Public Hearing on “Sustainable European Transport Policy” Jens Hügel, Head Sustainable Development Brussels, 9 October 2007 © International Road Transport Union (IRU) 2007

The IRU, through its national associations, represents the entire road transport industry world-wide. It speaks for the operators of coaches, taxis and trucks, from large transport fleets to driver-owners. © International Road Transport Union (IRU) 2007

Evolution of IRU Membership 2007 180 Members 72 Countries Created 1948 8 Founder States: Here, you can see the evolution of the IRU Membership. There were 8 founding Members, to rebuild Europe after the 2nd World War, and today’s Membership of 180 Members in 72 countries. Belgium Denmark France Netherlands Norway Sweden UK Switzerland Updated August 2007 © International Road Transport Union (IRU) 2007

Road transport is a vital production tool in a global economy What does it take to have a cup of coffee in a café? The combined efforts of 29 companies in 18 countries If to have one cup of coffee at an affordable price, it takes 29 companies in 18 countries, you imagine how much more it would cost if all items came from the country where the end product is consumed? If we know that it takes 10’000 suppliers, which in turn have their own suppliers, to create an affordable motor car, you can imagine the vital role of road transport in a liberalised economy. Therefore, to stay in business, we need to see globalisation as an opportunity and not as a threat. To do so, we need to develop together the entrepreneurial spirit currently lacking in Europe. There is transport between each. Most of it is by road. Road Transport = Production Tool! Source: IRU © International Road Transport Union (IRU) 2007

Focussing on toxic emissions first Evolution of Commercial Vehicle Emission Standards in the EU - 87% - 81% - 86% - 97% Source: Eur Commission, Auto Oil II © International Road Transport Union (IRU) 2007

Misperception – who really produces CO2 3% 27% 33% 30% 17% 20% Power generation Heating Other (waste disposal agriculture, etc) Private Car, Airline, Ship, Rail Goods transport by road While power generation and heating contribute to over 50% of CO2 emissions, these are areas where viable alternate energy sources with low CO2 emissions exist already today. Man made sources of carbon dioxide come mainly from the burning of various fossil fuels, including diesel fuel. The use of fossil fuel varies from country to country. However, figures taken from the UNFCCC reporting system for the KYOTO protocol for developed countries show that fossil fuel is mostly used for: Power generation: 33% Heating: 20% Other ( waste disposal, agriculture…): 17% Private car, airlines, ships, rail…: 27% Goods transport by road : 3% © International Road Transport Union (IRU) 2007

3 “i” Strategy for Sustainable Development innovation – Effective “at-source” technical measures & operating practices to reduce environmental impact are the best way to reduce emissions of road transport. incentives – Governments need to encourage faster introduction by transport operators of best available technology and practices. infrastructure – Adequate investment in new infrastructure to remove bottlenecks and missing links, plus best use of existing infrastructure, are essential to reduce emissions from road transport. The IRU has developed the 3 “i” strategy for Sustainable Development: innovation – Effective “at-source” technical measures & operating practices to reduce environmental impact are the best way to reduce CO2 emissions of road transport. incentives – Governments need to encourage faster introduction by transport operators of best available technology and practices which help to reduce CO2 emissions. infrastructure – Adequate investment in new infrastructure to remove bottlenecks and missing links, plus best use of existing infrastructure, are essential to reduce CO2 emissions from road transport. © International Road Transport Union (IRU) 2007

Innovation Eco-driving training helps to further reduce fuel consumption and therefore CO2 emissions by up to 10%. The right priority! - reducing toxic emissions over non-toxic emissions Biofuels are not the solution! Fuel consumption and thus CO2 emissions of commercial vehicles have been reduced by 36% since 1970. Eco-driving training helps to further reduce fuel consumption and therefore CO2 emissions by up to 10%. Biofuels are not CO2 neutral. According to various studies ( German Ministry of Environment, Council for Automotive Research, Joint Research Centre of the European Commission), the production, transport and burning of biofuels produce more CO2 than the plants form which the fuel is produced absorbs. To fuel JUST the commercial vehicle fleet of today, 25% of the world’s agricultural land would have to be converted to Biofuel crops. The right priority!- reducing toxic emissions over non-toxic emissions (CO2). (click on link) Furthermore since 1970 the fuel consumption and thus CO2 emissions of commercial vehicles have been reduced by 36%. © International Road Transport Union (IRU) 2007

Evolution of Fuel Consumption 40-tonne truck 1970-2004: -36% Massive investments in the latest technology by the road transport operators have significantly increased fuel efficiency as a result fuel consumption between 1970 and 2005 has dropped from 50 litres/100km to 32 litres/100km…. Leading in turn to a direct drop in CO2 emissions. Source: Verband der Automobilindustrie (VDA) e.V., 2004 © International Road Transport Union (IRU) 2007

Incentives Real business incentives can make road transport cleaner. CO2 emission taxation needs to be applied correctly. Buses and coaches replace up to 80 cars, reducing congestion and emissions. Clean transport by rail – only with nuclear energy. Modal shift from road to rail only if rail transport offers right quality! Real business incentives can make road transport cleaner. Good examples of effective incentives: Fleet Smart initiative in Canada, a governmental initiative to help transport operators purchase clean and environmental vehicles SELA initiative from the Netherlands which is a tax subsidy for clean and safe vehicles Concerning CO2 emission taxation, let me say that the reinforcement of environmental regulations represents a major global challenge, However, taking into account the massive taxation of diesel fuel, the right to emit CO2- as foreseen by the Kyoto protocol- is more of a profitable fiscal business than an effective measure to reduce pollution. If CO2 taxes were really effective in reducing CO2 emissions, taking into account that the oil market is global, and that CO2 emissions are a global challenge, the CO2 tax should be collected in the oil producing countries at the source of the global oil market where each barrel of oil is produced – not in the oil consuming countries where diesel fuel is already heavily taxed. Allow me to address another myth, where railways claim that they are a CO2 friendly mode of transport. The lower CO2 emissions provided by combined transport are achieved only because of the high proportion of nuclear power used in the generation of electricity for railways. Last but not least, busses and coaches can replace up to 80 cars, reducing congestion and CO2 emissions. © International Road Transport Union (IRU) 2007

Infrastructure Congestion is responsible for 100 billion litres of wasted fuel in the United States alone and is a source of unecessary emissions! Road transport taxes should go back into roads. Road congestion increases CO2 emissions by 300%. Congestion is responsible for 100 billion litres of wasted fuel just in the United States alone and is a source of unnecessary CO2 emissions. Governments don’t address the shortage of road infrastructure, they just collect money from road users. Every year road users pay in the EU about EUR 350 billion through taxes from the transport sector, yet public spending amounts to only EUR 100 billion per year. Adapting and improving the road infrastructure, its maintenance and amortisation are essential to meet the increasing demand for the mobility of persons and goods, and will simultaneously improve fuel savings and reduce CO2 emissions. Road congestion increases CO2 emissions by 300%. As is shown on the following slide: © International Road Transport Union (IRU) 2007

Road Congestion increases Fuel Consumption (40 tonne truck) If a 40 tonne lorry is driving at 50 km/h, it will use around 28l/100km. If it has to stop once , over a distance of 1 km it will consume 52litres and if it stops a second time in the same km, the fuel consumption will increase to 84 litres. This underlines again that free flowing traffic is a prerequisite for reducing emissions. Source: VDA, 2000 © International Road Transport Union (IRU) 2007

Focus on the right issue! CO2 emissions and global warming - correlation but not causation. Fossil fuel is not renewable! Our industry is 100% dependent on oil. No economically viable alternatives to fossil fuel. Our duty is to ensure that our children’s children can benefit from black gold through a sustainable energy policy. © International Road Transport Union (IRU) 2007

Need to diversify the energy market © International Road Transport Union (IRU) 2007

Conclusions The road transport industry is committed to achieving sustainable development. The IRU 3 “i” strategy for sustainable development paves the way to reducing emissions. Road transport has already significantly reduced its emissions and will continue doing so. A sustainable energy policy is needed. Summary: The road transport industry is committed to achieving sustainable development. The IRU 3 “i” strategy for sustainable development paves the way to reducing CO2 emissions. Road transport has already significantly reduced its emissions. Everyone needs to take their respective responsibilities. © International Road Transport Union (IRU) 2007

IRU World Congress 2008: Istanbul The IRU is proud to present its proud to present its 31st World Congress in Istanbul on 15 – 16th May, entitled: “Road Transport, Driving Peace and Prosperity”. Please mark these dates in your calendar!!! 15 – 16 May 2008 © International Road Transport Union (IRU) 2007

We thank you for your attention… © International Road Transport Union (IRU) 2007