Incentives for low carbon cars too weak - European report

Fri 21 January 2005 View all news

According to a new European report, car manufacturers have the technical capability to meet fleet average CO2 targets for 2008 and 2012 but, under current European rules, have too little incentive to do so.

The report from the European Federation of Environment and Transport says that car makers earn much better margins from the sale of larger, high performance cars; such models contribute disproportionately to the economic success of the industry. Thus, it says, manufacturers will continue to promote sales of MPVs and SUVs for use as passenger cars. No individual manufacturer can afford to take a different route without the support of incentives.

The report's authors do not expect car labelling to have much impact without the label being linked to specific fiscal or regulatory measures.

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T&E report download

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