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IUAPPA, São Paulo, Brazil22nd October 2002

Vehicle Emissions Control as an AirQuality Management Tool:

A Review of European Experience

Robert EvansJohnson Matthey Plc

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Background

• Presentation is delivered from the perspective of asolution provider– Johnson Matthey has 30 years experience

developing and supplying emissions controlsystems for cars, and more recently for trucks andbuses

– Products include the autocatalyst, diesel particulatefilters and fuel cell components

• This presentation focuses on the interaction betweentechnology and policy

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• Policy context– California had problem and opted for a techno-fix

• European policy approaches– commenced with US style legislative pathway– outlook broadened to accommodate other policy

approaches– Sweden plays a critical role in defining the push to

“clean diesels”– UK highlights new trend toward voluntarism

• Review• Conclusions

Scope of Presentation

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California Defines Air Quality Problem

100

200

500

400

300

Everyone advised toremain indoors

Everyone should avoidoutdoor exercise

Susceptible people stay indoors

Susceptible people avoidoutdoor activity

Pollution Standard Index

Numberof cars

XTailpipe

emissions percar (grams/mile)

Car usemiles travelled

XPollutionburden ≈

...and sets out to solve this problem with a 90% cut in Tailpipe emissions

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The Autocatalyst Provides a Techno-fix

HC

CO

CO2

H2O N2

0%

50%

100%

0.96 0.97 0.98 0.99 1 1.01 1.02 1.03 1.04

Lambda (ratio of fuel to air)

Co

nve

rsio

n

CO HC NOxNOx

Emissions control dependson the integration ofautocatalyst technology withinthe engine management system.

Autocatalysts promote both oxidationand reduction of pollutants.Operation at lambda = 1 offerscontrol of all three gaseous pollutants.

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Emissions Legislation Tightens;Los Angeles Air Quality Improves

0

5

10CO/10

HCNOx

197019751977198319942001

0

20

40

60

80

100

120

140

160

1970 1980 1990 2000

Vehicles Peak ozone level Stage 1 Alert Days

Prompted by California, the US sets increasingly stringent exhaust emissions limits.Over time these help improve air quality, as shown by improvements in Los Angeles air quality.

decoupling

Index

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Should Europe Follow the US Approach?

Does Europe have the same air quality problems?

Is the US techno-fix the right one for Europe?

Techno-fix

Autocatalyst

Lean burnengine

Non. EUSe, Sw, Au

EuropeanUnion

Motor Industry interest

Immature, failed tomeet expectations

Yes

Ozone damage to forests in Germany

and smog inEuropeancities

Yes

The debate of the 1980s

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Non-technical Policy Options Explored• Integrated Transport\Modal Shift

– Stop road expansion and invest in public transportto alter behavioural patterns of car use

• Economic Instruments– Tax on ownership - Swedish & German tax schemes

favouring clean vehicles (Inc. catalyst retrofit)– Incentives to upgrade - accelerated scrappage– Tax on use - UK fuel duty escalator and congestion

charging• Local Regulations

– Athens alternate number plate scheme, Paris car-free days, Swedish E-Zones

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Sweden - the “Second California”Environmental protection becomes a major political issue at both a nationaland local level. Local Government ownership or control over public transportturns bus operations into environmental battle ground.

Health debate develops over PAHs and PM10present in diesel exhaust. Eastern Swedenopts for biofuels, Western Sweden considersnatural gas and clean diesel.

Clean diesel lobby leads to nationalintroduction of MK1 zero sulphur(< 10ppm) diesel.

MK1 aids catalystand trap fitment.

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Sweden defines the E-Zone

Stockholm E-Zone

Restricts access - prevents entry of older vehicles unless theenvironmental performance is upgraded through filter fitment oruse of alternative fuels

Policy emphasis now onheavier commercial andpublic service vehicles, e.g. trucks and buses

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Cost Benefit Extends to Societal Costs

Swedish Analysis by SLTF (Trade Association for Public Transport Associations)Environmental costs by Swedish State Institute of Transport Analysis (SIKA)

Does society benefit from financing vehicle upgrade?

00.5

11.5

22.5

33.5

44.5

5

diesel/DPF dieselEGR+DPF

ethanol CNG biogas

StockholmUppsalaKarlstad

Conditions• Ratio > 1 implies societal

profitability• Alternatives compared with

Euro 2 diesel bus fleet• Mileage 70 000 kms/bus, year• Fuel consumption diesel

equivalent 0,4 l/km• Fuel costs excluding taxes

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UK Policy Review 1998-2000

• New Labour Government initiates extensive review of‘transport and environment’ policy

• Covers all policy options– Integrated Transport White Paper– Cleaner Vehicles Task Force (CVTF) investigated

technology options• Consensus develops on key points

– Need for local policy initiatives– Health concerns make PM10 a prime target– Benefits of diesel particulate filters– Cost-effective solutions can be supported by

incentive route

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0

10

20

30

40

50

60

70

80

90

100

Euro 0 Euro 1 Euro 2 Euro 3 Euro 4

Petrol CarNOx

Emissions Legislation will DeliverReductions in Pollutant Inventories

UK NO2 Inventory

Modelling clearly shows Euro standardsdelivering a cut in pollutant emissions

Index

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But Local Air Quality Remains a Problem

41%

19%12%

11%

17% M&HGVBusesTaxisLGVCars

Westminster Study, city centre PM10

Studies highlight thesignificance of HGV and Busesfor city centre PM10

Air quality modelling shows thatPM10 and NO2 air qualitystandards will be exceeded inLondon and other city centres

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Diesel Particulate Identified as a MajorHealth Concern

Carbon soot

Absorbedhydrocarbons

Condensedhydrocarbons

Sulphate withwater

Epidemiological studies highlight risks fromPM10. Medical experts believe that dieselparticulate matter bypasses the lungs defencemechanisms, aggravating lung and heartconditions. Hydrocarbons are a cancer risk.

Emphasis on PM10 turns attention todiesel exhaust

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Catalysts and Filter Systems offerPM10 Reduction

0

0.05

0.1

0.15

0.2

0.25

1 2 3 4 5 6Vehicle Number

PM

Em

issi

on

s (g

/km

)

BaselineOxiCatCRT

Testing at Millbrook Proving Ground on the London Bus Cycle

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Diesel Particulate Filters (DPF) helpcontrol particle number, inc.. ultrafines

0

20

40

60

80

100

0 50 100 150 200 250

Particle Size (nm)

PM

Con

vers

ion

(%)

. 10% load

50% load

100% load

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CVTF Cost Effectiveness Analysis

0 2 4 6 8 10

DPF\EU1

DPF\EU2

DPF\EU3

Oxicat\EU1

Oxicat\EU2

Oxicat\EU3

CNG

Car LPG

high costlow cost

Urban PM10, Cost effectiveness ratio (PM10 g per £)

With optionsshowing cost- effectiveness,the case exists for financial incentives fromGovernment

Source: Technology & Testing: working-group report, CVTF, 2000

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UK Incentives for Voluntary Retrofit

Policy approach now beingcopied across Europe and inAsia (Hong Kong and Tokyo)

Uptake by bus companiesfollowing local Governmentpolicy requirements.

Uptake by truck operators followingCorporate Social Responsibility(CSR) initiatives of their ownersor customers (e.g.. supermarkets).

Environmental Cost for Upgrading a 31 Tonne Truck

Cost of a CRT £3,000lessIncentive to purchase Energy Saving Trust 75% capital grant £2,250

= Net cost for purchase £750

Cost of use for 6 year ownership

Maintainance cost of £120 pa £600lessIncentive for use =Rebate of road tax (VED) £2,220

Net cost of -£870

Payback in 3 years

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Incentives Influencing NOx Control

• Re-engine

• Operate on emulsion fuels

• Retrofit EGR & CRT

• Selective Catalytic Reduction (SCR) & SCRT

• NOx Traps

Technical developments being driven by incentive-based retrofit as well as by upcoming legislation

Retrofit

Originalequipment

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Review (1)• Legislation is working (at low cost to Government)

slowly but surely

0

1000

2000

3000

4000

5000

6000

1999 2005 2010

No TechnologyBaseline

Reduction in UK road links with annual average NO2 concentrations exceeding the Air Quality Standard

Source: AEA Technology

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Review (2)• However, devolving air quality management to a local

level requires additional policy approaches– technical & non-technical, action orientated, deliver

in politicians time-frames• Impact of health concerns over PM1O significant

– trucks and buses a legitimate target• Swedish approach now seen as a way forward

– fuel quality a key enabler– reduce public services’ environmental impact– E-Zones provide local policy approach

• UK uses incentives to support voluntarism– CSR means private sector can mimic public sector

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Review (3)• But can voluntarism extend beyond early adopters?• Costs and long life of commercial diesel a problem

• Therefore UK retains an interest in the moreprescriptive E-Zone approach

2002 2004 2006 2008 2010 2012 2014 2016

Euro 0 14.0 0.50 10%

30% 10%40%Euro 1 8.0 0.36

40% 40% 30% 10%40%Euro 2 7.0 0.15

30% 50% 50% 50% 40% 20%10%Euro 3 5.0 0.10

20% 30% 30% 30% 30%Euro 4 3.5 0.02

10% 30% 50% 70%Euro 5 2.0 0.02

NOx Pm @10% replacement a year the UK HGV Parc

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Conclusions

• Technology providers respond well to legislative drivers• The legislative techno-fix is logical first policy step• However, local problems need local measures based on a

mix of policy approaches• Technology can play a role including:

– Public sector environmental purchasing criteria– E-Zones

• Incentives for vehicle upgrade can draw in private sector– Providing right political and economic environment– Cost effective, particularly when costs shared– Technology providers will respond