After softening Euro 7 and facing the Chinese threat, the EU could take a new step and legislate on decarbonization taking into account the entire life cycle of a car.
Last weekend, the European Union held parliamentary elections and the result left a clear message: the advance of the right, especially the most radical formations. It is still too early to imagine how the new distribution of forces will affect the car, one of the aspects on which the EU has regulated the most, so it is time to raise ideas. For example, taking a broader view when legislating on emissions.
Right now, the CAFE standard regulates only exhaust pipe pollution and will require that in 2025, the average CO2 emissions data of a manufacturer’s fleet drops by 15% compared to 2020, up to 94 grams per kilometer; let it stay in the 50 grams in 2030 and will be zero in 2035, which is when it is planned that cars with combustion engines cannot be sold in the EU. Anyone who does not comply with these milestones faces billion-dollar fines, of 95 euros per exceeded gram and car, in general.
Paris Agreement
The reasons that justify this approach are several, starting with the 2015 Paris Agreement, which seeks the complete decarbonization by 2050 and limit global warming to below two degrees Celsius. Most of the automobile industry has joined the pact.
Secondly, in this challenge, the automotive industry has a lot to say: according to the International Energy Agency, Transportation is responsible for up to 23% of greenhouse gas emissions in the world, at the same level as industry and only below the pollution produced by coal. AND almost half of that figure, It is the responsibility of the passenger cars and vanswhat is known as light vehicles.
Lifetime
So it seems logical to focus on this aspect when, in addition, up to 88% of a car’s emissions throughout its useful life are those derived from its use. But there is also other factors to act on, as pointed out by Josep María Recasens, global director of Strategy at the Renault Group. Refers to philosophy ‘from the cradle to the grave’, which includes up to five stages: supply chain and logistics; production; generation of the fuel or energy used by the vehicle; use of it and recycling. So the EU is only acting on the fourth of them.
That holistic approach «“It is fairer than considering only the CAFE standard.” when addressing the decarbonization, points out the manager. Although we start from a basic problem: it is not a standard and there is no entity that certifies it. Only some that provide knowledge or ‘monitor’ the results, such as environmental associations.
curious results
However, considering the entire life cycle of a car provides interesting data. For example, the average total emissions of a car from the French group during that time horizon reach 47 tons of CO2, “the equivalent of a round trip by plane between Madrid and New York.” Another curious figure. According to this approach and according to Renault, a 2.6-ton Audi A8 PHEV (plug-in hybrid) ends up having a total carbon footprint equivalent to that of a combustion Clio that weighs half as much.
Obviously, if of those 47 tons of CO2 that we said, more than 37 are generated by the car driving, The first lever is clear: eliminate exhaust emissions as much as possible.
Other levers
But you can also influence obtain raw materials in the most ecological way possible; wear sustainable materials coming from the circular economy; bet on factories that are self-sufficient in energy and that this is renewable or give a second lifeeven to manufacture new vehicles, with the greatest possible number of components. Especially batteries, since this element is the one that can contribute the most emissions reduction. In fact, more than the rest of the other materials (steel, aluminum, wheels, polymers, etc.) combined.
That said, there is even room for improvement by introducing 100% electric cars (or other zero-emission cars, such as those powered by a fuel cell). The studies that Renault has done indicate that, Using it for 200,000 kilometers and 15 years, a diesel Scénic minivan expels 50 tons of CO2 into the atmosphere. The figure is reduced to 28 tons if the alternative is a new Scénic E-Tech with the largest battery (87 kWh) and drops to 25 tons in that same model, but with the 60 kWh capacity battery. Although this last figure can be reduced to 10 tons by acting on the other variables of the life cycle that we mentioned before. It is not possible to reach zero emissions, although compensation measures can be introduced for this. For example, planting forests that absorb CO2.
more and less ‘clean’ countries
There is one last section to consider and it has to do with the sources from which the electricity that drives these vehicles is obtained. And from there it turns out that Spain is one of the countries where introducing this technology brings the most benefits. The greatest contribution of renewables to the energy mix makes the 25 tons that were cited in a Scénich E-Tech are reduced to 22 in our country. Or 20 in the case of France. On the other hand, in Germany, which is ‘dirtier’ in these terms, the figure rises by almost 30% and reaches 32 tons.
Given the weight of this country within the EU, it is difficult to think that its Government would allow this variable to be introduced into the equation. Although Recasens is content with things continuing the course already set. Last year, he points out, was “the first in history in which more new battery-powered models than combustion models were launched on the market” and if the legislator “has already forced our way in this regard, “The important thing is that now they don’t change it again.” We will have to see, because the decision to ban thermal vehicles in 2035 is subject to review and the parties that opted the most for it are those that have lost representation in the EU Parliament.
Like Euro 7
“What I want is for someone to be inspired by what happened with Euro 7, for some flexibility to be introduced that allows us to invest in electrification to be competitive with the Chinese,” he says. As you may remember, in April the EU gave the green light to the new standard, which will not come into force for passenger cars and vans until 2027, two years later than planned. In addition, the limits and testing and measurement protocols of the current Euro 6 are maintained. As a great novelty, the pollution emitted by the wheels and brakes will be taken into account. In the case of trucks and buses, Euro 7 has become more demanding.
If the Commission’s original proposal, much harsher for light vehicles, had come out, the industry would have had to allocate billions of euros to research. An expense to add to what it involves the “ultra-regulation of the sector, which forces us to comply with between six and eight new regulations every year and to spend a large amount of resources. Up to 25% of them, says the manager.
Chinese electrics
As if someone had heard him, a few days after making these statements, Brussels announced the imposition of provisional tariffs on Chinese electric cars imported to Europe.
The decision means a respite for the European industry, behind in this technology and unable to compete in prices with those of the Asian giant’s brands. Prices that, Brussels says it discovered, were based on unfair subsidies. For example, direct transfers of public funds, “forgiven or uncollected” revenues, and government supplies “for less than adequate remuneration.”
since July 5
The proposal is that zero emission cars BYD pay 17.4% more That so far; those of Geely (owner of Volvo and Polestar), 20% more and the ‘jackpot’ goes to SAIC (parent company of the successful MG). For the latter, the penalty is 38%, since it has been the one that has collaborated the least in the investigation that began last October. In all cases, these figures must be added to the 10% that any vehicle imported from China already pays. The rest of the brands that have not been cited by Brussels will have to pay an extra tariff of 21% and it remains to be seen what happens with Tesla and with Western brand cars manufactured in that country through joint ventures with local companies.
If there are no changes, or the strong pressure that Germany and its manufacturers are putting, The new tariffs will take effect on July 5, although they would not be final – after negotiation with the member countries – until the beginning of November. AND It is very difficult to know the impact it will have on prices. First, because the basis on which these taxes are applied – always before the rate without local taxes – is “sensitive information” in the brands. And second, because each manufacturer can decide which part it replicates and which it assumes against its income statement. Well, Tesla has already said that it will raise its prices on the models it imports from its Shanghai plant.
