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The role of public procurement for the market entry of clean and energy-efficient mobility

solutions

ACEA

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The “Engine of Europe”

ACEA represents the whole European auto industry2.3 million direct jobs, indirect employment for another 10 million families

15 independent international companies / groups

18.6 million vehicles produced per year

28 National Associations as associate members

20 billion € in R&D spending, largest private investor

41.6 billion € of net trade contribution

360 billion € of tax revenues

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Key challenges

● Current economic downturn forecast 2009: -15 % vehicle production

● Mobility

● Safety (e-safety, pedestrian, EuroNCAP…)

● Environment (emissions, CO2, ELV, noise…)

● Intellectual property (design protection)

● Tax

● Trade, etc.CO2: our commitment to further develop technologies continues

Economic crisis is making this increasingly more difficult

Dialogue with EU institutions for financial support

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EU auto industry track record

• CO2 emissions minus 14% since 1995

• NOx and PM reduced by over 95%

• Noise reduced by 90%

• Recoverability up to 95%

• Active & passive safety ABS, seatbelts, ESP, airbags…

• Mobility navigation systems, traffic management…

Transport provides mobility and freedom

• More than 250 million vehicles on the EU roads, or 1 per 2 inhabitants

• 10% of them are new vehicles (1-2 years old)• Over 65% is lower-medium or small in size• One third are at least 10 years old

• The average annual distance travelled by a car in the EU is +/- 15,000 km

• Vehicles provide access to:• culture• education• employment• wealth• etc…

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Mobility and road transport trends

• Freight and passenger transport set to continue to grow

• Effective transportation systems are essential to prosperity

• Affordability and access to mobility are key

Mobility must meet society’s economic, social and environmental needs

balance required

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Better results with Integrated Approach

Achieving environmental goals at lowest cost to society

Combining efforts of all involved

+ including all vehicles on the road

=

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Public Procurement of Clean and Energy efficient mobility solutions

• Industry undertakes all efforts to meet all customers’wishes

• Public Authorities are important customers.• Public Authorities can judge better the relevance of the public

procurement market for cleanness and energy efficiency• Industry view (but with customer’s perspective):

• Affordability: Business Case also for local communities• On-cost for environmental friendliness must be reasonable• Cost-of-ownership: costs to be paid by customers over the life time -

no internalisation of external costs• Technology neutral requirements (e.g. CO2 level important not

technology how this is achieved)

Future On-costs call for financial support from EU institutions

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Supportive EU framework

Better regulation

The New Directive on the ‘Promotion of Clean and Energy Efficient Road Transport Vehicles’

• Reduce market fragmentation of internal market

• ACEA appreciates flexibility given by new legislation, allowing to take into account already existing procurement procedures. Harmonization of EU market would have been appreciated

• Reduce over-regulation, Consider existing legislation

• Energy efficiency / eco-friendliness has already been element of procurement

• Markets / customer demands are strong drivers

• Large set of legal instruments on environmental performance criteria available

Industry seeks dialogue with public authorities in order to provide guidance for the implementation

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Public Procurement of Clean and Energy efficient mobility solutions

Need for clarificationHow to take into account Public Procurement award criteria for cleanness and

energy efficiency?– Spatial variation: Criteria depend on national / regional particularities– Temporal variation: Criteria change according to technological

progress– Political setting: Criteria may change according to environmental

aspect currently under focus– Competitive issue: company-specific approaches looking at all

dimensions of eco-friendliness exist

… And also technical issues (no widely acknowledged CV test cycle)…

Urgent need to discuss, because criteria already used!

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Public Procurement of Clean and Energy efficient mobility solutions

“The role of public procurement for the market entry of clean and energy-efficient mobility solutions”

Identified Drivers for introduction of cleaner and more energy efficient vehicles

• Customer Demand• Market and Competition• Taxation• Environmental Legislation (CO2, emissions, noise, recycling...) • Public Procurement may be one instrument to promote clean

and energy efficient mobility solutions

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Summary and Conclusions

• Economic Crisis is key challenge

• Automotive Industry major job provider

• Mobility essential element of our society

• Together with market, competition, taxation, other legislation, public procurement can be one of several instruments driving introduction of clean and energy efficient transport

• Public procurement volume can best trigger product development if affordable, and harmonized

• On-costs call for financial support

• Industry seeks dialogue to offer guidance

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European Automobile Manufacturers Associationwww.acea.be

Thank you!