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AUTOMOTIVE069fleet is becoming more diverse, with growing proportionsof alternative fuel, clean diesel, hybrid and all-electricvehicles and fuel cells. And, auto engineers are makingcontinued improvements to internal combustionengines. The development and deployment of theseadvanced technologies offer more choices to consumersto help reduce CO2 and fuel use. But, new technologiesare still emerging and need continued advancement andbreakthroughs to meet market expectations.Low-carbon Fuels and Energy Providers: Consumersbenefit from more choices for renewable and low-carbon fuels, including biofuels, clean diesel,compressed natural gas (CNG), electricity andhydrogen. Vehicles and fuels form a system, so accessto alternative fuels affects the successful introductionof new types of vehicles. Many technologies willsucceed only if high quality fuels to power them arewidely available and competitively priced. Energy Infrastructure: Looking forward, transportationwill become increasingly dependent on other sectors(e.g., electric utilities) and other technologies (e.g.,wind and solar power) to enable lower carbon fuels. Tomeet market demand for these fuels, the energyinfrastructure needs to be addressed first. Plannedintroductions of new electric vehicles mean theelectricity infrastructure needs to be ready to powerlarge numbers of electric vehicles. Consumers willsoon need charging stations at their homes, and overtime the electrical grid will need to be adapted andextended to accommodate a large volume of electricvehicles and new recharging systems. Consumer Education and Initiatives: Ultimately, it isconsumers making millions of choices every day thatdetermines whether societal goals are met or not.Incentives and education can help encourageconsumers to buy automobiles employing new types oftechnology or powered by alternative fuels. Consumersalso can practice ecodriving to reduce CO2 and fueluse, and this practice benefits all vehicles on the road today, not just new vehicles. And, governmentprogrammes can encourage consumers to participatein a variety of mobility programmes.Electronic or "Smart" Mobility Aids: Technology, whenintegrated within our roadway infrastructure andnetworks, can create the conditions for more efficient- and often safer - mobility. For example, trafficmanagement through intelligent systems connectsvehicles to other vehicles, as well as to traffic plannerswith quick access to an adjustable infrastructure. Thisconnectivity in real-time allows all parties to makeinformed decisions that help alleviate congestion and reduce the resulting environmental impact ofidling vehicles. Linking Personal and Public Transportation: Multi-mode commuting is growing as our cities grow everlarger and consumers employ multiple means to reachjobs and other destinations. Multi-mode travel takesadvantage of the strengths of each type oftransportation. For example, a consumer may ride abike or drive to a "park and ride" lot at a train orsubway station to reach an urban centre. Publictransportation can also deploy new types of vehicletechnology using new fuels. Strategic planning alongwith consumer education and incentives can helpencourage the trend of multi-mode travel. nABOUT THE AUTHORSIvan Hodac has been the Secretary-General of theEuropean Automobile Manufacturers' Association(ACEA) since 2001. Before joining ACEA, he wassenior Vice President and head of Time Warner Europeoffice. Previously, Mr Hodac was the Secretary-General of a trade organisation IFMA/IMACE, SeniorEconomist at Didier & Associates and Assistant at theCollege of Europe, Bruges.Yoshiyasu Nao has been the President and ViceChairman of the Japan Automobile ManufacturersAssociation (JAMA) since 2004. Previously he hasheld numerous positions at Ministry of Economy,Trade and Industry (METI) of Japan. He has alsoworked in Italy as a diplomat, and was managingdirector of the Shokochukin Bank.Dave McCurdy has been the President and CEO of theAlliance of Automobile Manufacturers in Washington,DC, since 2007, after eight years of service as thePresident and CEO of the Electronic IndustriesAlliance (EIA). Prior that, Mr McCurdy served in theUS House of Representatives representingOklahoma's Fourth Congressional District. ACEA, JAMA and the US Auto Alliance represent themajor automobile manufacturers based in Europe,Japan and the United States, with a combined marketshare of 77 per cent of passenger cars sales worldwide.

he title of this publication, "ClimateChange: The New Economy" is a call toaction. We are called upon to create awhole new economy, a new economicsystem that focuses on reversing our tendency topollute. It is by now clear to everyone everywhere in theworld that we must make this transition; the question ishow we go about it. We must reverse climate change by reversing habitsdeveloped over time, adopting new habits and newtechnology that can reduce or avoid the impact on theenvironment we live in. This is not an area where wecan expect individual citizens of the world to act out oftheir own sense of responsibility; it is a challenge thatrequires great leadership from governments andindustry. It requires innovative thinking and a strongdose of pragmatism. Solutions not solidly based in thelaws of economics will go nowhere.At Pirelli, we have a great sense of our responsibility bothas an industrial leader, generally, and, more specifically,as a company in the mobility business. Mobility pollutes,and we want to do our part to find innovative solutions -and they must be economically viable. We also want to use our influence throughout the industry andthroughout the world, to raise quality standards forconsumers everywhere and to raise environmentalstandards everyone in the industry must adhere to. In allforums we participate in, at European or other regionallevel or at international or UN level, we activelycontribute to set the same standards for everyone. The key service Pirelli provides, mobility, is a servicewhich is indispensable and at the same time bearsgrave responsibilities. We are responsible for people'slives and our research and development has alwaysfocused on safety as well as reducing environmentalimpact. But today our responsibility lies as well inmaking mobility sustainable, in being an innovativeleader in an area as fundamental for human well-beingas the quality of the air we breathe. And the companyhas found that this approach is a valid growth strategy.In our commitment to sustainable mobility we: . focus on "green performance" products that areenvironmentally friendly while maintaining safetyand other performance features, as our growthstrategy. Our commitment translates into numbers:green performance products made up 20 per cent ofour revenues in 2008, rising to 25 per cent in 2009(target fully reached). By the end of 2013 theirproportion will rise to 47 per cent of sales; . produce tyres that reduce fuel consumption invehicles, anticipating new EU standards. The tyresachieve this by limiting rolling resistance - theattrition that makes an engine have to push harder toturn the wheels -by as much as 20 per cent. Ourengineers are at the forefront of the industry infiguring out ways to do that at the same time asincreasing, not risking, driver safety; . produce tyres that last longer, which means they getas much as 30 per cent more mileage and have alonger initial operating life;. produce technology to monitor air pressure in tyres,with benefits in terms of both safety and fuelconsumption. Tyres that are 20 per cent below theirregular air pressure level can make the vehicleconsume up to 3 per cent more fuel, withconsequent greater pollution from emissions. Pirelli's Cyber Tyre Lean uses a sensor to monitor air pressure;.invest in research to develop the "Cyber Tyre", whichpromises to feed key information from the tyre - roadcontact area to the vehicle's electronics, improvingsafety and fuel efficiency;PIRELLI: FULLY COMMITTEDTO SUSTAINABLE MOBILITY070AUTOMOTIVETFILIPPO BETTINI, HEAD OF GROUP SUSTAINABILITY AND RISK GOVERNANCE, PIRELLI GROUP