EU Motor Industry Split on CO2 Mandatory Target

The motor industry is divided over how to reduce CO2 emissions from vehicles. The European vehicle manufacturers’ association ACEA, has been struggling to come up with a common position in the face of proposals for a mandatory directive to reduce by 2012 the average CO2 emissions of new cars registered in the EU to 130 g/km. This is a response to the motor industry's concerns over a voluntary target set in the late 1990s of 140 g/km by 2008.

This situation has essentially divided the French and Italian manufacturers, which produce smaller, more fuel efficient cars, against the Germans and north European manufacturers, which produce larger vehicles with bigger engines.

Despite the almost obligatory European wrangling, the industry has moved forward on C02 level reductions. According to the Society of Motor Manufacturers and Traders (SMMT) the average CO2 emission produced in 1997 was 189.8g/km, but by 2006 this had been reduced to 167.2g/km - a reduction of 11.9% and is still dropping on an annual basis. This change has been brought about by a number of factors including:

• Legislative policy pressure arising from EU standards
• Fiscal pressure from Vehicle Excise Duty changes.
• The move to diesel for many fleets, reducing the overall CO2 footprint
• The introduction by manufacturers of low carbon vehicles

Clearly further reductions are needed to meet the target of 130g/km by 2012 and this will require manufacturers to introduce improved petrol and diesel technologies, alternative fuelled vehicles and hybrid/fuel cell options.

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