ippr study says that penalties for non-compliance with EU regs should exceed compliance costs
Mon 10 March 2008
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A new study on cars and CO2 by the Institute of Public Policy Research suggests that the European Commission should ensure that the fines imposed on car makers for non-compliance with CO2 regulations should exceed the costs the industry says it will incur in complying with them.
The ippr's study - "Driving down CO2 emissions: Using mandatory targets to improve vehicle efficiency" - also says that Governments should set medium and long-term targets to allow the industry sufficient lead time to prepare for meeting them. The ippr suggested an average emissions target of 95g CO2/km for 2020.
Since the report's publication, the UK Government has stated that it favours a target of 100g CO2/km for 2020. The ippr also calls on the European Commission to set a target for 2030.
In a further recommendation, the ippr suggests that emissions targets should be separated out according to who has control over them. For example, the motor industry should not be responsible for the contribution lower carbon fuels can make towards targets because they have no direct control over what motorists put into their tanks.
The ippr identifies four 'principles' for effective policy making in this area:
1. Policy interventions should be targeted at those who can deliver
2. Short-term targets should be used to drive the uptake of existing technologies
3. Long-term targets should be used to drive innovation for new technologies
4. Targets should be technology-neutral.
To see the full report, follow the associated link.
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