Achieving Climate Goals with Cost Efficiency

The ongoing discussion on how best to achieve the commitments of the Paris Agreement has taken an interesting turn. Efforts to reduce CO₂ emissions cover several areas, notably the decarbonization of domestic heating and the transport sector. While options like subsidies for electric cars and tax incentives for electrified company vehicles are gaining traction, a new study by the International Council on Clean Transportation (ICCT) suggests that facilitating the scrapping of old combustion-engine cars may offer a more economical path compared to subsidizing eFuels.

Scrapping Old Cars: A Cheaper Climate Solution

According to the ICCT, a program that incentivizes the scrapping of old vehicles could significantly contribute to climate targets, offering a more cost-effective solution than eFuels. The study projects that such a scrapping program could potentially trim a third off the necessary CO₂ reductions in the transport sector by 2030. Specifically, retiring eight million older vehicles could save up to 11 million tons of CO₂ equivalents. In stark contrast, the emission reduction potential for eFuels stands at a mere 190,000 tons.

Economic Comparisons of eFuels and Scrapping

The production costs for domestically manufactured eFuels are estimated to reach around 910 euros per ton of CO₂ equivalent avoided by 2030. By comparison, a scrapping initiative would cost only 313 euros per ton for diesel vehicles and 255 euros for petrol vehicles. Even imported eFuels, such as those from Chile, would be pricier, at around 619 euros per ton.

Availability and Demand for eFuels

The study also touches on the limited global production capacities of eFuels, which are in higher demand for sectors that cannot easily switch to more sustainable alternatives, such as aviation. This emerging demand, coupled with low production availability, suggests that sufficient eFuels for personal vehicles are unlikely to emerge anytime soon.

Health and Environmental Benefits of Scrapping

In Germany, around 49 million combustion-engine vehicles are currently on the road, posing a real threat to climate target achievements. Kyle Morrison from ICCT underscores that an effective scrapping program wouldn't just align with climate goals but also improve public health by reducing airborne pollutants.

Presenting an attractive incentive, the proposal includes an estimated payout of 2,000 to 6,000 euros for diesel cars aged 15 years or older and 2,000 to 3,000 euros for petrol cars aged 25 years or older, aiding drivers to transition towards electric vehicles.

For further reading, you can find the original coverage from Heise Online.