CREDITING SYSTEM FOR RENEWABLE FUELS IN EU EMISSION STANDARDS FOR ROAD TRANSPORT
Yesterday a very important study for the European automotive industry got published. On behalf of the German Economic Ministry the consultancy Frontier Economics has developed a methodology of how to account the CO2 reduction of renewable fuels in the CO2 fleet regulation of the automotive industry. The political support of this study in the revision of the fleet regulation during the European Green Deal will decide if the automotive industry will purely stay on a "tank-to-wheel" approach and, therefore, has to electrify almost everything or if in addition CO2 credits from sustainable fuels are accounted.
Here are some advantages from my personal perspective:
- It is highly welcomed that double counting in different sectors is forbidden and all sustainability standards of the REDII are taken into account like the limitation of conventional biofuels. But the mineral oil industry has to get more ambitious target in the revision of the REDII. The automotive industry won't finance the energy transition in the fuel sector.
- The so-called "frontloading" guarantees that the amounts of renewable fuels are brought into market at the registration of the vehicle. Therefore, the whole climate impact of the vehicle is compensated in the beginning. This helps to achieve short-term climate goals in the transport sector.
- A vehicle specific approach is developed. Therefore, costumers will benefit from vehicle taxation or truck toll in addition. All other mechanism or definitions are well-established in the RED. Therefore, low transaction costs can be expected.
- From a strategic perspective more options lead to a higher flexibility and will allow to achieve the climate goals more cost-efficient and costumer-friendly. This approach is voluntary. Nobody has to use it. But if any issues in the ramp-up of the electric mobility appears (e.g., infrastructural challenges, increase of power prices, political dependencies on battery materials, recycling topics), the automotive industry has still options. This is not a plea to withdraw from electrification. It is more a request to consider the potential of renewable fuels in addition.
- From an economic perspective the credits from renewable fuels are cheaper than paying penalties. If OEMs are facing those penalties and decide to purchase renewable fuels instead a huge demand and, therefore, an attractive target market for sustainable fuels could be generated, which helps to achieve the climate goals.
If you like this statement please share it. If you have any questions or don't agree please leave a comment and let's discuss this approach.
The study is available in English: https://www.bmwi.de/Redaktion/DE/Downloads/C-D/crediting-system-for-renewable-fuels.pdf?__blob=publicationFile&v=4
Innovation-focused and change-driven executive who, through several years of competitive rowing, learned what it means to persevere with issues even in the face of resistance.
5yIndeed very good news, thanks Tobi! Let‘s fight together for a CO2 neutral Mobility including and enabled by regenerative fuels👍
Senior Transport Specialist | e-Mobility Program Manager | Full Professor | Editor | Author
5yThanks for sharing. Fully aligned with your point.
There is always more than one solution
5yZunächst einmal gilt Ihnen mein Respekt, Herr Block, daß Sie sich nach wie vor und mit aller Energie für erneuerbare Kraftstoffe einsetzen. Und zwar vollkommen zu Recht. An nachhaltig erzeugten Kraftstoffen kommen wir auf der Basis aktueller Technologie-Kenntnisse für schwere Lasten und lange Strecken nicht vorbei, bei der Schifffahrt und dem Luftverkehr wohl auf absehbare Zeit noch nicht. Mit Drop-In-Fuels könnten zudem die bestehenden Flotten defossilisiert werden. Aber wem schreibe ich das...
Director, Corporate Development at Cespira
5yThis is an excellent methodology for valuing the WTW benefit of a number of low carbon fuels within the LD and HD CO2 regulations. If adopted it would increase the available vehicle options for low carbon transport, further accelerate the deployment of a wider range of solutions that are available today without having to wait for the full demonstration of newer technologies, and provide additional benefits over and above that of RED II without any double counting
Strategic Communicator | Driving Engagement through Smart Content & Lead Intelligence
5yThanks for sharing this. It's about time the government open their minds for affordable, available and climate-friendly technologies. Only fair if the regulations include them, too. It's actually a low hanging fruit in terms of CO2 goals...