Reducing CO2 and fuel consumption for new cars in the EU

Recent work sponsored by the ICCT, with the U.S. Environmental Protection Agency, California Air Resources Board, and others, has produced detailed analyses assessing the future CO2 emission reduction potential of vehicle technologies and estimating the costs associated with these new technologies, based on extensive computer simulations as well as “tear-down” cost studies on real vehicles.

Initially performed for the U.S. market, the project has now been translated to the EU, with supplemental work performed by Ricardo, Inc., FEV, and the University of Aachen using European baseline vehicles and labor costs and material prices in Germany.

This short briefing paper, available in English and German, summarizes the outcome of the analysis for Europe. The results show that meeting the proposed 95 g/km target in 2020 will entail an investment in new technologies of less than €1,000 per vehicle. That figure reflects conservative cost estimates, as they assume German labor cost rates and do not incorporate any further technology improvements beyond what is known today.

Taking today’s fuel prices and annual driving ranges, the expected fuel cost savings from the proposed 95 g/km target are on the order of €350-450 per year per vehicle. For the consumer, as well as for society as a whole, significant savings over the lifetime of a vehicle can therefore be expected—even taking into account indirect technology costs and vehicle taxes.