Reducing CO2 Emissions from light-duty vehicles

01 September 2009
by inadim -- last modified 03 September 2009

The legislation on CO2 from passenger cars is now officially published in the form of Regulation (EC) No 443/2009 of the European Parliament and of the Council of 23 April 2009 setting emission performance standards for new passenger cars as part of the Community's integrated approach to reduce CO2 emissions from light-duty vehicles.

Regulation (EC) No 443/2009 of the European Parliament and of the Council of 23 April 2009

Some key elements of the adopted text are as follows:

• Limit value curve: the fleet average to be achieved by all cars registered in the EU is 130 grams per kilometre (g/km). A so-called limit value curve implies that heavier cars are allowed higher emissions than lighter cars while preserving the overall fleet average.
• Phasing-in of requirements: in 2012, 65% of each manufacturer's newly registered cars must comply on average with the limit value curve set by the legislation. This will rise to 75% in 2013, 80% in 2014, and 100% from 2015 onwards.
• Lower penalty payments for small excess emissions until 2018: If the average CO2 emissions of a manufacturer's fleet exceed its limit value in any year from 2012, the manufacturer has to pay an excess emissions premium for each car registered. This premium amounts to €5 for the first g/km of exceedance, €15 for the second g/km, €25 for the third g/km, and €95 for each subsequent g/km. From 2019, already the first g/km of exceedance will cost €95.
• Long-term target: a target of 95g/km is specified for the year 2020. The modalities for reaching this target and the aspects of its implementation including the excess emissions premium will have to be defined in a review to be completed no later than the beginning of 2013.
• Eco-innovations: because the test procedure used for vehicle type approval is outdated, certain innovative technologies cannot demonstrate their CO2-reducing effects under the type approval test. As an interim procedure until the test procedure is reviewed by 2014, manufacturers can be granted a maximum of 7g/km of emission credits on average for their fleet if they equip vehicles with innovative technologies, based on independently verified data.

Commission proposal on a Regulation to reduce the CO2 emissions from passenger cars

On 19 December 2007, the European Commission adopted a proposal for legislation to reduce the average CO2 emissions of new passenger cars which account for about 12% of the European Union's carbon emissions. The proposed legislation is the cornerstone of the EU's strategy to improve the fuel economy of cars and ensure that average emissions from the new passenger car fleet in the Community do not exceed 120 g CO2/km through an integrated approach.

The Commission's proposal will reduce the average emissions of CO2 from new passenger cars in the EU from around 160 grams per kilometre to 130 grams per kilometre in 2012. That will translate into a 19% reduction of CO2 emissions and will place the EU among the world leaders of fuel efficient cars. The proposal will also benefit consumers through important fuel savings. It will further improve energy security, promote eco-innovations and high-quality jobs in the EU.

The draft legislation defines a limit value curve of permitted emissions of CO2 for new vehicles according to the mass of the vehicle. The curve is set in such a way that a fleet average for all new cars of 130 grams of CO2 per kilometre is achieved. From 2012, a manufacturer will be required to ensure that the average emissions of all new cars which it manufactures and which are registered in the Community are below the average of the permitted emissions for those cars as given by the curve. That curve is set in such a way that heavier cars will have to improve more than lighter cars compared to today, but that manufacturers will still be able to make cars with emissions above the limit value curve provided these are balanced by cars which are below the curve. Manufacturers' progress will be monitored each year by the Member States on the basis of new car registration data.

Under the legislation, several manufacturers will be able to group together to form a pool which can act jointly in meeting the specific emissions targets. In forming a pool, manufacturers must respect the rules of competition law and the information that they exchange should be limited to average specific emissions of CO2, their specific emissions targets, and their total number of vehicles registered.

In addition, independent manufacturers who sell fewer than 10,000 vehicles per year and who cannot or do not wish to join a pool can instead apply to the Commission for an individual target. Special purpose vehicles, such as vehicles built to accommodate wheelchair access, are excluded from the scope of the legislation.

The proposal will provide manufacturers with the necessary incentive to reduce the CO2 emissions of their vehicles by imposing an excess emissions premium if their average emission levels are above the limit value curve. This premium will be based on the number of grams per kilometre (g/km) that an average vehicle sold by the manufacturer is above the curve, multiplied by the number of vehicles sold by the manufacturer. A premium of €20 per g/km has been proposed in the first year (2012), gradually rising to €35 in the second year (2013), €60 in the third year (2014) and €95 as of 2015. Most manufacturers are expected to meet the target set by the legislation, so significant penalties should be avoided.

The proposal COM(2007)856 has been communicated to the Council and to the European Parliament as part of the co-decision legislative procedure.

Short description of the proposal

Commission proposal for a renewed Community strategy to reduce CO2 from light vehicles (cars and vans)

On 7 February 2007, the Commission adopted the Communication (COM(2007) 19) outlining a comprehensive new strategy to reduce carbon dioxide emissions from new cars and vans sold in the European Union. The new strategy, together with a revision of EU fuel quality standards proposed on 31 January 2007, further underline the Commission's determination to ensure the EU meets its greenhouse gas emission targets under the Kyoto Protocol and beyond. The strategy will enable the EU to reach its long-established objective of limiting average CO2 emissions from new cars to 120 grams per km by 2012 - a reduction of around 25% from current levels. By improving fuel efficiency, the revised strategy will deliver substantial fuel savings for drivers. To encourage the car industry to compete on the basis of fuel efficiency instead of size and power, the Commission is also inviting manufacturers to sign an EU code of good practice on car marketing and advertising. As part of the revised strategy, the Directive on CO2 labelling of cars will be revised.

Source: European Commission