1. Leaded Gasoline Phase-out in Serbia Current Status in Countries in the Region Belgrade, 8 th May 2006 Ruslan Zhechkov, REC This project is financed by The US EPA and UNEP

2. www.rec.org Background Project funded by the US EPA and UNEP Components: -country research; -regional conference and workshop; -identification of follow up measures and needs on a country and regional level Building upon SILAQ – Sofia Initiative on Local Air Quality – launched in 1995 at Environment for Europe Conference Covered countries – Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, Slovenia, Turkey, Albania, Bulgaria, Romania, Serbia and Montenegro, Bosnia and Herzegovina, Croatia, Macedonia

3. www.rec.org Basic data CountryTotal consumption of crude oil (in barrels) Sulphur content of crude oil Energy consumption by transport (tones of oil equivalent) Albania2,735,500N/A Bulgaria44,134,92400.035%2,281,000 BiH7,342,9740.050%N/A Croatia32,000,0000.035%1,790,000 Macedonia8,938,2601-1.2% Romania82,448,400N/A3,541,000 (2000) SCG24,255,0003-4%1,588,000

4. www.rec.org Legislation: Air Quality and Fuel Quality Air Quality: no transposition yet except Bulgaria and Romania – full transposition of EU Air Quality Framework Directive 96/62/EC and Daughter Directives; Emissions into Air: - 94/63/EC (VOCs from petrol); 1999/13/EC (VOCs from solvents); 1999/32/EC (Sulfur content in liquid fuels) Fuel Quality: no transposition yet except BG and RO which transposed: Council regulation 2964/95 on registration of crude oil imports and deliveries; EC Dir. 98/70/EC on quality of petrol and diesel fuels; EC Dir. 2003/17/EC amending 98/70/EC. Fuel standards for BG and RO are harmonised with 98/70/EC. _________________________________________________________ Fuel Quality Problems: -insufficient control activities; -few or no independent authorized laboratories; -lack of testing equipment, personnel in labs, financial resources; -database of fuel stations missing in many countries; -illegal practices in the chain between refinery and car tank.

5. www.rec.org Fuel Quality Standards CountriesStandards AlbaniaIn the phase of the preparation of the new standards according to 98/70/EC BulgariaEU standards applied. Petrol: SR EN 228:2004; Diesel SR EN 590:2004 CroatiaNot in compliance with EU standards. New regulation is being prepared. MacedoniaPartially harmonized with EU Dir. 98/70/EC. Entered into force in 12/2004. Proposal for new standards for unleaded petrol 98+ and EKO diesel. RomaniaEU standards applied. Petrol: SR EN 228:2004; Diesel SR EN 590:2004 SCGFor unleaded gasoline from 01.01.2006 the quality is according to standard EN 228. TurkeyRegulation TS 228, based on EN 228 of 98/70/EC completely ban the use of leaded gasoline in 2006.

6. www.rec.org Sulphur and lead content in petrol and diesel – national specifications CountryNat. specif. (max) (mg/kg) – S in petrol Nat. specif. (max) (mg/kg) – S in diesel Nat. specif. (max) (g/l) – Pb in petrol Albania1505000.005 Bulgaria150 (50 after 2007) 350 (50 after 1/1/2007) 0.005 BiH1503500.005 Croatia150350.005 Macedonia1503500.013 Romania150 (50 after 2007) 350 (50 after 2007) 0.005 SCG2,00010,0000.020 Direction of quality improvement in EU: - gasoline: 150→50 - diesel 350→50 Leading oil companies <10 (compulsory after 2009)

7. www.rec.org Lead content in petrol – current status. Promotion instruments. CountriesStatus AlbaniaBan in 2005. 80% of cars are diesel. Tax differentiation and use of subsidies are in the approval phase. BulgariaLeaded petrol banned in 01/2004 at the same time as the privatisation Neftochim by Lukoil. 1.5 million EUR from budget going for sulphur content reduction. BiHBan planned for 2010. Croatia80% unleaded in 2005; Banned since 1/2006. Macedonia12/2004 decrease of lead content (leaded petrol) from 0.6 g/l to 0.15 g/l and from 0.02 g/l to 0.013 g/l in unleaded. Ban planned for 2006. Unleaded petrol is 7% cheaper; Public awareness campaign launched. RomaniaBanned. SCGSince 1/1/2006 new quality unleaded fuel is available on the market. No date for lead phase-out. CEEBanned between 1995 (Slovakia and Slovenia) and 2003 (Poland).

8. www.rec.org Light-duty Vehicles Legislation Directive 98/69/EC, since 1 January 2000 Source: P. Good, Commission DG Industry, Hart’s World Fuels & Refining Conference, Brussels 2005

9. www.rec.org Vehicle emissions Diesel passenger cars 10%- 30%. BiH (>50%), SCG (>30%) LDV, HDV, buses – mostly diesel No info on converters - BiH (57%), SCG (30%) Old fleet – mostly 11-20 years, few new ones – BG (36%, >20 years) Own production – Romania and SCG Limitations on import (age cap BiH, MK, SCG) Domestic vehicle production – Romania, SCG CountryNumber of vehicles Albania 274,652 Bulgaria 3,165,279 BiH 731,000 Croatia 1,461,000 Macedonia 444,000 Romania 3,318,208 SCG 1,801,000 Turkey 7,806,000

10. www.rec.org Promotion of environment friendly vehicles CountriesMeasures BulgariaDifferentiation of customs fees acc. to age. BiHAge limit for import. CroatiaEURO III engine installed for new cars and EURO II - for used cars; Fee structure favours newer cars; Cars with converters pay ½ registration fee. MacedoniaAge limit for import. RomaniaOnly EURO III motor vehicles. Scrappage programme. SCGAge limit for import. TurkeyState subsidy for banning cars older than 30 years.

11. www.rec.org Joint Conclusion from Conference (1) Lead phase-out should involve: lead removal from gasoline as soon as feasible; instituting national regulations to ban leaded gasoline, with official dates; improved monitoring/control of fuel quality; information campaigns for better understanding of lead phase-out (public, fuel stations, possible blood level lead monitoring) and applicability of unleaded gasoline; launching of vehicle renewal programmes (e.g. scrappage); improved vehicle import regulations (to include age limits and catalytic converters); and improved interaction on all levels of governance. Reducing sulphur should involve: public awareness on the benefits of cleaner fuels (including NGOs) and awareness for decision makers highlighting the importance of fuel taxes to the economy (check with government inspectors and policy); ISO accredited labs that are independent from producers (country specific); for poor quality refineries, designation of fuel for non-transport use, for industrial boilers, and marine, domestic heating (temporary measure); availability of mobile testing labs for testing fuel quality (at least for sulphur and colour marking); modernising the equipment of state-owned labs; training personnel on fuel quality control; higher tax for dirty fuels compared to cleaner fuels; sliding scale for penalties (starting with lower); and implementation of national plans for step-by- step sulphur reduction.

12. www.rec.org Joint Conclusion from Conference (2) Promoting cleaner vehicles should involve: public awareness raising; training for policy makers; improving access to information; introduction of fiscal incentives; launching a discussion on how to harmonise the second-hand car market (standardisation); introduction of differentiated environmental taxes; work with other stakeholders and the private sector; and retrofitting for older vehicles. ________________________________________________________________________ The participants concluded that: There is a need for coordinated national and regional action for improvement of vehicle fuel quality and reduction of vehicle emissions. Fuels and vehicle quality and public transport issues need to be integrated in national and local environmental and sustainable development plans. There should be increased participation in the PCFV from CEE and Turkey. All participants from this event are invited to join the PCFV. A regional network of experts and practitioners is established to support the above actions. In close cooperation with the PCFV, the REC will facilitate the network operation.

13. www.rec.org Other Recommendations Exchange of experiences with other countries; Needs assessment for the development and use of non-lead lubricating additives; Research into the feasibility of using unleaded gasoline in cars with soft exhaust valve seats; Ensuring access to the necessary financial support for refinery modernization; Technological development of refineries; Requirements for lead phase-out in the privatization of refineries; Introduction and enforcement of vehicle emissions and gasoline standards; Modernization of the control system for periodic technical inspection of vehicles; Fitting of cars with catalytic converters and other pollution control devices; Development of the production and distribution systems to improve the supply of unleaded gasoline and lubricating additives; Implementation of policy incentives to increase the market share of unleaded gasoline and speed up the complete phase-out of leaded gasoline.