EU and member states reach deal on 'Cars and CO2'

Wed 03 December 2008 View all news

The European Parliament and EU member Governments have reached agreement on long-heralded 'Cars and CO2' regulation which will mean that the 130g/km target initially set for 2012 will now be phased in to 2015. The motor industry also won concessions on the level of fines for non-compliance which will also be phased in between 2012 and 2015.

Under the plan, a new average CO2 emission limit of 130 grams per kilometre (g/km) will apply to 65 per cent of the new car fleet in 2012, rising to 75 per cent in 2013, 80 per cent in 2014 and the whole fleet from 2015.

The regulation will be shared among carmakers according to a mass-based formula, which requires a greater reduction effort from makers of larger cars.

A further cut of 10g/km is planned to come from 'other measures' (including biofuels, smarter driving and improved tyres) in order to reach an overall average emission limit of 120g/km.

The deal also includes an average new car emissions target of 95g/km by 2020. Though this target will be reviewed in 2013 under the terms of the deal, it could prove be the legislation's most powerful signal to the car industry to accelerate cuts in CO2 emissions according to environment campaign groups.

Agreement was also reached on 'derogations' for niche manufacturers, which will benefit Jaguar Land Rover in the UK. Jaguar Land Rover will be able to choose to comply with a less difficult target of a 25 per cent reduction by 2015 from its 2007 CO2 average.

The overall deal means that the achievement of a cut in average new car CO2 emissions from around 158g/km in 2007 to 130g/km by 2012 is likely to be delayed for at least three years.

Environmental groups said the agreement was a victory for car manufacturers at the expense of the environment. Jos Dings, Director of T&E, said: "The car industry, backed by the major car producing countries has managed to kill a car fuel-efficiency law in Europe for the second time in a decade. Europe sent the wrong signal to the car industry ten years ago, and it has sent the wrong signal again today."

Tony Bosworth, Friends of the Earth’s transport campaigner - reported in The Times - said: “This is a depressing outcome on a vital piece of climate legislation. it’s riddled with delays, loopholes and concessions. “This was an opportunity to force the car industry to put its foot down and speed up progress in making smarter cars that use less fuel - but EU politicians have caved in to industry lobbying and allowed it to coast along at its own pace for a few more years".

Geoff Hoon, the UK Transport Secretary, said: “This has potential to be the biggest CO2 saving measure in transport.

“At the same time it also takes account of the needs of UK manufacturers. It makes sure that smaller or niche manufacturers, who provide employment to thousands of people around the UK, play their part in reducing CO2 emissions but are not put out of business by targets they will just not be able to meet.”

Chris Davies, the Liberal Democrat MEP Environment Spokesman (also quoted in The Times) said: “This takes us backwards from last year’s 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".

An Acea spokesperson (quoted by ENDS) said the new rules, if formally approved, would be "a very challenging and tough piece of legislation for an industry facing very difficult economic circumstances". She acknowledged, however, that there had been changes from the commission's original proposals that would make it "more reasonable and achievable".

Update (17 Dec):  The 'Cars and CO2' deal is formally approved by member states and the full Parliament.


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