Facing the target market mechanism of energy conservation and emission reduction is a better policy

Issuing time:2017-12-28 11:35

The adoption of biofuels and hybrid power systems in passenger vehicles is important in order to meet the European greenhouse gas reduction targets by 2030, but the current regulatory framework does not remove obstacles to their adoption. Roland Berger recommends that governments introduce policies to promote consumer choice of emission-reducing technologies.

By 2030, in order to remove the obstacles to the market adoption and popularization of energy-saving and emission-reduction technologies, in addition to the continuation of current policies on fuel and vehicles, new supply and demand policies and measures will need to be implemented within the EU and its member States.

Create a long-term sustainable supply and demand market through the following diversified approaches:

· Encourage consumers to buy low-carbon and environmentally friendly technology products

· In terms of biofuel and CO2 emission tax policies, provide consumers with a clear price advantage by exempting biofuels from taxes in the fuel market or by subsidizing fuel taxes

· Increase consumer awareness of technological advantages, such as powertrains and the price appeal of technology products

· Provide expected investment reliability to raw material suppliers and original manufacturers

In order to stimulate consumer demand, promote the development of advanced biofuel production through tax exemption or subsidy mechanisms to provide these products with a clear price advantage for sustainable development

· Support the use of innovation funds for low-carbon technology innovation, which should be used to finance capital and operating expenses of original advanced biofuel plants (fuel/biofuel suppliers)

· Increase production of cost-effective vehicles while improving compatibility of conventional technologies and vehicles with different fuels (original manufacturers)

In line with the EU's long-term vision for a low-carbon society, there is a further need to develop facilities that advance cost-effective and ultra-low carbon transport. Roland Berger suggested that policymakers consider "fuel trading in market mechanisms" as a supplement to vehicle fuel emission standards, fuel and infrastructure policies.

First, the market mechanism should have the role of collecting the profits obtained from the purchase and sale of fuels and using it to provide the funds needed to bring new fuels and vehicles to market. As long as low-carbon fuels and vehicle technologies can be economically deployed on a large scale, market mechanisms can be used as the main emission reduction policy, and other policies on vehicle efficiency, fuel, and so on can be discontinued.

In order to achieve cost-effective and transparent emission reduction of greenhouse gases, the following principles regarding the development of market mechanisms are desirable:

· The fuel supplier shall be the obligee

All emission permits need to be purchased through government bidding and can be traded

· CO2 emissions from fuel combustion shall be included and included in the average direct CO2 emissions (CO2/ unit volume of gasoline or diesel)

Biofuels should be considered as part of the implementation of the zero CO2 direct emission protocol that matches the 2020 standard, and only those technologies that meet the established sustainability criteria should be approved by the protocol

· Funds available from the auction of fuel emission permits should be used to provide short-term funding for the implementation of policies and other policies on advanced biofuels, hybrids and ultra-low carbon technologies and for research and development of these technologies

Based on the detailed EU28 road vehicle model presented by Roland Berger, this study reveals that by expanding existing policies and legislation, the Road Transport Ministry could reduce direct emissions by approximately 29% by 2030 (compared to 2005), which is almost in line with the 2030 vision. Direct greenhouse gas emissions in 2030 should be reduced by 238Mton compared with today, of which 191Mton is the reduction in direct emissions.

Until 2030, the confirmed emission reduction options (higher biofuel fuels, passenger vehicle hybrid systems, truck concepts) will only allow for approximately 34Mton of additional greenhouse gas emissions reductions, indicating that the emissions target is expected to be smaller year by year in 2030, and due to the application of a range of technologies in vehicles, The target will get even smaller after 2030.

Additional policies are needed to remove barriers to the deployment of low-carbon technologies, such as:

• Policies that support the development of advanced biofuels by providing price advantages

· Adjusted tax policies for fuels and vehicles (for example, in the case of biofuels and CO2 emissions, combining CO2 taxes and fuel policies with excise duty exemption or tax subsidies for advanced biofuels)

· Adjusted policies on direct emissions from biofuels to accelerate the adoption of vehicles compatible with higher concentrations of biofuels (setting zero CO2 emission standards for certain models of vehicles supplied with renewable fuels to meet the 2020 standard, and thus determining the relevant fuels)

Adjusted regulations on truck length and total mass limits to improve aerodynamic efficiency and transport efficiency through increased payloads

· Make the benefits of low-carbon technologies more transparent to consumers

· In the long run, the market mechanism could be used as a supplement to vehicle CO2 emission standards, it could provide EU member states with funds to support more research on low-carbon vehicles and fuel technologies, and the market mechanism could be used as the main greenhouse gas emission reduction policy.

Share to:
The battery cycle life can reach 3000 times
Free of acids and heavy metals
Support all sectors of energy
Not explosive, not flammable
Chongqing Weihong Energy Technology Co., LTD
Address: 1-1, 1st Floor, Building 3, 100,000 square meters standard factory, Wuyang Street Industrial Park, Zhongxian County, Chongqing Contact: Shao Liyan Contact number: 13735464421