Brussels, 28/02/2013 (Agence Europe) - The Commission has set out new guidelines for member states on the use of financial incentives to promote low CO2 emission vehicles.
On Thursday, 28 February, the European executive tabled a common framework for rules on financial incentives to foster energy efficient vehicles emitting less CO2. Rules can differ considerably from one member state to the next. The aim of this is to facilitate the assembly of larger quantities of such vehicles, prompting lower prices for consumers.
Although incentives may be useful for fostering the low CO2 producing vehicle industry, they can also create trade distortions. To remedy this, mandatory principles under the guidelines include non-discrimination with regard to the origin of the vehicle, compatibility with EU legislation on vehicle type-approval, non-violation of EU law on state aid and public procurement, respect of mutual recognition by notifying incentives, and adoption of best practices relating to incentives for the promotion of clean vehicles. Member states are urged to abide by these principles in order not to violate the EU Treaty provisions.
Other principles are also set out as recommendations: - technological neutrality, whereby incentives should not be limited to certain categories of vehicles (e.g. combustion engine, hybrid, electric, etc.); - reference to a common performance-criteria, so that incentives are available for all new vehicles reaching a target environmental performance; - proportionality with the incentive granted being proportional to performance improvement; - adequate incentive size, which should not exceed the additional cost of technology; - and reference to the EU CO2 limits, whereby thresholds for the financial incentives should take into consideration the CO2 emission limits defined by relevant EU legislations.
These guidelines will relate to passenger cars, light commercial vehicles, buses, heavy goods vehicles, and two- and three-wheelers and quadricycles. They will apply to financial incentives granted in all forms, such as straight grants, loans, tax deductions, other kinds of fiscal incentives or incentives in other monetary forms.
Industry Commissioner Antonio Tajani says in a press release: “Financial incentives from member states are very powerful instruments to foster their market penetration. But to ensure a level playing field for business and have a significant effect on the market, we need a common framework”. At the end of January, the Commission unveiled its strategy for developing clean and energy-efficient vehicles (see EUROPE10771). (EH/transl.jl)