Diesel has lost advantage in terms of climate protection - study

Diesel engines no longer qualify as being more climate-friendly and are more expensive than other engine technologies like hybrid or petrol, meaning that their falling market share is no bad news for the climate, the International Council on Clean Transportation (ICCT) says in an analysis. The ICCT says Germany’s tax privileges for diesel fuel could no longer be justified from a climate protection perspective. The tax on diesel is about 30 percent lower than the tax on petrol fuel. If Germany applied the same taxation as France, it could earn about seven billion euros in taxes more per year, the ICCT argues. The researchers say that diesel’s share in new car registrations could drop from 45 percent in 2016 to well below 30 percent in 2018 “without any negative consequences for the climate protection goals.” The ICCT has found that a share reduced to 15 percent by 2025 would mean that the EU target value for car emissions could still be achieved without additional costs. While diesel cars need less fuel for every kilometre, they emit more CO₂ for every litre burned and are often heavier than other cars, which offsets their lower consumption levels, the analysis says. Lower taxation has been the main reason for high diesel sales in recent years, but these deprive the state of a major source of income, the researchers say. Falling battery prices mean that more climate-friendly alternatives are becoming increasingly affordable compared to diesel cars, which is why the current taxation rules could no longer be justified.

Find the study in German here.

See this CLEW interview with the ICCT’s Peter Mock on Germany’s diesel policy for background.