Government consults on European car emissions cap

German car firms may struggle with CO2 targets

Transport Secretary Ruth Kelly has launched a consultation on European Union proposals to introduce compulsory CO2 targets for new cars, potentially softening the blow for the automotive industry.

“We support this move to introduce mandatory CO2 targets for new cars and are taking the lead in urging the adoption of a tougher target from 2020,” said Kelly.

But she expressed concern about the impact of the move on manufacturers.

“We also want to ensure that it does not unfairly impact on car manufacturers, particularly those that produce niche vehicles or a small volume of vehicles,” she said. “That is why we argued for provisions that ensure these manufacturers are not unfairly penalised, while still producing more efficient vehicles that have a less harmful impact on the environment.”

The proposed target is 130 grams of CO2 per kilometre by 2012 as the fleet average for each car manufacturer, calculated across the EU for all new cars. The UK government is also urging the EU to adopt a longer term target of 100g/km by 2020.
At the EU, the move has been subject to intense lobbying by Angela Merkel’s administration in Germany. German car makers such as BMW, Audi and Mercedes have a much higher proportion of cars with large engines in their fleets than French and Italian manufacturers, such as Renault, Peugeot and Fiat. So German car makers would like the targets to be softened.

Kelly added that in the long run, harder targets further off could make transport cheaper by encouraging the use of technology to improve fuel efficiency.

“It will be good for the environment and for the motorist, as more fuel efficient cars could mean reduced running costs of about £500 for new car buyers.”

The consultation closes on 3 October 2008.