Volkswagen’s darkest days could benefit the environment

Finding Environmental Silver Linings in Volkswagen’s Darkest Days

The recent scandal involving Volkswagen and its manipulation of emissions tests has highlighted the need for the transport sector to be held accountable for its greenhouse gas emissions. Currently, the road transport lobby in Europe wields significant power, which has allowed the sector to evade responsibility for its emissions under the European Union’s cap and trade system. However, this lack of accountability is a glaring omission, and it is time to rectify this situation.

Volkswagen’s deceitful actions, resulting in a nearly 38% plunge in their shares and a loss of over €27 billion in value, have emphasized the urgency of addressing the transport sector’s emissions. The use of “defeat devices” in Volkswagen cars allowed them to emit higher levels of toxic gases like nitrogen dioxide (NO2) and CO2 than permitted. These emissions not only contribute to air pollution and smog but also have adverse health effects and are linked to premature deaths.

Collectively, vehicles contribute significantly to NOx and volatile organic compounds emissions, exacerbating public health issues and climate change impacts. While carbon emissions from road transport are already included in cap-and-trade systems in the US and Korea, Europe’s transport sector has managed to evade such accountability by hiding behind promised emissions and efficiency standards. However, it is time to align the transport sector with the rest of European industry by including it in the EU’s greenhouse gas cap and trade system.

The inclusion of road transport in the EU ETS would capture many emissions, promoting overall market efficiency and ensuring reductions are met. It would eliminate the direct subsidy to the transport sector, as they would have to account for their emissions like other industries. Furthermore, as the transport sector transitions to electrically powered vehicles, the additional electricity required will come from the power sector. However, the proposed future caps for the transport sector do not account for this, leading to potential carbon price inflation within the EU ETS. By including transport in the system now, the price rises as emissions are reduced will be more manageable, as the carbon budget will be distributed among all emitters.

The Volkswagen scandal presents an opportunity for positive change. While efficiency standards remain important, making the transport sector accountable for its greenhouse gas emissions would foster transparency and fairness in carbon markets. As the COP21 climate conference approaches, the transport industry should support market-based solutions to combat climate change. In doing so, we can bring about greater honesty from manufacturers, ensure efficiency, and work towards a more sustainable future.

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