EU policy news

Temporary infrastructure consortia for low-carbon refuelling deployment, study suggests

Published on: February 5, 2012

The European Think Tank Bruegel launched a study sponsored by the Fuel Cell and Hydrogen Joint Undertaking FCH JU, entitled “Public Support for the Energy and Transport System Transition”on February 2, 2012, calling for the integration of transport in Europe’s Emission Trading System to ensure the rapid commercialisation of  new technologies like fuel cell powered vehicles.
“To enable the private sector to make the necessary investments for development and deployment of the technologies needed for the energy and transport system transition, a set of smart policies needs to be implemented.” Michael Holtermann the Project Leader of European School of Management and Technology‘s Market Model Electric Mobility Project reflected.

The study also points to the role  of temporary infrastructure consortia for the different low-carbon fuels that would plan the deployment of its respective refueling  infrastructure. Each consortium would be given the exclusive right to sell local concessions for new fuel stations to interested retailers so that  competition between different low-carbon fuels and different retailers would be ensured.
To enable the private sector to make the necessary investments for development and deployment of the technologies needed for the energy and transport system transition, a set of smart policies needs to be implemented.
The Bruegel suggests that “the cost of carbon in different sectors needs to be aligned in order to stimulate efficient emission-mitigation behaviour”. Therefore transport should be included in the ETS combined with a carbon component in the fuel price to ensure that  modal choice decisions take the carbon cost into account.  The study also believes that by letting public banks issue options on the carbon price, thus increasing their exposure to the carbon price, could serve as a tool to commit future policymakers to ensuring the reliability of the system over decades. As a third option  Bruegel proposes to higher  emission standards for certain appliances in the absence of a global and long-term carbon price. The study can be downloaded from the Bruegel website.

The study will be presented at lunch event on March 13 in European Parliament.

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