Report concludes that 120g/km target can be met by 2012
Fri 07 October 2005
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An extensive new report published by the EU has concluded that it is technically and economically feasible for new cars to achieve the Community objective of average CO2 emissions of 120g/km through technological means.
The report, written by the Institute of European Environmental Policy (IEEP), TNO and the Centre for Automotive Industry Research (CAIR), says that net societal costs to meet the target would be around 1-2% of the cost of the car.
The main problem, the report says, is that meeting the fixed 120g/km target requires unrealistically high reductions from some segments of different manufacturers. It says that the benefits from trading 'credits' between manufacturers could be 'very significant'.
The report warns that its conclusions are highly sensitive to future fuel prices and that consumers could benefit significantly if fuel prices were to rise significantly in real terms. The report assumes oil prices of around $37 per barrel, significantly lower than the current level.
The report is inelegantly entitled: "Service contract to carry out economic analysis and business impact assessment of CO2 emission reduction measures in the automotive sector".
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Report download link
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