Charge! Can charging users reduce transport carbon emissions? - WSP
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Charge!
Can charging users reduce
transport carbon emissions?
BOLD DECISIONS ON TRANSPORT CHARGES NEEDED
TO REDUCE CARBON EMISSIONS IN AOTEAROA NEW ZEALAND
In the war to reduce carbon emissions from the
transport sector in New Zealand, and in Auckland
in particular, is the use of targeted fuel taxes / road
pricing / congestion charging a viable, effective and
efficient tool?
Can it be fair and equitable?
Is it simply another revenue source to fund transport
system improvements, or can it target the highest
carbon emitters and potentially benefit low emitters?
Do charges really change behaviours?
What examples of effective (and ineffective)
charging regimes have been implemented overseas
that we may learn from, what is our largest city
contemplating and will this be effective in reducing
carbon emissions?
This paper seeks to answer these questions and to
propose ideas that could have real impact on the
transport sector carbon emissions.
NZ Annual Km Travelled by Vehicle Type
Fuel cost cents pe
10,000,000
Annua
Fuel sales (Million
150 600 50
2035
5,000,000
100 400 40
WSP | 01 | 02 | 03 | 04 | 05 |
Distance (Billion km)
0
50 200 30
21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40
20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20
0 0 20
3% increase p.a. 2020 level 3% reduction p.a. 4.5% reduction from 2026
0 9 - 10 -11 -12 -13 -14 - 15 - 16 -17 -18 - 19
n- un un un un un un un un un un
01 Background
Ju J J J J J J J J J J
10
Petrol Price (91) Diesel Price Petrol Sales Diesel Sales
0
01 02 03 04 05 06 07 08 09 010 011 012 013 014 015 016 017 018 019
20 20 2NZ Annual Km Travelled 2by 2Vehicle
0 20 20 20 20 20 20 2 2 2 2
Type2 2 2 2
NZ Transport Sector Trends Light
50 passenger Light commercial Motorcycles Heavy trucks Buses
NZ Land Transport Carbon Emissions - Scenarios
40
Cost
(Billion km)
30,000,000
NZ Annual Km Travelled by Fuel Type
30
The25,000,000
road transport sector is responsible for emitting
Annual Carbon Emissions tCO2
60,000
about 15 million tonnes of carbon dioxide equivalent
Distance
20
50,000
per20,000,000
year.
km)
10
40,000
Distance (million
Despite some improvement in vehicle efficiency,
15,000,000
carbon emissions from transport are increasing. Total 30,000
0
vehicle kilometres travelled in NZ increased by 33%
10,000,000
01
0 0 0 2
0 0 03 0 0 4
20 20 20 20 20 20 20 20 20 20
20,000
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
20 20 20 20 20 20 20 20 20
between 2001 and 2019, despite five years without
Light passenger Light commercial Motorcycles Heavy trucks Buses
increase
5,000,000following the 2009 global financial 2035
crisis 10,000
(Figure 1). While growth in light passenger vehicles 0
has been0 only 22%, the highest increases were in bus 01 02 03 04 05 06 07 08 09 10 011 012 013 014 015 016 017 018 019
20 20 20 20 20 20 20 20 20 20 2 2 2 2 2 2 2 2 2
(+122%) and20light 21 22 23commercial
24 25 26 27 28 2(+84%).
9 30 31 32 The
0 33 34 growth
35 36 37 3in 8 39 40 NZ Annual Km Travelled by Fuel Type
20 20 20 20 20 20 20 20 20 2 20 20 20 20 20 20 20 20 20 Petrol Diesel
heavy truck kilometres has also been higher than the 60,000
3% increase p.a. 2020 level 3% reduction p.a. 4.5% reduction from 2026
average at 44%. The faster growth in larger-engine 50,000
vehicles may well be offsetting the increased efficiency
Distance (million km)Distance (million km)
Figure 2 Vehicle Kilometres travelled by fuel type NZ 2001-2019
of the fleet. (MoT 2021)
40,000
30,000
NZ Light Fleet Vehicle Km by Engine Size
The18.000
potential CO2 emission benefits arising from the
NZ Annual Km Travelled by Vehicle Type
increase
20,000
16.000 in the use of diesel engine vehicles is, however,
50
likely offset by a dramatic increase in the proportion
14.000
10,000
40
of distance
12.000 travelled by larger engine vehicles (Figure
0
3). The
10.000distance travelled by vehicles with engines7
Distance (Billion km)
1 1
0 0 2 03 04 05 06 07 08 09 10 01 012 013 014 015 016 201 018 019
20 20 20 20 20 20 20 20 20 20 2 2 2 2 2 2 2 2
30 2,000-3,000cc
8.000
increased by 75% between 2001 and
2018 and the increase in over
6.000 Petrol
3,000cc
Diesel
mileage was
20
34%,4.000while vehicles with engines smaller than 2,000cc
2.000
10
showed very small growth (7%) over this period.
0
01 1 7
02 003 004 005 006 007 008 009 010 201 2012 2013 2014 015 016 201 018
20 20 2 2 2 2 2 2 2 2 2 2 2
0 NZ Light Fleet Vehicle Km by Engine Size
01 02 03 04 05 06 07 08 09 10 011 012 013 014 015 016 017 018 019 Total
WSP | 01 | 02 | 03 | 04 | 05 |
Analysis of new vehicles available in the market in 2021 shows a wide range of fuel consumption and CO2
emissions, from nil for all electric vehicles up to 384 g/km for the 6.6 litre Rolls Royce Ghost. Figure 4 shows
the range of CO2 emissions from the 292 car models currently available in the UK, with examples of the vehicle
models within each emission band shown. The models shown in red text are among the highest selling models
in New Zealand, with the Ford Ranger and Toyota Hilux being the biggest selling models over the last three
years (2018-2020) and also being well on the high side of average in terms of CO2 emissions per km. While not as
common, there are a substantial number of the higher emitting vehicles on New Zealand roads, including the
ever-popular Toyota Landcruiser and the urban tractor that is the Range Rover.
UK Light Passenger Vehicle Range 2020 CO2
Mitsubishi Triton, Nissan X-Trail
Toyota RAV4, Mazda CX5
Emissions (Grams/KM)
Mitsubishi Outlander
40
Number of Models within each CO2 range
Ford Ranger, Toyota Hilux
35 Toyota Corolla
30
Toyota Landcruiser
Suzuki Swift
25
Jeep Grand Cherokee
Jaguar E-Pace
cs
tri
Aston Martin DBS
ec
Bentley Mulsanne
20 El
Range Rover
15
10 s
id
br
Hy
5
0
] ] ] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0] 0]
, 10 20 30 4 5 6 ,7 8 9 0 11 12 13 14 15 16 17 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39
[0 (10, (20, (30, (40, 50, (60 (70, 80, 0, 1 00, 10, 20, 30, 40, 0, 60, 70, 0 0 0 0 0 0 0 0 0 0 0 0 0 10 0 0 0 0 0 0 0
( ( (9 (1 (1 (1 (1 (1 (15 (1 (1 (18 (19 (20 (21 (22 (23 (24 (25 (26 (27 (28 (29 (30 (3 (32 (33 (34 (35 (36 (37 (38
CO 2 emissions g/km
Figure 4 CO2 emissions from the 2020 UK vehicle model range. (UK Department for Transport 2020)
Auckland
Auckland Council’s greenhouse gas emissions As shown on Figure 5, Auckland accounts for the
inventory found that in 2016, road transport emissions largest share of NZ vehicle travel of any region (32%),
contributed 37.6% of total greenhouse gas emissions and the Auckland region has also seen the highest
in Auckland, as a product of fuel consumption and increase in travel (44%) since 2001 of any region.
vehicle kilometres travelled (VKT).
Vehicle Km per year by region 2001-2019
18
Auckland
16 Northland
14 Canterbury
Million Km Travelled
12 Wellington
Manawatu/Wanganui
10
Taranaki
8
Hawkes Bay
6
Nelson/Marlborough
4 Southland
2 Gisborne
0 Other regions
1 1 7
00 02 03 04 05 06 07 08 09 010 201 012 013 014 015 016 201 018 019
2 20 20 20 20 20 20 20 20 2 2 2 2 2 2 2 2
Figure 5 Vehicle Kilometres travelled by region NZ 2001-2019 (NZ
MoT 2021)
PAGE | 3
WSP | 01 | 02 | 03 | 04 | 05 |
02 Charging as a means of road traffic
carbon reduction
To reduce carbon emissions from road transport, there While this has potential to assist in reducing the
are several avenues in terms of taxing, charging or carbon emissions from road transport over the
pricing that might be utilised, with different objectives medium to long term, it’s unlikely to make a dramatic
and resultant outcomes. This section discusses impact in the short term, given that the average age
examples of vehicle sales tax, fuel tax, congestion of the NZ light passenger fleet is about 15 years and
charging and emissions-linked charging. this has been increasing rather than reducing over the
last few years. There is a notable gap in the availability
of fuel efficient single and double cab utes, which
Vehicle sales duty account for the #1,2,5,6 and 9th highest selling light
vehicles in NZ over the past three years (Figure 6).
Imposing a higher sales tax or duty on new (or These five models have an average CO2 emission of
potentially imported used) vehicles that have high CO2 over 200g/km. It is debateable whether a $3,000 tax
emissions, in an attempt to influence buyers towards on top of the $50,000 price tag for a new Ford Ranger
more fuel-efficient choices. The average light vehicle in is likely to change a prospective purchaser’s choice, but
New Zealand currently has carbon dioxide emissions if a hybrid version of the same model (rumoured to be
of about 171 grams per kilometre. The Government is launched in 2022) was to become similarly priced due
aiming to get that down for new vehicles to 105g/km to a relative $11,000 tax difference, it would be likely
by 2025, a standard met by Japan in 2014 and Europe that more customers would choose the lower emitting
in 2020. variant.
The Government is working to introduce the “Clean
Car Import Standard” aimed at achieving the overall Highest selling new light vehicles in NZ 2018-2020
reduction on average emissions from the NZ vehicle and their CO2 emissions
fleet over time. It is intended that the Clean Car 30,000 250
Vehicles sold 2018-2020
Standard will decrease the price of low emission
CO2 emissions g/km
25,000 200
vehicles, including electric vehicles (EVs), and increase 20,000
150
the price of higher-emission vehicles, both new and 15,000
imported used. 10,000
100
50
While the details of the scheme are still under 5,000
development, previous indications have suggested 0 0
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or near-new imported EVs. Fuel-efficient petrol and Fo To oyo To tsub lden M Kia Niss Su ishi its To issa Ma Nis Is
T i b M N
M Ho u
hybrid cars would also be cheaper, while the heaviest M
its
polluters would cost $3,000 more. Vehicles with Make and Model Volume sold Emissions
middling fuel efficiency would face neither a discount
nor a fee.
Figure Auckland
6 Highest Fuel
selling lightand
Prices vehicles in NZ 2018-2020
Sale Volumes (MIA 2021)
2009-2019
300 1,200
250 1,000
Fuel sales (Million Litres)
Fuel cost cents per litre
200 800
150 600
100 400
50 200
0 0
The n-
09average
Ju
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10
Ju
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11
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12 age
Ju
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13
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15
Ju
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17
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18
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passenger fleet is about 15 years.
Petrol Price (91) Diesel Price Petrol Sales Diesel Sales
NZ Land Transport Carbon Emissions - Scenarios
30,000,000
PAGE | 4
ns tCO2
25,000,000WSP | 01 | 02 | 03 | 04 | 05 |
Fuel tax The price of fuel in Auckland has varied considerably,
with retail petrol price increasing from about $1.60
NZ has had a fuel excise tax for many years, currently per litre in 2009 to nearly $2.50 in late 2018 after the
the total tax proportion of retail petrol price is about introduction of the RFT (Figure 7). Over this period,
$1.15 per litre. The fuel excise is directed into the Land petrol sales have remained fairly constant, while diesel
Transport Fund, which largely pays the maintenance sales have increased steadily, reflecting the fleet
and upgrade of the road network and public transport changes shown in Figure 2. Figure 7 shows that there
fare subsidies. were two periods when total fuel sales decreased, one
in 2012, when 91 Octane petrol started to regularly cost
In July 2018, Auckland Council imposed a Regional more than $2 per litre and diesel over $1.50, and again
Fuel tax of 10 cents per litre on top of the general in late 2018, after the introduction of the Regional Fuel
excise tax, hypothecated towards upgrades to the tax.
Auckland transport system, including both road and
public transport projects. This indicates somenew
Highest selling price sensitivity
light vehicles inin
NZfuel
2018-2020
and theirby
consumption as forecast COKennedy
2 emissionsand Wallis.
There are several advantages to a fuel tax compared to However,
30,000
to make a significant impact on carbon 250
Vehicles sold 2018-2020
other road charging schemes, in terms of delivering on emissions, a fuel tax would need to be much higher
CO2 emissions g/km
25,000 200
the objective of carbon reduction from road transport, than the Auckland RFT.
20,000
150
namely: 15,000
To 10,000
achieve a 20% reduction in transport carbon 100
• It is a true user pays system, the more fuel used by emissions, for example, Kennedy and Wallis’ model50
an individual (or company) the more tax is paid.
5,000
suggests a doubling in fuel price would be required
Thus, drivers with high mileage and drivers of fuel 0
(eg a tax er increase of about $2 for
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t erpetrol and
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inefficient vehicles, who emit the most CO2, will pay for diesel).
a
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ta hi Cthis
o zda level
Sp an of
o N k taxation
t is a could
a raise
rd yo ta yo is a zu Ou ub yot n Q zd san uzu
the most tax. Fo To oyo To tsub lden M Kia Niss Su ishi its To issa Ma Nis Is
considerable
T i funds
M H o to invest u b in
M alternatives
N to driving, it
its
• It is relatively easy to implement and collect through seems unlikely that such M a large tax would have much
retail sales. political or public support. Make and Model Volume sold Emissions
• It is easily understood by users, who do not have to
register, make extra payments or, in general, work Auckland Fuel Prices and Sale Volumes 2009-2019
out their options 300 1,200
The Land Transport New Zealand Research Report 250 1,000
331 “Impacts of fuel price changes on New Zealand
Fuel sales (Million Litres)
Fuel cost cents per litre
Transport” (Kennedy and Wallis, 2007) concluded 200 800
that petrol prices have a discernible impact on petrol
consumption, but that the “elasticity” (or likelihood 150 600
of behaviour change) varied between urban peak, 100 400
urban off peak and rural travel, with urban peak travel
(mainly commuting) being less responsive, despite 50 200
often having more available alternatives such as public
0 0
transport. 9 11 12 13 14 15 16 17 18 19
0 10 - - - - - - - - -
n- n- un un un un un un un un un
Ju Ju J J J J J J J J J
Kennedy and Wallis’ modelling suggested that
the impacts of a 10% (real) rise in petrol prices on Petrol Price (91) Diesel Price Petrol Sales Diesel Sales
consumption per capita would be:
• in the short run (within one year), a fall of about 1.5%; Figure 7 Auckland Fuel Prices and Sales 2009-2019 (data from
Auckland Transport)
• in the medium run (within two years), a fall of about NZ Land Transport Carbon Emissions - Scenarios
2.0%.
30,000,000
Current retail fuel prices (February 2021) in Auckland
Annual Carbon Emissions tCO2
are about $2.10 per litre for 91 Octane. A 10% increase 25,000,000
would thus be about an extra 20 cents per litre,
double the Regional Fuel Tax (RFT) of 10 cents per litre 20,000,000
introduced in July 2018.
15,000,000
$$
10,000,000
5,000,000
2035
To achieve a 20% reduction in
0
21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40
transport carbon emissions would
20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20
require a doubling of fuel price.
3% increase p.a. 2020 level 3% reduction p.a. 4.5% reduction from 2026
PAGE | 5WSP | 01 | 02 | 03 | 04 | 05 |
Congestion charging The Singapore system started with a manual charging
system as long ago as 1975, converting to electronic
Congestion pricing is aimed at improving the road pricing (ERP) in 1998. The Singapore system
performance of the transport network by charging charges for the use of a network of expressways and
some or all road users a fee to drive on all or certain arterial roads at peak periods. The LTA reports that the
roads within a defined area, usually during peak ERP scheme has resulted in traffic decrease of about
demand periods. There are generally four types of 13% during operational hours. Other studies have
congestion pricing schemes in operation around the suggested that the scheme merely moved congestion
world as follows: to other non-charged roads or at other times.
1. Cordon Charging: drivers are charged for crossing In Stockholm, where the objectives were to reduce
a cordon or ring across a series of roads at specific traffic congestion, improve urban environment, and
times of day, typically to manage demand. Cordon support urban highway projects and PT infrastructure,
pricing does not charge for traffic movements that the reported effect on vehicle emissions has been a
occur completely within the cordon. Stockholm reduction by 10-15% in the inner city. This is attributed
introduced this system in 2007. to a reduction in (non-exempt) vehicles crossing the
cordon of about 20%. The charge is between NZ$2 and
2. Area Charging: vehicles are charged for crossing $6 for every crossing of the cordon, with a maximum
a ring or driving within that ring at specific times daily charge of about NZ$17.
of day, typically to manage demand. London
introduced this system in 2003. In London, the scheme objectives were to reduce
high traffic flows in central London area and raise
3. Corridor Charging: vehicles are charged to use one investment funds for London’s transport system. 2010
or more roads in a specific corridor or corridors. reporting (C40.org, 2011) suggests a 16% reduction in
Singapore currently uses this system, introduced in road transport CO2 emissions within the charging zone,
1998, but is proposing to change to: amounting to 30,000 tonnes annually. Approximately
4. Network Charging: vehicles are charged based half of this was due to 75,000 fewer vehicles daily
on a combination of the time of day, location and and half due to the remaining traffic experiencing
distance travelled. less congestion. The London-wide CO2 reduction is
estimated at around 100,000 tonnes, ~1% of London’s
Congestion charging is, as it says on the label, designed total road traffic CO2.
specifically to reduce congestion in cities, rather
than to reduce fuel use or CO2 emissions. Reduced The daily charge for driving within the zone is now £15
emissions are usually a desirable by-product rather ($30). Free access to the congestion charge zone is
than a stated objective. granted to all-electric cars, some plug-in hybrids, and
any vehicle that emits 75 g/km or less of CO2 and have
One problem with charging to reduce congestion is a minimum 20-mile zero emission capable range. This
that drivers will often seek alternatives, in terms of free access is planned to be removed at the end of
route or time, to avoid the charge, rather than the 2025.
desired response of changing to more efficient modes
or not making the trip at all. This can result in a small
reduction in total trips, and some increased trip
lengths including the use of less suitable local roads if
this avoids the charge.
Another problem is that reduced congestion can
attract new trips that are less price sensitive and more
time sensitive (like taxis and couriers), so that the
capacity freed up by the charge is reduced over time.
London addressed this by reallocating street space to
buses and active modes, reducing vehicle capacity.
While this led to fewer vehicles within the cordon,
the travel times within the cordon did not improve
as expected by the public.
The reported effect on vehicle
emissions in Stockholm has been
a reduction by 10-15% in the
inner city.
PAGE | 6WSP | 01 | 02 | 03 | 04 | 05 |
London emissions-linked charging schemes
As of 2019, there are now three separate pricing Vehicles must meet strict emission standards to drive in
mechanisms in London, the central London Congestion the ULEZ area:
Charge, and the Low and Ultra-Low Emissions Zones. • Euro 4 for petrol cars and vans (vehicles less than
Designed to improve air quality in the city, London has fourteen years old in 2019)
introduced more stringent vehicle emission regulations • Euro 6 for diesel cars (vehicles less than five years old in
over the past 12 years, introducing the Low Emission Zone 2019)
in 2008, followed by the Toxicity Charge (T-charge) in • Euro 6 for diesel vans (vehicles less than four years old
2017, and latterly the ULEZ in April 2019. in 2019)
• Euro 3 for motorcycles and other L-category vehicles
Low Emissions Zone (LEZ)
• Euro VI for lorries, buses and coaches
The Low Emissions Zone covers most of the Greater
London area (1580 sq km) 24/7 and enforces a £100 Vehicles that do not meet these standards must pay a
penalty charge on any commercial (>3.5 tonne) vehicles charge (over and above the Congestion Charge):
that fail to meet the emissions standard, which was • £12.50 per day for cars, motorcycles and vans
originally Euro III until 2012, Euro IV up until 1st March • £100 per day for lorries, buses and coaches
2021 and is now Euro VI. In the latest incarnation, vehicles
not meeting Euro IV standards now are charged £300 From October 2021, the ULEZ will be expanded to cover
per day. the Inner London area within the North and South
Circular Roads.
Toxicity charge Euro emissions standards so not specifically target
The Toxicity charge was introduced in October 2017 CO2 emission, but concentrate on emissions of Carbon
in the existing Congestion Charging Zone to address Monoxide (CO), NOx, hydrocarbons and particulates.
record poor air quality. Vehicles that did not meet Euro However, it is likely that vehicles which conform with
4 standards, typically those diesel and petrol vehicles higher Euro emission standards are also those which use
registered before 2006, were charged £10 to enter the less petrol and diesel per km driven, thus the reduction in
central zone during Congestion Charging hours (in use of non-complying vehicles is expected to reduce CO2
addition to the Congestion Charge). In December 2017, emissions overall, even if this is not the primary objective.
TfL said that the charge had cut the number of these The ULEZ six-month monitoring report (Greater London
heavily polluting vehicles by around 1,000 per day, with Authority October 2019) reported a preliminary estimate
the remaining 2,000 paying the £10 charge. However of a 4% decrease in CO2 emissions in the central zone.
as further 3,000 vehicles are eligible for discounts (due It also reports a decrease in non-compliant vehicles
to Blue Badges etc.) the actual reduction in heavily detected within the zone of nearly 40%, compared with
polluting vehicles is around 15%. an increase in compliant vehicles of 15%, against an
overall decrease of 6% in detected vehicles.
Ultra-Low Emissions Zone (ULEZ)
December 2020 monitoring report suggest that,
On 8 April 2019, the Ultra-Low Emission Zone (ULEZ) notwithstanding altered travelling patterns due to
was introduced, which applies 24/7 to vehicles which do Covid-19, the pattern in continuing with the non-
not meet the emissions standards: Euro 4 standards for compliant vehicle detection proportion down to 15%
petrol vehicles, and Euro VI for diesel and large vehicles. (from 39% in March 2019 and 26% in September
The purpose of the ULEZ is to improve air quality in and 2019) and the total number of non-compliant vehicles
around central London by reducing the number of older detected dropping to 11,900 from 32,100 in 2018.
more polluting vehicles that enter the central zone.
Unlike the Congestion Charge (which operates Monday The Greater London Authority now reports that
to Friday between 07:00 and 18:00) the ULEZ operates CO2 emissions in the central zone are estimated to have
24 hours a day, every day of the year. reduced by 12,300 tonnes, a reduction of 6% because of
the ULEZ (London.gov.uk Feb 2021).
Future Strategies
With London aiming to be a carbon zero city by 2050,
further evolution of congestion and emissions charging
is planned. The London Environmental Strategy proposes
London aims to be a carbon zero city by 2050 and that Between 2020 and 2035, the GLA will develop a
is evolving its congestion and emissions charging. new, more sophisticated way of paying for road use,
Between 2020 and 2035, the GLA will develop a integrating existing and proposed emissions-based and
new, more sophisticated way of paying for road use, congestion charging schemes.
integrating existing and proposed emissions based
and congestion charging schemes.
PAGE | 7WSP | 01 | 02 | 03 | 04 | 05 |
03 Auckland’s congestion
charging plan
The Congestion Question project is a technical These weighted evaluation criteria suggest that the
investigation by officials from six government agencies environmental impact (eg reduced CO2 emissions) is
(the Ministry of Transport, Auckland Council, Waka not an important objective for the TCQ study, as one
Kotahi NZ Transport Agency, Auckland Transport, fourth of 20% suggesting that improved environmental
The Treasury and the State Services Commission) outcomes is worth just 5%, with compared to reduced
to consider whether there is a case for introducing congestion (lower travel times) being 65%.
a congestion pricing scheme for Auckland, Tāmaki
The shortlisted options evaluated were largely
Makaurau and test the effectiveness of charging
geographically differentiated as follows:
options.
• City Centre Cordon
Like the schemes reviewed in the previous section, the
• Isthmus Area
Auckland proposal is designed and evaluated against
its ability to reduce the attractiveness of driving, • Target Congested Corridors
especially commuting into the city centre, by targeted • Combination (City Centre Cordon and Target
charging. The objectives of the scheme are well Congested Corridors)
demonstrated in the evaluation criteria used to assess • Regional Network – all congested roads during
options, and the weightings given to them as follows: congested periods.
1. effectiveness in reducing congestion (65%) Options were evaluated using various metrics and the
2. economic, social, environmental and safety city centre cordon and the strategic corridors options
considerations (20%) are recommended to take forward to the next stage. In
terms of CO2 reduction, none of the shortlisted options
3. efficiency, flexibility and wider considerations (15%). showed a greater than 1% reduction in CO2 emissions,
with the city centre cordon reduction being just 0.1%
and the strategic corridors being 0.8% reduction
(Figure 8).
Evaluation metric Shortlist option
City Centre Isthmus Strategic Regional
Combination
Cordon Area Corridors Network
Transport assessment
No. of vehicle trips reduced by: 0.4% 4.7% 1.3% 1.7% 2.2%
Average vehicle travel time reduces by: 0.8% 5.4% 6.7% 7.6% 8.2%
Total travel time reduces delay by: 4.2% 26% 30.4% 34.6% 32.8%
Time spent in severe congestion reduces by: 2.5% 13.8% 16.1% 19.0% 20.3%
Freight vehicle kilometres travelled (VKT) in severe 1.6% 10.7% 22.4% 25.7% 23.9%
congestion reduces by:
No. of jobs accessible within a 30 minute drive 1.9% 17.9% 14.6% 18.9% 17.1%
increases by:
CO2 emissions reduced by: 0.1% 0.3% 0.8% 0.7% 0.8%
Other emissions (VOC, NOx, PM10, PM2.5) reduce by: 0.1% 0.3% 0.7% 0.8% 0.8%
Figure 8 Congestion Question Short List Evaluation results (Congestion Question Main Findings Report July 2020)
TCQ recommends a way forward for road pricing in Tāmaki Makaurau which is forecast to be effective in
reducing congestion. However, the Government’s priorities have shifted away from reducing congestion towards
reducing carbon emissions. Are the original terms of reference for the study still valid in 2021? If reducing CO2
emissions were a specific objective and given a higher weighting, what different options may have emerged into
the short list? What would be an appropriate target for carbon emissions from a charging scheme?
PAGE | 815,000
CO2 emiss
Vehicles sol
100
10,000
5,000 50
0 0
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04 Conclusions and recommendations
Make and Model Volume sold Emissions
Auckland Fuel Prices and Sale Volumes 2009-2019
300 1,200
The CO2 emissions from road transport in New What250is crystal clear is that there is no time to lose.
1,000
Zealand are increasing and recent trends suggest NZ is committed to (among other targets) a 6
Fuel sales (Million Litres)
Fuel cost cents per litre
that emissions are likely to get worse before it gets million
200 tonne reduction (from 2017 levels) in annual 800
better, as more kilometres are driven, and less efficient CO2 emissions from transport by 2035. Against a
150 600
vehicles dominate our sales figures. background of population increase and recent
increases in NZ transport CO2 emissions of about400 3%
This paper has looked at a wide range of existing 100
per year since 2013, even keeping at 2019 levels will be
and proposed ‘charging” schemes: vehicle purchase
challenging.
50 200
incentives, fuel taxes, road and congestion pricing, and
emissions penalties. To get 0to the 2035 target would require an 0
approximately
-0
9 -10 n-3%
11 -annual
12 -13 n -1reduction
4 -15 n-16 from
n -17 n-182021 n -19 - if the
Of these, only the proposed NZ Clean Car Import Ju
n Ju
n J u Ju
n
Ju
n
Ju Ju
n
Ju J u Ju J u
reduction could be started immediately and would
Standard is specifically designed to result in reduced
deliver nearly 100(91)Million
Petrol Price Dieseltonne
Price reduction
Petrol Sales inDieselCOSales
2
CO2 emissions from road transport, the others are
emissions by 2040 compared to remaining at the 2019
designed to raise funds for transport improvements, to
level. (Figure 9).
reduce traffic congestion, or to improve air quality. Any
reductions in CO2 emissions arising from fewer vehicle
trips of more efficient vehicle choices are a desirable NZ Land Transport Carbon Emissions - Scenarios
but relatively minor outcome in these schemes. 30,000,000
The overwhelming conclusion from this overview is
Annual Carbon Emissions tCO2
25,000,000
that there are a several fiscal levers to pull that could
change behaviours sufficiently to result in a substantial 20,000,000
reduction in CO2 emissions from road transport in
Auckland. The key to developing an effective yet 15,000,000
socially acceptable charging scheme appears to lie in
establishing the appropriate objectives for a scheme 10,000,000
so that it can be designed to deliver upon the desired 2035
5,000,000
outcome of CO2 reduction, rather than relying on
reduced CO2 emission as a by-product of a scheme 0
designed to deliver different outcomes. 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40
20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20
If successful in Tāmaki Makaurau, the hybrid carbon
3% increase p.a. 2020 level 3% reduction p.a. 4.5% reduction from 2026
/ congestion pricing scheme could be rolled out
nationwide, potentially with GPS development, as
proposed for Singapore. This could start with the other
Figure 9 Potential Carbon Emission Future Scenarios
major city centres, followed by our most congested
inter-city highways. NZ Annual Km Travelled by Vehicle Type
Key to acceptability would be that revenues are However
50 as also shown (by the light blue line) on
relatively cost neutral, while directly linked to carbon Figure 9, if it takes 5 years to start to reduce carbon
40
emissions, such that low mileage users and those who emission below current levels 2026, a 50% higher
Distance (Billion km)
drive the most economical vehicles see a reduction in reduction
30 rate (about 4.5% per annum) is required to
total transport costs, while high mileage drivers and meet the 2035 target, this presumably would require
the highest emitting vehicles pay more. The freight considerably
20 more stringent interventions (such as
industry in particular would need to be assured that 50% higher charges) which may be less acceptable to
competitiveness and commercial viability will not be the 10population.
adversely affected, given the high mileages and fuel 0
consumption of their fleets 01
00
2
00
3
00
4
00
5
00
6 7 8 9 10 11 12 13 14 15 16 17 18 19
00 00 00 20 20 20 20 20 20 20 20 20 20
20
2 2
Much easier 2 2
to 2achieve
2 2 2
if we can start now. Charge!
Light passenger Light commercial Motorcycles Heavy trucks Buses
NZ Annual Km Travelled by Fuel Type
60,000
50,000
Distance (million km)
40,000
30,000
20,000
PAGE | 9 10,000
0
01 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19WSP | 01 | 02 | 03 | 04 | 05 |
THE RECOMMENDATIONS OF THIS REVIEW OF THE POTENTIAL FOR CHARGING
MECHANISMS TO DELIVER CO2 REDUCTIONS ARE THEREFORE:
THE NZ CLEAN CAR FUEL TAXES CONGESTION CHARGE
IMPORT STANDARD Fuel taxes are an appropriate The Auckland Congestion
The NZ Clean Car Import and simple method of raising Charge proposal should be
standard, including the revenue for transport system redesigned to improve the
discount for low emission funding and both national and outcomes for reduced CO2
vehicles, has potential to regional fuel taxation impose emissions. A hybrid scheme
substantially improve the a tax that is equitably relative that includes tiered charges
fuel efficiency of the NZ fleet to total fuel use, so should help for road use relative to the
over time, and as a net cost encourage both less driving CO2 emissions of the vehicle
neutral scheme should be and more economical vehicle being used could result in
implemented alongside any choices. However, a very both positive outcomes for
other direct charging scheme. substantial increase in fuel tax reduced congestion and
would be required to deliver substantial decreases in
a meaningful reduction in CO2 emissions. The type of
fuel use and CO2 emissions in scheme under investigation to
isolation of other measures. combine / replace the London
Congestion Charge and ULEZ
schemes might be applicable
to Auckland if specifically
designed to reduce carbon.
%
A combination of all three of the above, designed as a single package to ensure that the total tax burden
is appropriate and as equitable as possible, ought to provide enough levers to positively influence people’s
decisions about how, where and when to travel. Crucially the system needs to be developed with the focussed
outcome of reducing CO2 emissions from road transport as its primary objective. Reducing congestion in our
cities and on our busiest highways could be a secondary objective.
PAGE | 10WSP | 01 | 02 | 03 | 04 | 05 |
05 References
Presentation Internet
New Zealand Ministry of Transport (MoT) https://www.
Ministry of Transport, Transport Research Colloquium
transport.govt.nz/statistics-and-insights/road-transport
Transitioning to net zero carbon emissions, November
viewed 7 February 2021
2020
Motor Industry Association NZ (MIA) https://www.mia.
org.nz/Sales-Data/Vehicle-Sales
Reports viewed 16 February 2021
Kennedy, D., Wallis, I. Impacts of fuel price changes on
Rightcar https://rightcar.govt.nz/carbon-emissions
New Zealand transport. Land Transport New Zealand
viewed 16 February 2021
Research Report 331, 2007.
UK Department for Transport https://www.gov.uk/
Greater London Authority, Central London Ultra Low
government/statistical-data-sets/veh02-licensed-cars
Emission Zone – Six Month Report, October 2019
viewed 18 February 2021
Ministry of Transport et al, Congestion Question Main
Auckland Transport https://at.govt.nz/about-us/our-
Findings Report July 2020
role-organisation/corporate-plans-strategies/regional-
Ministry of Transport et al, Congestion Question fuel-tax/
Technical Report July 2020 viewed 16 February 2021
Greater London Authority https://www.london.gov.uk/
what-we-do/environment/pollution-and-air-quality/
mayors-ultra-low-emission-zone-london
viewed 2 March 2021
Transport for London https://tfl.gov.uk/modes/driving/
ultra-low-emission-zone
viewed 2 March 2021
Acknowledgements
Ngā mihi nui ki a koe Shifani Sood for your review of this paper and helpful suggestions.
CTA To arrange a presentation or meeting with Phil, or to discuss this research,
please contact phil.harrison@wsp.com
Phil Harrison – WSP Technical Director, Transport
Phil is passionate about working towards the vision of a safe and sustainable transport system for New Zealand
that reduces harm to people and the environment and delivers a great legacy for future generations. His defining
moments delivering transformational projects in the UK including Canary Wharf, London Bus and Tram projects,
and transport planning for the London 2012 Olympics. In New Zealand, he has led the planning and delivery
of the first phase of the AMETI project in Panmure, completed the business case for the Northern Corridor
Improvements, and led the transport planning for the additional Waitemata Harbour Crossing.
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