With its European Green Deal (https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal_en), the European Commission strives to ensure net zero emissions of greenhouse gases by 2050. To this aim, the European Union has adopted a set of policies for reducing net greenhouse gas emissions by at least 55% by 2030 (https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal/delivering-european-green-deal/fit-55-delivering-proposals_en). For the transport sector, these policies include strengthened CO2 emissions standards for cars and vans, a new EU Emissions Trading System for building and road transport fuels, and the Alternative Fuels Infrastructure Regulation, to name just a few. Before EU policies can be adopted, the European Commission prepares proposals, accompanied by impact assessments, that look into the effects a potential regulation might have from all angles. The DIONE cost model is used for such ex-ante policy support within the European Commission. It has supported the latest four impact assessments for setting or strengthening EU CO2 emission standards for cars and vans, trucks and busses. By calculating CO2 emission reduction costs for road vehicles, as well as total costs of ownership of vehicles from the perspective of users, manufacturers and society, it helps assessing the impact of diverse regulation options. For example, the JRC DIONE cost model has been employed for the impact assessment for strengthened cars and vans CO2 standards within the EC’s Fit for 55 package (SWD/2021/613 final, https://eur-lex.europa.eu/legal-content/ES/TXT/?uri=CELEX:52021SC0613). Net economic savings in case a policy option is put into practice, compared to a baseline, have been calculated. The below figure shows the net economic savings in terms of total costs of ownership, summing technology costs for less emitting vehicles, fuel and energy costs, and maintenance costs, from the perspective of a user who buys a new car or van and uses it for five years. Results show that net consumer benefits increase with stricter targets and over time. This is because savings in fuel or energy expenditure during vehicle use overcompensate the higher upfront capital costs of more efficient and zero/low-emission vehicles. Figure 1. Average net savings over the vehicle lifetime from a societal perspective (EUR/vehicle) resulting from the CO2 emission standards (in a MIX policy scenario context) (cars (l) and vans (r)), Source: European Commission, Impact Assessment, Part 1; SWD(2021) 613 final. The DIONE model has also supported the European Commission in setting car and van CO2 standards prior to the Fit for 55 package, and in setting and strengthening CO2 standards for trucks and busses. Results from DIONE cost model calculations can be found in the respective EC impact assessments for cars and vans CO2 standards (SWD/2021/613 final, https://eur-lex.europa.eu/legal-content/ES/TXT/?uri=CELEX:52021SC0613; SWD 2017/0650 final, https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52017SC0650) and trucks and busses CO2 standards (SWD/2023/88 final, https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52023SC0088; SWD/2018/185 final, https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:52018SC0185). Further documentation of the use of the DIONE model for policy support can be found in the Modelling Inventory and Knowledge Management System of the European Commission (MIDAS), https://web.jrc.ec.europa.eu/policy-model-inventory/explore/models/model-dione/.
