Transport

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Transport

2010

Climate policy has traditionally focused on this sector and long-term experiences with policies exist. A few countries have long-standing policies. The maximum rating is a ‘C’, however most countries are well below halfway to achieving the goal, with an average rating of ‘E’.

Germany and Denmark have stable support systems for electricity generation from renewable energy. Both have operated feed-in tariffs for over a decade. Policies to support combined heat and power are relatively advanced in Ireland, Germany and Spain. Performance in overarching issues for electricity supply is generally low due to the un-ambitious cap of the electricity sector in the emission trading system; no emission performance standards for new power plants leading to newly built coal fired power plants and widespread subsidies, in addition to tax exemptions for fossil fuels.

2011

Reduced support for renewable electricity, mainly for solar photovoltaic (PV), partly justified
Some countries reduced support for renewable electricity, mainly the support levels for solar photovoltaic (Slovak Republic, Czech Republic, Italy, France, Spain, UK, Estonia, Germany and Belgium). The reduction of support levels for solar PV is justifiable given the decrease in production cost and very strong market growth. Still, the support reductions were often implemented as a step change and have reduced future investment certainty. This is especially the case in Spain and the Czech Republic, where the support for solar PV was cut retroactively, either by cutting the tariff or by introducing a tax for existing installations.

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Transport

Country	Details per country
AUSTRIA	Renewable Energy Renewables in transport are mainly supported through a biofuel obligation, enacted in 2004, which includes a growing share of biofuel in petrol and diesel, supported by tax incentives for high shares of biofuel and bio ethanol. However, this policy is not supported by a framework to ensure the sustainability of biofuels from national or international sources. Austria was one of the seven countries to meet the target of 5.75% biofuels in the fuel mix in 2010. Additionally the action plan for electric transport targets the use of renewable electricity and the promotion of electrification of public transport. However, this plan is not yet substantiated by concrete measures.
BELGIUM	Renewable Energy There is no policy or strategy to develop an infrastructure for electric vehicles in Belgium. The share of biofuels in transport is in line with the EU target. Incentives for electric vehicles and a quota system to stimulate national biofuels production have been put into place.
BULGARIA	Renewable Energy Blending of 4% bio-diesel with conventional diesel has been obligatory in Bulgaria since March 2010. Nonetheless, this does not apply for blending ethanol into petrol. The target is lower than EU requirements. In April 2011 the Government announced that biofuel blending was to be stopped because of the high fuel prices. This follows a series of protests because of the high-fuel prices.
CZECH REPUBLIC	Renewable Energy The aim of the Czech Government is to reach a plateau of transport-related CO2 emissions in 2010, and to achieve a decrease of 5% by 2013. However, there are no national plans for electric mobility, neither in combination with renewables nor with conventional electricity. The biggest state energy company is planning a pilot project with electric vehicles. There is no ambition to move beyond the EU biofuels target.
DENMARK	Renewable Energy All biofuels – sustainable or not - have been exempt from the CO2 tax imposed on ordinary petrol and diesel for transport since January 2005. Since January 2010, oil companies are obliged to ensure that at least 5.75% of annual sales of fuel for land transport consist of biofuels. Electric cars are exempt from both vehicle tax and fuel consumption charges up to 2016. A research scheme for electric vehicles has been set up with a budget of around €2 million until 2012.
ESTONIA	Renewable Energy The main target is to assure that 10% of transport fuels are produced on the basis of renewable energy by 2020. The share of biofuel in total consumption of petrol and diesel based on energy value was 0.6% in 2008. In March 2011 the government decided to launch the Electric Mobility Programme for Estonia. It will be financed from the sale of emission allowances (AAUs) to the value of €10m to the Mitsubishi Corporation. The Programme includes three parts: the Ministry of Social Affairs will take up the use of 507 Mitsubishi iMiev electric cars as samples; the Ministry of Economic Affairs and Communications will develop the grant scheme to support acquisition of electric cars; and a charging infrastructure for electric cars will be built.
FINLAND	Renewable Energy First-generation biofuels are currently not considered a major option. They are considered to lack cost-efficiency and be poor at reducing greenhouse gas emissions. Second-generation biofuels and electric vehicles are currently favoured in the discussion, driven by the strong position of the energy industry. A 7 TWh consumption target has been set for liquid biofuels by 2020. The measures to promote liquid biofuels have not yet been set. The target is 20% and it assumes that the target will mostly be met by wood-based biofuels. Support and infrastructure is needed for electric vehicles. No additional support for electric vehicles exists.
FRANCE	Renewable Energy France fixed the target for biofuels at 7% by 2012 and 10% by 2015. There are no sustainability criteria for the production or import of biofuels at the national level. For electric vehicles, renewables are not explicitly targeted as a source for electricity. It is assumed that electricity will come from conventional fuels. A nuclear energy commission participates in R&D for batteries for electric vehicles with the aim of producing non-carbon electricity. Backing for electric vehicles is granted through R&D support for batteries, support for electric vehicle purchase, the obligation for new (and subsequently existing) buildings to provide charging stations. Still, the aim to have 2 million vehicles and 4 million charging stations by 2020 seems rather ambitious.
GERMANY	Renewable Energy The regulation on biofuels Biomassekraftstoff-Nachhaltigkeitsverordnung goes beyond EU requirements. Biofuels can benefit from tax reductions, but only those which have 35% less emissions (rising to 60% after 2017) than conventional fuels. Biofuels must constitute an increasing share of fuel for transport. Germany was one of the seven countries that met the EU target of 5.75% biofuels in 2010. Increase use of ethanol in gasoline products (from 5% to 10%) is allowed as of December 2010. However, the blending of biofuel (E10) was insufficiently communicated to the public and thus has not been well received by consumers fearful of engine damage and lower efficiency. Electric vehicles are promoted mainly via model regions and investment in R&D. An overall budget of €1bn is allocated until 2014. However, while political statements stress that electricity shall come from renewable sources, policy has yet to relect this. Additionally investment in infrastructure for electric vehicles needs more attention.
GREECE	Renewable Energy A share of up to 5% biofuels has to be used by refineries. Additionally, a quota for biofuels is set annually, which is exempt from fossil fuels tax. Subsidies of between 40% and 55% for biofuels, but not for bioethanol, exist. This support has lead to a small increase (0.9%) in the use of biofuels between 2005 and 2007. The quota is set at 7%, but current trends indicate that it is unlikely that this will be reached. Electric mobility does not play a role in the future strategy of the transport sector in Greece.
HUNGARY	Renewable Energy Hungary is a laggard on transport policy. The only incentives to promote climate-friendly developments are a reduced excise duty for biofuels and tolls for trucks. These were introduced in 2008 as part of an environmental policy.
IRELAND	Renewable Energy A new biofuels obligation was introduced in 2010 together with a Mineral Oils Tax Relief Scheme for non-fossil fuels. The goal is to reach 10% biofuels by 2020. However, the increase in the last decade has not even reached 1%.
ITALY	Renewable Energy Some local, mostly market-driven initiatives for implementing an electric mobility infrastructure exist, but there is no ambitious and comprehensive policy for renewable energy transport yet. A specific policy to promote vehicles fuelled by renewable energy sources is being implemented, as indicated in the National Action Plan for RE published in June 2010. Legislative decree 28/2011 stated energy calculation methods from renewable fuels for all transport typologies. A specific policy for electric cars supporting zero emission mobility in Italy, including incentives of up to €5,000 per electric vehicle purchased, tax rebates, and economic support for the recharging infrastructure construction was approved in July 2011 and will soon becomes law.
LATVIA	Renewable Energy Biofuels in the transport sector are supported with a combination of a quota obligations, fixed direct governmental support and additional fiscal measures (e.g. exemption of excise duty for biofuels, tax reductions). The Regulation on Conformity Assessment of Petrol and Diesel stipulates that only diesel with biodiesel content of 4.5-5.0% and petrol with 4.5-5.0% of bioethanol may be sold in Latvia. The ability of the incentive to trigger further production and to maintain sustainability standards needs to be closely monitored. *The climate change financial instrument Renewable energy in transport sector* supports renewable energy utilisation in the transport sector.**
LITHUANIA	Renewable Energy At present four biodiesel production plants are in operation with the total nominal capacity of 150 kt. Bioethanol is produced in two plants with a total capacity 60 kt. Biofuels are supported through tax exemptions/reductions and a compensation for raw materials. They are certainly not sufficient for developing a low-carbon economy. The lack of legislative framework and specific support for electric vehicles that use renewable electricity are hindering progress, though in April 2011 Lithuania’s first electro mobility charging station opened in Kaunas.
LUXEMBOURG	Renewable Energy Since 2007, a biofuels quota is set for operators providing transport fuels for consumption. Pure biofuels can also benefit from a tax deduction. The quota is set at 2% and revised annually. Luxembourg intends to reach half of its total renewable energy target of 11% by 2020 with biofuels. However, since the largest share of these biofuels must be imported, there needs to be close monitoring on where these fuels come from and whether strict sustainability criteria are being applied. There is no specific support for electric vehicles using renewable electricity.
MALTA	Renewable Energy The target from the Biofuel Directive will likely be met through specific support for biofuels produced from waste and some other sources and tax exemptions for the biomass share in biodiesel; there is an incentive for electric cars in existence but no explicit requirement for renewable electricity. Purchase grants for electric cars have been increased. However the take-up of this scheme has been very poor. With few units being sold, it makes it more difficult for the country to reach its target of 5,000 electric cars on the road by 2020.
NETHERLANDS	Renewable Energy The policy is to reach 10% renewable energy use in transport by 2020, by blending-in biofuels. There are no policies that support the use of ‘pure’ biofuels in vehicles. Excise taxes on biofuels are similar to other transport fuels and are (relatively) high. Policies in place target 200,000 (5%) electric cars by 2020. Examples of measures taken to make electric vehicle very attractive financially include: exemption from vehicle tax; exemption from road tax; and appealing conditions for electric company cars. Companies can deduct investment in electric charging points from their income tax.
POLAND	Renewable Energy A quota for biofuels was introduced in 2006. Targets are set annually, taking into account availability and production capacity as well as EU legislation. The quota started at 3.45% in 2008, and biofuels have to fulfil a target of 7.1% by 2013. The subsidies for biofuels have been maintained in 2011; currently they are at the level of 1.5 billion polish zloty (€344m). In 2012 there will be a special fund created to promote the production and use of bio-components and biofuels. No additional support for biofuels is in place. The sustainability of imported biofuels has not yet been addressed. Electric vehicles are not explicitly included in any strategy for the transport sector and thus renewable electricity does not play a role in the development of transport.
PORTUGAL	Renewable Energy Portugal was one of the seven countries meeting the EU target of 5.75% biofuels in 2010. The Decree Law n.º 117/2010 from October 2010 introduced sustainability criteria for the production and usage of biofuels and bio-liquids. It defines the limits for the obligatory incorporation of biofuels from 2011 to 2020, and creates a trading system for gas and fuel traders, as a market mechanism to reach the given objectives. Local biomass and therefore agriculture are favoured by higher incentives. A maximum price of biodiesel has been also set. Objectives are set as follows: a) 2011 & 2012 — 5 %; b) 2013 & 2014 — 5,5 %; c) 2015 & 2016 — 7,5 %; d) 2017 & 2018 — 9 %; e) 2019 & 2020 — 10 %. An electric vehicle programme (MOBI-E) is being implemented. Since April 2010, there have been grants of €5,000 per electric vehicle (for the first 5,000 cars sold). This can increase by to up to €1,500 if an old car is scrapped. Electric cars receive an exemption from the vehicle tax and can be deducted from income tax liability. Portugal plans to build 1,300 charging stations across the country by July 2011, plus 50 extra-fast charging stations.
ROMANIA	Renewable Energy Romania transposed the EU legislation regarding the promotion of biofuel use, which means that they will have to have 10% biofuels by 2020. According to government legislation from August 2010: from 1 January 2011, diesel fuel has to have a biofuel content of at least 5% in volume from 1 January 2011, gasoline has to have a biofuel content of at least 5% in volume Biofuels can be introduced on the market only if they are produced from raw materials coming from an agricultural area of the European Union, obtained through technologies that comply with good agricultural and environmental conditions; lead to a reduction of at least 35% in CO2 emission during the life cycle, compared to conventional fuels and meet the technical specifications required by the European Union. However, Romania is lacking clear energy crop legislation. A law with respect to incentives for energy crops is currently (2011) under consideration. There are no plans for an infrastructure on electric mobility. *Discussions are being carried out and the Ministry of Environment and Forestry will offer financial support for the purchase of electrical cars through the Rabla* project.**
SLOVAKIA	Renewable Energy The support for biofuels was based on a quota obligation - without a penalty for non-fulfilment - and an excise tax exemption for biofuels. Quota obligations for biofuel in transport sector were valid up to 31 December 2009 but were not prolonged for 2010 and 2011. There is no specific support for electric vehicles that use renewable electricity.
SLOVENIA	Renewable Energy Slovenia has implemented a quota obligation for a minimum 5.5% biofuels in transport by 2011. In addition, biofuels are exempt from excise taxes and grants for growing energy crops are available. There is no specific support for electric vehicles that use renewable electricity.
SPAIN	Renewable Energy A partial tax exemption for biofuels exists. Electric mobility is part of integrated transport planning and €1.5m is allocated to develop the necessary infrastructure, including pilot projects with electric vehicles and loading stations. Electric mobility is not coupled to the use of renewable energy. In 2011, the budget for the promotion of electric vehicles is decreased by 19% compared to 2010 (now €81m). The biofuel target for 2011 has been increased to 6.2% instead of 5.9%, and to 6.5% for 2012 and 2013.
SWEDEN	Renewable Energy Biofuels are exempt from energy and CO2 taxes. Since 2006, all larger fuel stations are obliged to offer at least one type of biofuel. From 1 January 2011 biofuels used in transport must demonstrate that they are sustainable in line with the Renewable Energy Directive.
UNITED KINGDOM	Renewable Energy The Renewable Transport Fuel Obligation started in 2008, with a target of 2.5%. The target was surpassed by fuel suppliers. The target for 2010/11 is 3.5% by volume. All fuel suppliers have to report on carbon and sustainability aspects of their biofuels to gain tradable certificates. No minimum carbon or sustainability requirements are to be set until the EU Renewable Energy Directive is fully implemented. The target increases to reach 5.75% in 2013, and the intention is to reach the 10% target in 2020. Government grants of £5,000 (€5700) are still available for hybrid and electric vehicles (EVs) but the scheme is up for review in 2012. The Plugged-in Places initiative for charging infrastructure has been expanded from 3 to 8 locations. Funding for this measure will be up for review in 2013. Less positively, only £43 million in capital funding has been guaranteed in the government’s spending review (far lower than the £230 million promised by the previous government), although a total of £300m for EVs has been budgeted up to 2015. The government Infrastructure Plan for EVs has moved from a blanket approach to prioritising home and workplace charging instead. The government still needs to ensure that sufficient public charging points exist to encourage EV uptake and reduce range anxiety.

Country	Details per country
AUSTRIA	Energy Efficiency A ‘bonus-malus’ system for new vehicle registration fees is the main tool used to promote efficiency of vehicles. Vehicles with emissions above a certain threshold are taxed higher (malus) than those below a threshold value (bonus). Introduced in 2008, the system was tightened in 2010 to further reduce CO2-emissions from newly registered vehicles. It is yet to be judged whether this measure will be sufficient to put Austria on a path towards 95g/km in 2015 for newly registered vehicles. At the beginning of 2011, the malus was tightened further for the coming two years, and in 2013, the CO2 emission level at which car owners have to pay a higher malus will decrease again.
BELGIUM	Energy Efficiency Belgian emissions targets are in line with EU standards. In Flanders, there is an investment subsidy for efficient lorries. Generally there are some incentives and tax reductions for energy efficient cars available together with customer information on efficient cars. However, the Belgian support system has not been adjusted since its introduction, which leads to too many cars now being eligible for support.
BULGARIA	Energy Efficiency No policies on the promotion of vehicle efficiency could be found.
CZECH REPUBLIC	Energy Efficiency The Czech transport sector, similarly to its industrial sector, is rather neglected when it comes to policies and measures to move it towards a low-carbon future. Regarding CO2 emissions for new passenger cars, there is no ambition to surpass the EU target. Freight vehicle emissions, too, are not targeted by reduction measures.
DENMARK	Energy Efficiency Denmark has high taxes on the purchase of vehicles and car ownership which favour fuel efficient vehicles. Nevertheless, both the number and weight of cars have been rising for years.
ESTONIA	Energy Efficiency The government of Estonia is to invest part of the revenue from the sale of emission credits into the development of public transport. The state will spend €21m on more than 100 economical new buses for public service from 2011 [8]. Estonia had the second lowest efficiency of new cars in the EU-25 in 2008.
FINLAND	Energy Efficiency The existing purchase tax depends on the emissions of the vehicle. This tax, together with the economic recession, has led to an increase in the demand for smaller, more efficient cars. Car density per inhabitant is high, especially in the remote parts of Finland, where public transport is very limited.
FRANCE	Energy Efficiency New cars have to comply with an emission level of 95g CO2/km by 2020. Currently, new cars in France emit, on average, 131g CO2/km, which is the second lowest value in Europe. Since 2008, a bonus-malus system is in place to further decrease these emissions: a bonus ranging from €400 to €5,000 is paid for cars emitting less than 110g CO2/km; buyers of new cars emitting more than 150g CO2/km have to pay a malus of ranging from €200 to €2,600. From 2012, the malus will start as of 141g CO2. Freight transport is addressed under a voluntary agreement (not signed by all actors) to reduce emissions by 20% by 2020. Participants in this agreement are evaluated annually, but there is no penalty for non-fulfilment of the target. In January 2011, the second phase of France’s white certificate scheme started and will run until the end of 2013 as part of Grenelle II. The transport sector has seen additional standardised measures in the fields of modal shift, combined transport, etc. However, actions in this sector are still very limited (less than 1% of energy saving within the scheme).
GERMANY	Energy Efficiency Germany has formulated a voluntary target of 130g/km as the average for new passenger vehicles by 2012, which is more ambitious target than the current EU requirements. However, the tax incentives for electric and natural gas cars is barely sufficient to reach the EU target. Average emissions from trucks have decreased by 32% between 1995 and 2007. A new law, passed in July 2011, will introduce efficiency labels for cars as of December 2011. While the general concept was well received, the efficiency categories established in the law, which are based on the CO2 intensity as well as the weight of a car, have been criticised. Germany was one of the opposing nations, but the EU recently agreed to set the emission limit for vans to 147g/km by 2020.
GREECE	Energy Efficiency No incentives to reduce new vehicle emissions below the EU standard are in place. For freight transport, there are no incentives for lower emission trucks. This problem is aggravated by the fact that the Greek vehicle fleet is quite old, (18 years on average).
HUNGARY	Energy Efficiency Measures targeting vehicle efficiency are not supported.
IRELAND	Energy Efficiency A policy to differentiate the vehicle registration tax (VRT) according to greenhouse gas emissions was introduced in 2008. VRT was previously about 20% of the average vehicle cost. This measure has led to significant reduction in the purchase of high greenhouse gas emitting vehicles. The Motor Tax is charged to maintain and upgrade the road network and has been redesigned using a categorisation based on CO2 emissions for new vehicles. A vehicle scrapping scheme was introduced in 2010 whereby passenger cars over ten years old being replaced with a new vehicle from the lowest two CO2 categories would be given a government subsidy. The scheme ran until June 2011.
ITALY	Energy Efficiency Policies to increase vehicle efficiency need improvement. A policy encouraging the substitution of old freight vehicles exists, however there is no specific reduction target. Financial incentives for fuel conversion (the MSE 2011 incentive) - €500 for conversion to GPL and €650 for conversion to methane - were available from March until April 2011, when the €25m fund expired.
LATVIA	Energy Efficiency Since 2004, different tax rates have been applied to passenger cars depending on age and engine size but not related to emissions.
LITHUANIA	Energy Efficiency No specific policies to increase energy efficiency in cars.
LUXEMBOURG	Energy Efficiency Energy efficient vehicles are encouraged by taxation (see below) and subsidies, but the incentive is insufficient to limit the increase in vehicle fuel use.
MALTA	Energy Efficiency Regarding the EU initiative on emission performance standards, some policies support better energy efficiency via speed limits, energy efficient driving, congestion management, etc. However, Malta has no vehicle manufacturer. There are no incentives for freight transport. A new public transport reform is replacing all old buses with a new and more efficient Euro V fleet.
NETHERLANDS	Energy Efficiency Some additional incentives exist, such as no vehicle tax for efficient cars. The purchase tax is now based on the CO2 emitted. Campaigns promoting eco-driving have been extended for the period 2011-2014. The target is to reach the limits set by EU legislation. In June 2011, the government published plans to allow fiscal advantages (regarding the vehicle tax, road tax and fiscal scheme for company cars) to extremely energy efficient cars – i.e. those emitting less than 50 g CO2 / km until 2015.
POLAND	Energy Efficiency Poland has not yet implemented the EU target for new vehicle emissions. For freight vehicles, no incentives exist to reduce emissions. In the recent past emissions from trucks have increased rather than decreased – by 33% from 1995 to 2007.
PORTUGAL	Energy Efficiency Portugal has set a target of 120gCO2/km for 2015. This development is on track, with tax exemptions for low-carbon vehicles and the incorporation of CO2 emissions into the calculation of vehicle taxes (CIEC). A car scrapping scheme is also in place. There is also a programme to increase the number of metro passengers in Lisbon, Porto, and Sul do Tejo. Results have been promising, with an increase of 3.3% equivalent to 8 million new passengers in 2010 compared to 2009.
ROMANIA	Energy Efficiency Incentives for reducing emissions exists only for cars (based on EU regulation), but not for freight vehicles.
SLOVAKIA	Energy Efficiency The average emissions in 2008 were 150 g CO2/km (close to the EU average). There is a decreasing trend for such emissions. No significant policies found.
SLOVENIA	Energy Efficiency There is a subsidy in place for the purchase of environmentally-friendly trucks since 2009. Slovenia has implemented a progressive tax on CO2 emissions of new and used cars. The tax level depends on the purchase price and the CO2 emissions of the vehicle. The tax varies between 0.5% and 31%. It has not yet been effective in halting the increase in emissions of new passenger cars. For the first time, in 2010 and 2011, the budget allocated to modernise the railway network exceeded the road construction budget. It is also the biggest ever rail budget, amounting to €589.7m.
SPAIN	Energy Efficiency The efficiency of the transport sector is not prioritised in Spanish policymaking. There is a target for emission levels of new cars which is below the EU Directive, but there are only minor financial incentives in place to support the purchase of cars with emission levels below120 gCO2/km. The Plan to Increase Energy Savings introduced a temporary (effective March – June 2011) maximum speed limit of 110km/h as well as some measures to optimise flight routes and modal shift in favour of rail. The Plan de ahorro, eficiencia energética y reducción de emisiones en el transporte y la vivienda introduces further measures to cut 34.000 MtCO2 by 2020.
SWEDEN	Energy Efficiency The car fleet in Sweden is dominated by large vehicles with high fuel use. Starting in 2010, new green cars are exempt from the vehicle tax for the first 5 years. Green cars are defined as vehicles that use E85/biogas or are very energy-efficient and do not emit more than 120g CO2/km. Vehicle tax is linked to CO2 emissions and is set to increase. There is also a SEK 40,000 (€4,300) government grant available for the purchase of cars with emissions lower than 50g CO2/km. Funding for this grant is however limited to SEK 200m (€22m) for the years 2012-2014 and so will only be sufficient for 5,000 cars. There are also other incentives, such as free parking in certain regions and exemptions from the congestion tax for cars defined as being environmentally-friendly.
UNITED KINGDOM	Energy Efficiency Tax incentives exist for low emission cars, but they are not sufficient. Examples include vehicle excise duty, road tax and company car tax which are banded according to emissions. The Department for Transport also runs various Modal Shift Programmes and Logistics Efficiency Programmes for freight. The capital grant funding for hybrid and electric vehicles is continuing but is up for review in 2012.

Country	Details per country
AUSTRIA	Overarching Austria has the second highest per-capita investment in rail infrastructure in Europe and also supports a wide range of activities around climate friendly mobility, with “klima:aktiv mobil” providing both financial support and an information programme. The budget cut in 2011 leads to less investment in road infrastructure, but at the same time, available money for new investment in rail infrastructure is also cut. However, the budget for regional public transport is not affected. To reduce emissions from freight transport and to shift road transport to rail, various measures aim at supporting combined freight transport. Those measures consist of financial support, fiscal incentives (e.g. incentives regarding vehicle tax) and other support measures (e.g. liberalised initial and final combined transport hauls, exemption from driving bans on lorries). One of the financial support measures is a programme that supports investment in transport units and technology innovations until 2014. Past support periods of this programme reached less than 3% of road freight transport. However, various measures also promote higher fuel use: a commuter tax allowance, mileage allowance for business trips, and the low level of mineral oil taxes. The problem is aggravated by uncoordinated regional planning leading to urban sprawl.
BELGIUM	Overarching There are investment programmes for the public transport sector and incentives for a modal shift. For example, the federal government subsidises 20% of the costs for a public transport season ticket for commuting. Furthermore, there is an obligation for private train companies to increase passenger transport by 25% over the period 2006–2012. Besides stimulating public transport, there are no ambitious policies towards a low-carbon infrastructure put into place.
BULGARIA	Overarching Bulgaria has an eco-tax for the import of second-hand cars from Western Europe. This import tax is controversial and opposed by the sellers of old vehicles. However, it is too low in order to have serious impact on the number of imported old cars. To increase the number old cars with catalytic converters, Bulgaria introduced a 50% road tax rebate. Some free parking for electric cars is considered in downtown Sofia as of 2012 but the project for the local legislation is not in place yet.
CZECH REPUBLIC	Overarching Policies for modal shift and avoiding transport exist, but not beyond a horizon of 2013. The targets lack sufficient financial backing and are therefore likely to be missed. In January 2011, the Ministry of Transport approved the so-called “Superstrategie – green paper”: this document presents a first version of the plans for the transport structure development by 2025, which is now to be validated by the Government.
DENMARK	Overarching Danish policy has for decades favoured private car use. This trend has been further enhanced under the current government. From 2002 to 2008, investment in roads increased by 66% from 3 billion DKK (~€ 4 m) to 5 billion DKK (~€ 7 m) per year (culminating in 2006 with 7 billion DKK (~€1 bn)), while investments in railways remained stable at around 1.5 billion per year.
ESTONIA	Overarching Biofuels, for use as motor or heating fuel, were exempt from excise tax until July 2011; this exemption was since discontinued. However, there is no consistent transport strategy yet in place.
FINLAND	Overarching There are no incentives for a modal shift and no major investment in public transport infrastructure. In Finland many families have two cars, especially those who live in remote parts of the country. Public transport is also limited in these parts of the country. Vehicle tax is based on the emissions of the car, but there is not enough support for public transport and biking.
FRANCE	Overarching The main area of support for a modal shift is the combined transport of goods which is part of the transport strategy of France. Investment grants for combined rail/road transport are given. Regarding infrastructure, investment in railways, river transport and ports is given priority and €97bn are allocated for non-road transport until 2020.
GERMANY	Overarching There are support programmes for low CO2-emitting modes of transport, but the total effect is limited. For personal transport 15 regional networks are promoted, while for freight, investment is in handling plants and train track extensions. The “Masterplan on Freight Traffic and Logistics” aims to internalise external costs, e.g. climate cost. Despite several transport-related plans emanating from different ministries, an overall integrated planning approach is lacking. Taxes on cars are relative to the energy they consume. There is an energy tax which includes a share of the eco-tax although the share is not very high. Many policies exist to reduce the attractiveness of private vehicles, but not enough to make rail traffic more attractive. The plan to increase motorway tolls for trucks was dropped by the Government in September 2010, leaving toll rates unchanged until 2013. There are discussions about including passenger cars as well. Tolls for freight transport were extended to selected main countryside highways. A passenger tax has been introduced for flights, but it has been criticised for not providing an incentive for airlines to achieve high load factors for their planes (e.g. as was the experience in the UK). Several subsidies for higher emission and fuel-intensive transportation modes exist, like tax reductions for company cars and travel to work.
GREECE	Overarching Only minor investments are planned for low-carbon modes of transport. Action is mainly taken at the city/community level and no overall strategy exists. Modal shift strategies do not really play a role in the Greek transport sector. In 2010, a change in the system was introduced with cars being taxed based on their CO2 emissions. Additionally, a car scrapping bonus to increase the use of more energy efficient cars was started, but due to the economic crisis the market response has been relatively low. Finally, a severe increase in the price of tickets for public transport (partially due to an increase in fuel prices) in turn creates a counter-incentive for the shift towards low-carbon modes of transport as less people use public transportation.
HUNGARY	Overarching There are no policies to support modal shift. The work on a new National Transport Strategy is expected to start before the end of 2011. The Hungarian railway company together with the responsible ministry prepares a new railway strategy to increase the share of rail transport for both passenger and freight transportation.
IRELAND	Overarching Due to the recession transport emissions are expected to fall in 2011. Due to the emissions differentiation introduced into the Vehicle Registration Tax, emissions from new cars have fallen. There has been an intensive campaign in the last few years to stimulate public transport, mainly in the Greater Dublin Area. The Smarter Travel policy is the Government’s strategy to reduce overall emissions from transport by 2020. This will be done by targeting a modal shift from cars to public transport as well as increased walking and cycling in the smaller cities and towns and reduced travel through land use planning and policies such as e-working. Policies include investment in public transport infrastructure, reduced spending on road infrastructure and fiscal instruments. The Smarter Travel Project fund seeks to support individual demonstration projects. New electric vehicle grant scheme: Ambitious targets are in place for the electrification of the vehicle fleet. The objective is to develop a smart grid where cars are charged at the best points of the day or night. The objective is for electric vehicles to make up 10% of the transport fleet by 2020. This target is supported by a range of measures. The government gives a €5,000 grant per vehicle and exempts them from registration tax. Additionally a partnership between the government, the Energy Supply Board and Renault-Nissan is to supply the necessary infrastructure and vehicles.
ITALY	Overarching There is lack of coordination between public bodies which could control the shift to low-carbon transport. The train infrastructure should be maintained and promoted more efficiently. The taxes on transport fuels are very high. There are no taxes on CO2 apart from ETS on aviation. A road tax proportional to CO2 emissions is included in the draft of the sustainable mobility law. Italy has implemented the EU directives which monitor CO2 emissions from aviation.
LATVIA	Overarching There is some funding for investments in public transport infrastructure and some concepts and guidelines for the promotion of public transport/bicycles. However, there is no stringent strategy and the measures are not sufficient to counter the sharp increase in emissions from transport caused by increasing standards in the country.
LITHUANIA	Overarching Some measures are included in the National Transport Strategy, but the focus is on road infrastructure and inter-modal transport instead of supporting modal shift towards public transport. Overall, the transport system is characterised by severe problems - due to a lack of infrastructure, old cars etc. – and as such it provides a good starting point to create a consistent strategy that is oriented towards a low-carbon transport system.
LUXEMBOURG	Overarching Luxembourg’s CO2 Reduction Action Plan (2006) targeted transport by increasing vehicle fuel excise taxes, based on EU requirements, as well as reforming vehicle taxation and giving subsidies to encourage low-carbon vehicles and increase the use of public transportation. In 2007, Luxembourg introduced a so called Kyoto cent, a specific tax which was increased in 2008 to €25 per 1,000 litres of petrol. Although excise taxes have slowly increased, the difference with surrounding countries remains significant. Transport fuels sold to foreign cars and trucks account for approximately 40% of total emissions in Luxembourg. This is also illustrated by the increase of 96% in total per-capita emissions from transport between 1990 and 2008.
MALTA	Overarching The overall policy mix is contradictory and needs improvement. There are various policies in place to encourage modal shift alongside strong incentives for continued car use (road improvements, traffic control, etc…).
NETHERLANDS	Overarching There are several excise duties, which differ for diesel, petrol and natural gas. On average they are 100% of the fuel price, meaning that 50% of the total price is taxes.
POLAND	Overarching Poland aims to limit the growth of traffic and use lower carbon transport and technical and organisational solutions to reduce harmful influences on the environment. However, concrete measures to achieve these targets are missing in the transport policy. Tax levels for transport fuel are set at the minimum level required by EU legislation and do not encourage lower fuel use. Excise tax allowance granted for the addition of biofuels to fuel expired in April 2011.
PORTUGAL	Overarching Various initiatives for modal shifts, such as new logistic platforms and development of ‘sea motorways’. The plans seem feasible but results need to prove effectiveness in future years.
ROMANIA	Overarching Romania is making efforts in motorway/highway development. However, the focus is on railway, water and air transport.
SLOVAKIA	Overarching There is a toll on highways and selecte
SLOVENIA	Overarching The total per capita emissions from transport increased by a factor of two between 1990 and 2008. However, the overall transport policy mix for the future is diversified and ambitious. Slovenia is one of the few European countries to have implemented a Spatial Development Strategy which includes several aspects of sustainable transport and enables integrated planning. There are financial incentives for bicycle lanes and public transport. Financial incentives for inter-modality and increase in rail freight are financed through taxes on road freight vehicles. External costs are included in tolls and other taxes on freight transport.
SPAIN	Overarching The infrastructure for low-carbon modes of transport and modal shift is limited. Although there are plans to increase the amount of railway lines and the shares of transport by rail and on waterways, the transport budget currently includes big budgets for highways and other roads. This might potentially neutralise the impact of investment in alternative transport modes. As the Spanish automotive industry faced large problems due to the economic crisis, an incentive to buy new cars was introduced without connecting it to vehicle emissions.
SWEDEN	Overarching Between 120m and 170m SEK (€12.9 – 18.3m) per year have been invested in research and demonstration projects for biofuel. In 2009, another 875m SEK was provided for R&D in biofuels for a period of three years. Approximately 450m SEK (€48m) shall be spent during the coming years on R&D for hybrid and electric vehicles. Petrol and diesel are subject to the CO2 and energy tax. The Swedish policy goal is for the transport fleet to be independent of fossil fuels by 2030.
UNITED KINGDOM	Overarching Air passenger duty (APD) was increased from two to four tax bands based on distance travelled in November 2009. In August 2011 the government responded to the 2009 Committee on Climate Change’s report on reducing aviation emissions by 2050. It stated that further assessment was needed before adopting a reduction target for aviation. An inflation-rate rise in the APD was due in May 2011 but has been delayed until April 2012. Plans to replace the APD with a per-plane tax have also been shelved after the government announced that the options being pursued would be illegal under international law.

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