Scania boss questions Australian emissions path

During a whirlwind Australian visit earlier this week, the president and CEO of Scania CV AB, Henrik Henriksson, questioned Australia's current vehicle emissions standard, expressing his disappointment that the nation is lagging years behind so many other economically developed countries.

Australia's current ADR 80/03 ruling places us on an emissions standard the equivalent of Euro 5. While Euro 6 was mandated in Europe in 2015, there is no clear direction from the Australian government on when we might see its local equivalent, ADR 80/04, introduced here, with some industry sources speculating it's still some seven or eight years away.

While praising Australia's "world class" approach to road transport safety, Mr Henriksson appeared dismayed at the Federal Government's inaction on vehicle emissions.

"It's a little bit surprising – yes, maybe I should use the word surprising over anything else – that we're still on Euro 5 in Australia," he said, during a roundtable discussion with Australian truck media held in Melbourne on Thursday, March 8.

"I cannot neglect to reflect that this is a global responsibility as a citizen of this planet; what makes Australia so unique that you can stay behind? I mean, the rest of the world is moving ahead and why should you stay behind? It's not like your emissions are staying down here [in Australia]; it's part of a global emissions issue. So I think it's also about the responsibility that we need to take as global citizens.

"If you look at the markets that have not introduced Euro 6 now, the list is quite short – especially when it comes to big industrial and developed nations like Australia."

Related reading:
Trial commences for 100% renewable diesel
Silent night for Scania
Scania and Rio Tinto trial autonomous trucks
New generation Scania: Launch review

Scania has made a name for itself in recent years for its efforts in reducing emissions and exploring alternative fuel sources, in what represents a major push towards sustainability for the Volkswagen Group-owned, Swedish-based truck and bus manufacturer.

"Scania, we are on a quest you could say; we have a clear purpose as a company and that is to drive the shift towards more sustainable transport solutions," Mr Henriksson said, before underlining that road transport is estimated to be responsible for around 20 per cent of global carbon-dioxide emissions.

"We are part of the problem but we want to be part of the solution and we want to drive this change – we cannot just sit and wait for it to happen.

"That means we need to engage with our customers, with our customers' customers, with fuel and energy suppliers, with policy makers, politicians, global organisations and NGOs, to be able to do this.

"This is our purpose, and I truly believe we have the conditions to put on that yellow jersey and actually drive this race forward – to be the one that is leading the pack and transforming our industry into something that is more sustainable."

Mr Henriksson said that this transition was not only crucial to addressing health and climate change concerns, but also for corporate survival.

"I truly believe myself, as the leader of a big international company, that if you do not do this transformation and turn your company into a sustainable one, you will simply not survive," he said.

"No-one will buy your products and services, no-one will invest money in your company, and no-one will want to work for you. So this is a matter of survival for the company as well, but we need to do this in partnership – in partnership with our customers, with our customers' customers, and we need to build alliances, sometimes unexpected alliances, to create this change."

According to Scania's Senior Vice President, Trucks, Sales and Marketing, Alexander Vlaskamp, it's also Australian operators which are taking the lead here when it comes to Euro 6.

"I think what we can show perfectly with Scania's New Truck Generation is that customers want to adopt it [Euro 6]," he said.

"It think it's now 90 per cent of all the [Scania] vehicles sold here are Euro 6, so customers are taking the lead and taking the responsibility.

"We see in Australia a fantastic focus on safety and on health, and health of course also means for people operating in areas where logistics is moving, where trucks are moving, to reduce particulate emissions, to reduce NOx emissions and so on, to improve the environmental work safety significantly. And that is by moving to Euro 6."

While the added expense of Euro 6 technology is commonly cited in Australia as a reason for delaying its mandatory introduction, Mr Henriksson said there was more at stake than the emissions themselves.

"Euro 6 is the latest technology," he said.

"It's giving the best fuel efficiency and the best operating economy, but it's also that different technology platforms are linked to Euro 6 and that not only goes for Scania.

"Even safety features, ADAS [advanced driver assistance systems] features – if you're not following the latest technology level on the emissions, you miss out on a number of other goodies that are coming through to the market, and I think that's what the customers are seeing."

Mr Henriksson said Scania would continue to work with all stakeholders to show the benefits of adopting a Euro 6 standard.

"I think it's about doing it in partnership with the policy makers, the politicians, and also the mayors and fuel suppliers and so on, and with industry as well," he said.