Car industry slams EU CO2 targets

Europe’s motor industry has reacted angrily to Brussels plans to impose tough new curbs on CO2 emissions from cars.

The EU’s industry and environment chiefs, Günter Verheugen and Stavros Dimas, cast aside their differences over the scope of the proposals to present a united front on introducing stringent new emission caps.

The commission plans set a 2012 deadline for car manufacturers to ensure that the average new car emits no more than 130g of CO2 per kilometre.

Verheugen and Dimas had clashed over the scale of the proposals, with the Greek commissioner originally arguing for a tougher limit of 120g.

The disagreement led to the proposals, originally set to be unveiled last month, being pulled at the eleventh hour, leading to accusations that the commission had caved in to motor industry lobbying, especially from Germany.

German chancellor Angela Merkel controversially fuelled the debate last week when she warned Brussels against setting limits that would be damaging to Europe’s car industry.

However the overall target of 120g will still be met, according to Dimas and Verheugen, by introducing other complimentary measures such as tyre pressure monitoring, regulated air conditioning and the greater use of biofuels.

Presenting the proposals to journalists in Brussels, Verheugen admitted that a voluntary agreement with Europe’s car manufacturers had not been as successful as he had wished.

“It was clear that legislation was necessary… it was clear that the automobile industry could not [reduce emissions] voluntarily,” said the German commission vice-president.

“Commissioner Dimas and I have been working hard to find a solution and to agree on legislation.  It has taken a bit of time. We have concluded that it would be reasonable to bring the level down to 130g.”

Verheugen said that although there were concerns about the impact on the competitiveness of Europe’s car industry, the proposals were “fully supported” within the commission.

“We have found a good solution that tackles climate change while remaining innovative.  The automobile industry faces a challenge.  The industry can meet this challenge.”

Dimas said the mandatory limits for car emissions showed that the EU meant business in tackling climate change.

He dismissed suggestions that the current commission had failed its first real concrete test by caving in to industry pressure to reduce the car industry’s limit to 130g.

With the 10 per cent reduction of CO2 in fuels expected from the introduction of the fuel quality directive, adopted last week, “the environmental result will be the same,” said Dimas.

“The proposals are reachable and realistic and will allow us to arrive at our destination [of 120g] on time.”

Despite reports that their lobbying had won a Brussels climb-down, the car industry, labelled the proposals “unbalanced and damaging”.

“The ideas put forward today by the European commission focus too much on vehicle technology, denying the fact that a broad range of means is available to reduce CO2 emissions in a far more cost-effective way to the benefit of equally the environment and the economy,” said Sergio Marchionne, of the European automobile manufacturers association.

“The commission has formulated arbitrary targets, not sustained by a valid assessment of all facts and consequences involved.”

“Putting the burden mainly on the car industry is the most expensive and least cost-effective method possible. It will lead to a loss of jobs and the relocation of production outside the EU, severely affecting several European regions,” warned Marchionne who is also CEO of Fiat.

“At least 12 million EU workers and their families count on a balanced policy on CO2 emissions from cars. The car industry does not want to be part of an experiment. If left unchanged, the commission proposal would erode the economic strength of Europe.”

The German automotive industry association said the proposals left car manufacturers with “massive investments” and “enormous and extremely difficult challenges.”

But the FIA, a car lobby based in Brussels, supported the proposals.

“The FIA is disappointed that on present trends this target will not be reached, and therefore believes that there is a strong argument for strengthening the efforts to reduce CO2 emissions from cars,” the organisation said in a statement.

But FIA said the rest of the world should play its part too.

“There is little point in the EU increasing the stringency of its own CO2 commitment if the rest of the world with its rapidly growing vehicle fleet is not also improving its fuel economy standards,” said FIA president Max Mosley.

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