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Kyoto goals

Brussels threatens to regulate CO2 emissions from cars

By Dr. Ludwig De Braeckeleer

Friday, September 1, 2006

On august 29th, the European Commission has released its annual report on carbon dioxide (CO2) emissions from new cars sold in the EU-15 for the year 2004. The good news is that average emissions are down by more than 12% relatively to 1995's level. The bad news is that the final objective of reducing these emissions 25% below 1995's level by 2008 is very unlikely to be achieved.

The EU-15 member states generate about 20% of the world green house gas emissions. Both the EU-15 and its Member States have signed and ratified the Kyoto protocol. They agreed to achieve an 8% reduction of their emissions relatively to the 1990's level during the 2008-2012 period.

CO2 emissions from cars contribute significantly to European global emissions. Road transport accounts for about 20% of the EU-15 emissions, half of which is due to passenger cars. Moreover, road transport emissions have increased sharply -- 22% - since 1990, as a result of an increase of the number of cars in circulation as well as an increase of the average distance driven annually.

The European automobile Manufacturer's association -- aCEa - has reduced the CO2 emissions of its cars to 161g/km, i.e. 13% below the 1995's level. The Japan -- JaMa - and Korea -- KaMa - automobile Manufacturer's association have reached emission values of 170 g/km and 168 g/km respectively. These results represent reductions of 13.3% and 14.7% compared to the 1995's level.

The progress registered by KaMa during 2004 is quite significant. average emissions have dropped 6% from 2003 levels, enabling the association to meet the interim target of 165-170 g/km in 2004.

although aCEa and JaMa have also met their interim targets of 165-170 g/km in 2003, their 2004 progress have been rather modest as they lowered the emission of their cars by just 1.2% compared to 2003 levels.

In order to respect the 2008 target of 140 g/km, all three associations would have to realize annual reduction rates of about 3.5%. It is unlikely that these associations would achieve such result.

"Car manufacturers have made continuous and substantial progress since 1995. The situation is not satisfactory. I urge industry to step up their efforts. We expect that industry sticks to its commitments," said Gunter Verheugen, the Commission Vice-President and Commissioner for Enterprise and Industry.

"To combat climate change and respect our Kyoto commitments we have to reduce CO2 emissions from transport -- a sector whose emissions contribute significantly to overall emissions. I appreciate the efforts of some car manufacturers to market cars that emit less CO2. I urge the car industry to step up its efforts to meet the 140 g of CO2/km target under the voluntary agreement. This will be crucial to achieving the Community objective of 120 g of CO2/km by 2012 at the latest," said Stavros Dimas, the Environment Commissioner

Other concerns are slowing further reductions. Diminishing pollution tends to increase engines consumption and therefore CO2 emissions. Improving car safety generally increases car weights, and consequently their consumptions and emissions.

The EU Commission is currently reviewing all the options available to achieve the 2008 target and will communicate the results of their finding to the European Parliament and Council later this year.

according to Commissioners Verheugen and Dimas, the Commission will consider taking legislative measures if the car industry does not meet the 2012 goal.

Beside the voluntary commitment of the three car manufacturer associations, the EU strategy rest on two other pillars: consumer information and fiscal incentives.

The Commission urge for further reduction could create tensions between EU member States such France and Germany as their manufacturers specialize in different types of vehicles. as France produces mainly light cars while Germany is famous for its luxurious cars and SUV, Berlin could very well bring a case of unfair competition to the European Court of Justice.