(Source: Spiegel Online via Business  Week)

To boost ailing carmakers, the British government is expected to offer customers a premium to exchange clunkers for new vehicles—as Germany has done

The paper writes that Darling and officials in the Treasury have been impressed by the results the programs have delivered in other countries. Last month, Britain experienced a 30 percent drop in new car registrations at a time when Germany recorded 40 percent more vehicle sales than during the same period a year earlier. In Germany, Treasury officials noted, the precipitous drop in auto sales has been reversed.

The Times reported that details are still being hashed out between the Economics Ministry and the Treasury in London, but that the plan will look a lot like Germany’s. According to the paper, a £2,000 (€2,200) scrapping premium is to be given on trade-ins of any car over nine years old.

In contrast to Germany, though, Darling and Economics Minister Peter Mandelson are also seeking industry participation in the program. At the very least, they want a binding commitment that existing rebates will not be dropped because of the government program. So far though, the paper reports, the British automobile industry is resisting the government’s push for it to support the program with its own means.

In addition to Germany, a number of European countries including Austria, France, Italy, Portugal and Spain also have stimulus programs in place for carmakers suffering from thecredit crunch and global financial crisis—and the success of these stimulus efforts has been measurable. China and Brazil have also succeeded in increasing car sales again.

“A scrapping scheme will provide the incentive needed and the evidence is clear that schemes already implemented across Europe do work to increase demand,” Britain’s Society of Motor Manufacturers and Traders (SMMT) chief executive Paul Everitt told the Times. “The UK is the only major European market not to implement a scheme.” SMMT estimates the one-year program would cost about £160 million.

Last week, the United States also said it would adopt the successful European recipe. During a dramatic speech to the auto industry, US President Barack Obama praised the scrapping premiums as exemplary and “successful” and pledged to introduce a similar program in the US. But the program could be a lot more expensive for the United States than Britain: Already, an estimated 250 million cars and trucks are driven in America. Of those, close to 30 percent are at least 15 years old, meaning the country could have as many as 75 million candidates for scrapping.

In Germany, demand has been so strong that the government plans to extend its scrapping bonus through the end of the year. Last week, Chancellor Angela Merkel’s cabinet moved to extend the scheme until Dec. 31 and to provide €5 billion in government funding—enough to cover up to 2 million cars.

Click here to read more.   Transportgooru has already published a number of articles on this topic in earlier months.  Please feel free to explore them:

Consumer Assistance to Recycle and Save (CARS) Act revives “Cash for Clunkers” scrapping plan in U.S

Germany plans to extend Abwrackprämie aka “Environmental Bonus”

The bickering starts over the implementation of the Cash for Clunkers legislation

Obama Favors “Cash for Clunkers”

Germany increases subsidy to 5 Billion Euros, tripling incentives for its “Cash for Clunker” (Abwrackprämie) program

Image: Thingermejig@ Flickr

(Source: New York Times)

 BEIJING — Senior Chinese officials on Friday outlined how they aimed to turn their country into the world’s largest producer of electric cars, including a focus on consumer choice rather than corporate subsidies.

Speaking at a conference at the government’s prestigious Diaoyutai guesthouse here, the officials acknowledged that their efforts faced challenges in terms of the cost and safety of electric cars. They promised a nationwide effort by manufacturers, universities, research institutes and government agencies to overcome these obstacles.

(Source: Going Global & BMW Motorrad Blog via AutoblogGreen)

Two enterprising Swiss citizens are riding home along the Silk Route from Beijing to Istanbul, to generate awareness of climate change, promote sustainable motor travel and raise funds to benefit SCCF, a new international foundation focused on finding solutions to combat global warming.

Using BMW F 650 GS bikes, Mark Dembitz and Clarisse Von Wunschheim will journey across eight countries in 80 days, covering almost 17,000 kilometres. Their route will see them leave Beijing on 4 May and journey back to Europe via Kyrgyzstan, Uzbekistan, Turkmenistan, Azerbaijan, Georgia and Armenia, before ending in Istanbul, Turkey on 25 July.

With a career in carbon finance and a keen interest in the environment, Mark is planning to make their ‘Going Global’ journey carbon-neutral, as well as use the opportunity to show others in cities and towns along the route how to help fight climate change.

“We will be keeping an accurate log of daily time and distance travelled as well as fuel usage, and the quantity and quality of petrol,” he said. “Based on this data, we will be able to approximate the quantity of carbon dioxide we emit along the ride. We will then secure credits (one credit is equivalent to one tonne of carbon dioxide) to offset our carbon emissions.

Along the way, the duo will stop at schools and universities to “teach children and students about global warming, motivating them to join us in being aware of their impact on the environment and in making small changes to their lives that will contribute towards a better and cleaner world for everyone.” 

(Source: Telegraph, UK) Germany is more than tripling the incentives on offer to buyers of new cars as it attempts to boost its auto industry, which employs around 15pc of the nation’s workforce.

The scheme offers German consumers €2,500 for trading in vehicles more than nine years old if they buy a car that is less than one year old.

Click here to read the entire article.  

TransportGooru has compiled several articles in the past reporting on similar efforts in UK (which is now contemplating introduction of  a similar program after watching the Germans successfully implement the program) & USA.  Here are the links to some of the earlier articles:

Consumer Assistance to Recycle and Save (CARS) Act revives “Cash for Clunkers” scrapping plan in U.S

Germany plans to extend Abwrackprämie aka “Environmental Bonus”

The bickering starts over the implementation of the Cash for Clunkers legislation

Obama Favors “Cash for Clunkers”

(Source: Autoblog)

When the next step in the road to 35 mpg by 2020 CAFE standards was announced recently, those in the know made it clear that the Obama administration’s upcoming goal of 27.3 mpg by 2011 would not be hard for automakers to meet. In fact, the 2007 average was already 31.3, so the 2011 goal would not require any change in product lineup (more difficult changes are scheduled to come into effect down the line). The 2011 standards were so light, in fact, that the Center for Biological Diversity (CBD) took the National Highway Traffic Safety Administration and Department of Transportation to court last week, saying that the Obama administration’s standards “ignore greenhouse gas emissions and the climate crisis, are illogical, illegal, and very disappointing from a president who has promised to make the United States a leader in the fight against global warming.”

“These low standards, which ignore greenhouse gas emissions and the climate crisis, are illogical, illegal, and very disappointing from a president who has promised to make the United States a leader in the fight against global warming,” said Kassie Siegel, who directs the organization’s climate law project.

The group asked the Ninth U.S. Circuit Court of Appeals in San Francisco to declare that the administration violated a federal law requiring that fuel economy standards be set at the maximum feasible level, in light of current technology, economic impact, and the nation’s need to conserve energy. The same court ruled in a similar lawsuit in 2007 that the Bush administration’s fuel standards for light trucks and SUVs for the 2008 through 2011 model years were invalid.

(Source: Office of Planning, Environment and Realty Federal Highway Administration)

Recent Events

U.S. Senator Barbara Boxer Announces Principles for Global Warming Legislation. On February 3, Sen. Barbara Boxer (D-CA) announced her intent to move quickly on global warming legislation and issued principles that she would like to see included. These include setting short and long term emissions targets that are certain and enforceable, using a carbon market to fund various efforts to reduce GHG emissions, and ensuring a level global playing field so that countries contribute their fair share to GHG emissions reductions. For more information including a link to Sen. Boxer’s Principles, see the Committee’s press release.

House Subcommittee Receives Testimony on Surface Transportation Energy Reduction.On January 27, the House Transportation and Infrastructure Subcommittee on Highways and Transit heard from nationally recognized transportation experts and a panel of industry representatives about ways to reduce energy consumption and promote sustainability in the surface transportation sector.  Video of the proceedings and written testimonies (scroll down) are available on the Subcommittee website.

United Nations Conference on Trade and Development Holds Meeting on Maritime Transport and the Climate Change Challenge. On February 17, FHWA’s Mike Savonis presented (via videoconference) results from USDOT’s Gulf Coast Study Phase I to an international audience in Geneva.  Additional information and presentations from the three-day event are available on the meeting website.

U.C. Davis Provides Congressional Briefing on Low-Carbon Transportation Policies & Strategies. On January 12, 2009, the University of California at Davis (UC Davis) Institute of Transportation Studies provided a briefing to Congressional staffers on the future of low-carbon transportation. More information about UC Davis climate change activities is available on the UC Davis ITS website. (TransportGooru is proud to share a video of UC Davis’s Dan Sperling Talk about the current Transportation system and its effect on Climate change. See below)

 House Subcommittee Conducts Hearing on Monitoring GHG Emissions.  On February 24, the House Science and Technology Subcommittee on Energy and Environment conducted a hearing on how to monitor, report and verify greenhouse gas emissions.  The purpose of the hearing was to determine the federal role in the funding of research and development of monitoring technologies as well as models to support reliable baseline data for GHG emissions.  The subcommittee heard testimony from businesses, government agencies, and localities on procedures and methods that can be used to monitor, report, and verify greenhouse gas emissions.  More information can be found on the Committee’s website at: http://science.house.gov/publications/hearings_markups_details.aspx?NewsID=2359

State News

Oregon Governor Introduces VMT Fee Legislation. Following a study on charging a Vehicle Miles Traveled (VMT) fee in place of a state gas tax, the Governor of Oregon introduced legislation that could move the state closer to adopting a per mile road user fee in place of the 24-cent per gallon gas tax. Governor Kulongoski’s Jobs and Transportation Act of 2009 requires the Oregon DOT to develop VMT fee collection technology that could be used to replace the gas tax.  The Act also directs Oregon DOT to further study gas tax alternatives.

Regional Greenhouse Gas Initiative Enters First Compliance Period. The ten signatory states to the Regional Greenhouse Gas Initiative (RGGI) began their first compliance period on January 1, 2009 and the period ends in December 2011. At that time the ten Mid-Atlantic and New England states will be required to submit emissions allowances equivalent to their carbon dioxide emissions. For more information on the program, see the Pew Climate Center RGGI website.

Announcements

New Energy and Climate Change Database for Planners.  The American Planning Association has launched a new database of energy and climate change activities in planning.  You can search the database by a variety of criteria such as state, topic, planning tool, timeframe, or geographic scale.  The database includes many examples relating to transportation.  The database website iswww.planning.org/research/energy/database.

Summit on America’s Climate Choices, March 30-31 in Washington, D.C. Congress has tasked the National Academies with setting the stage for national action on climate change. In response, the Academies have launched America’s Climate Choices, a suite of activities that will provide policy advice, based on science, to guide the nation’s response to climate change. Experts representing various levels of government, the private sector, nongovernmental organizations, and research and academic institutions have been selected to serve on four panels and an overarching committee.    The Summit on America’s Climate Choices provides an opportunity for study participants to interact with major thought leaders and key constituencies to frame the questions and issues that the study will address.  Registration and webcast information are available on the Summit website.  In addition to the summit, NAS is soliciting public input on the questions and content to be considered by the America’s Climate Choices Committee through the America’s Climate Choices website through April 17. 

Reminders

Washington State Department of Transportation Climate Change Weekly Digest, The Washington State DOT has an extensive Climate Change program and the Climate Change Team issues a weekly digest on climate change issues. For more information on WSDOT’s climate change activities see WSDOT’s climate change website. To be put on the email list to receive the weekly digest, please send a note to:StarkS@wsdot.wa.gov.

U.S. DOT Launches Web-Based Clearinghouse of Transportation, Climate Change Resources. The USDOT has launched a new, web-based clearinghouse of information on transportation and climate change. The site provides an introduction to climate change and transportation and related information on greenhouse gas inventories and forecasts, methodologies for analyzing greenhouse gases from transportation, climate change and adaptation, and federal, state and local actions on transportation and climate change. The site also includes a calendar of events and will soon be enhanced to provide an opportunity for users to post and respond to discussions and receive updates by email. To access the site, go to: http://climate.dot.gov. 

Transportation Research Board Starts a New Climate Change website. Transportation Research Board (TRB) has a new website offering information on TRB activities and products addressing transportation and climate change.

 (Source: AutoBlogGreen)

In an attempt to stay politically neutral, we’re going to stop short of offering opinions about Rush Limbaugh’s recent statements regarding hybrid automobiles and the intent of automakers like Ford and Honda to “please politicians overseeing the industry’s multibillion-dollar bailout.” What we will say, though, is that Limbaugh’s a little off when he suggests that hybrid vehicles are entirely unwanted. So sayeth Rush:

Nobody’s buying ’em. Nobody wants them! The manufacturers are making them in droves to satisfy Obama! Sorry for yelling. Nobody wants them!

While it’s true that hybrid vehicle sales tend to rise and fall with the ebb and flow of fuel prices, which are currently down from the record highs from a year ago, Edmunds’ Green Car Advisor points out that 1.3 million hybrid vehicles have been sold in America since 1999, the first year the fuel-saving vehicles entered the market. Obviously, there are more than a few people out there who want to cut down on their fuel usage. Further, these hybrid vehicle programs have been in development since well before President Obama was elected.

When TransportGooru took a sneak peek into the trascripts posted on Mr. Limabugh’s website, the following golden statements caught the attention:   “I will only say that those people have probably given up their individuality for what they think is a larger cause, but nobody wants them.  That doesn’t matter, because as I mentioned earlier in the program, a couple hundred more million acres placed off-limits, energy rich, shale oil, natural gas, placed off-limits by the US Congress.  We’re gonna become more dependent on foreign oil, more dependent on foreign oil.  Gasoline prices are going to go through the roof at some point, Big Oil will be blamed by the Obama administration, and then you will be forced to start considering cars you do not want and you are not buying.  Good-bye freedom.  We have got to drive these people out of office before it’s too late. ”

TransportGooru’s research found another rushed judgement on this issue back in June 2006 , as described in a Huffingtonpost article and the author David Franklin offers his counter along the way:

Rush says that, “Contrary to any loose statements made by our marketing partners in the environmental community and media, petroleum not consumed by Prius owners is not ‘saved.’ It does not remain in the ground. It is consumed by someone else. Greenhouse pollutants are released.” I find this statement baffling! Is there a backlog of “oil orders” that lies unfulfilled somewhere that I am unaware of? Are there companies out there just waiting for people to buy more hybrids, so that they can have their oil orders taken off backorder? Not to my knowledge. Logic would dictate that if demand for oil decreases, drilling and production of oil will decrease as well!

Perhaps if it was put another way it would be easier for Rush to grasp the cold hard logic behind what hybrids can do for this nation; “If every privately owned vehicle in America was traded in today for a Prius, it would reduce the amount of oil our nation requires to a level that could be fully supported by our own resources!”

Let me say that again in case it didn’t sink in fully the first time; “If every privately owned vehicle in America was traded in today for a Prius, it would reduce the amount of oil our nation requires to a level that could be fully supported by our own resources!” (and that’s without having to drill in Alaska!)

(Source: New York Times)

China wants to raise its annual production capacity to 500,000 hybrid or all-electric cars and buses by the end of 2011, from 2,100 last year, government officials and Chinese auto executives said. By comparison, CSM Worldwide, a consulting firm that does forecasts for automakers, predicts that Japan and South Korea together will be producing 1.1 million hybrid or all-electric light vehicles by then and North America will be making 267,000.

TIANJIN, China — Chinese leaders have adopted a plan aimed at turning the country into one of the leading producers of hybrid and all-electric vehicles within three years, and making it the world leader in electric cars and buses after that.

Premier Wen Jiabao highlighted the importance of electric cars two years ago with his unlikely choice to become minister of science and technology: Wan Gang, a Shanghai-born former Audi auto engineer in Germany who later became the chief scientist for the Chinese government’s research panel on electric vehicles.

Beyond manufacturing, taxi fleets and local government agencies in 13 Chinese cities are being offered subsidies of up to $8,800 for each hybrid or all-electric vehicle they purchase. The state electricity grid has been ordered to set up electric car charging stations in Beijing, Shanghai and Tianjin.

(Source: TreeHugger); Video: YouTube)

 Yesterday President Obama told Chrysler and GM that it is time to shape up or ship out. He also said he supports a program that would pay people to trade in older cars for newer, more fuel efficient vehicles. Europe has successfully tried this, but could it work here and would it be good for the planet? 

Speaking about a so called “cash for clunkers” program, Obama said:

Here is an analysis from a News portal on what it could mean for consumers.

(Source: Los Angeles Times)

Operators balk at having to comply with a California requirement to install costly nozzles and hoses to capture fumes. The governor calls on the Legislature to delay enforcement by a year.

Battered by competition from cheaper chains such as Thrifty and Arco, the 51-year-old businessman said he was refused credit by banks and equipment lenders. Refitting his eight nozzles and hoses would cost more than $60,000, he said. “Even if I could get the funding, I couldn’t make the payments.”

Single-station owners like Hosmanek aren’t the only ones hurting. David Berri, an Irvine businessman whose family owns 22 stations in Orange, San Diego and Los Angeles counties, said he put a 25% deposit on vapor equipment last year. But his bank has since canceled his credit line. His family has put seven stations up for sale, but so far, there are no buyers.