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CO2 targets fuel auto industry divisions

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Published 05 December 2011, updated 08 December 2011

Meeting in Brussels on Friday (2 December), car manufacturers failed to agree a common position towards EU proposals that would cap automobile CO2 emissions at 95 grammes per kilometer (g/km) by 2020.

On their way in, attendees had to brave a phalanx of Greenpeace protestors dressed as storm troopers from the film Star Wars, calling on them to avoid the "dark side" of increased CO2 emissions.

But they did not inspire a common car industry position.

“The issue was not closed,” Sergio Marchionne, the president of the European Automobile Manufacturers Association (ACEA) told EurActiv, “because we never got to the point.”

“There was never an ‘ask’, or a clear expression of intent to find a resolution to the question,” he added. “But we never got there.”

Marchionne, head of Chrysler Group and its Fiat SpA affiliate, was recently appointed as ACEA’s president for 2012.

Despite the current impasse, he insisted that a common automobile industry position on the EU’s proposals would be thrashed out during his presidency and “in the next 12-18 months.”

Binding standards

In 2009, the EU set its first legally binding fuel efficiency standards for automobile carbon dioxide emissions at 120 g/km. To get there, emissions from new cars will be capped at 130 g/km from the beginning of 2012.

By 2020, the European Commission has a fixed objective of 95g CO2/km, which should be confirmed in 2013. This would be close to the most ambitious US scenario for 2025. 

Environmentalists suspect that behind the scenes, European automobile manufacturers such as Fiat, Renault and Peugeot-Citroën, whose smaller vehicles emit the least CO2 on average, are less hostile to the Commission’s proposals than some other manufacturers.

“The more progressive car companies must be furious with Volkswagen, who are dragging their feet and trying to stall,” said Greenpeace’s climate campaigner Sara Ayech.

A letter from the German company Volkswagen sent to Greenpeace, and seen by EurActiv, says that the company “is unable to support… any EU climate protection policy which puts jobs at risk and results in de-industrialisation in Europe.”

It decries the 2020 target as “the result of a political decision taken last year.”

The target “is not based on sound impact assessment nor on a realistic appreciation of the costs and technical progress necessary to meet the goal within the timescale,” the letter says.

ACEA divisions

But this is a contested position within ACEA.

One high-placed source at a car manufacturer traditionally seen as more fuel efficient suggested to EurActiv that his company’s CO2 emissions figures were an indication of the direction in which he envisaged discussions going.

Since the EU’s adoption of the first obligatory fuel consumption standards in 2008 obliged car companies to reduce their CO2 emissions to 120 g/km by 2015, efficiency standards have risen - and costs to motorists have fallen.

In 2011, the average car sold in Europe was 4% more fuel efficient, emitted 4% less CO2, and was 2.5% cheaper in real terms than a year earlier, according to a report by the green transport NGO Transport and Environment.

The industry average for CO2 emissions from new cars had dropped to 140 g/km, reported Transport & Environment, an NGO. On Tuesday (6 December), stakeholders will be holding further discussions with officials in the European Commission.

Positions: 

Greenpeace held a protest outside the building where ACEA representatives were meeting. EUX.TV reports:

Video code:
Next steps: 
  • 6 Dec: EU stakeholders will discuss fuel efficiency targets at the European Commission.
  • 1 Jan. 2012: Beginning of phase-in of 2015 CO2 emissions targets.
  • Before 2013: European Commission to agree 2020 fuel efficiency targets for cars and vans.
  • 1 Jan. 2015: CO2 emissions from new cars to be capped at 130 g/km.
  • 1 Jan. 2020: EU executive has legislated for a new cap for CO2 emissions at 95 g/km, although implementation details still need to be agreed.
Arthur Neslen

COMMENTS

  • At the time of the Cars & Co2 regulation negotiations the head of Toyota was claiming that it would be almost impossible to meet the 130gms/km target. Funny how all the OEMs are meeting it now (with Toyota one of those leading the pack). One can only conclude that the head of Toyota was a)badly briefed by his staff (lied to?) b)gullible (in which case he was/is unfit to be head of a large car company c)a liar (i.e. pretending that things were much more difficult than they were or d)misquoted (by Reuters). Or perhaps he was just trying to mislead the EC and the public? over to you Mr Toyota man.

    Given that car manufacturers/suppliers are meeting the current targets and projections suggest that the 95gm/km is within reach it is difficult to see what the fuss is about.

    In the case of the VW letter to Greenpeace and the assertion that climate protection puts jobs at risk and will de-industrialise Europe. This position is in direct opposition to stated German government policy whether at Lander of Federal level. Original thinking and taking contrary views is fine - but the letter makes VW look like a bunch of out of touch morons quite apart from the logical discontinuity inherent in the assertion: one would expect more fuel efficient cars will require considerably higher levels of engineering - umm something VW is quite good at?. If I was top VW management I'd sack the idiots that drafted the letter (or maybe it was drafted by top management......:-) in which case over to the shareholders - ah yes erm they are partly a Lander - hmm - company part owned by Lander making assertions that go against Lander/Federal policy... tangled web and all that.

    By :
    Mike Parr
    - Posted on :
    05/12/2011
Greenpeace protestor outside the ACEA meeting
Background: 

Passenger cars alone are responsible for around 12% of total EU emissions of carbon dioxide (CO2), the main greenhouse gas.

The EU proposed legislation in 2007 setting emission performance standards for new passenger cars. That legislation, adopted in 2009 by the European Parliament and the Council, is the cornerstone of the EU's strategy to improve the fuel economy of cars and ensure that average emissions from new passenger cars in the EU do not exceed 120 g CO2/km.

The much-anticipated White Paper on Transport, presented by the Commission in February 2011, flags measures to raise the €1.8 trillion which the EU says is needed for infrastructure investment in the next 20 years to build a competitive transport system that will increase mobility, remove major barriers in key areas and fuel growth and employment.

At the same time, the Commission said its proposals will dramatically reduce Europe's dependence on imported oil and cut carbon emissions in transport by 60% by 2050.

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