UEPLAC & MINISTRY OF TRANSPORT AND TELECOMMUNICATIONS KIEV 12 SEPTEMBER 2007

1. CONVERGING ENVIRONMENTAL AND ENERGY POLICIES IN TRANSPORT SECTOR OF EU COUNTRIES UEPLAC &MINISTRY OF TRANSPORT AND TELECOMMUNICATIONS KIEV 12 SEPTEMBER 2007

2. Towards a safer and more competitive high-qualityroad transport system in the Community (1) Professional road transport is crucial to the smooth functioning of the internal market, and its market share is growing all the time. it is having to face challenges on a number of fronts: the need to improve the safety performance of road transport; the need to adapt continuously to new technical, technological, environmental and logistical developments;

3. Towards a safer and more competitive high-qualityroad transport system in the Community (2) the intensification of transport relations with the countries of Central andEastern Europe against the background of enlargement.

4. Passenger transport activity 1990-2030

5. Freight transport activity 1990-2030

6. Environmental protection: sustainable road transport(1) Motor vehicles are responsible for a significant part of pollutant emissions in the EU. The main actions to reduce pollutant emissions from motor vehicles currently take the form of Euro 5 and 6 emission limits and the promotion of clean road transport vehicles by public procurement.

7. Environmental protection: sustainable road transport(2) The integrated approach to reduce CO2 emissions is helping to achieve the Community objective of 120 g/km CO2 by 2012. If vehicle motor technology is to continue to improve in this direction, other technological improvements (air-conditioning systems, etc.) and the increased use of bio-fuels will also help reduce CO2 emissions.

8. Environmental protection: sustainable road transport(3) Special attention should also be paid to the recycling of end-of-life vehicles and motor vehicle noise. Aspects relating to energy, in terms both of cost and supply, to have an influence in the future on decisions concerning the shape and functioning of motor vehicles. Member States will be involved in efforts to ensure sustainable road transport through better traffic management, more responsible driver behaviour or tax incentives

9. Environmental protection: sustainable road transport(4) Passenger cars are responsible for 12%ofEurope’s greenhouse gas emissions and for a significant part of pollutantemissions. The automotive industry has signed a voluntary agreement with theEuropean Commission to reduce new car CO2 emissions to 140 grams per kilometrein 2008

10. Environmental protection: sustainable road transport(5) The commitment made by the European Automobile Manufacturers Association (ACEA) has beenrecognised by the European Commission in the Recommendation of 5 February 1999 on the reductionof CO2 emissions from passenger cars (1999/125/EC). Similar commitments have been signed by theJapanese and Korean automobile associations (JAMA and KAMA) with the objective of reducing newcar emissions to 140 grams per kilometre in 2009.

11. Energy policy: The road transport sector uses mainly petroland diesel fuel to powervehicles and is 98% dependent on products derived from oil which is largelyimported. Reducing energy consumption in road transport through improved energyefficiency, diversifying the types of energy used and reducing dependence onimported fossil fuels are all important priorities for the Commission, and theautomotive industry has a role to play in facilitating the achievement of theenergy policy objectives;

12. Road safety: Progress has been made in improving European road safety: during the last 30 years traffic on European roads has tripled while the number of casualties has halved during the same period. This has largely been as a result of improved occupant protection in vehicles.

13. Road accidents: number of people killed per million inhabitants, EU-15 (1970-2000)

14. Taxation and fiscal incentives(1) The Commission has proposed a directive on passenger car related taxes. The proposal deals only with registration taxes and annual circulationtaxes. It introduces three main measures: • the gradual abolition of registration taxes over a five to ten year long transitionalperiod

15. Taxation and fiscal incentives(2) • the establishment of a registration tax and annual circulation tax refund system toavoid the double payment of these taxes • the introduction of a CO2 -based element in the tax base of both the registration tax(pending its abolition) and the annual circulation taxes.

16. Global demand and demand forecast for passenger cars (2002-2016)

17. Evolution of CO2 emissions from new passenger cars

19. Украина в сентябре 2008 года намерена перейти на новые стандарты качества топлива, сообщила пресс-служба Министерства топлива и энергетики со ссылкой на главу ведомства Юрия Бойко. • "Ориентировочно, 20 сентября приказом Госстандарта будут введены новые требования к бензинам и дизтопливу. Они вступят в силу через год после принятия, то есть, ориентировочно, в сентябре 2008 года", - сказал министр в ходе посещения Лисичанскогонефтеперерабатывающего завода (ЗАО "ЛИНИК", Луганская обл.)

20. Research and development: the key to competitiveness(1) The automotive sectorwas traditionally based on manufacturing industry, now is increasingly knowledge-based and is now the largest industrial investor in R&D in Europe (ca. 5% of the sector's turnover). With approximately € 20 billion (ca. 5% of the sector’s turnover) invested into research and product development the automotive industry is the largest industrial R&D investor in Europe.

21. Research and development: the key to competitiveness(2) industrial research, technological development and demonstration will be encouraged in strategic areas (intelligent vehicles, clean vehicles, second generation biofuels, hydrogen cells, fuel cells, etc.). Support for research and development will be based on the Seventh Framework Program , European financing institutions or public-private partnerships.

22. Research and development: the key to competitiveness(3) To focus European research in FP7 on both incremental research (e.g. technologies for clean and energy efficient thermal engines, integrated safety systems) and on breakthrough technologies (e.g. hydrogen and fuel cells, development of rechargeable hybrids, 2nd generation biofuels).

23. A Competitive Automotive Regulatory Framework for the 21st Century (1) • Commission's response to the CARS 21 High Level Group Final Report: • This impact assessment confirms that the European automotive industry is a major contributorto the Community Growth and Jobs strategy and currently faces considerable changes in itsoperating environment. • The industry interacts with several important areas of Communitypolicy, such as environment, energy and transport.

24. A Competitive Automotive Regulatory Framework for the 21st Century(2) • The impact assessment concludes that, in line with the CARS 21 High Level Grouprecommendations, there are possibilities to simplify the acquis communautaire in theautomotive area and reduce the administrative and compliance cost for industry by replacing38 EC Directives with their corresponding UN/ECE regulations and introducing self- andvirtual testing for 25 EC Directives and UN/ECE regulations.

25. A Competitive Automotive Regulatory Framework for the 21st Century (3) The impact assessment indicates that the current Community framework under the ThematicStrategy for Air Pollution to reduce harmful emissions from vehicles has proved to beeffective and that the gradual tightening of emission limits through the Euro standards shouldbe continued.

26. Energy intensity in 2003 (in toe/million EUR of GDP at 1995 market prices)

27. Energy intensity adjusted at 2002 purchasing power parities (EU-25=100)

29. Energy intensity in 2003 (in toe/million EUR of GDP at 1995 market prices)

30. Energy intensity in 2003 (in toe/million EUR of GDP at 1995 market prices)GDP adjusted for purchasing power parity

31. Long-term development of GDP, energy demand and energy intensity (baseline) for EU-25 (Year 2000 = 100)

34. Outcome of Ukraine’s Energy Strategy and Conception on State Program for Efficient use of Energy Resources Energy Saving Potential Related to Technical (Technological) Factor