decarbonising road transport Urban Wästljung PhD Senior Adviser, Public & Sustainability Affairs, Scania decarbonising road transport

Scania’s approach to sustainable transport Energy efficiency Alternative fuels and electrification Smart and safe transport With customer profitability as the starting point, Scania wants to be the leading provider of sustainable transport. This means integrating sustainability fully into the business and working with others to tackle impacts, transform our industry and create lasting value. Scania sees three focus areas when it comes to sustainable transport. smart and safe transport of goods and people, saving energy onboard the vehicle and switching to some form of alternative fuel. To really minimize the climate change impact of transport, all areas need to be adressed. The good thing is that some measures reduce waste and increse efficincy which can compesate for some additional cost from other meassures. In the next slides we give examples of each area.

CO2 reduction to be reached here and now Natural gas -15% Biogas -90% HVO -90% Biodiesel -66% Ethanol -90% Hybrid -92% Alternative fuels: The good thing is that the commercial alternative fuels of today, match the CO2 targets of tomorrow. Depending on the fuel a vehicle can save up to between 20 to 90%. And there is also the possibility to add hybridization in combination with the biofuels. That can in the best cases reach beyond 90% CO2 reductions. Since 2015 October Scania can offer solutions for all commercial fuels and all applications that also fulfil the Euro 6 norm. What you see are trucks for compressed as well as liquefied gas, HVO and Biodiesel trucks. There is the new generation Ethanol truck and finally world’s first heavy Euro 6 hybrid truck. And that one can also run in combination with Biodiesel and HVO.

sweden: zero emissions by 2045 Proposal for Climate law from Swedish Government: Emission reduction with targets for 2030, 2040 and 2045 for non ETS sectors Emissions from domestic road traffic (red dots) shall decrease by 70 percent from 2010 to 2030. Scania har som mål att vara ledande inom hållbara transporter. Det finns mycket vi kan göra att förbättra effektiviteten i dagens transportsystem. Vägen framåt handlar inte endast om att öka användandet av ett enskilt bränsle eller en enskild teknik. Det handlar om att effektivisera hela värdekedjan och vidta åtgärder inom samtliga områden, inklusive förnybar energi, fordonseffektivisering och transporteffektivisering. För att säkra ett holistiskt angreppssätt och att vi arbetar med hela värdekedjan har Scania valt tre övergripande områden att fokusera vårt arbete inom hållbara transporter på: Energieffektivisering Alternativa bränslen och elektrifiering Smarta och säkra transporter För att få till stånd en omställning av transportsystemet, måste vi jobba med alla tre områdena samtidigt. Idag lägger vi dock fokus på alternativa bränslen och elektrifiering, där Scania jobbar brett med flera lösningar.

energy use in swedish domestic heavy duty traffic Improved logistics and intermodality Improved vehicles and handling Energy TWh Improved efficiency due to electrification Scania har som mål att vara ledande inom hållbara transporter. Det finns mycket vi kan göra att förbättra effektiviteten i dagens transportsystem. Vägen framåt handlar inte endast om att öka användandet av ett enskilt bränsle eller en enskild teknik. Det handlar om att effektivisera hela värdekedjan och vidta åtgärder inom samtliga områden, inklusive förnybar energi, fordonseffektivisering och transporteffektivisering. För att säkra ett holistiskt angreppssätt och att vi arbetar med hela värdekedjan har Scania valt tre övergripande områden att fokusera vårt arbete inom hållbara transporter på: Energieffektivisering Alternativa bränslen och elektrifiering Smarta och säkra transporter För att få till stånd en omställning av transportsystemet, måste vi jobba med alla tre områdena samtidigt. Idag lägger vi dock fokus på alternativa bränslen och elektrifiering, där Scania jobbar brett med flera lösningar. Electricity Sustainable biofuels Remaining fossil fuels Swedish Transport Administration

Energy demand projection HDT in EU Mtoe 150 The projection assumes 20% energy efficiency improvment by 2050 in comparison to today’s level 125 100 75 This is a bar diagram of the European Union’s projection of the European transport sector’s future fossil carbon emmissions. The assumption is valid if nothing in the system is changed and we get an additional 20% increase in fuel efficiency over time. 50 25 2020 2030 2040 2050

Energy demand projection HDT in EU Mtoe EU Decarbonization target 2030 150 125 100 EU Decarbonization target 2050 75 EU:s current target of curbing this development in fossil carbon emmissions would bring us down to about one quarter of today’s levels. In Scania’s view is that the proposed route for EU is far too slow if we should live up to the committment of staying below the 2 degree increase. We are already now ready with technology that can achieve the targets by 2030. To decarbonize heavy transports by 2030 will probably be too large an effort for the EU even though it is possible to do from a technological perspective. But an ambitious and achievable objective is to reach the target at least 10 years earlier than the current EU goal. We see that it is possible to take even further steps to take us below the current target. 50 25 2020 2030 2040 2050

Energy demand projection HDT in EU Mtoe 150 Energy efficiency Energy efficiency Energy efficiency 125 100 75 For example we see that we will be able to increase energy efficiency onboard the vehicle an additional 10% on top of the EU assumption of 20%. That will keep the energy demand flat even though the total amount of transported good is increased. So now we need to take out the rest with means within the other two areas. 50 25 2020 2030 2040 2050

Energy demand projection HDT in EU Mtoe 150 Energy efficiency Energy efficiency 125 Smarter transport Smarter transport 100 75 We will be able to add even more with smarter transport strategies for improved filling rates, route planning and intermodality. 50 25 2020 2030 2040 2050

Energy demand projection HDT in EU M tonnes 150 Energy efficiency 125 Smarter transport Bio fuels 100 75 Bio fuels Bio fuels is fundamental as they will give us a flying start. 50 25 2020 2030 2040 2050

Energy demand projection HDT in EU Mtoe 150 Energy efficiency 125 Smarter transport Bio fuels 100 Electricity 75 And with the indtroduction of electricity we will by the end of 2050 be virtually fossil free. And if needed the last fossil component can be taken out as well by taking further measures. Electricity 50 25 2020 2030 2040 2050

Improved energy efficiency, smarter transport, renewable fuels and electricity are necessary components to reduce and substitute fossil fuels