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16.4.2024

Decarbonising Transport: The Impact of Pan-European Toll Increases Due to CO₂ Classes

Under the new HDV CO2 regulation, ambitious targets are set to reduce CO2 tailpipe emissions of new trucks by 45% in 2030, compared to 2019 levels. This big environmental push is being supported by Directive (EU) 2022/362 on road user charges, which had to be transposed into national law by 25 March 2024. What's it all about? Well, its shaking things up by weaving CO₂ emission classes right into the fabric of national toll systems.

Decarbonising Transport: The Impact of Pan-European Toll Increases Due to CO₂ Classes

EU Road Tolling Systems: A Comprehensive Overview

The European Union has a diverse approach to charging heavy goods vehicles (HGVs) for the use of roads. This system varies significantly among member states, with some applying distance-based tolling, others using time-based user charges and a few operating under long-term concession contracts with private operators.

Distance-Based Tolling: Government Oversight

A substantial number of EU countries, including Germany, Poland, Austria, Czechia, Slovakia, Hungary, Slovenia, Belgium, Bulgaria, and the soon-to-join Denmark and the Netherlands, have implemented government-directed distance-based tolling. This system, where toll rates are determined by the distance travelled, is overseen by national authorities, often in collaboration with government ministries. These countries, accounting for 53% of EU road freight, do not engage non-state actors in toll rate determination.

Concession-Dominated Countries

In contrast, France, Italy, Croatia, Greece, and Portugal have entrusted almost all of their highways to private operators under long-term concession contracts. These 'concession countries' give significant control over toll rates to these operators. Ireland has a similar system for selected highway sections. Spain, which is witnessing a decrease in concessions and an increase in free-to-use roads, is planning a national toll system covering all highways as part of its post-pandemic recovery strategy. By 2027, concession-controlled distance-based tolls are expected to cover Member States with 28% of EU road freight.

Time-Based User Charges: Vignettes

Time-based user charges, known as vignettes, allow vehicles to use infrastructure for a set period, such as a day or a week. This model is less common but still in use in Sweden, Estonia, Latvia, and Luxembourg. These countries, which may retain vignettes for regional reasons or due to the costs of switching to distance-based tolling, represent just 4% of EU road freight. Romania, currently using vignettes, has pledged to transition to distance-based charging as part of its recovery program.

The Transition and Untolled Regions

By 2027, the EU expects to have 81% coverage with distance-based tolling (53% government-directed and 28% concession-operated), along with vignette user charging. This totals approximately 85% of truck toll/vignette coverage across the EU. The remaining 15% is either in transition, like Spain and Romania, or currently untolled, as is the case with Finland, Malta, and Cyprus.

Applying CO₂ Variation to Truck Tolls in the EU

The European Union is taking significant strides in integrating environmental considerations into its road-tolling systems. With the introduction of Directive (EU) 2022/362, member states are now required to incorporate CO₂ variations into their tolling systems for heavy goods vehicles (HGVs). Here's how it works:

Vignettes / Time-Based User Charges

  • Extended Deadline for Some Countries: Denmark, Luxembourg, the Netherlands, and Sweden, known as the ‘original Eurovignette countries,’ have until 24 March 2025 to implement CO₂ variation.
  • Post-2024 Restriction: After March 2024, the toll rates of time-based vignettes on core parts of the Trans-European Transport Network (TEN-T) must vary according to a truck's CO₂ emissions. This means that the cost of these vignettes, which allow trucks to use the infrastructure for a set period, will be adjusted based on the CO₂ emission levels of the vehicles, incentivising the use of more environmentally friendly trucks.

Distance-Based Tolls

  • Implementation Deadline: By 24 March 2024, all EU countries, except those with concession contracts, must incorporate CO₂ variations into their distance-based tolls for HGVs. Countries with concessions will apply these changes when toll contracts are newly signed, renewed, or substantially amended.
  • Implementation Options: Countries have three options:
    • Option 1: Vary the infrastructure charge component of the toll based on the truck's CO₂ emissions. This component typically covers road construction, maintenance, and operational costs.
    • Option 2: Apply a separate external cost charge for CO₂ in addition to the unchanged infrastructure charge.
    • Option 3: Combine both approaches – vary the infrastructure charge for CO₂ and apply a separate CO₂ external cost charge.

How Does CO₂ Variation Work?

  • Infrastructure Charge Variation: Under Option 1 above, the directive specifies that the variation in infrastructure charge shouldn’t generate additional revenue, meaning the reduction for efficient trucks must be balanced by increasing the charge for less efficient ones.
  • Differentiated CO₂ Charging: This is achieved through banding, which allocates vehicles into one of five different CO₂ emission classes based on emissions data from the VECTO tool. There is no obligation to do so and link the CO2 mark up to VECTO, renewable fuels would consequently fall out of scope. So far Germany, Austria, and Czech Republic apply this principle. Other member states are considering the introduction of CO2 differentiation.
  • CO₂ Emission Classes: some text
    • Class 1: Vehicles not belonging to any other class.
    • Class 2: Emissions 5-8% below the emissions reduction trajectory.
    • Class 3: Emissions more than 8% below the trajectory but not in the lower classes.
    • Class 4 (Low Emission Vehicles - LEV): Emissions more than 50% below the reference CO₂ emissions.
    • Class 5 (Zero Emission Vehicles - ZEV): Vehicles without an engine or with emissions less than 1 gCO₂/kWh or km. 

Under the new system, vehicles are categorised into five CO₂ classes (as above), with every vehicle initially placed in Class 1. If you're aiming for a lower toll rate, falling into Classes 2 to 5, you'll need to provide some extra data or registration details. This is where services like Eurowag's toll solution come in handy. You can submit the necessary information through Eurowag to qualify for these reduced toll charges. If your vehicle fits the bill, the toll operator should apply these reductions accordingly. Just a heads up, though, to benefit from a reduced surcharge from the standard CO₂ Class 1, your vehicle must have been registered after July 2019. Once you submit your details, they’ll be forwarded to the relevant authorities, who will then calculate your toll charges based on this updated information.

Curious about how the new CO₂ Emission Classes will impact your toll for truck costs? Why not give the Eurowag CO₂ calculator a whirl? It's a handy tool that can give you a ballpark figure of what you might expect to pay in tolls based on your vehicle's CO₂ output. It's a great way to get a head start on planning for these changes and understanding their financial implications for your fleet.

How do you provide the required data for CO₂ classification of your vehicles?

You'll need to provide some specific data and vehicle documents to show the CO₂ emissions of your vehicles. The kind of information you'll need to provide includes:

  • Engine characteristics, like if it's a Diesel Combustion engine.
  • When your vehicle was first registered.
  • The F1 value refers to the maximum technically permissible laden mass (not the F2).
  • The engine power in kilowatts.
  • Cabin type – for instance, does it have a sleeper cab or not?
  • The vehicle class and group, such as whether it's a Tractor or Rigid Lorry.
  • The axle configuration of your vehicle.
  • Your vehicle’s CO₂ emissions in grams per tonne-kilometre.

Remember, this list might change without notice, so it's always good to double-check. Along with these details, you'll also need to upload some key vehicle papers like the Vehicle Registration Part 1, the Certificate of Conformity (COC), and the Customer Information File (CIF).

Once you submit the above information to Eurowag, we take care of the rest. We'll forward everything to the local toll authorities, ensuring your vehicles are properly classified and the correct CO₂ class is applied. It's a simple process that helps you stay compliant and possibly benefit from lower toll rates!

Impact on Fleet Composition

  • Emissions Reduction Trajectory: This trajectory is defined under the CO₂ standards for new HDVs and determines the classification of vehicles in Classes 2 and 3, reshaping which vehicles are included in these classes over the years.
  • Example of Class Allocation: For instance, in the VECTO emissions classification system, two-axle tractor units, a significant segment of new trucks, are used as an example. The trajectory for these vehicles under the 2019 CO₂ standards helps determine their classification.

How much will toll payments increase as a result of the implementation of the new CO₂ classes?

As Europe gears up for a greener future, significant changes are coming to the way tolls are calculated, especially for Heavy Goods Vehicles (HGVs). Let's break down what these changes look like in key European countries:

Germany: DE Toll Increase

  • Start Date: The new CO₂-based toll system kicks off on December 1, 2023.
  • Impact on Toll Rates: The introduction of CO₂-dependent tolls could see transport costs on federal roads and motorways rise by up to around 80%. Specifically, the toll rate, which is currently €0.19 per kilometre for a typical 5-axle HGV above 18 tonnes, is set to nearly double to €0.34 per kilometre.
  • Additional Surcharge: A CO₂ surcharge of €200 per tonne of CO₂ emissions will be added. This will initially apply to vehicles over 7.5 tonnes, expanding to include vehicles over 3.5 tonnes from July 1, 2024.

Austria and the Czech Republic: Following Suit

  • Austria’s Increase: Toll rates in Austria are expected to rise by 20-30% starting from January 1, 2024.
  • Czech Republic’s Approach: The Czech Republic plans to increase its tolls by 10-15% from March 2024.

Hungary: Already on the Move

  • Recent Increase: As of October 1, 2023, Hungary has already seen a 17.6% increase in its toll system.

Practical Implications

  • For a trip through Germany, from the Netherlands border to Poland, covering around 700 km, the toll increase could mean an additional cost of approximately €110.00 per trip under the new rates.
  • The industry is anticipating a broader shift towards zero-emission vehicles, with expectations that 50% of new HGV sales will be electric by 2030 and 75% by 2040.

Staying Ahead: Navigating the New EU Road Transport Regulations

In the context of adapting to Directive (EU) 2022/362 and its tolling requirements, utilising advanced technologies becomes crucial. Tools like Eurowag's E-toll solution, complemented by devices such as the EVA on-board unit, ensure not only compliance but also efficiency in toll collection for trucks. Eurowag's E-toll solution makes sure your fleet is on the right side of these changes, ensuring accurate vehicle classification and fair toll charges and supporting your 'go green' efforts. The EVA on-board units play a key role in accurately capturing CO₂ emissions data and toll payments, aligning seamlessly with the directive's aim for a more environmentally responsible road transport sector.

Learn more about CO₂ Emission Classes and their impact on your toll rates by contacting Eurowag’s 24/7 customer care service today.