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European Commission Directorate General Information Society and Media ICT for Transport

European Commission Directorate General Information Society and Media ICT for Transport. An incentive plan to Support the deployment of eSafety Systems. Background: the e Safety Forum.

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European Commission Directorate General Information Society and Media ICT for Transport

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  1. European CommissionDirectorate General Information Society and MediaICT for Transport An incentive plan to Support the deployment of eSafety Systems

  2. Background: the eSafety Forum The eSafety Observatory (eScope): stimulate road user’s demand for vehicles equipped with intelligent safety functions through incentives • existing barriers: • Cultural:Systems are not known by the public and safety is currently perceived as an optional • Economical: eSafety devices costs and prices are still prohibitive for most of the users eSafety Working Groups Heavy Vehicles, deployment Road Maps, user’s outreach and eCall recommended the Adoption of incentives to ease the introduction of safety systems

  3. Socio-Economical benefits of eSafety • Accident Costs without Property Damage: Lower Hospitalization Costs • Findings of the SEISS study • Socio-economical benefits: • Congestion Costs due to Traffic Flow: Reduction of Congestion Time

  4. The EU framework for State-Aid • European Union:incentives are not given by the EU but proposed for take up by the Member State • The principle of Subsidiarity: the EU set the framework the Member States implement following national regulations. • The Legal Framework:State-Aid discipline is included in the Treaties and: • State-Aids are forbidden because distort competition (Article 87 of EC Treaty) • Exceptions are allowed if aid schemes have a beneficial socio-economic impact in overall Union terms • Member States:EC and Council are appointed to approve the compatibility of State-Aid with the Common Market by decision, regulations and directives

  5. Incentives: EU state of the art • Incentive Schemes applied so far:no Framework at EU level • On individual MS initiative: • Netherlands: Tax Credit on the Navigation Systems (NS), Cruise Control, Econometers and Side-Airbags • Denmark: Tax reduction for installing ABS, airbags and ESP • Other Incentive Schemes applied in the Transportation market:Member States applied several incentive schemes for similar Socio-Economical purposes so far with a EU framework: • Environment: Tax and Fiscal incentives, Fuel Taxes, Scrapping Schemes • Inter-Modal Transport: Financial incentives

  6. DG INFSO Considerations on Incentives • Detaxation Schemes:fiscal incentives are reduction or exemption of taxes related to the purchase and use of vehicles. They look as the Best Candidate Incentives for eSafety • Leverages: tax incentives can be designed on different taxes, depending on the taxation structure of reference: Purchase Taxes, Ownership taxes, Road Use Taxes, etc. • Suitable Characteristics: a direct action undertaken by the Government, perceived by final users as a real incentive to add value to the vehicle with reduced or no cost

  7. Intelligent Cars: an i2010 Flagship Initiative • Objectives: Intelligent vehicles that are smarter, safer and cleaner, addressing environmental and safety issues posed by increased road use • Create awareness of ICT based solutions to stimulate users’ demand • Support research and development for smarter, cleaner and safer vehicles • Coordinate the activites of relevant stakeholders, Member States and the Industry, in the Intelligent Car Activities • Relevant Policy Actions for Incentives in EU: • Investigate the possibility to use financial incentives at national level in order to support the sales of vehicles equipped with advanced safety functions and after-market installations

  8. DG INFSO Insurance Sector Insurance Companies have an important role to play to support the introduction of safety systems • Basic Principle:a car equipped with safety systems is safer, therefore the probability to provoke or being involved in car accidents is lower • Situation in the Member States:so far no Insurance Companies have undertaken actions favouring safe cars, but the situation begins to be evaluated in some of the Member States: • Sweden:discounts on insurance premiums for safe vehicle are currently being studied • Strenghtening the safety breaktrough of the incentives: special insurance plans could be proposed in a second phase to consolidate and enlarge the first results achieved by an Incentive Policy

  9. Thank you for your attention

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