IRU Position on the internalisation of external costs (2008)

The effective internalisation of transport’s external costs requires sound cost-benefit analyses. Charging should be applied to all transport modes and revenues from road charging earmarked to the road transport sector, rather than lost in the overall state budget and inefficient transport modes. The IRU states that the Polluter Pays Principle (PPP) is not an adequate response to the internalisation of external costs, as it is economically outdated, and environmentally misguided. Instead, the IRU recommends applying the Cheapest Cost Avoider Principle (CCAP) to ensure economic growth and remain competitive. Read more…

Detailed IRU observations on the recent EU proposal on internalising external costs.

• The internalisation of transport’s external costs requires sound cost-benefit analyses.
• Charging should be applied to all transport modes.
• Revenues from road charging must be earmarked to the road transport sector rather than lost in the overall state budget and inefficient transport modes.
• To ensure economic growth and remain competitive, it should be recognised, once and for all, that the Polluter Pays principle is economically outdated and environmentally misguided, as it does not address the problem…Polluter pays, problem stays!
• Read more…

Economic impact of the internalisation of external costs in the European Union

Direct impact on the economies of the individual EU Member States and the consequences on the European road haulage industry, Progtrans, Basel, August 2010.

• Read... Full report / Executive Summary
• See Progtrans presentation (.pdf)

The internalisation of external costs in transport

From the "Polluter Pays" to the "Cheapest Cost Avoider Principle", Centre for the Study of Law and Economics, Saarland University, Germany, December 2007. The Cheapest Cost Avoider Principle won Ronald Coase a Nobel Prize in 1991

• Read... Full study / Executive summary 

TRAN Committee of European Parliament has transformed the Eurovignette into a pure new tax, penalising EU employment without greening road transport

The non-mandatory earmarking of the revenues from the Eurovignette aimed at greening road transport at-source, as decided by the EP TRAN Committee, will turn the Directive into a pure additional tax on the already heavily taxed road transport services, which will severely penalise the EU competitiveness, economy and employment with no environmental benefits. (May 2011) Read...

EU Transport Ministers increase road freight transport taxes without removing externalities!

EU Transport Ministers reached a political agreement on the Eurovignette, paving the way for extra taxes to allegedly internalise external costs in road freight transport yet with no guarantee that externalities will be effectively reduced. (October 2010) Read...

Internalisation of external costs can place a 414 billion euro burden on the EU economy per year, while profiting only two EU countries

A new ProgTrans study concludes that only two Member States will benefit from extra wealth and national income from the internalisation of external costs whereas most EU Member States will end up paying much more than they will receive. Road charges, when including excessive external costs, can reach up to 436 billion Euros per year, yet without generating any effective action aimed at removing the externalities by earmarking the charges to effectively reduce road transport’s environmental impact. (September 2010) Read...

MEPs advocate increase in industry charges and consumer prices

Current Members of the European Parliament go to the June European elections with a message to increase road transport industry charges and the cost of consumer goods despite the current economic crisis. (March 2009) Read...

Internalise external costs of all transport modes

IRU calls on EU Transport Council to ensure that greening of transport is applied to all modes of transport and all users to be effective. (October 2008) Read...

Greening of transport: CLECAT, ESC and the IRU assess the European Commission proposals

Industry groups representing freight forwarders, shippers and the road transport industry are concerned by the "Greening of Transport" package published yesterday by the European Commission. (July 2008) Read...

Polluter pays, problem stays

The European Commission's proposal on the internalisation of external costs and the revision of the Eurovignette Directive will penalise the EU economy without achieving its stated objectives. (June 2008) Read...

Where is the sound cost-benefit analysis?

The IRU advocates the Cheapest Cost Avoider Principle for assessing the internalisation of external transport costs and warns the European Commission that the proposed EU tax collection scheme will simply make Europe less competitive. (January 2008) Read...

Business organisations warn of negative consequences of Council agreement on Eurovignette
Joint press release of Eurochambres, Eurocommerce and UAPME (October 2010)
Business organisations remain sceptical after the political agreement found on 15 October by Member States in the EU Transport Council. The agreement contains elements which could be very damaging to European road transport businesses, say EUROCHAMBRES, EuroCommerce and UEAPME Transport Forum. Read…

Advance information on the CLECAT research on road transport taxation and charging in Europe
Excerpt of research prepared by the CLECAT Road Transport Institute and the Sustainable Logistics Advisory Body, (October 2010)
CLECAT is committed to a fair approach to the internalisation of external cost strategy, but it is questioning the fact that the Eurovignette III proposal is in line with the internalisation of external costs principles and has serious as to whether the proposal contains the appropriate measures that reduce the external costs of transport. Read …

Will the Council adopt a new tax on road freight that flies in the face of EU cohesion?
CLECAT Press release (October 2010)
An advance information excerpt prepared by the Clecat Road Transport Institute and the Sustainable Logistics Advisory Body was published with a view to providing information on the status quo of road transport externalities with regards to the Eurovignette III proposal to be debated by the Council on 15 October. Read …

Internalisation of external costs in road transport (Eurovignette) With great expectations come great responsibilities - CLECAT Press release (May 2008)
“If the Commission is to follow a coherent approach in tackling external costs in road transport, the revenue from charges should be strictly earmarked for the road transport sector. This is the only way to reach the objective of decreasing external costs of road transport whilst maintaining a level playing field with other (competing) modes. It must also be clear that the revision of the Eurovignette Directive is the first step of a process aiming at internalising external costs in all transport modes.” Read…

European Council agreement will not sustain the “greening of transport”
ESC Press release (October 2010)
The European Shippers’ Council is greatly disappointed with an agreement reached by the Council of Ministers of Transport last Friday. Read …

Internalising external costs of transport
ESC Position paper (April 2008)
“As an organisation representing the interests of users of transport services, the ESC would not be defending one mode of transport above another….The ESC agrees that the European Commission has to take action to reduce external costs of transport modes, but we would suggest the following basic requirements: the revenue generated must go toward solving the problem; all transport modes need to pay for the external costs; keep in mind the costs already paid.” Read…

European Commission’s Initiative “Internalisation of external costs in transport”

ADAC Position paper (April 2008)
“Costs for constructing, maintaining and operating infrastructure are not considered by the European’s Commission Handbook. This must be criticised in that the revenue to be allocated to different modes is neither quantified nor compared to the cost.” Read…