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2 December 2009
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EU clinches deal on CO2 emissions from cars[fr][de

Published: Tuesday 2 December 2008    | Updated: Wednesday 3 December 2008   

A compromise agreement to reduce CO2 emissions from new vehicles was reached yesterday (1 December) amid pressure from the car industry, which is currently being weighed down by the economic recession. 

Background:

In December 2007, the European Commission proposedexternal binding legislation that would compel vehicle manufacturers to cut the average emissions of new cars by 18% from current levels of around 160 grammes of CO2 per kilometre to 130g/km by 2012 by improving vehicle technology. A further 10g/km reduction is expected to come from improvements in other areas, including tyres, fuels, air-conditioning and eco-driving. 

While 130g/km is an industry-wide goal, the proposed limits vary according to the type of car manufactured. For example, Fiat's target would be stricter (122g) than Volkswagen's (132g) as its cars are smaller and already pollute less.

France - one of the EU's largest car producers in Europe together with Germany, Italy and the UK - has been pushing the bloc's governments to water down the proposals and give industry more time and flexibility to meet the targets (EurActiv 01/10/08). 

European carmakers have also been pushing the EU to hold back its CO2 policy until 2015 and reduce fines for those only slightly above the target.

EU lawmakers in the Council of Ministers and the European Parliament reached an agreement late yesterday evening, paving the way for a final adoption of the proposal by the House before the end of the year. 

The agreement still needs to be approved by the Parliament's political groups and EU ambassadors.

After a month of 'trialogue' discussions (EurActiv 04/11/08), member states ended up backing a deal based on a French proposal to gradually limit CO2 emissions to 120 g/km for 65% of new cars in 2012, 75% in 2013, 80% in 2014 and 100% in 2015 (EurActiv 01/10/08). The European Commission had initially proposed introducing the caps on all new cars sold in the region in 2012.

A target of 130g/km is to be reached by improvements in vehicle motor technology. A further 10g/km reduction towards the 120g/km target should be obtained by other technical improvements, such as better tyres or the use of biofuels. 

The breakthrough deal also reduced the proposed fines against carmakers that breach the limits.

Between 2012 and 2018, the fine will be as follows: €5 for the first gram of CO2, €15 for the second gram, €25 for the third and €95 from the fourth gram of CO2 onwards. From 2019 manufacturers will have to pay €95 for each gramme exceeding the target. 

The Commission had proposed to start fines at €20 per exceeding gram in 2012, rising to €35 in 2013, €60 in 2014 and, finally, €95 in 2015. 

In the long term, the compromise sets the target of average emissions at 95g CO2/km for the new car fleet by 2020.

Positions:

European Automobile Manufacturers' association (ACEA) Communications Director Sigrid de Vries said that if the deal was finally approved it would represent "a very tough deal for the industry", which has been working hard to lower CO2 emissions since a decade already. Asked whether industry can achieve the targets set out in the draft deal, she said "it remains to be seen, in particular in the context of the current economic turmoil".

ACEA would rather like the EU to provide a supportive framework for manufacturing, including measures such as low-interest loan package, market incentives for take-up of new technologies and better regulation, de Vries said.

Green MEPs criticised the agreement saying it would both delay the CO2 emissions limits and weaken penalties aimed at ensuring compliance. 

Greens/EFA MEP Rebecca Harms, shadow draftswoman on the legislation and vice-chair of the Parliament's climate change committee, deplored that the proposed new rules "are the first casualty of the scaled back ambition on the EU climate package. The agreement reached in these trialogue negotiations will result in legislation that falls far short of what is necessary to deliver on the EU's climate goals".

"It is grossly misleading to suggest publicly that these measures will address the climate impact of cars," she said referring to the deal as "an act of poor wizardry disguising business as usual as climate policy". 

Socialist MEPs welcomed the deal as "good for industry, good for the environment and good for jobs". Guido Sacconi MEP described the agreement as "very satisfactory" given the difficulties encountered during the negotiations.

EPP-ED  group member Martin Callanan MEP said the deal would "significantly cut car emissions without crippling Europe's downtrodden car industry," thus representing "the best of both worlds". 

"We have shown that we can encourage car manufacturers to go green by including incentives for investment in clean technology, but without driving them out of business. We have recognised that manufacturers cannot develop new cars and technologies overnight, particularly given the huge trials they face during the downturn," Callanan added. 

ALDE environment spokesperson Chris Davies MEP denounced the compromise deal for "totally lacking in ambition," lamenting what he saw as a "substantial weakining of the initial ambitious agenda of reducing carbon emissions". "The legislation now agreed will see European car manufacturers overtaken by Japanese and American rivals in terms of environmental innovation," he warned.

GUE/NGL MEP Jens Holm deplored that the agreement "means that the car industry can basically continue with business as usual until 2019. It is very disappointing."  

Environmental NGO Transport and Environment (T&E) deplored the compromise, descibing it as "a continuation of the mediocre progress we have seen over the last decade, and no incentives for the technology transformation that is so desperately needed".

"The car producing countries of Germany, France, Italy, the United Kingdom and Sweden have all played a role, by defending the specific interests of their national industries. Germany to delay implementation of the short-term targets, and weaken language on the long-term targets; Italy to win major concessions on fines; the UK for special protection for its high-consuming luxury car brands and Sweden to guarantee special treatment for its flex-fuel cars. The French presidency was in the end responsible for giving away loopholes to every country that asked. The attempts of other countries to stand-up in the broader public interest have sadly failed," said director of T&E, Jos Dings, in a statement.

"The story of this law is the story of special interests in industry and national governments preserving the status quo, at the expense of R&D firms, parts suppliers, car drivers and all those hit by the wider impacts of climate change and higher oil prices," he added.

Greenpeace's European Unit also expressed disappointment regarding "an empty deal to reduce car emissions" which gives in to industry pressure to delay and weaken proposed targets, and to reduce penalties for non-compliance. 

"Countries like Germany and Italy have wrecked this law by defending the short- sighted interests of their national car industries. This does not bode well for the future of the EU’s effort to tackle climate change. The coal industry and other climate busters are already lining up at the EU's door for special treatment under the climate package which will be agreed in a few days time," said Greenpeace EU transport policy campaigner Franziska Achterberg

According to the Friends of the Earth Europe the compromise is a "profoundly wrong outcome on a vital piece of climate legislation", undermining citizens' calls on politicians to force carmakers to reduce fuel consumption of the cars they produce.

Next steps:

  • 4-5 Dec. 2008: Environment Council expected to reach political agreement on the proposal. 
  • 16-17 Dec. 2008: First reading debate and vote due in the European Parliament plenary.

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