Reducing CO2 emissions from passenger cars

Cars are responsible for around 12% of total EU emissions of carbon dioxide (CO2), the main greenhouse gas.

EU legislation sets mandatory emission reduction targets for fresh cars. This legislation is the cornerstone of the EU’s strategy to improve the fuel economy of cars sold on the European market. Similar targets have been set for fresh vans.

2015 target

The average emissions level of a fresh car sold in two thousand sixteen was 118.1 grams of CO2 per kilometre (g CO2/km), significantly below the two thousand fifteen target of one hundred thirty g (provisional data).

The two thousand fifteen target corresponds to a fuel consumption of around Five.6 litres per one hundred km (l/100 km) of petrol or Four.9 l/100 km of diesel.

Since monitoring commenced under current legislation in 2010, emissions have decreased by twenty two g CO2/km (16%).

2021 target

By 2021, phased in from 2020, the fleet average to be achieved by all fresh cars is 95 grams of CO2 per kilometre.

This means a fuel consumption of around Four.1 l/100 km of petrol or Trio.6 l/100 km of diesel.

The two thousand fifteen and two thousand twenty one targets represent reductions of 18% and 40% respectively compared with the two thousand seven fleet average of 158.7g/km.

Limit value curve

Emission boundaries are set according to the mass of vehicle, using a limit value curve. The curve is set in such a way that the targets for fleet average emissions are achieved.

The limit value curve means that stronger cars are permitted higher emissions than lighter cars. Only the fleet average is regulated, so manufacturers are still able to make vehicles with emissions above the curve, as long as these are balanced by vehicles below the curve.

Phase-in of requirements

The target of 130g/km was phased in inbetween two thousand twelve and 2015. From two thousand fifteen onwards, all freshly registered cars must conform with the limit value curve.

A shorter phase-in period will apply to the target of 95g/km. 95% of each manufacturer’s fresh cars will have to obey with the limit value curve in 2020, enhancing to 100% in 2021.

Penalty payments for excess emissions

If the average CO2 emissions of a manufacturer’s fleet exceed its limit value in any year from 2012, the manufacturer has to pay an excess emissions premium for each car registered.

This premium amounts to

• €5 for the very first g/km of exceedance
• €15 for the 2nd g/km
• €25 for the third g/km
• €95 for each subsequent g/km.

From 2019, the cost will be €95 from the very first gram of exceedance onwards.

Eco-innovations

Innovative technologies can help cut emissions, but in some cases it is not possible to demonstrate the CO2-reducing effects of a fresh technology during the test procedure used for vehicle type approval.

To encourage eco-innovation, manufacturers can be granted emission credits equivalent to a maximum emissions saving of 7g/km per year for their fleet if they equip vehicles with innovative technologies, based on independently verified data.

Super credits

The cars Regulation gives manufacturers extra incentives to produce vehicles with utterly low emissions (below 50g/km).

Each low-emitting car is counted as

• Trio.Five vehicles in two thousand twelve and 2013
• Two.Five in 2014
• 1.Five in 2015
• 1 from two thousand sixteen to 2019.

Super-credits will also apply in the 2nd stage of emission reductions, from two thousand twenty to 2022.

Each low-emitting car will be counted as

For this 2nd step, there will be a cap on the scheme’s contribution to the target of 7.5g/km per manufacturer over the three years.

Pools acting jointly

Manufacturers can group together and act jointly to meet the emissions target.

In forming a pool, manufacturers must respect the rules of competition law. The information they exchange should be limited to average specific emissions of CO2, their specific emissions targets, and their total number of vehicles registered.

Targets for smaller manufacturers

• inbetween Ten,000 and 300,000 cars per year can apply for a stationary target of a 25% reduction from their two thousand seven average emissions for 2012-2019, and a 45% reduction from the two thousand seven level as of 2020.
• inbetween one thousand and Ten,000 cars per year can propose their own emissions reduction target (subject to approval by the Commission based on agreed criteria) if they cannot or do not wish to join a pool;
• fewer than one thousand cars per year, as well as special purpose vehicles – such as vehicles built to accommodate wheelchair access – are excluded from the scope of the legislation.

Monitoring of emissions

The Commission has set out rules for monitoring the CO2 emissions of fresh cars. Monitoring reports can be found under the Documentation tab.

Long-term target

The legislation requests the Commission to review the legislation by 2015 and if adequate make proposals for CO2 emission targets for fresh cars for the period beyond 2020, including possibly setting a two thousand twenty five target.

The Regulation asks the Commission to maintain a clear emissions-reduction trajectory comparable to that achieved up to two thousand twenty and to consider the competitiveness of the car industry and its dependent industries.

A Public Consultation on the revision of the Regulation ran inbetween twenty July two thousand sixteen and twenty eight October 2016.

Legislation for 2020

• 05/04/2014 – Regulation (EU) No 333/2014 of the European Parliament and of the Council of eleven March two thousand fourteen amending Regulation (EC) No 443/2009 to define the modalities for reaching the two thousand twenty target to reduce CO2 emissions from fresh passenger cars
• 11/07/2012 – COM/2012/393 – Proposal for a Regulation to define the modalities for reaching the two thousand twenty target for reducing CO2 emissions from fresh passenger cars
• 11/07/2012 – SWD/2012/213 – Influence Assessment accompanying the Commission proposal and part II
• 11/07/2012- Press release: Further CO2 emission reductions from cars and vans: a win-win for the climate, consumers, innovation and jobs
• 11/07/2012 – MEMO/12/548: Questions and Answers on the proposals to reduce CO2 emissions from cars and vans further by 2020

Main legislation

• 08/04/2014 – Consolidated version of Regulation (EC) 443/2009 of the European Parliament and of the Council of twenty three April two thousand nine setting emission spectacle standards for fresh passenger cars as part of the Community’s integrated treatment to reduce CO two emissions from light-duty vehicles (Text with EEA relevance)
• 30/04/2013 – Regulation (EC) 443/2009 of the European Parliament and of the Council setting emission spectacle standards for fresh passenger cars as part of the Community’s integrated treatment to reduce CO two emissions from light-duty vehicles
• Statement made by the Commission when the Council and the European Parliament agreed on the Regulation
• Nineteen/12/2007 – Commission proposal for a Regulation
• Influence Assessment accompanying the Commission proposal
• Executive Summary of the Influence Assessment
• Opinion of the Influence Assessment Board
• Examine supporting the Influence Assessment
• Public consultation and stakeholder hearing

Implementing legislation

NEDC-WLTP correlation for light-duty vehicles

Adjustment of M0

• 07/01/2015 – Commission Delegated Regulation (EU) 2015/6 amending Annex I to Regulation (EC) No 443/2009 in order to take into account the evolution of the mass of fresh passenger cars registered in 2011, two thousand twelve and 2013

Derogations

• 26/01/2011 – Commission Regulation (EU) 63/2011 laying down detailed provisions for the application for a derogation from the specific CO2 emission targets pursuant to Article eleven of Regulation (EC) 443/2009 of the European Parliament and of the Council
• Further information on derogations from specific CO2 emission targets, including FAQs on the application process
• Derogation application form for small-volume manufacturers – Public section
• Derogation application form for small-volume manufacturers – Confidential section
• Derogation application form for niche manufacturers – Public section
• Derogation application form for niche manufacturers – Confidential section
• Privacy statement for applicants
• Applications for derogations and Commission decisions

Exemptions

Pooling

Eco-innovations

• Introduction of the generic decision
• 25/07/2011 – Commission Implementing Regulation 725/2011 establishing a procedure for the approval and certification of innovative technologies for reducing CO2 emissions from passenger cars pursuant to Regulation (EC) 443/2009
• Ten/2015 – Technical Guidelines for the prep of applications for the approval of innovative technologies pursuant to Regulation (EC) 443/2009
• Obedience of applications
• Summary descriptions of the applications for the approval of the innovative technology

Approved eco-innovations

• 05/05/2017 – Commission Implementing Decision on the approval of efficient twelve V motor-generators for use in conventional combustion engine powered passenger cars
• 03/11/2016 – Commission Implementing Decision on the approval of the battery-charging photovoltaic roof
• 26/09/2016 – Commission Implementing Decision on the approval of the Toyota efficient exterior lighting using light emitting diodes for the use in non-externally chargeable hybrid electrified vehicles
• 14/04/2016 – Commission Implementing Decision on the approval of the technology used in efficient vehicle exterior lighting using light emitting diodes
• 14/04/2016 – Commission Implementing Decision on the approval of the technology used in twelve Volt efficient alternators
• 11/03/2016 – Commission Implementing Decision on the approval of the MAHLE Behr GmbH & Co. KG enthalpy storage tank
• 25/02/2016 – Commission Implementing Decision on the approval of the MELCO Motor Generator
• 05/02/2016 – Commission Implementing Decision on the approval of the Toyota Motor Europe efficient exterior lighting using light emitting diodes
• 07/12/2015 – Commission Implementing Decision on the approval of the DENSO (Two) efficient alternator
• Ten/07/2015 – Commission Implementing Decision on the approval of the Porsche AG coasting function
• 24/02/2015 – Commission Implementing Decision on the approval of the MELCO GXi efficient alternator as an innovative technology
• Nineteen/02/2015 – Commission Implementing Decision on the approval of the battery charging Asola solar
• 09/02/2015 – Commission Implementing Decision on the approval of the Daimler AG efficient exterior lighting using light emitting diodes
• 30/01/2015 – Commission Implementing Decision on the approval of two Robert Bosch GmbH high efficient alternators
• Legitimate/11/2014 – Commission Implementing Decision on the approval of the battery charging Webasto solar roof
• 16/07/2014 – Commission Implementing Decision on the approval of the DENSO efficient alternator
• Ten/03/2014 – Commission Implementing Decision on the approval of the light emitting diodes low rafter module ‘E-Light’
• 25/Ten/2013 – Commission Implementing Decision on the approval of the Bosch system for navigation-based preconditioning of the battery state of charge for hybrid vehicles
• Ten/09/2013 – Commission Implementing Decision on the approval of the Daimler engine compartment encapsulation system
• 27/06/2013 – Commission Implementing Decision on the approval of the Valeo Efficient Generation Alternator
• 13/03/2013 – Commission Implementing Decision on the approval of the use of light emitting diodes in certain lighting functions of an M1 vehicle

Excess Emissions Premium

• 17/02/2012 – Commission Decision on a method for the collection of premiums for excess CO2 emissions from fresh passenger cars pursuant to Regulation (EC) 443/2009 of the European Parliament and of the Council

Monitoring

• Commission Notice C/2017/3563 — Guidance on the monitoring and reporting of data on the registration of fresh light duty vehicles
• List of manufacturers (Article nine of Regulation (EU) 293/2012)
• 30/04/2013 – Consolidated version of the Commission Regulation (EU) 1014/2010 on monitoring and reporting of data on the registration of fresh passenger cars pursuant to Regulation (EC) 443/2009 of the European Parliament and of the Council
• Commission Communication (2010) six hundred fifty seven on the monitoring and reporting of data on the registration of fresh passenger cars
• Further information on monitoring CO2 from passenger cars

Monitoring of CO2 emissions – Regulation EC 443/2009

European Commission Database

• 2017: two thousand sixteen Monitoring of CO2 emissions from cars – provisional data
• 2016: two thousand fifteen Monitoring of CO2 emissions from cars
• 2016: two thousand fifteen Monitoring of CO2 emissions from cars – provisional data
• 2015: two thousand fourteen Monitoring of CO2 emissions from cars
• 2015: two thousand fourteen Monitoring of CO2 emissions from cars – provisional data
• 2014: two thousand thirteen Monitoring of CO2 emissions from cars
• 2014: two thousand thirteen Monitoring of CO2 emissions from cars – provisional data
• 2013: two thousand twelve Monitoring of CO2 emissions from cars
• 2013: two thousand twelve Monitoring of CO2 emissions from cars – provisional data
• 2012: two thousand eleven Monitoring of CO2 emissions from cars
• 2012: two thousand eleven Monitoring of CO2 emissions from cars – provisional data
• 2011: two thousand ten Monitoring of CO2 emissions from cars
• 2011: two thousand ten Monitoring of CO2 emissions from cars – provisional data

European Commission Implementing Decision

• 16/12/2016 – Commission Implementing Decision confirming the average specific emissions of CO2 and specific emissions targets for manufacturers of passenger cars for the calendar year two thousand fifteen pursuant to Regulation (EC) 443/2009 of the European Parliament and of the Council
• 26/11/2015 – Commission Implementing Decision confirming the average specific emissions of CO2 and specific emissions targets for manufacturers of passenger cars for the calendar year two thousand fourteen pursuant to Regulation (EC) 443/2009 of the European Parliament and of the Council
• 30/Ten/2014 – Commission Implementing Decision confirming the average specific emissions of CO2 and specific emissions targets for manufacturers of passenger cars for the calendar year two thousand thirteen pursuant to Regulation (EC) 443/2009 of the European Parliament and of the Council
• 31/Ten/2013 – Commission Implementing Decision confirming the average specific emissions of CO2 and specific emissions targets for manufacturers of passenger cars for the calendar year two thousand twelve pursuant to Regulation (EC) 443/2009 of the European Parliament and of the Council
• 12/12/2012 – Commission Implementing Decision confirming the average specific emissions of CO two and specific emissions targets for manufacturers of passenger cars for the calendar year two thousand eleven pursuant to Regulation (EC) 443/2009 of the European Parliament and of the Council
• 20/12/2011 – Commission Decision confirming the provisional calculation of average specific CO2 emissions and specific emissions targets for manufacturers of passenger cars for the calendar year two thousand ten – Corrigendum

Monitoring of CO2 emissions – Decision 1753/2000 (repealed)

• 2009: Monitoring report – Access Data base – Excel summary tables
• 2008: Monitoring report
• 2005-2007: Monitoring report
• 2004: Monitoring report – Annexes
• 2003: Monitoring report – Annexes
• 2002: Monitoring report – Annexes
• 2001: Monitoring report – Annexes
• 2000: Monitoring report – Annexes
• 1999: Monitoring report – Annexes
• Decision No 1753/2000/EC of the European Parliament and of the Council of twenty two June two thousand establishing a scheme to monitor the average specific emissions of CO2 from fresh passenger cars (repealed as of 2010)

Studies

Studies

• 2013

• 20/04/2013 – Detailed data comparison using vin for uncertainty assessment within the co2 monitoring database established under art.8 of regulation (ec) no 443/2009

2012

05/12/2012 – Examine on Test Procedure Flexibilities and Technology Deployment for Review of the Light Duty Vehicle CO2 Regulations

05/12/2012 – Note on options for reducing test cycle flexibilities and their potential influence on type approval CO2 emissions

31/01/2012 – Identification and evaluation of errors in the CO2 monitoring database established under art.8 of Regulation (EC) No 443/2009

2011

Support for the revision of Regulation (EC) No 443/2009 on CO2 emissions from cars

Report on the Effect of the Regulations and the Standards on Vehicle Prices and Annex

2010

European second-hand car market analysis

European second-hand car market analysis (data)

2009

Assessment with respect to long term CO2 emission targets for passenger cars and vans

2008

Impacts of regulatory options to reduce CO2 emissions from cars, in particular on car manufacturers

2007

This report served to support the Influence Assessment SEC(2007)1723 of the Commission’s proposal for a Regulation to reduce the CO2 emissions of cars COM(2007)856.

Final report

Technical notes annexed to the final report

Data tables and graphs for Technical Note 9

2006

Review and analysis of the reduction potential and costs of technological and other measures to reduce CO2-emissions from passenger cars (the so-called Task A investigate)

Service contract in support of the Influence Assessment of Various Policy Screenplays to Reduce CO2 Emissions from Passenger Cars (ZEW) (the so-called Task B probe)

Results of TREMOVE runs carried out in prep of the review of the CO2 and cars strategy

2005

Development of a procedure for the determination of the extra fuel consumption of passenger cars (M1 vehicles) due to the use of mobile air conditioning equipment

2004

Review of the commitment of car manufacturers to reduce CO2 emissions from M1 vehicles

2002

Options to integrate the use of mobile airconditioning systems and auxiliary heaters into the emission type approval test and the fuel consumption test for passenger cars (M1 vehicles)

Faq

Open all questions

Questions and answers on the regulation to reduce CO2 emissions from cars

What is the problem?

Road transport is the 2nd fattest source of greenhouse gas emissions in the EU, after power generation. It contributes about one-fifth of the EU’s total emissions of carbon dioxide (CO2).

Road transport is one of the few sectors where emissions have been rising rapidly over the last twenty years, with the exception of the period two thousand eight to two thousand ten when lower transport activity due to the economic slowdown brought a drop in CO2 emissions. In the period one thousand nine hundred ninety to two thousand ten emissions from road transport enlargened by 22.6%. This increase acted as a brake on the EU’s progress in cutting overall emissions of greenhouse gases, which fell by 15.4%.

Passenger cars alone are responsible for around 12% of EU CO2 emissions. Albeit there have been significant improvements over latest years in vehicle technology – particularly in fuel efficiency, which translates into lower CO2 emissions – these have not been enough to neutralise the effect of increases in traffic and vehicle size.

What is the EU’s objective?

The EU Regulation on passenger cars is the very first main measure of the EU Strategy to reduce CO2 emissions from light-duty vehicles(cars and vans). Under the Regulation, average CO2 emissions from cars should not exceed one hundred thirty grams CO2 per km by two thousand fifteen and should drop further to 95g/km by 2020. The one hundred thirty grams target will be phased in inbetween two thousand twelve and 2015. It represents a reduction of 19% compared with the two thousand six level (161.Trio g CO2 per km).

This treatment is similar to the legislation on CO2 emissions from light commercial vehicles (vans) adopted in 2011. Achieving these targets will help Member States reach the economy-wide reductions in greenhouse gases they have committed to supply by two thousand twenty under the climate and energy package.

How will it work in practice?

Each manufacturer gets an individual annual target based on the average mass of all its fresh cars registered in the EU in a given year. As of 2012, manufacturers must ensure that 65% of the fresh cars registered in the EU each year have average emissions that are below their respective targets. The percentage rises to 75% in 2013, 80% in two thousand fourteen and 100% in 2015.

Indicative emissions are established for each car according to its mass on the basis of the emissions limit value curve in Annex I in the Regulation. The limit value curve is set in such a way that a fleet average of one hundred thirty grams of CO2 per km is achieved for the EU as a entire.

Only the fleet average is regulated, so manufacturers will still be able to make vehicles with emissions above their indicative targets if these are offset by other vehicles which are below their indicative targets.

In order to obey with the regulation, a manufacturer will have to ensure that the overall sales-weighted average of all its fresh cars does not exceed the limit value curve. The curve for passenger cars is also set in such a way that, compared to today, emissions from stronger cars will have to be diminished by more than those from lighter cars.

The precise formula for the limit value curve is:

Permitted specific emissions of CO2 = one hundred thirty + a × (M – M0)

What if a manufacturer does not meet its target?

If a manufacturer’s average emission levels are above the target set by the limit value curve it will have to pay an excess emissions premium. The more a manufacturer goes above the target, the higher the premium. It will be calculated on the basis of the number of grams per kilometre (g/km) that an average vehicle registered by the manufacturer is above the target, multiplied by the number of cars registered by the manufacturer. A premium of €5 per car registered will apply to the very first g/km above the target, €15 for the 2nd g/km, €25 for the third g/km, and €95 for each further g/km. From two thousand nineteen every g/km of exceedence will cost €95.

How does this legislation differ from legislation on light commercial vehicles (vans)?

The vans legislation is closely modelled on the legislation for cars. However, as the car market differs from the van market, there are some differences inbetween the two regulations.

The limit value curve is different in its value and its slope because cars are lighter and emit less CO2 than vans. Therefore, the limit value curve is flatter for cars, meaning that more reductions are required from larger cars. This is not the case for vans, because there is little risk of an uncontrolled increase in the size of vans.

The phase-in period for vans also starts later than for cars because the light commercial vehicles regulation was adopted later. The rules on derogations for small-volume manufacturers are also different.

How are the manufacturers placed in relation to their targets?

The chart below shows the actual position of the various car manufacturers in terms of the average CO2 emissions of the fresh cars they manufactured in two thousand six (the year on which the Regulation’s influence assessment was based).

The up-to-date information on average CO2 emissions of different manufacturers is available at the European Environment Agency’s website.

How will manufacturers’ progress be monitored?

The relevant national authorities in each Member State will report annual registration figures for fresh cars to the European Commission, which will collate the data. Manufacturers will be invited to check that the data is correct. On that basis the Commission will publish, by thirty one October each year, a list showcasing the spectacle of each manufacturer in terms of its average emissions and compliance with the annual emissions target. This will permit manufacturers’ progress to be tracked. The data can be found at the European Environment Agency’s website.

How will the regulation promote alternative technologies?

Super-credits

Manufacturers which produce cars with utterly low emissions (below 50g/km) will be given extra incentives in the very first few years. When calculating the average emissions of each manufacturer’s fleet, each low-emitting car will be counted as Three.Five vehicles in two thousand twelve and 2013, reducing to Two.Five in 2014, 1.Five vehicles in two thousand fifteen and one vehicle from 2016. This will lower the manufacturer’s average emissions as calculated by the Commission, making it lighter to meet the target.

Eco-innovations

Because the test procedure used for EU vehicle type approval is outdated, certain innovative technologies cannot demonstrate their CO2-reducing effects under the type approval test. As an interim procedure until the test procedure is revised, manufacturers which fit fresh cars with approved “eco-innovations” that reduce emissions will be able to count up to seven g/km worth of emission savings towards the one hundred thirty g/km target. The savings must be independently verified. See also: eco-innovations.

Alternative fuel vehicles

Vehicles capable of running on E85 fuel (a combination of petrol with 85% ethanol) will be considered, until the end of 2015, as having CO2 emissions 5% lower than the level reported by the Member States provided that 30% of the packing stations in the Member State where the vehicle is registered suggest this type of fuel. The fuel must conform with the sustainability criteria set by other legislation.

How will manufacturers obey? What about puny manufacturers?

Manufacturers may form a pool to meet the specific emissions targets jointly. When forming a pool, manufacturers must respect the rules of competition law: the information they exchange should be limited to average specific emissions of CO2, their specific emissions targets, and their total number of vehicles registered.

In addition, manufacturers which sell fewer than Ten,000 cars per year and which cannot or do not wish to join a pool can instead apply to the Commission for an individual target. Manufacturers selling inbetween Ten,000 and 300,000 cars per year can apply for a immobile target of a 25% reduction from their two thousand seven average emissions.

What about the influence on car buyers?

Cars are expected to become more fuel-efficient as a result of fresh investments and technologies. This will lead to fuel cost savings for users.

Will cars become more expensive?

It is not certain that the cost of meeting the fresh targets for cars will be passed on by manufacturers to buyers. However, even if the purchase price of vehicles rises slightly, this will be more than compensated for by fuel savings over the vehicle’s lifetime.

Will older vehicles have to be taken off the market?

No, the emissions targets apply only to fresh cars. Cars registered before two thousand twelve will not be affected. The lower fuel consumption of fresh cars may however provide a powerful incentive for substituting older cars by newer ones.

Is this part of a broader strategy?

Yes. The Commission has a comprehensive strategy, adopted in 2007, which sets the objective of limiting average CO2 emissions from fresh vehicles to one hundred twenty g/km. This is to be achieved through setting emissions spectacle standards for cars and vans and through extra measures that can bring a further reduction of ten grams CO2 per km.

Furthermore, to promote the purchase of fuel-efficient cars, an EU-wide system of consumer information on the CO2 emissions of all fresh cars is in operation.

Member States are also encouraged to promote fuel-efficient cars through their vehicle taxation policies.

Besides the regulation limiting CO2 emissions from fresh passenger cars, which was adopted in April 2009, the measures being taken to implement the strategy are:

• EU legislation to reduce CO2 emissions from fresh light commercial vehicles (adopted in May 2011)
• Improvements to car components with the highest influence on fuel consumption, such as:

• standards on rolling resistance of tyres,
• standards on the efficiency of mobile air conditioning,
• on-board indicators incentivising more efficient driving,
• gradual reduction in the carbon content of road fuels, notably through enhanced use of sustainably produced biofuels.

For more details on the implementation of the Strategy, see the progress report adopted in November 2010.

What is the next step?

The Regulation on cars is directly applicable in the Member States and does not need to be transposed into national law through national legal instruments.

The Regulation is presently being reviewed with a view to implementing the two thousand twenty target of ninety five g/km.

Questions and answers on the proposed Regulation defining the modalities for reaching the two thousand twenty target for CO2 emissions from fresh cars (July 2012)

How much will the two thousand twenty mandatory target save consumers in lower fuel bills?

The two thousand twenty target for cars of ninety five g CO2/km implies reductions in annual fuel consumption to private users and business owners of 27% compared with the two thousand fifteen mandatory target of 130g. For an average car, it is estimated the consumer will save some €340 in the very first year, and a total of €2904-3836 (depending on the price of fuel) over the car’s lifetime (13 years), as compared with the two thousand fifteen target. The higher the oil price, the greater the overall savings will be.

For both cars and vans, the ‘payback period’ – the time it takes for cumulative fuel cost savings to outweigh the extra cost of buying a more fuel-efficient vehicle – is below five years. Net cost savings over a vehicle’s lifetime are estimated at around €2000 for cars and €2500 for vans.

Will the two thousand twenty target increase the price of cars?

It may do, but this depends on how far producers pass on extra manufacturing costs through higher vehicle prices. The average extra manufacturing cost is estimated at around €1100 per car in 2020. Even if the total extra cost is passed on through higher prices, the Commission’s influence assessment shows that this extra cost to purchasers will be outweighed several times over by fuel cost savings over the lifetime of the vehicle. Over the past decade fresh car prices have decreased on average by about 1% annually while fuel consumption and CO2 emissions have also fallen every year. The European Automobile Manufacturers’ Association (ACEA) has stated that this trend is not likely to switch.

Will the tighter emission targets be bad for the economy?

No, on the contrary. The proposals are expected to stimulate research and innovation in the automotive sector, promoting green growth and jobs and improving the international competitiveness of the EU industry. The influence assessment shows that the regulations would shift spending from fuel, which has a low influence on employment, to vehicle technology and other goods.

Compared with the 2015/2017 targets for cars and vans, it is estimated that consumers will save €27bn per year in fuel costs in 2025, rising to €36bn in 2030. The two thousand twenty targets could increase EU GDP by €12bn annually and spending on employment by some €9bn a year.

The proposals would in total save almost one hundred sixty million tonnes of oil, worth about €70bn at today’s prices, in the period to 2030. They would also prevent the emission of around four hundred twenty million tonnes of CO2, over the same period, resulting in net cost savings to society of €100-200 for every tonne of CO2 avoided.

Will older vehicles have to be taken off the road?

No, the emission thresholds will apply only to fresh vehicles. Those sold before two thousand twenty will not be affected and will not have to be taken off the road. But the lower fuel costs of the fresh vehicles will provide a powerful incentive for substituting old cars and vans.

How does the two thousand twenty target compare with current emission levels?

The two thousand twenty mandatory target for cars of 95g CO2/km is 27% lower than the two thousand fifteen target of one hundred thirty g/km and 30% below last year’s average level of 135.7g/km.

How have the two thousand twenty targets been set?

The two thousand twenty targets were established during the political process involving the European Parliament and Council that led to the adoption of the existing Regulations. The Commission has verified that the two thousand twenty targets are achievable at reasonable cost by carrying out a thorough analysis of the available technologies and of their costs and benefits.

Are the two thousand twenty targets technically and economically feasible?

Yes, the Commission’s assessment of the technologies presently available shows that these are available to permit manufacturers to reach the targets at reasonable cost. The technological potential remains for further reductions beyond 2020, particularly in the case of vans.

Has the Commission consulted stakeholders on its proposal?

Yes, an on-line public consultation on policies to reduce greenhouse gas emissions from road vehicles was held from September to December 2011. The results are available here.

In addition, a stakeholder meeting was held in December two thousand eleven where the results of the car and van analysis were introduced (see here for summary of the meeting), and the CARS21 High Level Group also discussed the targets.

Are the two thousand twenty proposals in line with the recommendations of CARS21?

Yes, the key recommendations of the CARS21 High Level Group regarding the two thousand twenty CO2 targets were that they should be implemented without switch. The Commission’s proposals do that.

Are the proposals part of a broader strategy?

Yes. The Commission has a comprehensive strategy, adopted in 2007, to reduce CO2 emissions from fresh cars and vans. A broad range of measures has been implemented. For details see the Commission’s progress report. Following adoption of the latest Transport White Paper, the Commission is now pursuing a comprehensive strategy to reduce GHG emissions from transport by 60% compared to one thousand nine hundred ninety levels by 2050. CO2 standards for vehicles form a key part of this overall strategy.

Have the two thousand twenty targets for cars and vans been set in the same way?

Yes, the underlying assessment is identical. It looks at the technologies available and their costs. The most adequate way of distributing the effort is then assessed. While the assessment methodology is the same, the results are slightly different because of the different characteristics of the markets for cars and vans.

How will petite manufacturers obey?

As in the existing regulations, manufacturers may form a pool to meet the mandatory emission targets jointly. When forming a pool, manufacturers must respect the rules of competition law; the information they exchange should be limited to average specific emissions of CO2, their specific emissions targets, and their total number of vehicles registered.

In addition, smaller manufacturers benefit from provisions enabling them to have less requiring targets. The very smallest manufacturers registering less than five hundred vehicles per year would be exempt from meeting the targets.

Why produce the proposals now?

The existing regulations state that the Commission should bring forward proposals for implementing the two thousand twenty targets by the end of this year. The Commission is doing so several months before the deadline so that the modalities can be agreed as early as possible in order to increase certainty for manufacturers.

Why make two separate proposals? Why not merge the Regulations?

There are two existing regulations with slightly different requirements so it makes sense to have a separate amending measure for each one. The option of merging the regulations was assessed in the influence assessment, but because of the differences inbetween the characteristics of the car and van markets and van testing procedures it was not possible to merge the requirements into one structure.

Will the proposals promote electrical, hybrid and other alternative propulsion systems?

Yes, the proposed Regulations not only create an incentive to improve internal combustion engines using petrol and diesel but will also spur electrical, plug-in hybrid, fuel cell, natural gas, and LPG (liquefied petroleum gas)-fuelled vehicles. Manufacturers will be free to reduce emissions in the most cost-effective manner. This is in line with the Commission’s standard treatment of being technology-neutral.

Isn’t CO2 being over-emphasised compared with other pollutants?

Other pollutants in vehicle emissions are regulated through EU legislation governing air quality and these are also being progressively diminished. The latest emission standards for these pollutants, known as Euro 6, come into force from 2014. Many technologies can reduce emissions of both CO2 and the traditional pollutants which affect air quality.

The European Parliament has asked for two thousand twenty five CO2 targets for cars and vans. When will these be proposed?

The Commission has said it intends to issue a communication around the end of two thousand twelve in order to carry out a consultation on the form and stringency of post-2020 CO2 targets for light duty vehicles. It would be premature to propose the targets before that consultation has taken place.

Isn’t the Commission’s treatment flawed since real world emissions are not the same as test cycle results?

While it is clear that the emissions test cycle gives very different results from real world driving, there is no evidence that test cycle results do not correlate to real world emissions. A vehicle with lower emissions in the test cycle will also have lower emissions under real conditions.

The Commission is nevertheless taking part in international efforts to develop a fresh global test procedure for light duty vehicles and it is hoped that this will result in CO2 values that are somewhat more realistic than the current test procedures.

Why has the Commission based its proposal on a vehicle’s mass rather than other possible parameters?

The existing cars Regulation is based on a vehicle’s mass and in drawing up its proposal for the two thousand twenty target the Commission assessed a broad range of other possible bases for the future Regulation. All of these parameters except using the area of the vehicle (known as its ‘footprint’) were found to be undesirable. The possible use of footprint instead of mass was analysed in detail. It does suggest some benefits, including slightly lower costs. However, it was considered that providing certainty for manufacturers ruled out a switch of the basis for the regulation for 2020.

Will the proposals put certain car manufacturers at a disadvantage?

The influence assessment addressed the questions of competitive neutrality and social equity. These were assessed based on the relative retail price increase for different manufacturers and car segments. The Commission believes that its proposal is fair to all cars manufacturers taking into account the total range of factors to be considered.

Why include super credits?

The influence assessment says they increase emissions.

It is true that the influence assessment shows super credits can lead to enlargened CO2 emissions if significant use is made of them. However, super credits can also be seen as providing a strong incentive for manufacturers to develop and market technologies that will need to be deployed more extensively in the future. They can therefore be considered as a sort of technological stimulus.

For this reason it is suitable to permit for super-credits for a period of four years while limiting the number of vehicles which can benefit from them to twenty 000 cars per manufacturer over the duration of the scheme.

Why does the Commission not propose phasing in the two thousand twenty limit over a number of years?

Phasing in the fresh limit prior to two thousand twenty would be more requesting on manufacturers and could make it more difficult for them to obey. On the other mitt, phasing in the target embarking two thousand twenty onwards would weaken the Regulation and achieve lower CO2 savings than the Council and European Parliament foresaw when requesting the 95g CO2/km target. This would not be helpful in view of the EU’s target of reducing overall greenhouse gas emissions by 20% compared to one thousand nine hundred ninety by 2020. It would also be contrary to the recommendation of the CARS21 High Level Group that the 95g/km target should be implemented in 2020.

Will the limit value curve for two thousand twenty have a different slope compared to the two thousand fifteen target?

The limit value curve serves to calculate the specific emission targets for an individual car manufacturer’s fleet average. The curve describes the relationship inbetween the CO2 emissions target and the mass of the vehicle (voiced in kgs). The curve implies that stronger cars are permitted higher emissions than lighter cars, while ensuring that the overall fleet average target of ninety five g in two thousand twenty is met.

For two thousand twenty the slope of the curve would remain at 60%, based on two thousand six fleet data, the same as in the legislation for 2015. The line proposed by the Commission would require the same level of reduction effort (27%) from all vehicle types as compared to the two thousand fifteen boundaries. This 27% reduction represents the difference inbetween the two thousand fifteen target of 130g and the two thousand twenty target of 95g. As a result, the relative effort for each manufacturer is not altered.

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