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Eco-innovations Credits in the proposed EU CO 2 legislation for 2012 Anders Kärrberg Executive Director Governmental Affairs Volvo Car Corporation. What is an eco-innovation?. Technical innovations that reduce CO 2 outside the homologation test cycle
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Eco-innovations Credits in the proposed EU CO2 legislation for 2012 Anders Kärrberg Executive Director Governmental Affairs Volvo Car Corporation
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)
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
Examples of eco-innovations Off-cycle CO2 reduction Source Fuel economy indicator 1 % ACEA Adaptive cruise control 3-12 % Dutch study, AMS
Examples of eco-innovations Off-cycle CO2 reduction Source 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
LED – Light Emitting Diode • 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
Examples of eco-innovations Off-cycle CO2 reduction Source 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
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
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
Flexible fuel vehicles Market share development in Sweden % 30 25 20,5% 20 15 10 5 0 2/2005 4/2005 6/2005 8/2005 2/2006 4/2006 6/2006 8/2006 2/2007 4/2007 6/2007 8/2007 2/2008 4/2008 12/2004 10/2005 12/2005 10/2006 12/2006 10/2007 12/2007
Benefits from flexible fuel vehicles in 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
Benefits from flexible fuel vehicles in 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.
Benefits from flexible fuel vehicles in 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.
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