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Oettinger tells Volkswagen he relaxed new CO2 targets

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Published 12 October 2012, updated 23 October 2012

EU Energy Commissioner Günther Oettinger has written to Volkswagen CEO Martin Winterkorn, reassuring him that proposed EU regulations to cut vehicle CO2 emissions will not harm the German automobile giant because of relaxed rules for "supercredits". EurActiv reveals the content of the leaked letter.

In the missive, obtained by EurActiv, Oettinger spelled out that proposed new limits on car CO2 emissions had been loosened before the Commission's proposal was presented in July.

The Commission proposals, he continued, “reflected not insignificant changes compared with the initial plan”, in what will be seen as an attempt to assuage industry fears that the regulations would hit jobs and competitiveness in Europe.

The draft new rules set a limit of 95 grams of CO2 per km (g/km) for all new European cars from 2020. A standard of 130g/km has already been set for 2015. 

But under the Commission proposal, carmakers will be allowed to continue producing gas-guzzling cars by making use of “super-credits” earned from manufacturing electric vehicles.

The base comparison year for emissions had also been set as 2009 and not 2006, so that less reductions would be needed.

Oettinger told Winterkorn that “the discussion about our CO2 policy for cars after 2020 will be completely open”.

In an annex to the proposals, he expressed  satisfaction that there was “no indication, let alone obligation, to come forward with new binding targets” by 2014 for the post-2020 period.

Asked Thursday about the existence of the letter, Oettinger's spokeswoman Marlene Holzner told AFP news agency that there was nothing unusual in it.

But Franziska Achterberg, an EU transport policy adviser at Greenpeace Europe, told EurActiv that loosening of the supercredits regulation would "significantly weaken the target" for 2020 carbon emission reductions.

Regulations good for employment

Meanwhile the Dutch environmental consultancy CE Delft released a literature review yesterday (11 October) saying industry was “likely” to benefit from the proposals, even without the freedom of supercredits.

The paper, published by green pressure group Transport & Environment (T&E), claimed that industry could sleep sound as studies showed that auto fuel efficiency increases for internal combustion engines could spur direct employment in the car industry.

This, it said, would be “due to the application of additional or more expensive components and through an increase in domestic and foreign demand”.

The report also said there could be indirect benefits to investing in greener cars such as the money saved through lower levels of fuel consumption, offsetting the higher price of hybrids and electric cars.

A carbon target of 95g/km, CE Delft said, would mean savings of over €500 per person each year.

“The switch to fuel efficient cars and advanced powertrains can be done in such a way that the total costs of car owner-ship (purchase costs and mileage costs) are reduced”, CE Delft said, adding that this would induce a rise in consumer spending in other sectors of the economy.

The findings were in keeping with a European Commission impact assessment which accompanied the recent proposals.

In light of the review, Greg Archer, a clean vehicles specialist at T&E, urged the European Parliament and Council to improve on the Commission proposal before adopting it “by setting more ambitious targets and closing loopholes”.

'Uncertainties'

But the CE Delft report conceded employment could fall in areas related to traditional car manufacturing, such as refining and fuel distribution.

Any gains would be dependent on the competitiveness of the EU car industry, which T&E said could benefit from tapping into the demand for advanced, emissions-saving technology.

Shifting consumer preferences - as well as changes to oil price, carbon credit restraints and the response of foreign competitors - would either strengthen or weaken this impact.

CE Delft said a switch to electric vehicles was likely to reduce direct employment in some areas due to the “lower labour-intensity of the manufacturing process as compared to traditional manufacturing”.

A need for new, more capital-intensive plants and battery imports could have a negative impact on employment, but this would likely be outweighed by fuel efficiency gains, the report said.

Despite its wide range of sources, the consultancy said its review had been “hampered by the fact that none of the 23 studies has taken a traditional economic analytical perspective”.

Therefore, it said the current literature should be regarded as “partial, fragmented and rather weak in its economic argumentation”, adding that “uncertainties” surrounded some of the results.

The European Automobile Manufacturers’ Association told EurActiv it had not seen the report yet but did not believe there was a direct link between increased fuel-efficiency and employment.

A recent case study by the Organisation for Economic Co-operation and Development said investment in renewable energy was an "important source of growth and jobs for many rural regions".

Marc Hall

COMMENTS

  • As long as there are coal-fired power plants, electric vehicles will not reduce CO2 emissions. Coal-fired power plants are only a little more efficient than gasoline engines, but burning coal releases much more CO2 than burning gasoline does. Electric vehicles can reduce pollution downtown, but they will increase overall CO2 emissions.

    Supporters of electric vehicles will claim that the increase in emissions resulting from increases in electricity consumption will be offset by increases from wind and solar power, but that is not true as long as coal-fired plants are operating. 1 MW of wind generated power could theoretically offset 1 MW of coal generated power, or it could offset 1 MW of electric vehicle power, but it cannot do both.

    The only benefit of electric vehicles is that they can reduce smog in areas of high vehicle density, like the downtown of major cities. As is often the case, government regulations will have the opposite effect of what they are intended to do. This legislation will result in higher vehicle costs, higher taxes, and higher electricity costs and will increase CO2 emissions to boot!

    By :
    Geoff Sander
    - Posted on :
    12/10/2012
  • According to the research done on this (e.g. http://onlinelibrary.wiley.com/doi/10.1111/j.1530-9290.2012.00532.x/pdf) EVs allready do reduce the CO2 Emissions substantially - even with the current energy mix in the EU. And this is only the static picture of the situation. If you buy an EV today the energy mix will only go greener and greener in the lifetime of the car.

    By :
    JJuul
    - Posted on :
    18/10/2012
  • Once again Germany looks after its own while foisting unsound policies on the rest of Europe which will support German industries.

    By :
    James D
    - Posted on :
    18/10/2012
Energy Commissioner Günther Oettinger
Background: 

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

In 2007, the EU proposed legislation setting emission performance standards for new cars, which was adopted in 2009 by the European Parliament and the EU Council of Ministers. Today's EU targets ensure that average emissions from new passenger cars do not exceed 130g of CO2 per km (g/km) by 2015.

A White Paper on Transport, presented by the Commission in February 2011, flagged measures to raise the €1.8 trillion which the EU says is needed for infrastructure investment in the next 20 years.

Proposals published earlier this year have set a further targets of 95g for new passenger cars by 2020, and 147 g/km for vans. By the end of 2014, new targets could be announced for 2025 and 2030.

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