Est. 3min 20-12-2007 (updated: 28-05-2012 ) car_exhaust_02.jpg Euractiv is part of the Trust Project >>> Languages: Français | DeutschPrint Email Facebook X LinkedIn WhatsApp Telegram Automobile manufacturers will have to slash their average fleet emissions or face hefty fines, according to new legislation presented by the Commission, which has already come under fire from Germany, manufacturers and green groups. In concession to Europe’s powerful automobile lobby, an average 130g/km target for car CO2 emissions will be implemented by setting laxer limits for heavier vehicles, such as SUVs and luxury models (EURACTIV 30/08/07). According to a draft Regulation, presented by EU Environment Commissioner Stavros Dimas on 19 December, all new vehicles registered in the EU after 2012 – whether produced domestically or imported – will have to respect a “limit value curve of permitted emissions of CO2”, based on their weight. This means that cars weighing more than two tonnes, such as the Porsche Cayenne or the Land Rover, would still be allowed to emit more than 150g/km, while emissions from lighter cars, such as Renault’s Twingo, which weighs less than 900kg, would be capped at as little as 110g/km. Nevertheless, the calculation method used in the Regulation ensures that manufacturers of larger cars will have to make proportionally bigger cuts than producers of smaller vehicles, according to the Commission. Flexibilities The envisaged system would enable manufacturers to make up for the production of larger cars by producing smaller, less-polluting ones too: “Manufacturers will still be able to make cars with emissions above the limit value curve provided these are balanced by cars which are below the curve,” states the document. What’s more, for those manufacturers specialising in larger or more powerful vehicles, such as Porsche, whose average CO2 emissions currently stand at 282g/km, the Commission proposal leaves the door open to a “pooling” system, whereby manufacturers can team up in order to share out the burden of meeting their goals. This would mean, for example, that BMW, whose average fleet emissions in 2006 still stood at over 180g/km, would be allowed to strike a commercial deal to buy surplus CO2 “permits” from another manufacturer specialising mainly in small cars, such as France’s Peugeot-Citroën, whose fleet emits just 142g/km. Also, independent manufacturers, who sell fewer than 10,000 vehicles per year, like Jaguar, and who cannot or do not wish to join a pool, can instead apply to the Commission for an individual target. Special purpose vehicles, such as those built to accommodate wheelchair access, are excluded from the scope of the legislation. CO2 penalties Manufacturers who overstep their CO2 limits will be subject to financial penalties, the Commission announced. The fines will be phased in over four years following the entry into force of the legislation, starting at just €20 per gram of carbon dioxide that each car emits over the target in 2012, and rising to €95 in 2015. Any money raised from the scheme will go into EU funds. Impact on consumers? According to a Commission impact assessment, the new rules would entail an average increase in car prices of €1,300, but this would be offset by average fuel savings of roughly €2,700 over the car’s lifetime. Read more with Euractiv EU car emissions plan faces difficulties Just a day before the Commission is due to adopt proposals to regulate CO2 emissions from cars, key figures are still missing on how cuts should be divided among manufacturers of small and large vehicles and on the levels of penalty that should be imposed. Subscribe now to our newsletter EU Elections Decoded Email Address * Politics Newsletters Positions EU Environment Commissioner Stavros Dimas termed the chosen calculation method as "balanced" and "socially equitable" – refuting the suggestion that poorer consumers buying smaller vehicles would be paying for rich people to drive around in big polluting cars. "Smaller car price increases will be proportionately less than for bigger cars," he said. "This proposal demonstrates that the European Union is committed to being a world leader in cutting CO2 emissions and the development of a low carbon economy. At the same time, we are committed to promoting the competitiveness of our industry and its global technological leadership," added Commission President José Manuel Barroso. But German government spokesman Thomas Steg slammed the proposals, saying they "wrong" and "harmful" as they put the burden on makers of larger cars. He added that Germany believes all carmakers in the EU should contribute to meeting CO2 reduction targets, not just German ones. Chris Davies, the British liberal MEP in charge of steering the proposal through Parliament, warned of the risk of the Commission's proposals being watered down massively by member states before they become law, saying: "There will be a huge fight before these proposals become law but the battlelines will not be clear. The car industry will be deeply divided between potential winners and losers." He urged the EU to be "environmentally ambitious". The EU automobile trade association ACEA rejected claims that the Commission's proposal is balanced, saying it will "reduce the competitive strength of the European automobile sector and put car manufacturing in the European Union at risk". President Sergio Marchionne criticised the penalties, saying they were of an "unprecedented high level", adding: "We invest 20 billion euro a year in R&D and want to continue doing so". Germany's BMW declared that the plans were "naive" and would distort the market in favour of makers of smaller cars, while France's Peugeot-Citroën said the proposals were "anti-ecological, anti-social, anti-economical and anti-competitive in relation to non-European Union carmakers". Green group Transport and Environment (T&E) criticised the proposals for weakening a 120g CO2/km goal already set back in 1995 and for failing to set additional targets for 2020 and 2025, thereby disincentivising carmakers from longer term investments in fuel efficiency. It added that the phase in of financial penalties amounted to "a further postponement" of CO2 targets and recommended fines as high as €150 per gram exceeded. The NGO also slammed the Commission's weight-based approach, saying it was "hugely favourable for makers of heavy cars such as SUVs" and eliminates "80% of the incentive for car makers to reduce weight" – the main means of reducing CO2 emissions. "If today's proposal becomes law, it will boost the SUV arms race in Europe, rewarding carmakers for their climate-killing strategy of making ever heavier cars. In the long term, this strategy will backfire meaning heavier cars, more CO2 emissions and more accident deaths" said T&E Director Jos Dings. BackgroundWith cars accounting for around 20% of total European carbon-dioxide emissions, the Commission, last February, proposed introducing new binding legislation (EURACTIV 7/02/2007) that would compel vehicle manufacturers to cut average emissions from new cars from current levels of around 160 grammes of CO2 per kilometre to 130g/km by 2012, through vehicle-technology improvements. The new legislation would replace a 1998 voluntary agreement signed with the EU's Automobile Manufacturers Association (ACEA), which committed carmakers to achieving a target – now extremely likely to be missed – of 140g/km by 2008. The February Communication also required other players, including tyre-makers, fuel suppliers, repairers, drivers and public authorities, to contribute, in parallel, to a further 10g/km reduction. While the initial strategy set the overall target, it stopped short of translating it into concrete measures – be it for individual vehicles, manufacturers or member states. This is thus the purpose of the new Regulation, the presentation of which, on 19 December, was preceded by intense lobbying and severe divisions between member states (EURACTIV 15/11/07). Timeline The proposal will be examined by member states and Parliament in 2008. Further ReadingEU official documents Commission (press release):Commission proposal to limit the CO2 emissions from cars to help fight climate change, reduce fuel costs and increase European competitiveness(19 December 2007) Commission (memo):Questions and answers on the proposed regulation to reduce CO2 emissions from cars(19 December 2007) DG Environment:Reducing CO2 emissions from light-duty vehicles Political Groups Alliance of Liberals and Democrats for Europe (ALDE):Chris Davies: CO2 car emissions legislation leaves many questions open(19 December 2007) Greens-EFA:Car CO2 emissions: EU falls at first climate hurdle after Bali(19 December 2007) [FR] [FR] [DE] Business & Industry European Automobile Manufacturers Association (ACEA):European auto industry insists on need for balanced and constructive CO2 legislation(19 December 2007) European Automobile Manufacturers Association (ACEA):Questions & Answers on the key points adopted by the European Commission on reducing CO2 from cars(19 December 2007) NGOs and Think-Tanks European Federation for Transport and Environment (T&E):Europe stalls on cars and climate change(19 December 2007)
