MEP calls for car emission permit system

A senior MEP has called for the introduction of tradable emission permits for cars - as part of the EU's bid to reduce greenhouse gas emissions at least cost to industry.

In a report presented to EU industry chief Gunter Verheugen on Thursday, Dorette Corbey MEP calls for the introduction of a car emission permits system - similar to the trading scheme already in place for industry.

Brussels should be "encouraged to examine the possibility of introducing a system of tradable emission permits for the automotive sector that would enable this sector to continue to achieve greenhouse gas emission reductions at the least cost,"
reads the report.

The transport sector makes a large contribution to CO2 emissions, and the study carried out by the Low Level Group on Clean Cars looks at ways of balancing the need to reduce emissions, with the competitiveness of the European car industry which indirectly employs 12 million people.

The report also calls for an EU level approach to a car tax based on environmental performance, an "agreement on a co-ordinated approach towards green fiscal incentives whereby taxation is directly related to environmental performance".

The report, headed by the Socialist MEP, is the result of wide ranging consultations between industry, MEPs, the European Commission, NGOs and member state representatives.

The Low Level Group on Clean Cars was set up Corbey in March 2005 in response to the European Commission’s High Level Group on CARS 21 - involving Commissioner Gunter Verheugen and the CEOs of a several car companies.

Thursday's report is the result of four meetings of the group - which discussed ensuring the global competitiveness of European automotive industry, high quality employment, and environmentally sustainable vehicles.

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