Eco-innovations to help carmakers meet EU emission targets

The European Parliament Environment Committee supported CO₂ emission curbs from cars to be effective for the whole car industry already in 2012. The Committee also voted in favour of enabling carmakers to apply for special credits for eco-innovations to reduce emissions, which could include technologies such as CO₂ MACs.

The European Parliament’s Environment Committee voted in favour of introducing CO₂ emission curbs from cars in one step, rejecting proposals earlier this month by the Industry Committee that called for phased-in reductions that would in essence give car manufacturers an extra 3 years to comply with targets. More importantly, car manufacturers will be able to apply for special credits from innovative CO₂ reducing technologies that are currently not included in the normal test cycle. Such technologies could include CO₂ mobile air conditioning (MAC), which reduces direct refrigerant emissions.

Key features of the Committee’s proposals include:

• Accounting for eco-innovations: The committee stipulated that car manufacturers can apply to be given special credits for eco-innovations - that is innovative CO₂ reducing technologies on the car, which are currently not included in the normal test cycle. This could provide car manufacturers the opportunity to gain such credits in meeting their targets by using for example CO₂ technology for MAC.
   
• Introduction of targets for 2012 and 2020: The Committee backed the European Commission's target of an average of 120g of CO₂/km for the whole car industry by 2012, compared to the current levels of 160g/km. A target of 130g/km is to be reached by improvements in vehicle motor technology. A further 10g/km reduction, to reach the 120g/km target should be obtained by using other technical improvements such as better tyres.
  The Environment Committee rejected a proposal backed by the Industry Committee earlier this month to allow transitional measures for the car industry with a gradual phase-in of the 2012 target. The Committee further agreed to set a long-term target of average emissions of no more than 95g CO₂ per km as from 1 January 2020 by means of improvement in vehicle motor technology.
   
• Maintaining tough penalties: The Committee supported the European Commission's original proposal to introduce gradual increasing "excess emissions premiums" to be paid by manufacturers for each gram of carbon dioxide over the target. Such penalties will increase from €20 in 2012 to €95 from 2015. The Committee, therefore, rejected the idea of fixing the "excess emissions premiums" at a maximum of €50 per gram of carbon dioxide over the target. Revenues from fines should be invested by the EU in the development of zero emissions cars and other technological innovations which reduce vehicle CO₂ emissions.
  The Committee further agreed that the proposed directive should be adopted under the environment chapter (Article 175 of the EU Treaty), which allows penalties to be imposed to make it more effective and not under article single market rules (Article 95) as originally proposed by the European Commission.
   
• Special targets for small independent manufacturers: The Committee backed the Commission on allowing small independent manufacturers which produce less than 10.000 new registered cars per year to be exempted from emissions targets. The Committee, further supported allowing relatively larger independent car manufacturers, producing 10,000 to 300,000 new registered cars per year, the option to opt for an alternative target of reducing their average emissions by 25 per cent compared to 2006 levels.

Background and next steps

The proposed measures, which will affect both European and non-European manufacturers, still need the support of the full 785- seat EU Parliament due in October or November and that of national governments.

The original European Commission proposal issued in December 2007 sets a binding target for Europe's car makers of 120g per CO₂/km. This would come through an integrated approach whereby improvements in motor technology would have to reduce emissions to 130g CO₂/km while complementary measures such as improvements in tyres, air conditioning systems would contribute a further emissions cut of up to 10 g CO₂/km.