New and innovative solutions are necessary, based on electric engines and batteries, hydrogen and fuel cells, gas-powered engines, advanced architectures and technologies in engines or hybrid propulsion.

Improved efficiency and better demand-side management, fostered through CO2 standards and smart taxation systems, should also advance the development of hybrid engine technologies and facilitate the gradual transition towards large-scale penetration of cleaner vehicles in all transport modes, including plug-in hybrids and electric vehicles (powered by batteries or fuel cells) at a later stage.

There is room for better exploiting the synergies between technologies (e.g. in the automotive sector, between hybrid vehicles, fuel cells, biofuels and gas).

The Commission believes that it is necessary to focus European research in FP7 on both incremental research (e.g. technologies for clean and energy efficient thermal engines, integrated safety systems ) and on breakthrough technologies (e.g. hydrogen and fuel cells, development of rechargeable hybrids, 2 nd generation biofuels ).

Immediate/Short-termLonger term | Reduction in demand (e.g. smaller engines)Advanced high-efficiency ICEsImproved hybrid electric designs with petrol, diesel, biodieselBio-diesel; bio-ethanolCo-processing of biomass with fossil fuelsSynthetic fuels from gas/coal-Fischer-TropschBiofuels from ligno-cellulosic feedstocksElectric vehicles (EVs) with advanced battery electricity storageHydrogen with fuel cellsAir transport: hydrogen/gas turbine | Low/medium temperature solar thermal applications for hot water, heating, cooling, industrial processesCombined Cycle Gas Turbine (CCGT)Nuclear fission (Gen III/III+)Wind energy (including offshore/ ...[+++]deep offshore)System integration (grid issues)Solid biomassFuel cells (SOFC, MCFC)Geothermal energy (including deep geothermal – HDR/HFR)Carbon capture and storage (CCS)Cleaner use of coal (steam/gas turbine, combined cycle) with CCSAdvanced fossil fuel plants (super/ultra-supercritical steam; Integrated Gasification CC (IGCC), with CCSSolar photovoltaic (PV)Solar thermal power plantsOcean energy (wave, sea current)Nuclear fission – Generation IVNuclear fusion |

Action: promote energy efficiency at EU level on the basis of the forthcoming action plan, encourage EU actions, including voluntary agreements; support research, demonstration and market introduction of new technologies such as optimisation of engines, intelligent vehicle energy management systems or alternative fuels, such as advanced biofuels and hydrogen or fuel cells or hybrid propulsion; launch user awareness actions on smarter and cleaner vehicles and a major future-oriented programme for green propulsion and energy efficiency in transport.