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Industry News- European Commission to hold public hearing on car CO2 implementation strategy on 11 July
- European Commission holds two-day conference on sustainable biofuels development
- IMI EGM considers results of member consultation on governance changes
- HMRC duty concession on PPO fuel tempts German supplier to enter UK market
The European Commission will hold a public hearing in Brussels on 11 July 2007 on the implementation of its new strategy to reduce carbon dioxide (CO2) emissions from new cars and vans sold in the EU. The new strategy, proposed in February 2007, aims to reach the EU objective of 120 g/km average carbon dioxide (CO2) emissions from new cars by 2012 by means of an integrated approach.
The public hearing seeks to gather views and ideas from all interested stakeholders on the possible options available for designing the various legislative components of the integrated approach. It follows last week's European Environment Council meeting at which Member States' ministers remained divided on the legislative strategy best able to meet the EC's proposed CO2 reduction target, and left it to the Commission to draw up equitable and transparent legislation based on stakeholder consultation.
Launching today's consultative meeting, the EC noted that road transport generates about one fifth of the EU's CO2 emissions, with passenger cars responsible for around 12%. Although recent years have seen a significant improvement in vehicle technology - particularly in fuel efficiency, which translates into lower CO2 emissions – this has not been enough to neutralise the effect of increases in traffic and car size. While the EU-25 reduced overall emissions of greenhouse gases by almost 5% between 1990 and 2004, CO2 emissions from road transport rose by 26% despite an average new-car CO2 emissions reduction of 12.4% between 1995 and 2004.
On 7 February the European Commission published two communications on the future strategy to reduce CO2 emission from cars and on the future regulatory framework in the car sector. As outlined in these communications, the Commission has decided to pursue an integrated approach with a view to reaching the EU objective of 120 g/km average carbon dioxide (CO2) emissions from new cars by 2012.
This public hearing brings together the key stakeholders to gather views on the implementation of the Commission’s proposed strategy and to receive input and ideas on the possible options available for designing the future legislative framework, including the economic, social and environmental aspects of these options. An internet-based public consultation will continue to run until 15 July 2007.
The meeting will take place in the Charlemagne building (Alcide de Gasperi room) from 9.00 – 13.00.
The meeting will be chaired and opened by Catherine Day, Secretary General of the Commission, Mogens Peter Carl, Director General of DG Environment, and Mr Heinz Zourek, Director General of DG Enterprise. Representatives from the automotive sector, (both manufacturers and suppliers), NGOs and consumer organisations will take part. The meeting is open to the accredited press corps in Brussels.
The latest programme together with information on how to register can be found at the CO2 and Cars Public consultation website:
ec.europa.eu/reducing_co2_emissions_from_cars/index_en.htm
Further information on the proposals of the Commission from 7 February 2007 can be found at:
DG Environment CO2 and cars website:
ec.europa.eu/environment/co2/co2_home.htm
DG Enterprise and Industry CARS21 website:
ec.europa.eu/enterprise/automotive/pagesbackground/competitiveness/cars21.htm
Today and tomorrow, 5 and 6 July, the European Commission will bring together politicians and business people, academics and NGOs involved in the biofuel sector to debate the benefits and challenges of bio-fuels production and use.
Hosted by External Relations and European Neighbourhood Policy Commissioner Benita Ferrero-Waldner, the two-day conference will include contributions from the Commission President, José Manuel Barroso, Brazil’s President, Luiz Inacio Lula da Silva, and the Portuguese Prime Minister, José Sócrates.
European Commissioners Andris Piebalgs, Peter Mandelson, Louis Michel and Stavros Dimas, and Ministers from the EU and all over the world will also participate, as well as business representatives and academics, representatives of NGOs and other groups to discuss how to develop an international approach to biofuel production, use and trade.
Debates will address five key issues: policies to support biofuels; development of international trade in biofuels, environmental risks and benefits of production and use, biofuels and developing countries and research activities in biofuels.
Commissioner Ferrero-Waldner said: "The Commission is determined to be at the forefront of ensuring that biofuels are developed in ways that protect our planet – not in ways that present new risks. At the same time we need to work towards a credible and sustainable international market and convergence in biofuel standards. This can only be achieved by a transparent and frank dialogue with all partners – and today's conference is a first step."
The EU energy policy adopted in March 2007 set a 10% minimum target for biofuel market share by 2020, as part of a wider ‘Renewable Energy Roadmap’ proposed by the Commission in January, which seeks a 20% share of renewables in the EU's energy mix by 2020. A comprehensive renewable energy directive will also include a biofuel sustainability scheme.
The Commission reports that the EU produced 3.9 million tonnes of biofuels in 2005, an increase of 60% over 2004. EU production of bioethanol (from cereals) accounts for 0.73 million tonnes of the total and biodiesel (from rapeseed) for 3.2 million tonnes. This represents 1% of EU petrol and diesel consumption.
Globally, the production of bioethanol for fuel use was approximately 26.9 million tonnes in 2005, representing around 2% of petrol use worldwide. Brazil is the world’s leading producer of bioethanol, producing nearly 13 million tonnes in 2005, followed by the US which produced 11.8 million tonnes in the same year.
For more information, see:
International Conference on Biofuels 2007:
http://ec.europa.eu/external_relations/energy/biofuels/index.htm
Proposed changes to the governance structure of the professional body and NVQ awarding body the Institute of the Motor Industry which necessitate amendments to the IMI’s Memorandum and Articles of Association were being considered by members at an Extraordinary General Meeting held on Wednesday 4 July, open to all members. The meeting followed a series of regional consultation meetings from mid- to late June.
The IMI’s recently filed financial results for the year to 31 March 2006 show it had 24,380 members on 31 March 2006, compared to 22,551 on 31 March 2004. Numbers have been increased by the IMI’s Automotive Technician Accreditation scheme. The body’s turnover for the y/e March 2006 was £3.94m, yielding a pre-tax profit of £421,000.
A non-profit co-operative environmental group called Blooming Futures has trumpeted the news that following a recent HMRC review users of less than 2,500 litres a year of Pure Plant Oil (PPO) fuel no longer need to register with Customs and Excise and pay road fuel duty, as of the 30th of June. In part due to the new concession, Elsbett Technologies - which claims a 45% share of the German PPO fuel market - is set to establish Elsbett UK, planning a series of conversion dealerships, offering engine conversions, advice , warranties and consultancy advice to diesel fuel users.
Blooming Futures says using 2,500 litres of PPO a year equates to roughly 25,000 miles of driving in a family car – leading to an annual saving on fuel of over £1,100 at current prices. Engine conversion and maintenance costs will vary, and are not quoted.
Previously, users of PPO, derived mostly from used catering oil, were required to declare their fuel use to Customs and Excise, and pay duty accordingly. The decision from HMRC is based on the cost effectiveness of evaluating every small user, and means it is now financially much more viable for domestic vehicle users to convert vehicles to PPO.
PPO as defined by Blooming Futures is pure rapeseed oil, filtered to meet the DIN 51605 standard. Unlike other biofuels PPO production does not require any heavy chemical processing and is made in a low-volume, localised, very low energy fashion, thus boasting a far smaller energy and carbon footprint than other biofuels.
In Germany the PPO infrastructure is well developed. Bloomingfutures says the establishment of a comparable UK PPO production/distribution model will enable farmers to establish profitable on-farm rapeseed presses, thus cutting out the distribution costs associated with larger scale biofuel production.
In April 2008 the Renewable Transport Fuels Obligation (RTFO) certificate scheme will offer a price reduction for heavier users of biofuel in addition to the 20p per litre tax break that PPO already gets, which should equate to an additional 15p per litre saving, or a total 35p per litre tax break for PPO for heavy fuel users. With the price of PPO traditionally close to Derv, this tax advantage will ensure that PPO will be considerably cheaper than Derv diesel for the foreseeable future. These tax benefits will be in place for at least three years.
Blooming Futures describes itself as a leading light in Pure Plant Oil (PPO) technologies.
(bloomingfutures.com, www.elsbett.com/gb/)