Transport Brief - EU looks to take the controversy out of carbon removals

To help prevent greenwashing, the European Parliament’s environment committee agreed new rules last week on the certification framework for carbon removals – a move it says will boost the EU’s capacity to quantify, monitor and verify carbon capture schemes.

The transport sector is in danger of dragging down the EU’s climate ambitions; while other sectors briskly reduce emissions, transport reductions are expected to come primarily in the future.

Transport’s climate ambitions are centred around cleaner technology and fuels, and a modal shift to more environmentally-friendly means: More people opting for the train, electric vehicles replacing petrol and diesel cars, and the adoption of low-carbon aircraft and ships.

But for now, in climate terms, the transport landscape seems much as it did a decade ago, with fossil fuels overwhelmingly powering our mobility.

Even with technological fixes, it is highly unlikely that transport’s climate footprint will disappear completely. By 2050, the EU’s date to reach carbon neutrality, the aim is to reduce the sector’s carbon emissions by 90% compared to 1990 levels.

The remaining 10% will be dealt with by carbon removals.

This may mean catching CO2 emissions and burying them deep underground, such as in spent oil wells, or it can take the form of offsetting, in which an equivalent amount of carbon is absorbed to essentially cancel out emissions released, such as through the planting of trees or restoration of nature (known as carbon farming).

Traditionally, environmentalists have been wary of carbon removals, arguing that our primary goal should be to make industries less carbon-intensive through green reforms. Simply continuing business as usual but injecting carbon underground gives industries a tacit “licence to pollute”.

But as climate change bites, there are indications that mindset is shifting. When the house is on fire, every pail of water counts.

MEPs and trade unions call to stop investigations into freight rail operators

As part of its climate agenda, the EU aims to shift freight transport from road to rail.

However, left-leaning EU lawmakers and rail trade unions have now warned that an ongoing EU investigation into two main rail freight operators could undermine this goal.

In a letter sent to the European Commission last week, they called to stop investigations into Germany’s freight rail operator DB Cargo, a subsidiary of state-owned Deutsche Bahn, and France’s counterpart, Fret SNCF. Karima Delli (Greens/EFA), head of the European Parliament’s transport committee, is among the signatories, as are MEPs from the Socialists, Green and Left groups.

In January 2022, the Commission started a state aid investigation into DB Cargo.

By being able to permanently shift losses from DB Cargo towards the parent company Deutsche Bahn, it could illegally benefit from state aid and distort competition, the argument goes.

Trade unions argue however that “it is short-sighted to only focus on the financial debts of companies who are forced to compete with the road sector where social and environmental dumping are rampant”.

The investigation would create “uncertainty for a sector that needs planning and long-term vision”, the letter adds, warning of job losses.

In France, a similar investigation into Fret SNCF already led to a break-up of the company, with parts of the group being sold to competitors.

Meanwhile, private competitors of DB Cargo support the investigation, with German freight rail association NEE arguing that “permanent subsidies for a poorly performing company with no prospect of improvement are not an attractive long-term investment for more climate protection”.

– Jonathan Packroff

China’s BYD sees profits soar

Chinese automaker Build Your Dreams (BYD) has announced record profits, with a recent filing showing earnings of some $1.42 billion (€1.34 billion) in the third quarter of this year.

Despite increasing competition in the domestic market, the Chinese electric vehicle giant retained its national leadership.

The impressive figures reflect the depth of demand for electric vehicles in China, the world’s largest auto market, and the difficulty for European car manufacturers to overcome strong Chinese offerings in the country.

BYD saw sales of 824,001 in the third quarter, with 71,231 electric vehicles sold abroad – an increase of 323% in a year.

European Commission president Ursula von der Leyen announced in September an investigation into price dumping activities by Chinese carmakers in the European Union, asserting that unfair state subsidies are keeping the prices of Chinese cars artificially low.

However, critics say the investigation, which could result in steep tariffs on Chinese vehicles, is a protectionist move aimed at shielding the EU’s lucrative car industry, one that will hurt consumers.

Despite fears of Chinese automakers eating into the market share of European brands in the EU, figures suggest that they have a long way to go before posing a serious threat.

From January to September, Chinese manufacturers reached a share of only 1.4% of new car registrations in Germany. Among new electric cars, the share was 5.8%.

While the European automotive sector was slow to embrace electric vehicles, the Chinese automotive industry invested heavily in the technology. Today, China is the world’s foremost producer of electric vehicle batteries, largely controlling the flow of the critical raw materials needed for production.

– Sean Goulding Carroll

Carbon gamble’? EU lawmakers back CO2 removal certification scheme

European Parliament lawmakers voted Tuesday (24 October) to uphold plans to certify carbon removals in the European Union, paving the way for new technologies to suck CO2 directly from the atmosphere.

France reinvests in EV charging infrastructure to meet EU targets

The French government announced on Friday (27 October) new funding for the roll-out of electric vehicle charging points to match the development pace set by the EU’s new alternative fuel infrastructure regulation.

Stellantis to buy stake in Chinese EV start-up Leapmotor

Global carmaker Stellantis said Thursday (26 October) it will buy a 20% stake in Chinese electric car maker Leapmotor, making it the latest European brand seeking a foothold in the country’s highly competitive market via partnerships with local manufacturers.

EU lawmakers agree on proposal to boost uptake of clean trucks and buses

The European Parliament’s Environment Committee voted to support Commission targets to reduce the carbon footprint of heavy-duty vehicles (HDVs), making it a near certainty that clean trucks will make up the majority of new HDVs post-2040.

EU focus on electric vehicles favours the rich, says ethanol industry

EU policymakers’ focus on electric vehicles to cut road emissions means the transition to green transport will remain easier for the rich, a biofuels industry leader has said, arguing that most consumers still favour comparatively cheaper combustion engine vehicles.

[Edited by Nathalie Weatherald]

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