Reduce CO2 and other greenhouse gas emissions associated with road transport. To achieve the UK commitment to the Kyoto protocol, a 12.5% reduction in CO2 emissions (compared to the 1990 level) is required in the time frame 2008 to 2012. A stretch target of 20% by 2010 has been set by the UK Government, which has declared it will take the lead in Europe. As 22% of CO2 derives from road transport, major development activity is required for vehicle propulsion systems, both conventional IC engines and for hybrid and fuel cell concepts. The European Commission and ACEA have agreed voluntary targets for passenger cars of 140g/km CO2 new car fleet average in the EU by 2008. Subsequent targets are the subject of current negotiation and the European Commission has expressed a desire
to see 120g/km by 2012. In the UK, there are low carbon vehicle targets for 10% of new cars and 20% of new buses by 2012. Whilst concentration has been on-road transport, off-road vehicles (construction, agriculture etc) are now becoming a significant part of total emissions and this sector will see an increase in development needs. For the future, the threatened environmental impact can be avoided by significant reductions in vehicle-miles, (which people may not accept) or by significantly improved g/km of CO2 (which fossil fuel technologies may be unable to deliver).

Conserve non-renewable sources of energy, develop alternative energy sources and systems, improve efficiency and waste energy re-use, reduce unnecessary travel and improve distribution systems. The consumption of oil continues to increase. Expansion of national economies has
a significant impact on demand, whilst international events have led to some supplies becoming unreliable. New sources of non-oil derived energy are required, which impacts the development of natural gas derived and bio-fuels as well as hydrogen. Improvements to conventional propulsion unit thermodynamic efficiencies will need continuing attention with the development of advanced, fuel efficient, high specific output, downsized engines a key. Advances in lubricants and tribological coatings are needed to reduce friction. Vehicle weight is also a factor in improving overall energy efficiencies. Lightweight materials and structures, whilst retaining or improving safety, are needed to enable gains to be realised.

Reduce emissions of substances which can impact health. This is particularly important in urban areas with a high population and vehicle density. These include particulates, NOx , benzene, carbon monoxide, hydrocarbons, sulphur dioxide and ozone. Road vehicles contributed 46% of the total NOx pollution in 2000 (the largest contributor) and 18% of PM10 (second largest contributor). However, it is thought that smaller particulates are a greater hazard, for which vehicles make a more significant contribution. Particulates and NOx emissions are greater from diesel engines than from gasoline, although capitalising on their CO2 benefits requires the development of both combustion technologies and exhaust treatment. European directives, Euro 5 and Euro 6 (in the 2010 to 2012 timeframe) will mandate pollutant levels for gasoline and diesel engines, both for passenger car and commercial vehicles. As with CO2 emissions, general IC engine and vehicle fuel efficiency improvements will help alleviate the situation, as will the introduction of hybrid, fuel cell and alternatively fuelled propulsion technologies. For manufacturing, development is needed for improved energy efficiency and also the reduction of emissions from industrial processes.

Re-use, recover and recycle a significant proportion of vehicle materials and
structures. This in accordance with the European End-of-Life Vehicle Directive already in force. It also prohibits the use of certain materials for use in vehicles. Coupled with the targets to improve
re-use and recovery to > 95% vehicle weight, and re-use and recycling to > 85% by 2015, it requires significant development of materials and structures. Vehicle design will need to take account of the requirements for disassembly, as well as the environmental management from cradle to grave, including reprocessing techniques. Legislation on electronic equipment (such as WEEE) and substance waste disposal will also act as a constraint on the use of materials (including, for example, lubricants), leading to the development of more environmentally friendly products and systems.