European Commission Directorate-General for Energy and Transport n° 113/12/2002 IDEAS FOR COMMON CHARGING PRINCIPLES TO ALL MODES December 2002 Catharina Sikow-Magny

European Commission Directorate-General for Energy and Transport n° 213/12/2002 WHY CHANGE? u THE PRESENT SYSTEM IS MUDDLED, INCONSISTENT AND INEFFECTIVE u NEED TO COPE WITH INCREASED DEMAND u CONGESTION IS A TAX ON EFFICIENCY u NEW INVESTMENTS ARE REQUIRED u PUBLIC INVESTMENT IS UNDER PRESSURE

European Commission Directorate-General for Energy and Transport n° 313/12/2002 ROAD u EXCISE TAXES u REGISTRATION TAXES u ANNUAL TAXES u TOLLS RAIL u CHARGES FOR INFRASTRUCTURE USE AIR u EN ROUTE (ATM) AND AIRPORT CHARGES PORTS u VARIOUS CHARGES MAINLY AT PORTS CURRENT TAXES AND CHARGES

European Commission Directorate-General for Energy and Transport n° 413/12/2002 u NOT RELATED TO ACTUAL COSTS OF USAGE u DOES NOT REFLECT WILLINGNESS TO PAY u PROBLEM OF NON-NATIONAL VEHICLES u LACK OF TRANSPARENCY ON COST COVERAGE u ENVIRONMENTAL DAMAGE IS A COST TO SOCIETY WHAT’S WRONG WITH THE PRESENT SYSTEM ?

European Commission Directorate-General for Energy and Transport n° 513/12/2002 u DO THEY EXIST? u CAN THEY BE QUANTIFIED? u IF YES - WHICH? EXTERNAL COSTS

European Commission Directorate-General for Energy and Transport n° 613/12/2002 u TO CREATE A NEW STRUCTURE FOR ALL MODES u TO REPLACE THE EUROVIGNETTE u TO INSTITUTE A MILEAGE-BASED SYSTEM FOR HEAVY VEHICLES THE WHITE PAPER’S PROPOSALS

European Commission Directorate-General for Energy and Transport n° 713/12/2002 u A. Marginal cost Infrastructure Congestion and capacity Accidents Environmental damage u B. Pricing to achieve better traffic flow Based on elasticity of demand or regulation u C. Meet full costs By mode, region or transport sector? POSSIBLE APPROACHES

European Commission Directorate-General for Energy and Transport n° 813/12/2002 u Field of application F All vehicles, commercial vehicles, heavy vehicles? F All infrastructures, TENs, urban streets? u Use of revenues - sharing F Revenue neutral? F Ring-fence? F Cross-modal? u External costs to be covered F Greenhouse gases, air pollution, noise? F Congestion? F Accidents? Other questions

European Commission Directorate-General for Energy and Transport n° 913/12/2002 u DEVELOPMENTS IN MEMBER STATES u AGREE ON THE APPROACH AND ITS CONSEQUENCES u EXPLAIN LINK TO INVESTMENT u ISSUE THE FRAMEWORK DIRECTIVE u INDIVIDUAL MODAL PROPOSALS u START WITH ROAD HEAVY VEHICLES THE WAY FORWARD