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EU to Set New Rules for CO2 Emissions for 2020

The European Union decided the future CO2 emissions targets for 2020. The commission wants all automobile manufacturers to have an average CO2 emission of 95 grams per kilometer range wide.

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The EU has set new restrictions on CO2 emissions for car manufacturers operating on this market. These will change in 2020 and the Brussels Commission wants the new cars sold then to have an average emission of 95 grams CO2 per kilometer range wide. Discussions have not been undertaken without disapproval, the German manufacturers pressuring the European Commission to allow a more relaxed set of rules than initially proposed by the European Parliament.

The German car manufacturer’s motivation was related to the premium models in their portfolios, which bring significant revenue to the EU through both their costs and fees and the jobs they provided. Unfortunately, these cars have limitations in terms of reducing CO2 emissions, hence the Germans request for leniency. The European Commission’s new rules will be applied gradually, for each manufacturer individually, depending on the measures taken in the past in this regard. The exceptions used in the past still remain valid. Specifically, manufacturers who produce more than 10,000 cars per year can apply for smaller reductions in CO2 emissions, and producers may join in groups to act together to reduce the rate of CO2 emissions of vehicles in their portfolios.

In 2007, a car manufacturer had to have an average of 158.7 grams CO2 per kilometer in order to not be charged extra by the European Union. For 2015, the EC has set a target of 130 grams per kilometer. The new target of 95 grams CO2 per kilometer range wide represents a reduction of 40% compared to the values required for 2007. In addition to reducing the atmospheric pollution, the new rules will give consumers more efficient cars. To achieve these targets, a petrol-engined car will have an average consumption of 4.1 liters / 100km, while diesel models will need to obtain an average consumption of 3.6 liters / 100km. Of course we are talking about an average for the whole range for a portfolio builder, so the above values should not be taken as such.

Implementation of the 2020 target

The Commission’s legislative proposal for implementing the 95 g/km target includes the following provisions:

• All manufacturers would be required to achieve the same level of reduction – 27% – from the 2015 target;

• The target would continue to be set on the basis of a vehicle’s mass;

• Eco-innovations would continue to apply once the new test procedure for vehicle type approval is in place;

• Super-credits with a multiplier of 1.3 would apply in 2020-2023 for vehicles emitting less than 35 g/km; this benefit would be limited to a maximum of 20 000 cars per manufacturer over the period;

• The excess emissions premium would remain at €95 per g/km from the first gram of exceedance;

• Small-volume manufacturers would be given greater flexibility regarding when they can apply for their own reduction target;

• The smallest manufacturers, producing fewer than 500 cars per year, would be exempted from meeting the target;

• Niche manufacturers would receive a new target for 2020 of a 45% reduction from their 2007 level;

• The regulation would be reviewed by end-2014 in order to set reduction targets for post-2020.

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