Eco-innovations Credits in the proposed EU CO 2 legislation for 2012 Anders Kärrberg Executive...

16
Eco-innovations Credits in the proposed EU CO 2 legislation for 2012 Anders Kärrberg Executive Director Governmental Affairs Volvo Car Corporation

Transcript of Eco-innovations Credits in the proposed EU CO 2 legislation for 2012 Anders Kärrberg Executive...

Page 1: Eco-innovations Credits in the proposed EU CO 2 legislation for 2012 Anders Kärrberg Executive Director Governmental Affairs Volvo Car Corporation.

Eco-innovations

Credits in the proposed EU CO2 legislation

for 2012

Anders KärrbergExecutive Director

Governmental AffairsVolvo Car Corporation

Page 2: Eco-innovations Credits in the proposed EU CO 2 legislation for 2012 Anders Kärrberg Executive Director Governmental Affairs Volvo Car Corporation.

What is an eco-innovation?

Technical innovations that

• reduce CO2 outside the homologation test cycle

• are additional to the Commission´s list of ’complementary measures’*

• give CO2 credits at the individual car level

• are approved by an independent and authorized process

* gear-shift indicators (GSI), energy-efficient air-conditioning (MAC), low rolling resistance tyres (LRRT), tyre pressure monitoring systems (TPMS)

Page 3: Eco-innovations Credits in the proposed EU CO 2 legislation for 2012 Anders Kärrberg Executive Director Governmental Affairs Volvo Car Corporation.

Why credit eco-innovations?

• Industry innovations should not be limited by closed list of defined eco-innovations – stimulates further innovations.

• CO2 reductions are reached more cost efficiently both for industry and car customer

Page 4: Eco-innovations Credits in the proposed EU CO 2 legislation for 2012 Anders Kärrberg Executive Director Governmental Affairs Volvo Car Corporation.

Examples of eco-innovations

Page 5: Eco-innovations Credits in the proposed EU CO 2 legislation for 2012 Anders Kärrberg Executive Director Governmental Affairs Volvo Car Corporation.

Examples of eco-innovations

Fuel economy indicator 1 % ACEA

Adaptive cruise control 3-12 % Dutch study, AMS

Off-cycleCO2 reduction Source

Page 6: Eco-innovations Credits in the proposed EU CO 2 legislation for 2012 Anders Kärrberg Executive Director Governmental Affairs Volvo Car Corporation.

Adaptive Cruise Control

Page 7: Eco-innovations Credits in the proposed EU CO 2 legislation for 2012 Anders Kärrberg Executive Director Governmental Affairs Volvo Car Corporation.

Examples of eco-innovations

Fuel economy indicator 1 % ACEA

Adaptive cruise control 3-12 % Dutch study, AMS

Eco-mode button 3-6 % ACEA

Bi-Xenon or LED lights 1,5 % Magneti Marelli

Off-cycleCO2 reduction Source

Page 8: Eco-innovations Credits in the proposed EU CO 2 legislation for 2012 Anders Kärrberg Executive Director Governmental Affairs Volvo Car Corporation.

• Reduced electrical energy consumption vs traditional bulbs, in particular in countries requiring daylight running lights

• Reduced heat generation -> reduced maintenance

• Contributes to reduce size (and weight) of the alternator

LED – Light Emitting Diode

Page 9: Eco-innovations Credits in the proposed EU CO 2 legislation for 2012 Anders Kärrberg Executive Director Governmental Affairs Volvo Car Corporation.

Examples of eco-innovations

Fuel economy indicator 1 % ACEA

Adaptive cruise control 3-12 % Dutch study, AMS

Eco-mode button 3-6 % ACEA

Bi-Xenon or LED lights 1,5 % Magneti Marelli

High efficiency alternator 2 % VALEO

Flexible fuel vehicles (E85) 30-80 % (wtw) EUCAR/JRC/Concawe

Off-cycleCO2 reduction Source

Page 10: Eco-innovations Credits in the proposed EU CO 2 legislation for 2012 Anders Kärrberg Executive Director Governmental Affairs Volvo Car Corporation.

Why credit flexible fuel vehicles?

• Facilitates major off-cycle CO2 reductions 30-80% w-t-w (EUCAR)65% (EPA of Sweden)

• Reduces dependency on oil in transport sector (97%)

• Insurance against possible future oil price peaks and shortages

Page 11: Eco-innovations Credits in the proposed EU CO 2 legislation for 2012 Anders Kärrberg Executive Director Governmental Affairs Volvo Car Corporation.

How to credit flexible fuel vehicles?

Proposal:

• 5% reduction of the homologated CO2-value ~ technology cost for E85 compatibility @ Euro5

• Increase to 20% when 10% of the filling stations in a country offers E85 that meets the EU sustainability criteria

Page 12: Eco-innovations Credits in the proposed EU CO 2 legislation for 2012 Anders Kärrberg Executive Director Governmental Affairs Volvo Car Corporation.

Flexible fuel vehiclesMarket share development in Sweden

20,5%

%

0

5

10

15

20

25

30

12/2

004

2/20

05

4/20

05

6/20

05

8/20

05

10/2

005

12/2

005

2/20

06

4/20

06

6/20

06

8/20

06

10/2

006

12/2

006

2/20

07

4/20

07

6/20

07

8/20

07

10/2

007

12/2

007

2/20

08

4/20

08

Page 13: Eco-innovations Credits in the proposed EU CO 2 legislation for 2012 Anders Kärrberg Executive Director Governmental Affairs Volvo Car Corporation.

Benefits from flexible fuel vehiclesin Sweden

At current growth rate, flexible fuel cars will by 2015 annually reduce CO2 by 2 Million tons*.

Assumptions: - 50% flexfuel market share of new cars sales- 30% of the car park flexfuel capable,- with today´s car technology- with today´s 1st gen production technology for sugarcane feedstock- with today´s E85 fuel usage level- petrol cars are displaced

Page 14: Eco-innovations Credits in the proposed EU CO 2 legislation for 2012 Anders Kärrberg Executive Director Governmental Affairs Volvo Car Corporation.

Benefits from flexible fuel vehiclesin Sweden

At current growth rate, flexible fuel cars will by 2015 annually reduce CO2 by 2 Million tons*.

Corresponding CO2 reduction from only E10 low blending is~ 700.000 tons.

Assumptions: - 50% flexfuel market share of new cars sales- 30% of the car park flexfuel capable,- with today´s car technology- with today´s 1st gen production technology for sugarcane feedstock- with today´s E85 fuel usage level.

Page 15: Eco-innovations Credits in the proposed EU CO 2 legislation for 2012 Anders Kärrberg Executive Director Governmental Affairs Volvo Car Corporation.

Benefits from flexible fuel vehiclesin Sweden

At current growth rate, flexible fuel cars will by 2015 annually reduce CO2 by 2 Million tons*.

Corresponding CO2 reduction from only E10 low blending is~ 700.000 tons.

We should do both.

Assumptions: - 50% flexfuel market share of new cars sales- 30% of the car park flexfuel capable,- with today´s car technology- with today´s 1st gen production technology for sugarcane feedstock- with today´s E85 fuel usage level.

Page 16: Eco-innovations Credits in the proposed EU CO 2 legislation for 2012 Anders Kärrberg Executive Director Governmental Affairs Volvo Car Corporation.

Summary

• Accept the concept of eco-innovations

• In the proposed CO2 legislation, reward CO2 reductions from eco-innovations by reducing certified CO2 values at individual car level.

• Accept flexfuel cars as an eco-innovation

• Reward flexfuel cars by • 5% reduction of cert CO2 • 20% once sustainable E85 fuel is available