Country:European Union
Policy status:In Force
Date Effective:2009
Policy Type:Regulatory Instruments>Codes and standards
Policy Target:Transport>Scope>Corporate fleet average, Transport>Vehicle type>Passenger vehicles
Agency:European Commission Directorate-General for Energy and Transport
Penalty:Financial penalties for each gram of CO2 above the target
Description:On 6 April 2009 the EU Council of Ministers adopted the final texts of the energy and climate change package negotiated in December 2008. The package aims to meet the EUs goal of reducing greenhouse gas (GHG) emission levels 20% from 1990 levels by 2020. It comprises six legislative texts, covering: a revision of the EU emissions trading scheme (ETS); emissions reduction targets for sectors outside the ETS; a framework for carbon capture and storage (CCS); fuel quality standards; CO2 emission limits for new passenger cars; and the promotion of renewable energy sources. The Council adopted a regulation setting the first legally-binding standards for CO2 emissions from new passenger cars, to apply as of 2012, giving legal effect to the EUs goal of reducing average emissions from new cars to 120gr CO2 / km. This is to be achieved in two ways: A reduction to 130gr CO2 / km through engine technology plus an additional cut of 10gr CO2 / km through more efficient vehicle features, for instance air-conditioning systems or tyres. The new regulation makes these objectives binding for the average fleet of a given car manufacturer in successive stages: In 2012, 65 % of their car fleet must meet the target, in 2013 75 % and in 2014 80 %. From 2015, the whole fleet needs to comply with the CO2 emissions objective. An objective of 95gr CO2 / km for 2020 is also put forward in the directive, with the modalities for reaching this objective to be reviewed by the Commission by 2013. Penalties will be imposed on non-compliant car manufacturers, depending on how far their fleet exceeds the targets and on the number of their new passenger cars. From 2012 until 2018, EUR 5 per newly registered car must be paid for the first gram above the objective. For the second gram above the objective EUR 15 are due, rising to EUR 25 for the third gram. For emissions of more than 3 grams over the limit, EUR 95 is charged per newly registered vehicle. From 2019, the penalty will be EUR 95 per new car for every gram above the target. Manufacturers can improve their fleet emissions performance by including eco-innovations, i.e. new technology that is not measured through the standard EU CO2 emissions test. The total contribution of those technologies to reducing the specific emissions target of a manufacturer may be up to 7 g CO2/km. Manufacturers can also produce ultra-low emissions cars, which emit less than 50gr CO2 / km. Ultra-low emission cars will be counted as 3.5 cars in 2012 and 2013, 2.5 cars in 2014, 1.5 in 2015 and 1 car in 2016. Niche manufacturers, those producing fewer than 10 000 new registered passenger cars per calendar year, can be excluded from the regulation for up to 5 years. Those producing up to 300 000 new cars can also be exempt under certain conditions. Countries are required to start monitoring and reporting specific CO2 emissions data starting on 1 January 2010, and yearly after that. The directive enters into force 3 days after its publication in the Official Journal of the EU.

Last modified: Tue, 10 Jul 2012 16:51:36 CEST