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Eco-innovations
Credits in the proposed EU CO2 legislation
for 2012
Anders KärrbergExecutive Director
Governmental AffairsVolvo Car Corporation
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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)
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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
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Examples of eco-innovations
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Examples of eco-innovations
Fuel economy indicator 1 % ACEA
Adaptive cruise control 3-12 % Dutch study, AMS
Off-cycleCO2 reduction Source
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Adaptive Cruise Control
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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
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• 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
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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
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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
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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
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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
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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
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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.
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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.
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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