Clean Mobility package
The CEZ Group welcomes the Clean Mobility package published by the European Commission in November 2017. In order to strive for cost-efficient transition to a low-carbon economy it is essential that other sectors apart from power sector do take their responsibility, participate and contribute significantly to the climate goals set not only at the EU level, but also worldwide.
Revision of Regulation setting new vehicles emission performance standards
The CEZ Group considers as suitable transport decarbonisation approach that the Regulation proposal sets new EU fleet wide CO2 targets applicable to new passenger cars and new light commercial vehicles from 2020, 2025 and 2030.
As of 2020 the previously established starting EU fleet-wide target is set at 95g CO2/km for new passenger cars and 147g CO2/km for new light commercial vehicles. As of 2021 the new emissions test procedure (WLTP) is introduced, therefore, the 2025 and 2030 fleet wide targets will be expressed as a percentage reductions.
In 2025 the EU fleet-wide target should be 15 % lower than the specific emission target for 2021 and in 2030 the EU fleet-wide target should be30 % lower than the specific emission target for 2021. The Regulation also comes up with a new definition of zero and low-emission vehicles with emission spread between 0 - 50 g CO2/km.
Each manufacturer must ensure that the average CO2 emissions of its fleet of newly registered vehicles in a calendar year do not exceed its annual specific emissions target. From 2025, the specific emissions target for a manufacturer should be calculated taking into account the share of zero- and low-emission vehicles in the manufacturer's fleet. The targets will be calculated according to the formulae given in the Regulation. The manufacturers will be awarded super-credits for new vehicles under 50g CO2/km between 2020 - 2023. The manufacturers may form a pool in order to fulfil the commitments.
Monitoring and reporting is also taken care of by the Regulation. Every year by the end of February the Member States have the obligation to report to the Commission all new vehicles registered. By the end of June the Commission shall calculate for every manufacturer the average specific emissions of CO2 in the preceding calendar year, the specific emissions target in the preceding calendar year and the difference of both. The Commission shall impose an excess emissions premium (95 Eur/g CO2/km) on each manufacturer, whose average specific emissions of CO2 exceed its specific emissions target.
However, the Czech Group believes that to harvest the full potential of this package it is detrimental that the Directive 2014/94/EU on the deployment of alternative fuels infrastructure is effectively implemented in all Member States before the Clean Mobility package comes into force. Without the backbone EV charging infrastructure, there cannot be corresponding increase in electromobility.
The financial impact of the Regulation proposal on the final consumers should be also carefully assessed. Relevant impact assessment for each Member state is missing.
Directive on the promotion of clean road transport vehicles in support of low-emission mobility
The CEZ Group supports the main objective of this Directive to increase the market uptake of clean (low- and zero-emission) vehicles in public procurement and hence to contribute to reducing overall transport emissions. CEZ Group regards as an important step forward to have a clear definition for clean light-duty vehicles based on a combined CO2 (25g CO2/km passenger cars, minibus; 40g CO2/km vans) and air pollutant emissions threshold (80% of emission limits). The heavy-duty vehicles performance standards should be introduced in due time.
Also having the scope of the Directive widened significantly is essential, applying it to contracts for the purchase, lease, rent or hire-purchase of road transport vehicles by contracting authorities or contracting entities in so far as they are under the obligation to apply the procurement procedures set out in Directives 2014/24/EU and 2014/25/EU, operators for the discharge of public service obligations under a public service contract and to public service contracts covering transport services. Which means, that public road transport services, special purpose road transport passenger services, non-scheduled passenger transport and hire of buses and coaches with drivers as well as specific postal and courier services and waste refusal services ensures that all relevant procurement practices are covered.
The CEZ Group believes that setting minimum target for the share of clean light-duty vehicles in the total public procurement of light-duty vehicles by 2025 and by 2030 at Member State level contributes to the policy certainty and should boost uptake of clean vehicles. The CEZ Group considers however that the financial impact on public procurement procedures should be taken into account and when disproportionally high, the targets should be reopened on the basis of reporting obligation of the Member States and renegotiated.
For the Czech Republic the targets are:
- 27% share of clean light-duty vehicles in public procurement until 2025/2030
- 9% (in 2025) and 11% (in 2030) share of clean trucks in public procurement
- 46% (in 2025) and 70% (in 2030) share of clean buses in public procurement.
In the case of heavy-duty vehicles the Member State target is based on alternative fuels until the CO2 emission performance standards are adopted.
Until January 2026 (and every 3years thereafter) the Member States shall submit to the Commission a compliance report for all vehicle categories.
Action plan and investment solutions for alternative fuels infrastructure
The plan aims to increase the level of ambition of national plans, to increase investment. The total estimated investment needs for publicly-accessible alternative fuels infrastructure in the EU amount to about EUR 5.2 billion by 2020 and additional EUR 16 billion to EUR 22 billion by 2025. The CEZ Group welcomes the decision to allocate additional EU financial support of up to EUR 800 million from CEF and NER300 to this action plan for investments into alternative fuels infrastructure. The Commission should reconsider to prolong the structural funds dedicated to this area after 2020 if these sources remain unused till that time.
The battery initiative
The CEZ Group welcomes the battery initiative since it has a strategic importance to the EU's industrial policy, should the vehicles and other mobility solutions of tomorrow and their components be invented and produced in the EU. The CEZ Group strongly believes that all Member States (both geographically and by size) should participate and be included in the initiative. The CEZ Group is impatiently waiting for the disclosure of further details to be published by the Commission in February 2018 as the battery development goes very quickly in other parts of the world.