Crediting system for renewable fuels in EU emission standards for Road Transport

    Crediting system for renewable fuels in EU emission standards for Road Transport

    Frontier Economics, Flick Gocke Schaumburg
    2020

    Frontier Economics and Flick Gocke Schaumburg have explored in a report for the German Federal Ministry for Econ comic Affairs how a crediting system for renewable fuels in EU emission standards could work.

    From the executive summary:
    The EU legislative framework on fleet targets for new road vehicles focuses on tailpipe emissions in a so-called “tank-to-wheel” approach, which does not differentiate between fossil fuels and synthetic and advanced alternative fuels (SAAF). For SAAF, the CO2 tailpipe emissions are bound during the production of the fuels – in an extended “well-to-wheel” cycle view, this fuel would therefore be climate-neutral.
    The European Commission (EC) is therefore asked in Article 15 to review scope to credit the climate-neutrality of SAAF in EU emissions performance standards for new vehicles. The study targets an SAAF-crediting system capable of serving as a template for the EC. This proposal is based on an economic evaluation of potential alternatives, aiming to establish a level playing field among wide-ranging emission-reduction technologies to reduce road transport sector emissions effectively and efficiently.

    The proposed crediting system is based on the following main principles:

    • Building on the existing sustainability certification scheme for transport fuels under RED/RED II
    • Level playing field among emission-reduction options for road transport
    • Effective climate change contribution in the transport sector
    • Maintain ing affordable individual mobility

    The General design features of the system are:

    • Voluntarily participation of OEMs
    • Europe-wide harmonized credtyingh system and SAAF standardsVolumetric scope could be capped (upper limit for SAAF credit)
    • Wide range of admissible fuels
    • Tradability of credits
    • Banking of credits admissible
    • Borrowing of credits inadmissible.

    More information and background can be found in the report

     

    • Date 02/12/2020
    • Tags 0. Recently added, 2020, Advanced Biofuels, alternative fuels, Biofuels, e-fuel, EU, Legislation, Policy