Brussels, 23/10/2014 (Agence Europe) - A study published by Cambridge Econometrics on Tuesday 21 October argues that in comparison with setting ambitious fuel efficiency standards after 2020, inclusion of road transport in the ETS would lead to 160,000 fewer jobs and higher oil imports to the tune of €22 billion in 2030 growing to €77 billion by 2050.
The Transport & Environment (T&E) NGO is concerned by a point included in the European Council draft conclusions on the Climate/Energy 2030 framework and argues that putting transport into the Emissions Trading System (ETS) would damage growth in the EU, as well as jobs and climate policy and would not be legal. In response to a request by Denmark, a clause has been introduced specifying that member states currently have the choice of putting the transport sector into the ETS. Denmark hopes that including the transport sector in the ETS could help reduce CO2 emissions in non-ETS sectors (transport, construction and agriculture). “It's time for Denmark to drop this nonsensical idea and put the focus back on solutions that really cut oil imports and CO2 emissions”, William Todts from T&E concluded.
The NGO argues that the easiest way to make transport part of the ETS is by issuing allowances for the sale of fuels. Fuel suppliers would be required to surrender permits, passing the cost onto drivers in the form of a carbon tax on road transport fuels. At the current price of €6/tCO2, the cost of fuel would rise around €0.015 per litre - which is about 1% of today's fuel price.
The study shows that even if carbon prices in Europe's emissions trading system trebled from today's levels, including road transport in the ETS would only reduce oil use and CO2 emissions from transport by 3% over the next 15 years. This level is insufficient for road transport to make a proportionate contribution to Europe's climate and energy security goals. (AN)