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Brussels, 8

                                     Brussels, 8.7.2008

                                    COM(2008) 433 final

 

                                     

 

 

 COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN

               PARLIAMENT AND THE COUNCIL

 

                      Greening Transport

                                

                       {SEC(2008) 2206}

 

 

 

       1. INTRODUCTION

 

                     Mobility is key to our quality of life and is vital for the EU's competitiveness. It is

                     the backbone of the economy making the links between the different stages of

                     production chains and allowing service industries to reach their clients, as well as

                     being a significant employer in its own right. As such it is key to achieving the goals

                     of the EU's `Lisbon' strategy for growth and employment. This is all the more so

                     given that the sector is growing rapidly: between 1995 and 2005, goods and

                     passenger transport in the EU grew by 31.3% and 17.7% respectively and this growth

                     is predicted to continue.

 

                     But mobility also imposes costs on society due to the impacts it causes. Transport

                     emissions threaten our health, negatively affect our local environmental quality and

                     make a significant and growing contribution to climate change. CO2 emissions from

                     the road sector are 30% higher than in 1990 and transport is the only sector of the

                     economy where emissions are predicted to increase in the future. Noise and traffic

                     jams are an everyday annoyance for many citizens, and transport accidents kill many

                     people each year.

 

                     "Sustainable mobility", that is disconnecting mobility from its harmful effects, has

                     been at the heart of the EU's Transport Policy for several years. In its 2006 review1

                     of the 2001 White Paper, the Commission pointed to the need to use a broad range of

                     policy tools, ranging from economic instruments and regulatory measures to

                     infrastructure investment and new technologies in order to achieve sustainable

                     mobility.

 

                     "Getting the prices right" is essential. Transport users already pay a significant

                     amount, but the price they pay often bears little connection to the real costs on

                     society of their choices. They have thus no incentive to adopt less costly behaviour.

                     By making payments smarter2, economic instruments (taxes, charges or emission

                     trading schemes) can encourage transport users to switch to cleaner vehicles or

                     modes (including walking and cycling), to use less congested infrastructure or to

                     travel at different times. As such they represent an effective way to make mobility

                     sustainable.

 

                     Price signals will be even more effective if the market offers realistic alternatives,

                     cleaner vehicles at an affordable price, or an appropriate level of service in another

 

                                                       

       1 COM(2006)

                                    314.

       2           For example, for congestion charging, allowing this to reflect the location and time of day.

 

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                     mode of transport. These alternatives may not always exist, in particular where there

                     is underinvestment in infrastructure and in research and development because of

                     markets failures. As a result other, complementary, policy measures are also needed,

                     including regulation. These measures should neither lock-in nor favour one particular

                     technological approach or solution.

 

                     The Commission is therefore putting forward two different types of initiatives to

                     redouble its efforts to make transport greener and more sustainable. The first type is

                     to "get the prices right" through internalising the external costs of transport. Here the

                     Commission's strategy is to act in a way that is tailor-made to each impact and

                     transport mode, taking into account the fact that the EU has already started work in

                     this area. As such the EU rules on energy taxation and the Commission's proposals

                     to include the aviation sector in the EU's Emissions Trading System are significant

                     first steps in the strategy. The second type is a set of complementary measures

                     comprising regulatory instruments, infrastructure measures and research and

                     development measures. Here too there are many EU measures on which efforts can

                     build.

 

                     This Communication begins by summarising the existing and proposed EU measures

                     in the field of sustainable transport. These measures are and will continue to be

                     complementary to action taken by Member States, which are a vital element in

                     achieving sustainable mobility. Next it describes the two accompanying initiatives on

                     internalising the external costs of transport - an overall strategy and a proposal to

                     revise the directive on heavy goods vehicle charging for infrastructure use. Finally

                     the communication describes a further accompanying communication on reducing

                     rail noise and sets out the complementary initiatives that the Commission will take

                     over the coming months. 

 

                     All these initiatives are particularly important given the current political context.

                     Both the European Parliament3 and European Council4 have recently stressed the

                     importance of a sustainable transport policy, particularly in the context of combating

                     climate change. Transport will clearly have to contribute to the ambitious goals that

                     the European Council set itself in 2007: reducing greenhouse gases by 20% (30% in

                     the framework of an international agreement), increasing the use of renewable energy

                     sources to 20% and reducing energy consumption by 20%, all by 2020.

 

       2. BUILDING ON WHAT EXISTS...

 

                     The accompanying Greening Transport Inventory shows that the EU has already

                     done a lot in all transport modes and many different policy areas ranging from

                     research and development to energy policy and from transport to environment policy.

                     As ever their implementation is key to their effectiveness. The measures are grouped

                     according to their major negative impact, namely climate change, local pollution,

                     noise pollution, congestion and accidents. A summary of the initiatives addressing

                     each impact is given below.

 

 

                                                       

       3           Resolution of 11.3.2008 on sustainable European transport policy, taking into account European energy

                   and environment policies - Rapporteur: Mr Albertini.

       4           March 2008 European Council.

 

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       2.1. Climate

                                   change

 

                     Climate change is now the priority environmental problem with the most significant

                     EU measures having recently been proposed by the Commission and awaiting

                     agreement between the Council and European Parliament. These include measures to

                     limit CO2 emissions from new cars, to include aviation in the EU Emissions Trading

                     System (ETS), to apply differentiated annual circulation and registration taxes for

                     cars based on their CO2 emissions and to ensure that all means of transport not

                     covered by the ETS contribute to achieving national targets for limiting greenhouse

                     gas emissions. 

 

                     Member States should meet objectives for increasing the share of renewable energy

                     used in road transport and the Commission recently proposed making a 10% target

                     binding. The Commission has also proposed that fuel suppliers reduce greenhouse

                     gas emissions from fuel across its life-cycle by 10% by 2020. For motor fuels, EU

                     rules set minimum tax levels; nevertheless most aviation and maritime uses are

                     exempt, although Member States can limit these exemptions to international

                     transport. 

 

                     In addition, there are particular EU requirements for some road vehicles concerning

                     equipment such as air-conditioning systems. The Commission is developing

                     initiatives on gear-shift indicators and recently proposed a framework for tyre

                     pressure monitoring systems.

 

       2.2. Local

                               pollution

 

                     As far as tackling local pollution is concerned the EU has already achieved a great

                     deal, but there remains a significant amount of work still to do. Measures to limit air

                     pollution have been developed in the framework of the Single Market and vary

                     considerably between the means of transport but are focused on limiting emissions

                     from new vehicles (the "EURO" standards), vessels or recreational craft. There are

                     also maximum levels of certain pollutants in fuels, such as sulphur in marine fuel and

                     lead in petrol, and rules to reduce emissions during fuel storage and distribution. 

 

                     For waterborne transport there are requirements to limit water pollution. All transport

                     modes are covered by general legislation on where and how waste can be disposed of

                     and there are specific requirements for some types of road vehicles and their

                     components (e.g. tyres, batteries). 

 

                     In terms of vehicle procurement the Commission has recently proposed5 that all

                     public purchases of cars, vans, buses and lorries use a methodology that takes into

                     account the energy consumption, CO2 and pollutant emissions costs during the

                     vehicle's use over its lifetime. Most new transport infrastructure projects are also

                     subject to rules on environmental assessment and some also to the rules on nature

                     protection. 

 

 

 

 

                                                       

       5 COM(2007)

                                    817.

 

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       2.3. Noise

                               pollution

 

                     EU measures to limit noise pollution have focused on providing a general framework

                     for assessing noise and for limiting noise emissions from all new, motorised, inland

                     transport modes in the framework of the Single Market.6 Limits also exist for

                     aircraft, and more stringent restrictions can be put in place at certain EU airports.

                     Airports, large towns (including their ports), heavily-used railways and roads must

                     also be mapped for noise and action must be taken to reduce it where necessary.

                     There are also limits for tyre noise which come into force in 2009 for replacement

                     tyres. 

 

       2.4. Congestion

 

                     EU measures have helped finance increased and alternative infrastructure capacity

                     and EU policy has aimed to move transport away from the most congested modes,

                     while at the same time developing common charging frameworks. There are existing

                     measures for charging heavy-goods vehicles for infrastructure use and also specific

                     requirements for rail infrastructure. In addition, the Commission recently made a

                     proposal on airport charging. Rail, inland waterways and maritime transport receive

                     most funding for infrastructure provision under the Trans-European Networks and

                     the Marco Polo programme, mainly in order to encourage a shift from road transport.

                     There are measures in the air and rail sectors that aim to increase infrastructure

                     efficiency, and work on technological improvements in the road sector is ongoing.

                     All sectors will benefit from the possibilities that Galileo will offer for fleet

                     management, optimising transport routes to avoid congestion and preventing

                     accidents. 

 

       2.5. Accidents

 

                     Safety has been one of the key parts of EU transport policy since its very beginning.

                     There are many different EU safety requirements for new road vehicles, as well as

                     requirements for obtaining driving licences, limiting the speed of buses and coaches,

                     and ensuring the roadworthiness of vehicles and the infrastructure itself. There are

                     also a variety of safety measures in the rail and inland waterways sectors, addressing

                     both the rolling stock and vessels, while in the rail sector infrastructure and

                     organisations are considered. In the maritime sector there are many measures to

                     increase safety, prevent accidents involving ships, passengers and crew and reduce

                     the environmental impacts of accidents; these are all backed up by inspections. In the

                     aviation sector safety measures include the aircraft's design and maintenance, use

                     and personnel licensing. The aviation, rail and maritime sectors have requirements on

                     accident investigation and reporting.

 

       3. GETTING THE PRICES RIGHT ...

 

                     Capitalising on the existing policy instruments is crucial to making transport more

                     sustainable and addressing the five different negative impacts of transport. As

                     mentioned above, getting prices right is one significant way of doing this and is

                     central to the Commission's approach. The Commission is therefore presenting two

 

                                                        

       6           Including, for example, the technical specifications for interoperability in the rail sector.

 

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                     initiatives along with this communication that aim to do this: a communication on

                     internalising the external costs of transport; and a proposal to revise the existing

                     directive on infrastructure charging for heavy goods vehicles.

 

       3.1.          Internalising the external costs of transport 

 

                     This communication and its annexes contain two elements. The first is a common

                     framework for estimating the external costs of transport. This is based upon the

                     results of Commission-financed work to review best practices, suggest a

                     methodology and produce a handbook containing reference values that can be used

                     for external costs. The communication provides guidance on how to use these values

                     for external costs. 

 

                     The second element of the communication is a strategy that sets out how external

                     costs can be internalised in all modes of transport. In so doing it meets the

                     requirement of the directive on heavy goods vehicles charging.7 The strategy takes

                     into account that for some impacts - such as noise and congestion - the costs that

                     transport users impose on society vary in space, time and depending on the mode in

                     question, while for others, such as greenhouse gas emissions, this is not the case. As

                     a result the strategy is both mode and impact-specific.

 

                     Over the years the Commission has consistently stressed the importance of using

                     economic instruments to achieve its policy goals. Within this framework, efforts to

                     internalise the external costs of transport were a key part of the 2001 Transport

                     White Paper and its 2006 Mid-Term Review. The EU has already started to

                     internalise these external costs through the aforementioned rules on motor fuel

                     taxation, as well as with the Commission's proposals to include the aviation sector in

                     the EU's ETS and to incorporate a CO2 component in registration and annual

                     circulation taxes for cars. This strategy builds on these initiatives. 

 

                     In the road sector the strategy launches immediate action to allow more effective and

                     efficient internalisation with the proposal on infrastructure charging for heavy goods

                     vehicles (see section 3.2). Private transport is not covered because of subsidiarity, but

                     the Commission encourages Member States to implement a charging system for all

                     road transport and not just heavy goods vehicles as this would create incentives for

                     all road users to change their behaviour, thereby increasing the significant positive

                     impacts. 

 

                     In the rail sector the proposal on internalisation for heavy goods vehicles will also

                     have a positive impact by giving further opportunities to internalise in the sector,

                     provided that other modes also internalise.

 

                     The strategy also sets out subsequent steps in other modes. For inland waterways it

                     announces the internalisation of all external costs in the sector, and, for maritime,

                     where internalisation has yet to begin, it commits the Commission to acting in 2009

                     if the International Maritime Organisation (IMO) has not agreed concrete measures

                     to reduce greenhouse gas emissions by then, something the EU is actively working

                     towards. Commission action may include integrating the sector into the EU's ETS.

 

                                                        

       7           Directive 2006/38/EC amending Directive 1999/62/EC on the charging of heavy goods vehicles for the

                  use of certain infrastructures.

 

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                     For maritime transport, the strategy will be developed in line with the new European

                     Integrated Maritime Policy.8 

 

                     At the same time the strategy announces a cross-cutting internalisation measure for

                     later in 2008: the revision of the Energy Taxation Directive. This will ensure that

                     energy taxation better complements the EU ETS and better reflects the EU's climate

                     change, energy and air quality goals.

 

                     The strategy will be evaluated in 2013.

 

       3.2.          Road charging 

 

                     Road transport accounts for the majority of external costs from transport so getting

                     the prices right in this area is particularly urgent. Revising the heavy goods vehicles

                     charging directive to encourage Member States to implement differentiated charging

                     systems will improve the efficiency and environmental performance of road freight

                     transport, something that is particularly important given its significant contribution to

                     traffic and emissions.

 

                     At present the directive effectively stops Member States from making the most

                     effective use of their tolling systems or the systems they are developing. Charges

                     cannot currently be calculated and varied on the basis of external costs. This means

                     that Member States cannot put in place sufficient incentives for operators to

                     modernise their fleet with cleaner vehicles and to adapt their route planning and

                     logistics to make them more sustainable.

 

                     The proposal would change this by giving Member States a framework to better vary

                     charges9 according to the local pollution (air and noise)10 and congestion that the

                     particular vehicle causes at the time it is used. By reducing congestion it will also

                     contribute significantly to reducing CO2 emissions. 

 

                     To ensure that the tolls are both proportionate to the actual environmental damage

                     and congestion caused and that the internal market continues to work properly the

                     Commission is proposing that a common and transparent method is used for

                     calculating external costs. The directive would also insist that any revenues from the

                     scheme are earmarked for reducing the environmental impacts of transport and

                     congestion11 and that, after a transition period, charges are levied using electronic

                     systems.

 

 

 

 

 

                                                       

       8           COM (2007) 575. This policy includes several proposals improving the sustainability (greening) of

                   maritime transport. For more details see section 4 of the Greening Transport Inventory Commission

                   Staff Working Document SEC (2008) 2206.

       9           As long as only infrastructure costs are recovered and subject to a number of conditions, which include

                   that no additional revenue is generated, the existing directive allows limited differentiation of tolls. 

       10         Costs for CO2 will be tackled through fuel taxes as part of an envisaged review of the Energy Taxation

                  Directive.

       11         For example, alternative infrastructure, traffic management and research.

 

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       4. TAKING COMPLEMENTARY MEASURES

 

                As stated above, both action to get the prices right and complementary action are

                needed to tackle the negative effects of transport. This is all the more so because, as

                the strategy part of the Communication on internalisation underlines, prices for some

                products and services, such as transport, may not lead to a change in behaviour (i.e.

                demand is rather inelastic). As a result complementary measures are essential. The

                Commission is therefore presenting, at the same time as this communication, a

                further communication to reduce rail noise from existing wagons and will, over the

                next 18 months, take additional steps focused on different modes and impacts. These

                are outlined below.

 

       4.1.     Reducing rail noise

 

                Estimates show that 10% of the EU's population is exposed to high rail noise levels

                and they are one of the main factors limiting the further growth of the sector.

                Reducing noise will have a positive effect not just of itself, but also in terms of

                making the development of rail transport and infrastructure more publicly acceptable.

                If, as a result, rail infrastructure can be more easily expanded and more flexibly used,

                this in turn should help shift passengers and freight away from road transport and

                onto rail thereby reducing the overall societal impacts of the transport sector.

 

                Given that EU rules already limit the noise emissions from new rolling stock, this

                communication focuses on existing wagons and sets out measures to equip the

                majority of them with low-noise brakes. The strategy combines noise emissions

                ceilings, voluntary commitments and legislation setting financial incentives.

 

                The Commission will propose the legislation in 2008 to ensure that, by adapting the

                existing rules on track access charging, charging schemes are harmonised across

                Europe. Quieter wagons will be charged less than noisier ones to allow payback of

                the necessary investment. Fitting with low noise brakes should be finished in 2015.

                After retrofitting, higher charges should be introduced for the remaining noisy

                wagons with Member States introducing noise emissions ceilings to cap the overall

                amount of noise on a particular stretch of track - and hence provide an incentive to

                use lower noise wagons - if they so wish.

 

                To speed up implementation, the Commission also encourages voluntary

                commitments to pass on price signals to wagon owners before the legal deadlines.

 

       4.2.     Measures that will be taken in the next 18 months

 

       4.2.1. Climate

                         change

 

                As climate change is probably the number one challenge for the EU and for

                transport, the Commission will come forward with measures that go beyond those

                mentioned above for internalising external costs. For aviation, it will propose

                legislation on emissions of nitrogen oxides (NOx) from aviation, while in the road

                sector, the Commission will, by the end of 2008, propose reducing the CO2

                emissions from new vans, a system for tyre labelling and revising the existing car

                labelling directive. 

 

 

 

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       4.2.2. Local

                               pollution

 

                     Many EU measures already exist to tackle local and regional pollution, so new

                     initiatives concentrate on strengthening and complementing them. 

 

                     Given the contribution that volatile organic compounds make to smog, limiting their

                     emission during the refuelling of passenger cars at petrol stations is important. The

                     Commission will therefore propose legislation to achieve this. The aforementioned

                     NOx from aviation proposal should also contribute to reducing local air pollution.

 

                     Further reducing the sulphur content of liquid fuels has been identified as being a

                     cost effective way to reduce air pollutant emissions. To achieve this the Commission

                     will come forward with a proposal in 2009 which will take into account the

                     significant recent progress on the issue in the IMO and which will include maritime

                     transport fuels.

 

       4.2.3. Noise

 

                     Given the growing nuisance noise causes, its impact on health12 and the effect this

                     has on limiting transport infrastructure improvements, the Commission considers it

                     very important to continue its efforts to reduce noise emissions from transport. In

                     addition to the legislative proposal on rail noise (see section 4.1) the Commission

                     may take further action to limit noise at EU airports by revising the existing directive

                     on aircraft noise. In 2009, the Commission will also propose revising the directive on

                     environmental noise.

 

       4.2.4. Congestion

 

                     With road congestion estimated to cost around 1.1% of EU GDP per year, the

                     Commission considers tackling it a priority. Internalisation of external costs through

                     smart road charging systems will be the key way to do this and the proposal to revise

                     the directive on infrastructure charging for heavy goods vehicles will be the main EU

                     instrument in the road sector. This will be accompanied by the Commission making

                     funding available under the Trans-European Network programme for actions on

                     electronic toll systems, where tolling systems have been implemented together by at

                     least two Member States. The Commission will also clarify to what extent and under

                     which conditions interoperable on-board tolling equipment may be included.

 

                     In the aviation sector the recent Single Sky Package aims to increase the capacity of

                     European airspace three-fold while reducing air emissions per flight by up to 10%.

 

       4.2.5. Cross-cutting

                                           measures

 

                     The Commission will also come forward with actions that will have positive effects

                     on several negative impacts, especially in the rail and inland waterways sectors,

                     which offer an alternative to road transport. For rail, the Commission will adopt a

                     legislative proposal on rail freight and one revising the directive on rail infrastructure

                     charging (which will incorporate the changes mentioned in section 4.1). 

 

 

                                                       

       12         See, for example on airport noise, COM(2008) 66.

 

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            The action plan on urban mobility will consider all five negative impacts and propose

            actions with a clear EU added value while respecting the subsidiarity principle. It

            will differentiate between actions that can be taken in the short term, and those that

            can be taken over the medium to long term.

 

            The Green Paper on the Trans-European Transport Networks will review existing

            policy, draw lessons, and consider how best to take this policy forward in the years to

            come. This will include reinforcing the networks' sustainable development

            dimension and considering how they can best contribute to tackling climate change.

 

            The action plan on Intelligent Transport Systems for Road, which will be

            accompanied by a legislative initiative, will set out a common approach to get

            existing technologies onto the market and used. It should help identify a set of core

            Europe-wide ITS applications, work out their business case, organise the necessary

            research and validation, and manage their implementation across Europe by road

            operators, industry, service providers and road users. These technologies will help to

            reduce congestion, while increasing safety and fuel efficiency by allowing shippers

            and the travelling public to plan their journeys to avoid traffic jams and by allowing

            governmental authorities to direct traffic away from areas where it would contribute

            significantly to local air pollution. In addition, using existing infrastructure more

            efficiently will mean that less new infrastructure will be needed, avoiding habitat

            fragmentation and soil sealing. Making use of future Galileo applications will also be

            part of this plan.

 

       5. CONCLUSION

 

            Achieving sustainable mobility requires efforts from all stakeholders and not just the

            Commission. While the three new initiatives accompanying this communication (the

            communications on internalising the external costs of transport and on reducing rail

            noise, as well as the proposal to revise the directive on infrastructure charging for

            heavy goods vehicles) and the other measures set out within it are a further

            contribution from the Commission to meeting the challenge, concerted action by all

            stakeholders is needed to increase their effectiveness.

 

            The three new measures accompanying this communication build on the large body

            of existing initiatives set out in the accompanying inventory in order to make

            progress in the short to medium term; however, the Commission is also looking to

            the longer term. In 2009, it will present a report on long-term scenarios for the

            development of transport policy over the next 20-40 years and it will begin internal

            reflections on the follow-up to the current transport White Paper, which will come to

            end in 2010. It is clear that, when developing any future policy a number of issues

            will have to be followed closely, including responding to any agreed post-2012

            follow-up to the Kyoto Protocol and exploiting the numerous possibilities offered by

            Galileo.

 

            The Commission invites the European Parliament and Council to endorse this

            approach.

 

 

 

 

 

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