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Europe Daily Bulletin No. 9569
GENERAL NEWS / (eu) eu/climate/automotive

Commission proposes directive to require manufacturers to comply with target of average of 130g/km by 2012, with fines for failure to do so

Brussels, 19/12/2007 (Agence Europe) - The die is cast. Car manufacturers wanting to sell these goods in the EU will, in future, have to ensure that their new cars and vans registered in the EU comply with the target of average CO2 emissions of 130g/km by 2012, with fines for those who fail to do so. After months of waiting and debate, fuelled by the fears of German manufacturers of powerful cars that they would be penalised to the benefit of small car manufacturers (like the Spanish and Italians), the Commission, on 19 December, brought forward its draft legislation to require car manufacturers to reduce further the CO2 emissions of new cars and vans put on sale in the EU, having decided that the voluntary agreements entered into by manufacturers in 1998 would not be enough to reach the target set by the EU in 1995, of 120g/km by car by 2012 (compared with 160g/km today).

The draft directive was adopted by the College of Commissioners “after an in-depth discussion, which did not, however, go to the vote,” said Commission spokesman Johannes Laitenberger, refusing to confirm that Industry Commissioner Guenter Verheugen had voiced his opposition. Laitenberger acknowledged, however, that several commissioners had said that wanted to express “their reservations in the minutes of the meeting”.

The average target for European cars set by this draft regulation is 130g/km by 2012, the reduction of a further 10g to be achieved through technology, such as adding biofuels to the petrol, improving tyres, innovations in air conditioning systems, and this in line with the revised strategy on reducing CO2 emissions in private car and sport utility vehicles (SUVs) in the EU presented by the Commission on 7 February (see EUROPE 9361).

The Commission proposal is based on a modular, flexible system, carefully drawn up to take account of the various categories of car and the needs for each category - whether large or small - to produce a comparable but proportionate effort to comply with the 130g/km average. Rather than impose a limit value by category of vehicle, the system is based on the weight of the vehicle (which determines the category), and a limit value curve related to weight. The heavier the car is, the higher will be the level of emissions permitted, but to ensure that manufacturers do not produce heavier cars (which would cause the curve to be too steep) the incline of the curve has been kept to 60%.

To ensure flexibility and maintain the competitiveness of the European automotive industry, “pools of manufacturers” will be allowed to work collectively to reach a specific target, on condition that European competition rules are complied with. These pools will allow manufacturers of less polluting cars to join with manufacturers whose models exceed emission limit values, and which could buy “pollution permits” from them.

The future directive will apply to all vehicles registered in the EU (imported vehicles, then, will also be included). The average to comply with will be per car group (for Volkswagen, for example: Audi, Seat, Skoda).

Small independent manufacturers making “niche vehicles” selling less than 10,000 units per year and not wishing to join a pool will be able to ask the Commission to set an individual target. Special use vehicles, such as those which can take people in wheelchairs, will not be included in the directive.

Monitoring compliance with the targets will be based on vehicles registered in the EU.

Sanctions to be applied per gramme per kilometre over the limit value, will be phased in: from €20 in 2012, they will rise to €30 in 2013, then to €60 in 2014 and finally to €95 in 2015.

Presenting the proposal to the press on his own on the day after the Bali climate conference, Environment Commissioner Stavros Dimas highlighted the importance of the future directive by setting it in the context of combating climate change. “What we achieved in Bali was down to our determination. Two hard years of negotiations await us to reach a binding agreement in 2009. We have to be credible. This draft directive is the first opportunity since Bali for the EU to show its commitment to concrete measures to reduce greenhouse gas emissions. Reducing cars' CO2 emissions is essential,” He said, stressing that private car emissions amount to 12% of the EU's CO2 emissions and that emissions from transport were increasing. He added, “If the EU is serious about reducing its greenhouse gas emissions, every sector will have to play its part”.

He said the proposal brought to reality the integrated approach proposed by the European Commission in February and presented a triple advantage: it guaranteed big savings in fuel, offered consumers considerable advantages and encouraged the automotive industry to invest in new technology and promote eco-innovation. - “a driving force for more quality jobs”.

An average target of 130g/km means a 198% reduction in car emissions. “The EU will lead the way on improving the energy efficiency of cars,” Dimas said.

The European Automobile Manufacturers Association (ACEA) said that the European Commission proposal “does not offer the proclaimed balanced framework to cut CO2 emissions and to safeguard EU competitiveness and growth”. The organisation felt that, if implemented, the system would effectively reduce the competitive strength of the European automobile sector, put car manufacturing in the EU at risk and lead to costs that were disproportionately compared with the environmental gains and the costs of carbon reduction facing other sectors.

The proposal is very disappointing and both its content and the way it was adopted are in stark contrast with the 'better regulation' principles of the European Commission,” said Sergio Marchionne, President of the ACEA, who felt that the level of fines was completely unacceptable. Disappointment has been expressed by T&E (transport and environment), the main environmental organisation specialised in transport in the EU with a view to promoting an environmentally-friendly approach to mobility. The NGO sees the Commission's proposal as a reward for major manufacturers and as a step backward for a future low carbon content Europe.

“In 1995, Europe acknowledged the need for a long term objective of reaching a level of 120 grams CO2 per kilometre for new cars. Today, twelve years later, the Commission has not only failed to present a new long term objective, but has also reduced the existing one”, said Jos Dings, T&E Director.

The NGO stresses that, in order to tackle the long term challenges of climate change, dependency on fossil fuels and the surge in energy prices, Europe must place automobile manufacturers on the road to producing cars that are two, three, if not four times more effective than they are today. The Commission proposal only contains an objective of 10 grams by 2012.

Speaking at the European Parliament, German MEPs of the EPP-ED group state that they are very disappointed by a proposal which, according to Herbert Reul, with a simple qualified majority decision by commissioners, makes industrial policy, not to the benefit of Germany but to manufacturers of small cars.

The proposal for a directive is the result of general consultation between the parties taking part and an in-depth impact study. Since 1995, the EU had agreed to the objective of 120 g/km, an objective reconfirmed by the European Council in June 2006. The voluntary agreement concluded in 1998 by the European automobile manufacturers (ACEA), Japanese (JAMA) and Korean manufacturers (KAMA) had fixed 140 g/km as a voluntary target by 2008 for the ACEA and by 2009 for JAMA and KAMA. (A.N.)

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