Climate targets – scrapping bonus for combustion engines cheaper than e-fuels

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According to a study, a scrappage bonus for combustion cars could make a significant contribution to achieving climate goals – and could be significantly cheaper compared to e-fuels.

The research association ICCT assumes that a scrappage program can not only save more money compared to e-fuels, but also more CO2 – up to a third of the savings needed in the transport sector by 2030.

In concrete terms, the scrapping program proposed in the study provides for the dismantling of eight million cars. This could save up to eleven million tons of CO2 equivalents. However, with e-fuels the so-called emission reduction potential is only 190,000 tons of CO2 equivalents.

At the same time, scientists estimate the production costs for e-fuels produced in Germany – i.e. synthetic fuels from renewable energy – in 2030 at around 910 euros per ton of avoided CO2 equivalents. However, with a scrappage program this amounts to only 313 euros per tonne for diesel vehicles and 255 euros for petrol vehicles.

Costs would also be significantly higher for e-fuels produced abroad and imported into Germany. According to the 2030 study, the estimated cost of importing e-fuels from Brazil, for example, is approximately 619 euros per tonne of CO2 equivalents.

Gap in reducing CO2 emissions
The International Council on Clean Transportation (ICCT) is an independent research organization. She helped expose the VW emissions scandal in the US in 2015. The focus of the current research is on the question of what contribution a demolition program can make to closing the existing gap in reducing CO2 emissions in the transport sector. To do this, the authors looked at the predicted vehicle fleet for 2030 – also because, according to ICCT Europe director Peter Mock, sufficient electric cars will be available to consumers by then.

A demolition bonus can make the switch to a sustainable means of transport easier. It could look like this: if drivers take their petrol and diesel cars to the scrap heap and choose a car with an electric motor instead, they get a bonus.

The program outlined in the study relies on diesel cars that have been in use for at least 15 years and petrol cars that are 25 years or older. The premium paid corresponds to 80 percent of the residual value. If the proposal were implemented in this way, a diesel car would cost €1,000 to €6,000 and a petrol car €2,000 to €3,000 – spread by age.

E-fuels do not contribute to health
Moreover, e-fuels would not contribute to improving the air and therefore people’s health. Things look different with a demolition program. Retiring internal combustion engines – especially diesel cars – could make a significant contribution to people’s health by reducing pollutants in the air.

However, the demolition bonus is only the second best solution in terms of sustainable transport, Mock said in an interview with the German news agency. It makes more sense to immediately make new vehicles electronic and emission-free. This is also cheaper than taking old vehicles off the road later.

Source: Krone

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