Increasing the global share of renewable transport David de Jager (Operating Agent, IEA-RETD) Huib van Essen (CE Delft) Tammy Klein (Stratas-Advisors) (Interim) Results of the next generation policy instruments for renewable transport (RES-T-NEXT)
Increasing the global share of renewable transport
David de Jager (Operating Agent, IEA-RETD)
Huib van Essen (CE Delft)
Tammy Klein (Stratas-Advisors)
(Interim) Results of the next generation policy instruments
for renewable transport (RES-T-NEXT)
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Next generation policy instruments for renewable transport (RES-T-NEXT)
Climate change: RES-T are essential
RES-T is requires changes in three main dimensions:
Vehicles
Infrastructure
Availability of RES-T energy carriers
Barriers differ per option and can change over time
Policies needed to overcome these barriers
Hen-and-egg: Actors do not share the same believe on winning powertrain technologies
A wide variety of policy instruments are currently in force; some are more successful than others
What innovative policy instruments accelerate the deployment of RES-T
Background
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Provide recommendations for next generation policy instruments and strategies to increase RES-TAspect Included
Renewable energy sources for transport (RES-T)
• Renewable electricity• Biofuels (both liquid and gaseous) • Hydrogen
SectorTransport sector including the dependencies between the transport sector, the energy sector, and industry
Transport modes• Passenger transport (cars, two wheelers and buses) • Urban freight transport (light commercial vehicles / light trucks)
Policy measures
• Financial incentives• Regulations• Awareness/information related policies• Public procurement and PPPs• Transport and Spatial policies
Geographical scopeIEA-RETD member countries (Canada, Denmark, France, Germany, Ireland, Japan, Norway, and United Kingdom) and other relevant countries (e.g. USA, Japan)
Time horizon• Short term: up to the next 5 years• Mid-term: 10-15 years• Long term: 30-40 years
Study objective & scope
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RES-T-NEXT Study - Outline
Background and objectives
Transport pathways and their advantages/disadvantages and barriers
Key policies currently used to promote RES-T (case studies)
Policy assessment
Policy recommendations for each pathway
Conclusions
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Three different pillars and different stakeholders in the chain
Key policy instruments to promote RES-T
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Type of instrument Case
Financial instruments
(1) Incentives in energy taxation -
(2) Incentives in vehicle registration taxes Norway
(3) Incentives in company car taxation The Netherlands
(4) PPPs and subsidies for energy infrastructure Japan / California (hydrogen)
(5) Incentives in (urban) road pricing and tolls UK (London)
Regulation
(6) Fuel regulation EU: FQD (implementation in
Germany) / California: LCFS
(7) Renewable energy mandates EU: RED (implementation in Italy)
(8) Regulation of charging/fuelling infrastructure Sweden (for biofuels)
(9) CO2 regulation for road vehicles EU: CO2 & cars regulation
(10) ZEV mandates California
Traffic management and land-use policies
(11) Incentives in parking policies Graz (Austria)
(12) High Occupancy Vehicle (HOV) Lanes Incentives -
(13) Urban access restrictions China
Other policies
(14) Information provision
(on locations of alternative energy infrastructure,
payment services and CO2 footprint of fuels offered)
-
(15) Green public procurement Japan
(16) Pilots / demonstration projects -
(17) Policies to increase RE consumption -
Overall policy strategy Brazil: ethanol program Proálcool
Policy instruments (shortlist) and case studies
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Different policies targeted to different pillars and affect different stakeholders in the chain
Key policy instruments to promote RES-T
Naam spreker/datum
FEDERAL / UNION
NATIONAL / STATE
LOCAL
PPPs & subsidies
for infrastructure
HOV lanes
incentives
USERS
INDUSTRY
Vehicles
Energy
infrastructure
Energy
carriersFuel regulation
RE mandates
Green Public Procurement
Pilot/demonstration
projectsPilot/demonstration
projects
Energy taxation
Vehicle
registration taxes
Urban road
pricing & tolls
Parking
policies
ZEV mandates
Urban access
restrictions
Information provision
Company car
taxation
Policies to
increase RE consumption
Information provision
CO2 regulation
road vehicles
Subsidies for
RenewableEnergy
Production
Regulation of
energy infrastructure
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Policy assessment criteria
Key policy instruments to promote RES-T
Criteria Definition
Increase in
alternative energy carriers
Strength of the incentives to stimulate alternative energy carriers, and where possible the results (i.e. share of alternative energy carriers).
Increase in renewable energy
Impact of the policy instrument on the use of energy carriers in transport are made from renewable energy sources
GHG emissions reduction
GHG emission reduction (TTW and WTW) realised by the instrument in relative (e.g. % reduction in the region) and absolute terms (e.g. in g/km)
CoverageCoverage of the instrument; instruments which influence a large share of the
supplied energy, infrastructure, or vehicle fleet of a particular region can have a potentially larger effect on RES-T/GHG emission reduction
Cost effectivenessNet costs to society in terms of euro per tonne of CO2-eq, which is very case-specific
Ease of implementation
Difficulty of implementing the policy instrument (government perspective)
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Technology development, learning curves and economies scale expected to improve range while reducing cost; financial incentives can help
Policy strategy: battery-electric
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Policies should for the short to medium-term primarily focus on supporting market introduction, testing and pilots
Policy strategy: Hydrogen
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Main challenge for the short to medium term is the availability of sustainable biomass feedstock and need for long-term policy framework
Policy Strategy: Biofuels
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Relevant for all technology pathways and must be taken into consideration
Cross-cutting issues
•Targeting specific groups may be required or more effective
Generic policies or targeting specific user groups?
•Policies must preferably be technology neutral, but not always possible (e.g. for energy infrastructure)
Technology neutrality
•Balance between short term cost effectiveness and stimulating innovation for meeting long term targets
Costs-effectiveness vs preparing for long-term transition
•Continuity is a must; long-term foresight requiredDealing with uncertainty
•Policies must be consistent and aligned to achieve objectives
Consistency and alignment of policy instruments
•Must be taken into account, especially governance structures
Differences between regions
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Battery-electric, hydrogen and biofuels can help achieve RES-T and therefore, climate goals
Conclusions
RES-T is essential to achieve climate goals
Battery-electric is most promising pathway, though hydrogen is a feasible and complementing pathway too
Biofuels is easier to implement but concerns remain on GHG emission reductions and sustainability
Each pathway requires policies at different administrative levels
Policies need to be coordinated, harmonized and continuous, providing regulatory and investment certainty
For additional information on RETD or RES-T-NEXT
Online: www.iea-retd.orgContact: [email protected]
THANK YOU!
http://www.iea-retd.org/mailto:[email protected]