Germany – Distorted incentives for the drive system transition: greenhouse gas quota disadvantages battery trucks
The current structure of the greenhouse gas reduction quota (GHG quota) creates distorted incentives in road freight transport. A new study by the German Institute for Economic Research (DIW Berlin) in collaboration with ifeu concludes that this policy instrument for reducing greenhouse gas emissions disadvantages energy-efficient battery-electric trucks compared to trucks with hydrogen fuel cells. This leaves untapped potential for the ramp-up of battery-electric drives and climate protection in road freight transport.
An increasingly important factor for the further ramp-up of these vehicles are the incentives resulting from the GHG quota. This obliges mineral oil companies to reduce the emissions of the fuels they sell. In order to meet the quota, they must promote the use of climate-friendly alternatives and demonstrate corresponding emission reductions.
Wolf-Peter Schill, Head of Research in the Energy Industry Transformation Division at DIW Berlin, says:
The GHG quota has the potential to provide important incentives for the drive system transition in heavy-duty transport.
”Currently, however, these are skewed in favour of more expensive and less energy-efficient fuel cell trucks. This could slow down the current dynamic growth in battery-electric trucks in the future,”
Specifically, in the current design of this climate action tool, the mileage of heavy battery-electric trucks is underestimated by the currently applicable flat rates, the emissions from the drive power are overestimated, and the energy efficiency advantages of battery-electric trucks are not correctly reflected. As a result, battery-electric trucks currently fare significantly worse in terms of GHG quotas than those with hydrogen fuel cells. This could offset the cost disadvantages of fuel cell vehicles in the future and lead to increased use of hydrogen in heavy-duty transport. ‘Hydrogen will play an important role in the climate-neutral transformation of the economy. However, it remains to be seen whether this also applies specifically to road freight transport, and distorting the choice of drive system to the detriment of battery-electric vehicles is definitely the wrong approach here,’ sums up Julius Jöhrens from the ifeu Institute.
Reform options that can be implemented quickly include new specifications for the estimated annual energy consumption of vehicles and the emissions of the electricity mix. In addition, a more comprehensive reform of the calculation system appears sensible in order to adequately take into account the energy efficiency advantages of battery electric trucks in the logic of the GHG quota.
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Germany – Distorted incentives for the drive system transition: greenhouse gas quota disadvantages battery trucks, source
