Public money to be impetus for low-carbon technology development

Public funding for research into low-carbon technologies is crucial to encouraging car manufacturers to step up their own research and development (R&D) investments, believes Professor Julia King, Vice-Chancellor of Aston College and one of the UK's leading experts on reducing...

Public funding for research into low-carbon technologies is crucial to encouraging car manufacturers to step up their own research and development (R&D) investments, believes Professor Julia King, Vice-Chancellor of Aston College and one of the UK's leading experts on reducing carbon dioxide (CO2) emissions in road transport.

The professor is lead author of the King Review, a report commissioned by the UK Treasury examining the vehicle and fuel technologies which, over the next 25 years, could help to decarbonise road transport, particularly cars.

The report, which is published in two parts, makes policy recommendations on how government, industry, the research community and consumers can contribute to reducing CO2 emissions.

Globally, as a result of the growing concentrations of greenhouse gases in the atmosphere, climate change is threatening severe consequences, including flooding, drought, population displacement and ecosystem destruction.

To address the problem, experts advise limiting greenhouse gases to 550 parts per million (ppm), which would require emission reductions across all sectors of at least 25% by 2050.

At the 2007 G8 summit in Heiligendamm, world leaders agreed to a 50% reduction in global emissions by 2050 (relative to 1990 levels). However, 'this is not a hard enough target,' believes Professor King, who says that the target should be higher, between 60% and 80%, by 2050.

Presenting her report in Brussels on 29 April, the professor said that decarbonising cars is a sensible goal given the environmental challenge of climate change.

Since the first Ford Model T rolled off the production line, road transport has dramatically enhanced mobility, economic prosperity and the quality of life of billions of people, as well as becoming a major industry in its own right.

However, as road transport grows, so do emissions. In 2000, cars and vans accounted for 7% of global C02 emissions. Under a business-as-usual scenario, global road transport emissions are projected to double by 2050. By that time, car ownership in China and India is expected to grow from just a handful of cars per thousand people to almost 400. 'This is a bigger market than we ever dreamed of,' said the professor. 'We ought to be absolutely determined that the parts in those cars are using low-carbon technologies,' she added.

The European car manufacturing sector has the know-how to develop and bring low- carbon technologies to the market, gaining a competitive edge 'We are talking about an industry that employs really good engineers,' the professor pointed out. But 'if we stick our heads in the sand, the Chinese and Indians will be selling low emission cars to us, so moving now is crucial.'

One of the King Review's recommendations is for governments to focus their public spending on research into low-carbon technologies. Professor King believes this is important in order to also encourage the private sector to increase their research and development (R&D) budget. 'Some research developments for the long-term look to be quite expensive. Public funding will help accelerate them and will encourage private funding to follow,' Professor King told CORDIS News.

At EU level, €4.16 billion will be allocated to transport (all modes) under the Seventh Framework Programme for research (FP7), €1.89 billon to environmental research and €2.35 billion to energy. While welcoming this commitment, 'I would urge larger concentrations on these low-carbon technologies.'

Major prizes have a long history of successfully promoting research into particular technological challenges. The report therefore suggests setting up an EU level prize to find low-cost solutions for retrofitting existing cars to reduce their emissions by a minimum of, say, 25%.

However, in addition to the 'carrot' of public R&D spending, a 'stick' of tighter regulation should be introduced to push car manufacturers towards investing in these technologies.

At EU level, policymakers are proposing to reduce the average emissions of CO2 from new passenger cars in the EU from around 160 grams per kilometre to 130 grams per kilometre in 2012, as part of the EU's integrated approach to reducing emissions to 120 grams per kilometre. This would translate into a 19% reduction in the CO2 emitted. The legislation is expected to stimulate the development and deployment of cutting edge automotive technologies.

Under the proposed legislation, car manufacturers would be required to pay fines if their average emission levels exceed the 130 grams. According to the European Automobile Manufacturers Association (ACEA), the proposal does not take into account the lengthy development and production phases of car manufacturing. 'Of the new cars to be sold in 2012, nearly two-thirds are already in execution and production phases,' explained Rolf Stromberger, ACEA Director of Environment and Economics. 'So little can be changed.'

Mr Stromberger believes that the legislation will be counter-productive, since 'any compensation payments [fines] will reduce R&D budgets.' However, Professor King remains optimistic that the car manufacturing with its 'fantastic track record' in cutting edge technology develop will find to overcome these hurdles.