passenger transport has
remained broadly constant. Coupled with stable vehicle fuel consumption, these
trends have led to increased HDV CO2 emissions. Between 1990 and
2010 HDV CO2 emissions are estimated to have grown by about 36%,
despite the 2008-2009 economic crisis interrupting the steady growth previously
observed[8].
Total
transport activity is projected to grow in the next 40 years but reducing fuel
consumption will somewhat mitigate that effect on CO2 emissions.
Under current trends and policies HDV CO2 emissions are projected to
remain stable and thus be about 35% greater than their 1990 level in both 2030
and 2050. This cannot be considered compatible with the EU’s policies to reduce
GHG emissions and the Transport White Paper's objective to reduce EU transport
emissions by 60% by 2050 versus 1990 levels. 
2.2.                
Technology
can reduce HDV fuel consumption and CO2 emissions
Significant
fuel consumption and CO2 emission savings from HDVs are possible
through technical improvements to the motor (including heat recovery),
transmission, aerodynamics, tyres and auxiliaries, as well as light-weighting.
Recent analytical work[9]
shows that cost effective reductions for some 35% of CO2 emissions
of new HDV can be achieved by employing state-of-the-art technologies on
vehicles. Reduced fuel consumption makes this cost efficient both from the
perspective of transport operators and society.
Furthermore,
efficiency can be further enhanced by improved fleet management, better driver
training, superior vehicle maintenance and improved capacity management with
the benefit of Intelligent Transport Systems (ITS).
2.3.                
A
knowledge gap and market barriers that need to be addressed
Despite
the economic importance of fuel consumption, HDV CO2 emissions are
neither measured nor reported[10].
The resulting knowledge gap reduces market transparency hampering the entry of
energy efficient, lower CO2 emitting HDVs on the market. Addressing
this knowledge gap is a necessary step to curb HDV CO2 emissions. 
A
recent study[11]
suggests a number of possible explanations for the lack of uptake of
cost-efficient fuel saving technologies on new HDVs. These market barriers take
different forms:
·                        
in
spite of fuel efficiency being the primary purchase criterion for transport
companies when acquiring a new vehicle, the lack of uptake of fuel saving
technologies is linked to the purchase process where few transport companies
have data to evaluate technologies or compare vehicles; 
·                        
while
offering optional fuel saving technologies, manufacturers do not offer them as
standard on basic vehicles;        
·                        
HDV
operators appear to depreciate vehicles over three years which is significantly
below the estimated average HDV lifetime of eleven years;
·                        
a
lack of access to finance;
·                        
split
incentives, i.e. when the purchaser of the vehicle, e.g. a leasing company,
does not benefit from fuel savings which accrue to the transport operator. 
While aware of
the main existing fuel saving technologies improving HDV performance, transport
operators are in view of the knowledge gap unable to compare various new
vehicles' performance and hence are not in a position to request cost efficient
technologies to be included on new vehicles. 
2.4.                
Other
countries have already acted
In contrast
to the lack of legislation in the EU, other countries have taken action. Japan introduced HDV fuel consumption legislation in 2007. The US regulated HDV CO2
emissions in 2011, followed, in 2012, by Canada. The US and Canadian
legislation targets engine and chassis-cabin CO2 emissions,
implemented via simplified performance values and manufacturers' declarations.
The US is currently preparing more ambitious legislation, focussing on the
measurement of whole vehicle emissions. 
2.5.                
Action
would benefit EU economy
European
manufacturers have a leading position on the global HDV market accounting for
over 40% of total global production[12].
While the EU HDV commercial balance is positive with a significant surplus,
this does not fully reflect the strong position of the EU industry as most of
the EU manufacturers' production addressed to foreign markets is produced
outside Europe. Since fuel consumption is a key purchase parameter, enabling
investments by those manufacturers to further improve fuel economy will assist
their competitiveness.
While
the EU-based production of HDVs represents a lower share of world production
(some 12-14%) the worldwide signalling role of EU standards can be considerable
as clearly demonstrated by Euro standards for pollutant emissions that have
been adopted by numerous other countries, notably China, India, Russia and Indonesia. 
Without
EU action cost effective opportunities to reduce HDV CO2 emissions
and contribute to lowering overall EU CO2 emissions would be missed.
EU manufacturing industry might not benefit from economies of scale in
developing and deploying further CO2 reducing technologies which
might weaken its competitive position on the global market. EU businesses rely
on HDVs for a large proportion of their transport. Cost effective reductions in
HDV fuel consumption will secure a level of ambition that is affordable for
transport operators and end-users, improve the competitiveness of those
businesses and reduce energy imports.
While
EU initiatives have already been taken or set out in a number of areas such as
vehicle design, management of transport operations, internalisation of external
costs, decarbonising fuels and vehicle purchase decisions, a comprehensive EU
strategy to curb HDV CO2 emissions is needed. This will also provide
industry with predictability about the future EU regulatory framework in this
field.
3.                    
An EU strategy to curb HDV fuel consumption and CO2
emissions
The
main drivers of HDV CO2 emissions and fuel consumption are transport
demand which is linked to economic activity, modal split among road,
rail, air and waterways, fuel GHG intensity, the vehicle energy
efficiency and the operation of HDV fleets. While addressing overall
transport demand is beyond the scope of the present strategy, a comprehensive strategy
to curb HDV CO2 emissions has to address the other main drivers. 
3.1.                
Reinforcing
EU policies addressing HDV fuel consumption and CO2 emissions
The
EU has already taken action to directly or indirectly address many HDV CO2
emission drivers:
·                        
Modal
shift
is a key dimension of EU transport policy which supports inter-modality. The
draft EU
guidelines for the development of the trans-European transport network[13] foresee
climate change mitigation criteria in the programming of EU funding for new
infrastructure. These policies are expected to result in a slow reversal of the
trend that led to an increasing share of road transport. 
·                        
Measures
to reduce fuel GHG intensity have led to alternative fuels
representing some 6%[14]
(2010) of energy use in road transport. Existing legislation[15]
aims to favour the use of lower GHG and renewable energy in transport and has
set quantitative targets to this effect that are currently under review[16].
The recent “Clean Power for Transport” initiative and the revised TEN-T
guidelines, supported by the Connecting Europe Facility, further supports the
development of alternative fuel infrastructure and increased use of natural gas
and biomethane for HDV[17],[18],[19].
The Commission has also proposed[20]
a revision of the “Energy Taxation Directive”[21] that would
restructure the current energy tax system and include a CO2 element
in fuel taxation. 
·                        
Support
for the development and rolling out of vehicles with a lower carbon footprint is
actively taking place. The "Green Car Initiative" under the
Seventh Research Framework Programme included improving HDV fuel efficiency and
reducing CO2 emissions. Support to clean and efficient vehicles is
also reflected in the proposed "Horizon 2020 - Framework Programme for
Research and Innovation"[22].
EU legislation also actively supports the purchase of more environment friendly
vehicles by public entities[23].
The type approval legislation[24]
on weights and dimensions recently introduced an allowance (50 cm) for
aerodynamic devices fixed at the rear of new trucks/trailers. In line with
this, the Commission has recently proposed[25] a revision
of Directive 96/53/EC on weights and dimensions of vehicles in international
traffic that goes further by proposing a new set of allowances that should
support solutions to improve the aerodynamics of HDV.
·                        
The
importance of vehicle fleet operation is also recognised and addressed. Road
user charging legislation contributes to improving transport efficiency and
lowering fuel consumption and CO2 emissions. Where applied, charges
levied from heavy goods vehicles according to Directive 1999/62/EC[26]
have optimised the use of road transport by reducing empty running and
improving load factors, accelerated the renewal of fleets and created
conditions for greater co-modality. The recent Intelligent Transport Systems
Directive will contribute to accelerating the development and deployment of
information technology in the field of road transport and for interfaces with
other modes of transport[27].
In addition, in December 2013 the Commission put forward specific
recommendations for coordinated action between all levels of government and
between the public and the private sector in urban logistics area, urban access
regulation area, deployment of intelligent transport system (ITS) solutions and
urban road safety area.
The
transport policy framework will continue to be enhanced. As announced in the
Transport White Paper, a number of initiatives are in preparation that will
further strengthen it:
·                        
Modal
share and shift to low carbon modes will be further addressed. The
foreseen e-freight initiative is expected to create a framework to
streamline the electronic flow of information associated with the physical flow
of goods. Several actions foreseen in the Transport White Paper[28]
will also influence modal share, notably the development of multimodal goods
transport and multimodal freight corridors, as well as new frameworks for
inland navigation.
·                        
A
number of actions will influence the operation of freight transport and
are expected to contribute to reduced energy consumption:
-
A recast of the driving licence directive in 2012 included eco-driving
requirements for truck drivers' examinations and further efforts are
planned to implement these provisions;
-
An on-going review of road user charging legislation aims to promote a
more systematic use of distance related road charging reflecting infrastructure
and external costs based on the polluter-pays and user-pays principles; 
-
A carbon foot-printing initiative is under preparation to support
improved transparency and end-user information on the CO2 impact of
freight and passenger transport;
-
Finally, reviewing restrictions on road cabotage as proposed in the Transport
White Paper might also help make road transport more efficient by increasing
loading factors of vehicles if done gradually and if combined with measures to
improve enforcement and measures to mitigate possible risks of induced road
transport.
Nevertheless,
to date, action has been missing at EU level to address the fuel consumption
and CO2 emissions of HDVs being placed on the market in a parallel
manner to that put in place for cars and vans. The Transport White Paper
identified the need for further action in this area[29].
3.2.                
Short-term
action addressing the knowledge gap 
As
noted in section 2.3, a pre-requisite to address HDV fuel consumption and CO2
emissions is to measure and monitor them. This will address some of the key
current market barriers by increasing market transparency and vehicle
comparability thus stimulating competition among manufacturers and end-user
awareness. As a result it should lead to the production and purchase of more
fuel efficient HDVs emitting less CO2.
It is foreseen
to achieve this in two stages:
·                        
Completion
of a simulation tool 
Due
to the diversity of HDV models and tasks (e.g. tankers, buses etc.) it is not
appropriate to carry out HDV CO2 testing in the same way as for cars
and vans. A computer simulation approach has a number of advantages since it
potentially covers all aspects of the HDV, is versatile and highly
cost-effective. Since 2009 the Commission, in cooperation with industry
stakeholders, has been developing a simulation tool, VECTO[30],
to measure whole vehicle HDV CO2 emissions, i.e. including emissions
due to vehicles' motor and transmission, aerodynamics, rolling resistance, and
auxiliaries. While other countries such as the US and Canada have recently
adopted HDV CO2 emission legislation based on engine and vehicle
chassis/cabin emissions, VECTO is expected to be the first industry-wide
methodology geared to estimate whole vehicle, including trailer, HDV CO2  emissions.
The
Commission's Joint Research Centre is closely involved in this project. In
April 2013 it issued a "Proof of Concept Report"[31]
which concludes that at this point of the trial phase, VECTO provides CO2
emission estimates sufficiently close to real-world values and reliable enough
to form the basis of an EU system to measure HDV fuel consumption and CO2
emissions. 
Further
adjustment and improvement of the simulation methodology will enhance its
reliability and accuracy. It is expected that VECTO will be operational in May
2014 for at least three HDV categories which together represent more than 50%
of HDV CO2 emissions. It is intended to progressively extend it to
other categories of HDVs.
·                        
Legislative
action needed to measure, certify and report HDV CO2 emissions
VECTO
provides a measurement of fuel consumption and CO2 emissions for
newly registered HDVs. These values, proofed and checked, could be provided for
each newly registered HDV and could be reported and monitored. This requires
two legislative actions that may be carried out in parallel.
(i) Certification
of fuel consumption and CO2 emissions requires adaptation of the
relevant type approval legislation. This would require inclusion of the methodology
for determining these values in the legislation thus allowing them to be
certified by Member States’ authorities. This information would thereby also be
made available to purchasers.
(ii) Reporting
is necessary to facilitate the monitoring and dissemination of certified newly
registered EU HDV CO2 values. This will require the adoption,
through ordinary legislative procedure, of a new legislation on the reporting
of HDV CO2 emissions as calculated by VECTO by Member States to the
Commission paralleling that existing for cars and vans. 
Addressing
the knowledge gap is a necessary step before more ambitious measures can be
considered. While certification, reporting and improved consumer information
are not expected to significantly curb HDV CO2 emissions, they are
expected to have a positive impact by enhancing transparency on vehicle
efficiency in the market and thus improve competition.
3.3.                
Policy
options for the medium-term 
In
order to reach ambitious greenhouse gas reduction goals for 2030 in a
cost-effective manner transport will also have to make further contributions. A
range of medium-term policy options could be considered to curb HDV CO2
emissions. While the setting of mandatory CO2 emission average
limits for newly registered HDVs is the most apparent option as it inter
alia ensures consistency with the way cars and vans emissions are
regulated, other options could include modern infrastructure supporting
alternative fuels for HDVs, smarter pricing on infrastructure usage, effective
and coherent use of vehicle taxation by Member States and other market based
mechanisms. The various options are not necessarily mutually exclusive. In any
case, an impact assessment will be carried out in order to identify the most
cost-effective option(s).
As a
pre-condition for further action the VECTO simulation tool needs to be fully
operational and legislation enacted for certifying and reporting HDV CO2
emissions. Further work is also needed to confirm the technological potential,
to gain a broader understanding of market barriers hindering technology uptake,
and to re-assess the costs and benefits of HDV CO2 abatement as well
as the underlying incentive structure for more energy efficient HDVs.
4.                    
Conclusion
HDV
CO2 emissions have risen over the last two decades, although the
economic crisis has interrupted the steady growth previously observed, and
without a change of policy are expected to remain significantly above their
1990 levels in the long-term. This is incompatible with the Transport White
Paper’s objective of lowering transport CO2 emissions by 60% in 2050
compared to their 1990 level. A key element hampering action to address these
emissions is a knowledge gap resulting from the fact that HDV CO2
emissions are not measured, certified and recorded when new vehicles are
registered. 
There
is a significant potential, through employing state-of-the-art technologies, to
improve HDV performance and cut CO2 emissions in a cost-efficient
way. Market barriers currently prevent the full realisation of this potential.
A comprehensive strategy based on an appropriate series of measures can unlock
a larger part of this potential.
The
proposed strategy, aiming at providing stakeholders with more predictability as
regards policy and regulatory developments in this field, consists of
short-term actions to bring more transparency to the market and foster emission
reductions, being:
·                        
a
series of initiatives foreseen in the Transport White Paper reinforcing
existing EU policies that directly or indirectly contribute to curbing HDV fuel
consumption and CO2 emissions; 
·                        
an
action to address the identified knowledge gap by measuring HDV fuel
consumption and CO2 emissions by means of VECTO, as well as
certifying and reporting newly registered vehicles' CO2 emissions.
The Commission is planning to make legislative proposals to this end in 2015.
Once
these short-term actions are implemented, and based on the findings of further
analytical work, medium term policy options, including the setting of mandatory
CO2 emission limits for newly registered HDVs would be considered in order to
support the implementation of the EU 2030 climate and energy policy framework. 
The
Commission invites the Council and the European Parliament to endorse this
strategy and to help to deliver the outlined actions. It further invites
stakeholders, especially the automotive industry and transport services sector,
to support this strategy to curb HDV fuel consumption and CO2
emissions as part of the overall EU policy of moving to a low carbon economy. 
[1]              COM/2011/0112
final 
[2]              'Roadmap
to a Single European Transport Area – Towards a competitive and resource
efficient transport system' , 
COM/2011/0144 final
[3]              http://ec.europa.eu/clima/policies/2030/documentation_en.htm
[4]              Source:
European Environment Agency
[5]              Estimated
at 26.6% of total EU GHG emissions by AEA-Ricardo in "Lot1" Report,
Reduction and Testing of GHG 
emissions
from Heavy Duty Vehicles, February 2011, p 170. Available at: http://ec.europa.eu/clima/policies/transport/vehicles/docs/ec_hdv_ghg_strategy_en.pdf
[6]              http://register.consilium.europa.eu/pdf/en/07/st11/st11483.en07.pdf
[7]              COM(2010)186
final, p 6, 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:0186:FIN:EN:PDF
[8]              Source:
Odyssee-Mure database, available at: http://www.odyssee-mure.eu/
[9]              Study
by CE Delft, Marginal Abatement Cost Curves for HDVs, 2012, 
http://ec.europa.eu/clima/policies/transport/vehicles/heavy/docs/hdv_2012_co2_abatement_cost_curves_en.pdf
[10]            HDV
CO2 emissions are not subject to EU legislation other than the future
measurement of CO2 emissions from 
engines under Regulation (EC) No
595/2009 (Euro VI) which comes into effect in 2014.
[11]            Study
by CE Delft; Market barriers to increased efficiency in the European on-road
freight sector; 2012;  
http://www.theicct.org/market-barriers-increased-efficiency-european-road-freight-sector
[12]            Source:
AEA–Ricardo report available on:  
http://ec.europa.eu/clima/policies/transport/vehicles/docs/ec_hdv_ghg_strategy_en.pdf
, notably pp 26-27, based on statistics from the International Organisation of
Motor Vehicle Manufacturers (OICA). 
[13]           COM/2011/650
final, expected to be adopted in mid-2013.     
[14]            Source:
Eurostat
[15]            Directive
2009/28/EC on the promotion of the use of energy from renewable sources (the
"Renewable Energy
Directive")
has established a mandatory target of 10% for renewable energy in the transport
sector. At the same time, an amendment to Directive 98/70/EC ("the Fuel
Quality Directive") introduced a mandatory target to achieve by 2020 a 6%
reduction in the greenhouse gas intensity of fuels used in road transport and
non-road mobile machinery.
[16]            COM(2012)595,
http://ec.europa.eu/energy/renewables/biofuels/doc/biofuels/com_2012_0595_en.pdf
[17]            Commission
Communication COM(2013)17 "Clean power for transport: a European
alternative fuels strategy", 
and
proposed Directive COM(2013)18 on the deployment of alternative fuels
infrastructure. 
http://ec.europa.eu/transport/themes/urban/cpt/

[18]            Regulation
(EU) No 1315/2013 of the European Parliament and of the Council of 11 December
2013 on Union 
guidelines for the development of the
trans-European transport network and repealing Decision No 661/2010/EU
[19]            Regulation
(EU) No 1316/2013 of the European Parliament and of the Council of 11 December
2013 establishing 
the
Connecting Europe Facility, amending Regulation (EU) No 913/2010 and repealing
Regulations (EC) No 680/2007 and (EC) No 67/2010
[20]            COM(2011)
168/3.
[21]            Council
Directive 2003/96/EC of 27 October 2003 : Restructuring the Community framework
for the taxation of energy products and electricity, OJ L 283, 31.10.2003, p
51.
[22]            http://ec.europa.eu/research/horizon2020/index_en.cfm?pg=h2020
[23]            Directive
2009/33/EC, OJ L120/5, 15.5.2009
[24]            Regulation
EC 661/2009 and Directive 2007/46/EC
[25]            COM(2013)
195 final
[26]            Directive
1999/62/EC as amended by Directives 2006/38/EC and Directive 2011/72/EU, http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CONSLEG:1999L0062:20111015:EN:PDF
(consolidated version).
[27]            In
addition to this, R&D support to the development of ITS is being provided
under the current 7th Framework 
Programme
and will be continued under the next EU framework programme for research and
innovation for 2014-2020 (Horizon 2020).
[28]            Transport
White Paper, actions 1 "internal market of rail services", 5 "a
suitable framework for inland navigation", 
7
"multimodal transport of goods", 33 "zero-emission urban
logistics 2030", 35 multimodal freight corridors. See http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0144:FIN:EN:PDF
[29]            Action
26; “Appropriate standards for CO2 emissions of vehicles in all
modes, where necessary supplemented by
 requirements on energy efficiency
to address all types of propulsion systems”
[30]           Vehicle Energy
Consumption Calculation Tool (VECTO).
[31]           Available under:   http://ec.europa.eu/clima/policies/transport/vehicles/heavy/studies_en.htm