FACTBOX-Key Facts on EU Proposal to Cut Car CO2 Emissions
Date: 20-Dec-07
Country: BELGIUM
Here are key details of the proposal:
WHICH CARS? - The binding limits for average emissions apply to all new cars sold in the European Union from 2012, whether produced in Europe or elsewhere. That means American, Japanese, South Korean and Chinese companies will also be affected. No cars will have to be taken off the market or off the road.
WHAT LIMITS? - Manufacturers must achieve average maximum CO2 emissions of 120 grams per km in 2012 across their entire fleet of new cars, of which 130 g/km through engine technology and the rest by other measures such as biofuels and more fuel-efficient gears, tyres, air-conditioning and driving behaviour. The average in 2004, the most recent year for which data is available, was 163 g/km.
The limit for vans is 175 g/km in 2012 and 160 g/km by 2015.
BURDEN-SHARING - The targets will be set according to the weight of vehicles in order to achieve an average 120 g/km over the entire European fleet. Manufacturers of heavier cars, including luxury saloons and SUVs, will have to make bigger cuts than makers of smaller, lighter cars.
WHAT PENALTIES? - Carmakers will have to pay an "emissions premium" for every gram/km by which their fleet exceeds the EU limit, multiplied by the number of cars sold. The fines will be phased in over four years, starting at 20 euros (US$28.81) per km/g in 2012, 30 euros in 2013, 60 euros in 2014 and rising to 95 euros per g/km in 2015 and thereafter.
POOLING - Manufacturers may team up to meet the EU target by pooling their emissions. In practice, this means makers of heavier cars with higher CO2 output can buy emissions credits from manufacturers of smaller, more fuel-efficient cars that are under the EU limit. The price would be set by market forces.
WHAT COST? - The European Commission estimates that the mandatory limits will raise the average price of a new car by 6 percent or 1,300 euros, but says this will be more than offset by estimated savings on fuel of 2,700 euros over the lifetime of the car.
EXCEPTIONS - Independent manufacturers who sell fewer than 10,000 vehicles a year who cannot or will not join a pool can instead apply to the Commission for an individual target. Special purpose vehicles such as cars built to accommodate wheelchair access are exempted.
WHAT NEXT - The proposal now goes to the Council of EU member governments and the European Parliament. The regulation must be approved by a qualified majority of member states and a simple majority in parliament.
(source: European Commission)
(writing by Paul Taylor, editing by Marcel Michelson)