EU: Carbon Credits, Not Quotas, The Plan For Electric Vehicle Push

1 month ago by Mark Kane 10

Tiguan GTE concept

The European Union is expected to release (on November 8), a proposal for a new carbon credit plan for electric vehicles – instead of the quotas or outright mandates we have seen for other markets.

Tesla Model S in Europe

According to an exclusive, unofficial report from Reuters, the EU will introduce new CO2 standards for cars and vans for years beyond 2020.

By 2030 fleet CO2 emission will be required at a much lower average levels: 25-35% for cars, and 30-40% for vans, which is much higher than the 20% floated by manufacturers.

We don’t yet know a lot on the specifics of the carbon credit plan, other than California had an influence on this new system.

Per Reuters:

“U.S. and EU sources said that the innovative carbon credit initiative was inspired by talks with regulators from California — viewed by many in the sector as the leading laboratory for policy on electric vehicles.

Unlike California’s zero-emissions policy, the EU proposal includes no mandates and the carbon credits will not be tradable.

The credits will be based on automakers’ performance against a benchmark for sales of low-emission vehicles as a proportion of their fleets, the sources added.”

Additionally, the proposal is expected to include €800 million ($943 million) to help drastically expand the charging infrastructure – as plug-in vehicles are a big part of the way forward to these goals.  That money is available for governments, regions and cities to dispurse, as well as €200 million for battery development programs between in 2018-2020.

source: Reuters

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10 responses to "EU: Carbon Credits, Not Quotas, The Plan For Electric Vehicle Push"

  1. CDAVIS says:

    From article:
    “…the proposal is expected to include €800 million ($943 million) to help drastically expand the charging infrastructure – as plug-in vehicles are a big part of the way forward to these goals. That money is available for governments, regions and cities to dispurse…”
    ————-

    That’s good (and a good start) because EV access to a convenient & reliable supercharging network is absolute key to mass EV adoption. My biggest concern is will the install be done quickly & cost effective vs. super slow & super expensive … also addressing topic of who “owns” the forward R&M of these chargers.

    This won’t likely happen but contracting Tesla Energy to get a public use EU charger install done would be the most time effective & cost effective solution. Perhaps though if Tesla tendered and made public a comprehensive build-out plan?

  2. Warren says:

    The future is always 3 years, 5 years, 20 years away. How about a government, any government doing it right now. Somehow it is always after their term in office.

    1. Just_Chris says:

      I think that is probably a little unfair in this instance. The CO2 limits in the EU (basically the equivalent policy to the CAFE standards in the US) have had a pretty continuous and sustained effect. So the EU are building on existing policy that has been largely successful at reducing oil consumption and CO2 emissions in transport. Clearly it has created issues with air quality which are now being addressed, perhaps not quite as quickly as people would like but at least it is moving in the right direction.

  3. kubel says:

    Bureaucrats once again attempting to align their “plans” with natural market forces so they can take credit for the obvious trajectory of the auto industry to electric.

    20 years ago it was government mandates that tried and failed to influence the market to go to electric. Then they got in bed with big oil and dangled the perpetually-20-years-from-now hydrogen carrot in front of our noses.

    Now we have business leaders making awesome products that people actually want to buy that just happen to be electric. And now that the parasitic politicians see real change coming, they are scrambling to take credit to stay somewhat relevant.

    1. Mikael says:

      It’s impressive that you managed to put so much crap into one single comment.

  4. Dan says:

    This will reduce emissions from the CARS but may not reduce emissions much depending on the source of the electricity. More electric vehicles means new generation capacity needed. Germany currently plans to shut down its nuclear generation plants soon leaving a huge hole in the supply of near zero CO2 electricity (nothing is zero).

    More wind and (marginal due to the latitude and cloud cover) solar will help but require storage systems to approach the availability and reliability of gas, oil, or coal generated power. New nuclear capacity (great for off peak charging because the N plant runs at full power for many months on end until shutdown for refueling) is ideal but unlikely (see Germany above) except maybe in France (70%ish nuclear already).
    Gas fired electricity plus E vehicles gives a real reduction of CO2 but that will mean more imports from Russia which is risky at best.

    There are no free lunches and simple solutions.

  5. Terawatt says:

    And meanwhile, in Norway, the government is finally proposing tougher taxes for what the mainstream press calls “the hoax hybrids”.

    Link (in Norwegian, perhaps try translate.google.com if you’re curious!):

    https://www.vg.no/nyheter/innenriks/statsbudsjettet-2018/vil-skjerpe-avgiften-for-lure-hybridene/a/24161919/

    (VG is the most widely read newspaper in Norway.)

    1. Terawatt says:

      “Trick hybrids” would be a more accurate translation, really. “Lure” is the verb “to trick” or “to fool”.

      1. Terawatt says:

        Hmmm.. as I am curious myself to see how far Norwegian-English machine translation has come, I went and had it translated – so I might as well post a link. The original was a monster, so I goo.gl-ed it 🙂

        https://goo.gl/vaz7ng

  6. Windbourne says:

    Yeah, I would expect credits out of Europe.

    Europe makes a BIG todo about pushing clean energy, but, they really do not. Germany and Portugal has cleaned up, but in general, that was about trying to control the industries.

    The rest of Europe really has not made big changes.

    The credit is another BS move. It puts the onus on the buyers, not the car makers.

    The ONLY way to stop ICE, is simply to STOP ICE MANUFACTURING. And all Europe would have to do, is REQUIRE that car makers have a base sales and increase that yearly. For example, in 2020, require 5% of what is sold being clean (EV, fuel cells, H2, etc). Then each year for the next 5 years, raise it by 2%. After that, raise it by 5% a year, and increase that raise by 2% each year. Hence 5% added to 15. Then 7% added to 20; then 9% added to 27, etc. etc.

    With that approach, by 2035, it is all over. In fact, I would give it by 2025, it will be over. Nobody will buy an ICE vehicle at such an expensive price that will be worthless in just a couple of years.

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