(Source: Business Standard & Green Car Congress)

Image: REUTERS/Zainal Abd Halim via Boston Globe

The international airline industry is committed to achieving carbon-neutral growth by 2020, said Giovanni Bisignani, IATA’s Director General and CEO in his State of the Industry address at the 65th IATA Annual General Meeting and World Air Transport Summit in Kuala Lumpur.

Two years ago we set a vision to achieve carbon-neutral growth on the way to a carbon-free future. Today we have taken a major step forward by committing to a global cap on our emissions in 2020. After this date, aviation’s emissions will not grow even as demand increases. Airlines are the first global industry to make such a bold commitment.

—Giovanni Bisignani

The commitment to carbon-neutral growth completes a set of three sequential goals for air transport: (1) a 1.5% average annual improvement in fuel efficiency from 2009 to 2020; (2) carbon-neutral growth from 2020 and (3) a 50% absolute reduction in carbon emissions by 2050.

To achieve these goals, the air transport industry is focusing on a cross-industry four-pillar strategy on climate change consisting of improved technology; effective operations; efficient infrastructure; and positive economic measures.

In 2009 the carbon footprint of air transport is expected to shrink by 7%. Of this, 5% is due to the recession and 2% is directly related to efficiency gains.

Bisignani said a cross industry four-pillar strategy on climate change focused on improved technology, effective operations, efficient infrastructure and positive economic measures was delivering results noting that in 2009 the carbon footprint of air transport was expected to shrink by 7 per cent.

Bisignani attributed 5 per cent to the recession and 2 per cent to efficiency gains from IATA’s four-pillar strategy.

“No other industry is as united and no other industry can point to such good results and progress,” Bisignani claimed.  He noted that the airlines’ commitment needed to be matched by governments. “We are ambitious, but our success will be contingent on governments acting effectively.”

“International Civil Aviation Organisation (ICAO) must set binding carbon emissions standards on manufacturers for new aircraft. A legal and fiscal framework to support the availability of sustainable biofuels must be established.

“Governments must work with air navigation service providers to push forward major infrastructure projects such as a Single European Sky, NextGen in the US or fixing the Pearl River Delta in China,” Bisignani added.

(Source: Autoblog & Autoweek)

Americans may have the opportunity to welcome the Tata Nano to their shores in just over two years, according to a confirmation from David Good, a U.S. rep for the Indian automaker. Before it arrives, Tata assures that the ultra-cheap compact with a base price of just $2500 will be configured to meet all emission and crash standards. If successful, we could see see versions of the Indian microcars running on biofuel and diesel.  This begs the question whether the price point will continue to stay around $2500 even after meeting such stringent safety and emissions requirements? Probably not! It is safe to say that the price would be a little less than $5000  – the expected price of the Euro version.

But who will distribute the teensy Tatas? Well, that’s up in the air right now. A brand-new dealer network for the brand has been discussed. Another option would be selling the Nano through Jaguar and Land Rover dealerships — the Indian automaker owns both, after all.  But this option seems highly unlikely,  according to Stuart Schorr, a spokesman for Jaguar Land Rover, who dismissed the rumours.

A larger European version is slated to debut in 2011, and has an upgraded engine that could get 67 mpg. That car is still expected to come in at less than $5,000.  Tata would be the second Indian company with cars on U.S. streets. Global Vehicles U.S.A. Inc. of suburban Atlanta plans to introduce pickups made by Mahindra & Mahindra Ltd. later this year.

(Source: Greenbang, Alpha Galileo & Green Car Congress)

Data: Gerbens-Leenes et al via Green Car Congress

The ‘water footprint’ of bioenergy, i.e. the amount of water required to cultivate crops for biomass, is much greater than for other forms of energy. The generation of bioelectricity is significantly more water-efficient in the end, however – by a factor of two – than the production of biofuel. By establishing the water footprint for thirteen crops, researchers at the University of Twente were able to make an informed choice of a specific crop and production region. They published their results in the Proceedings of the National Academy of Sciences (PNAS) of 2 June.

The researchers found, for example, that it takes an average of 14,000 litres of water to produce one litre of biodiesel from rapeseed or soya. However, the water footprint for rapeseed in Western Europe is significantly smaller than in Asia. For soya, India has a large water footprint, while the figures for countries such as Italy and Paraguay are more favourable. In the generation of bioelectricity, too, there are big differences between the crops: sugar beet has by far the smallest water footprint – jatropha is 10 times less water-efficient. For the production of bioethanol, sugar beet is again by far the favourite: one litre of bioethanol made from sugar beet takes 1,400 litres of water, as against 2,500 litres for sugarcane, which is widely cultivated  in Brazil.  A new report from Novozymes describes how Brazil could produce up to 8 billion liters (2.1 billion gallons US) of biofuel from sugarcane residues (bagasse) by 2020, representing additional export revenue for Brazil of up to US$4 billion. In Brazil, the proportion of bioethanol used in transport fuel is already at 50%; by comparison, the proportion is 7% in the US, 2% in China, and 1% in Europe, according to Novozymes.

(Source: Green Car Congress & Wired)

Toyota’s third-gen Prius is already a huge hit in Japan (topping the sales numbers for May), and the automaker plans to lease a plug-in version to corporate and municipal customers by the end of the year.

Just 200 are slated for release in Japan under a joint program with the Ministry of Economy, Trade and Industry aimed at promoting the adoption of plug-in hybrids and EVs. Although the new Prius – like all those that came before – uses a nickel metal hydride battery, the plug-in features a lithium-ion pack.

“Toyota Motor Corp. believes that, in response to the diversification of energy sources, plug-in hybrid vehicles are currently the most suitable environmentally considerate vehicles for widespread use,” the company said in a statement. “TMC therefore intends to encourage the marketing of plug-in hybrid vehicles while introducing a total of 500 vehicles globally—primarily to fleet customers—to further use and understanding of the vehicles.”

TMC will introduce approximately 150 plug-in hybrid electric vehicles in the United States, as well as more than 150 vehicles in Europe, including 100 in France. TMC is also considering introducing plug-in hybrid vehicles in the United Kingdom, the Netherlands and Germany.

(Source: Greenbang, Alpha Galileo & Green Car Congress)

The ‘water footprint’ of bioenergy, i.e. the amount of water required to cultivate crops for biomass, is much greater than for other forms of energy. The generation of bioelectricity is significantly more water-efficient in the end, however – by a factor of two – than the production of biofuel. By establishing the water footprint for thirteen crops, researchers at the University of Twente were able to make an informed choice of a specific crop and production region. They published their results in the Proceedings of the National Academy of Sciences (PNAS) of 2 June.

The researchers found, for example, that it takes an average of 14,000 litres of water to produce one litre of biodiesel from rapeseed or soya. However, the water footprint for rapeseed in Western Europe is significantly smaller than in Asia. For soya, India has a large water footprint, while the figures for countries such as Italy and Paraguay are more favourable.

In the generation of bioelectricity, too, there are big differences between the crops: sugar beet has by far the smallest water footprint – jatropha is 10 times less water-efficient. For the production of bioethanol, sugar beet is again by far the favourite: one litre of bioethanol made from sugar beet takes 1,400 litres of water, as against 2,500 litres for sugarcane, which is widely cultivated  in Brazil. 

A new report from Novozymes describes how Brazil could produce up to 8 billion liters (2.1 billion gallons US) of biofuel from sugarcane residues (bagasse) by 2020, representing additional export revenue for Brazil of up to US$4 billion. In Brazil, the proportion of bioethanol used in transport fuel is already at 50%; by comparison, the proportion is 7% in the US, 2% in China, and 1% in Europe, according to Novozymes.

(Source: Streetsblog & Wall Street Journal)

The Obama administration is working on a plan to fill the shortfall in the nation’s highway trust fund by August without adding to the federal deficit, Transportation Secretary Ray LaHood told Congress yesterday.

The highway trust fund, which relies mostly on gas-tax revenue, will need up to $7 billion in additional money by the end of summer to ensure states continue receiving payments, LaHood told the transportation subcommittee of the House Appropriations Committee. The fund also will need up to $10 billion in the 12 months after September to ensure its solvency, LaHood said.

“We believe very strongly that any trust fund fix must be paid for,” LaHood told members of the House Appropriations Committee’s transportation panel. “We also believe that any trust fund fix must be tied to reform of the current highway program to make it more performance-based and accountable, such as improving safety or improving the livability of our communities — two priorities for me.”

The administration’s quest to offset its trust fund fix, which will cost as much as $7 billion, could prove fruitless.  Rep. John Olver (D-MA), chairman of the panel that greeted LaHood today, put it simply when asked if the necessary spending cuts could be found. “That’d be very tough,” he said, noting that his own annual transportation spending is unlikely to become law before the highway trust fund runs out of cash.  Replenishing the trust fund with a cost offset, as LaHood suggests, requires a serious conversation about finding new long-term revenue sources for not just highways but all modes of transportation.

But he said the President Barack Obama administration has ruled out raising the gas tax to provide additional funding, saying an economic recession isn’t the time to make such a move.  “We are not going to raise the gasoline tax. I’ll just say that emphatically,” LaHood said.

Click here to read the entire article.

This post is sponsored by LemonFree.com 

(Source:  Wall Street Journal, Green Car Congress & Tree Hugger)

Image Courtesy: Green Car Congress - Prius sales in Japan by month since January 2007. Data: JADA.

Last month (May 2009), the Toyota Prius was the top selling model in the world’s second-largest economy; the rival Honda Insight hybrid came in third, according to new car sales rankings—excluding minicars with displacements of less than 660 cc—released by the Japan Automobile Dealers Association (JADA).   

In April Honda was quite happy to report that its new Insight hybrid was both the best selling car in Japan for that month (outselling the Toyota Prius) and the first hybrid car to have that honor with 10,481 units. (Earlier post.) In May, the Insight dropped to third place with 8,183 units, behind the Prius and the Honda Fit, with 8,859 units.Toyota’s May performance was all the more surprising, since the third-generation Prius didn’t go on sale until May 18.  

The Prius posted 10,915 units in May, in Japan more than twice the 5,079 units sold in May 2008 and compared to 1,952 units in April 2009, according to the JADA data. (In the US, Toyota reported 10,091 units of the Prius sold in May.)

There are several possible explanations—beyond the fact that both Toyota and Honda have cut prices to make hybrids a little less niche and a little more mass market. First, generous government incentives: Japan’s stimulus package included a range of tax breaks for buyers of hybrid (and electric) vehicles which can knock thousands of dollars off the price tag. Japan has tougher mileage standards—but that affects what kind of cars manufacturers turn out, not what kind of cars consumers flock to. One huge difference is the price of gasoline—which automatically makes the hybrids more attractive, especially in a recession. Japan, like many European countries, slaps a hefty national tax on gas. Right now, Japanese pump prices work out to $4.61 a gallon. That compares to a U.S. national average of about $2.50 a gallon.

Over 1.8 Million new and used cars

(Source: Transportation Research Board)

TRB will conduct a web briefing or “Webinar” on Tuesday, June 30, from 2:00 p.m. to 3:30 p.m. EDT that will explore the fundamentals of climate change with Dr. Steven Davis-Mendelow. 

Dr. Steven Davis-Mendelow, a spokesperson for The Climate Project, will provide an engaging presentation about the fundamentals of climate change to help the transportation community better plan policy and projects.  Mr. William Malley, partner at the law firm of Perkins Coie LLP, will provide comments after Dr. Davis-Mendelow’s presentation.  This webinar is based off of a 2009 Transportation Research Board Annual Meeting session. 

The Climate Project is an international non-profit founded by former Vice President Al Gore.  The mission of The Climate Project is to increase public awareness of the climate crisis at a grassroots level.  For more than a year, Dr. Davis-Mendelow has led discussions worldwide addressing the challenges of, and solutions to the climate crisis from individual, community and corporate perspectives.  Professionally, Dr. Davis-Mendelow is an aerospace expert whose career focuses on long-term market and environmental trend analysis and strategy. 

Mr. Malley represents public- and private-sector clients on a wide range of environmental issues, with a focus on environmental impact assessment for infrastructure projects.   He also serves as an advisor to AASHTO on legislation and policies related to climate change and transportation.  Dr. Julia Gamas, an Environmental Protection Specialist at the U.S. Environmental Protection Agency, will moderate the session. 

For more information on the Climate Project, visit:  http://www.theclimateproject.org/. 

This webinar is co-sponsored by the Transportation Research Board and the American Association of State Highway and Transportation Officials. 

Registration:  There is no fee for TRB Sponsors, listed here: http://www.trb.org/directory/sponsors.asp. Others must pay $99 per site.   

For questions about using this software, including webinar audio or visual complications, please contact Reggie Gillum at rgillum@nas.edu or 202-334-2382.

(Source: Wall Street Journal)

 The biggest hurdle to the historic sale of General Motors Corp.’s Hummer brand to a little-known Chinese manufacturer of dump trucks and industrial machinery may be receiving Beijing’s seal of approval.

The Obama administration has already expressed strong support for the proposed sale to Tengzhong Heavy Industrial Machinery Co. But before it can buy Hummer, Tengzhong, based in Sichuan province, needs support from three different Chinese government agencies governing overseas investment, economic planning and China’s tight controls on foreign exchange.

China’s economic planning agency will have to weigh the Sichuan-based company’s desire to buy the company against its policies to encourage more fuel-efficient vehicles and automobile-industry consolidation.

Meanwhile, a visit to Tengzhong’s facilities, where workers make small batches of machinery parts at a time, highlight questions about the company’s technical readiness to manufacture a complex passenger vehicle — especially if some manufacturing of the vehicles eventually shifts to China, as is “logical” if the bid succeeds, a person familiar with the situation said.

Normally, China’s high-profile outbound investments involve government ministries at every step of the process, because the buyers are owned by the central government. Tengzhong, however, is privately held, with few assets and no experience in commercial automobiles.

“There aren’t many precedents for this transaction,” says Jeanette Chan, a partner at law firm Paul Weiss in Hong Kong.

She notes new rules that came into effect May 1 require a number of approvals before Tengzhong and GM can sign a binding agreement. The rules stipulate that overseas investments of more than $100 million require central government approvals, while provincial governments can sign off on smaller deals.

Central government agencies expected to review the deal include the Ministry of Commerce, the National Development and Reform Commission and the State Administration of Foreign Exchange. Of these, the commerce ministry’s approval is most important; if its approval process runs smoothly, it will take at least 30 working days, Ms. Chan said.

While the company appears to have ties in the local government, that won’t likely translate to any clout on the national level. On Wednesday, Tengzhong’s CEO Yang Yi said the company was “in the middle of the approval process.”

Key criteria include whether the company will be able to fund the purchase and succeed in developing the business. Tengzhong hasn’t released information about its finances, but it appears to be relatively small. Analysts expect Tengzhong to pay $200 million to $300 million for Hummer.

Click here to read the entire article.

(Source:  The Detroit News & SFGate.com)

Supporters have dropped an attempt to add “cash for clunkers” legislation to a tobacco regulation bill now before the Senate, a setback in efforts to boost car sales with federal subsidies.

“There are technical details to work out and the senator continues to look for a vehicle to pass this very important piece of legislation,” said Brad Carroll, a spokesman for Sen. Debbie Stabenow, a co-sponsor of the bill.

Two congressional aides said the measure was derailed by objections from the Senate Appropriations Committee to using money from the $787 billion economic stimulus package for the measure, which would offer up to $4,500 credits for consumers trading in older, low-gas-mileage vehicles.

In January, Sen. Dianne Feinstein, D-Calif., introduced a bill, S247, that would give vouchers to people who turn in a car or truck that gets 15 or fewer miles per gallon to a dealer that scraps it.

Rep. Betty Sutton, D-Ohio, introduced one in the House, HR1550. A compromise version was attached to the 900-page energy bill that was passed last month by the House Energy and Commerce Committee.

Sen. Debbie Stabenow, D-Mich., introduced an almost identical one in the Senate. Her bill, S1135, would provide vouchers of $3,500 or $4,500, depending on the difference in gas mileage between the clunker and the new vehicle. The vouchers could only be used to buy or lease new vehicles, not for used vehicles or mass transit.

Environmentalists oppose the two industry-supported bills because they would provide vouchers to people who scrap more fuel-efficient vehicles (18 mpg or less) than under the Feinstein proposal (15 mpg or less).

Last month, Sen. Feinstein proposed an alternative that is less stringent than her original bill but stricter than Stabenow’s. For details, see links.sfgate.com/ZHHC.

It’s not clear whether the Senate will back the Stabenow bill, the new Feinstein approach or a compromise.

“Fiscal conservatives and environmentalists oppose the more permissive Stabenow bill as an expensive subsidy for the ailing auto industry, while union and manufacturing interests oppose the stricter Feinstein approach, which would likely favor fuel-efficient imported vehicles,” said Benjamin Salisbury, an analyst with FBR Capital Markets, in a report.

“The Senate could vote on both amendments and add the most popular one to unrelated legislation giving the Food and Drug Administration regulatory authority over tobacco products,” Salisbury wrote.

Idea likely to stick around

That didn’t happen Wednesday, as many expected. But with President Obama in favor of cash for clunkers, the idea is not likely to die.

Becker hopes Congress will not rush into passing a bill without enough research and debate to determine how much the program will cost and who will benefit most. “Somebody might come along and do clunker dating,” matching up people who want to buy new cars with people who have clunkers, he says.

He adds that Germany started a 1.5 billion euro cash-for-clunkers program this year and it has already swelled into a 5 billion euro program.

Consumers waiting to buy a new car until a bill passes should first figure out if their existing car would qualify under the scrapping plan. If so, the next question is whether the voucher would be worth more than the price they would get if they sold or traded in their car. If so, they should figure out whether the new car they want to buy would qualify. With so many unknowns remaining, it’s hard to reach a conclusion.