EU 2020 CO2 emission standards for cars and vans

On July 11, 2012, the European Commission put forward two regulatory proposals that would implement mandatory 2020 CO₂ emission targets for new passenger vehicles and light-commercial vehicles (vans). The proposals now need only be confirmed by the European Parliament and European Council to become law.

Our policy update is here [PDF]. Highlights:

The existing CO₂ regulation for passenger vehicles has already led to impressive results: the average CO₂ emission level of new vehicles dropped from about 160 g/km in 2006 to 136 g/km in 2011 as measured on the European driving cycle, a 15% reduction. The annual rate of reduction is about twice what it was before introduction of mandatory emission targets.

Some key elements of the proposals:

• A target value of 95 g/km of CO₂ for 2020 for the new passenger vehicle fleet, and 147 g/km of CO₂ for vans
• Vehicle weight as underlying utility parameter—that is, the heavier a manufacturer’s car fleet, the higher the CO₂ emission value allowed by the regulation. The factor used for passenger is 0.0333, meaning that for every 100 kg additional vehicle weight, 3.33 g/km more of CO₂ is allowed. The slope factor for LCVs is 0.0960.
• Super-credits for low-emission vehicles. Between 2020 and 2023 every car with specific CO₂ emissions of less than 35 g/km will be counted as 1.3 cars, up to a maximum of 20,000 new registrations per manufacturer.
• As for the 2015 regulation, manufacturers can apply for a maximum of 7 g/km of credits for the use of ‘innovative technologies’ (so-called eco-innovation) which are not covered by the test cycle.
• Excess emission premium for manufacturers failing to meet their emissions target: €95 for any g/km of excess emissions.
• A requirement that the Commission review the specific emission targets, modalities, and other aspects of the regulation by 31 December 2014, to establish the CO₂ emission targets for the period beyond 2020.

Expected effects of the proposed regulations, as determined by the Commission’s impact assessment, include:

• Fuel-cost savings per car of around €340 in the first year, and an estimated total of €2,904–€3,836 over the car’s lifetime, as compared with the 2015 target. For vans, fuel-cost savings are estimated at €400 in the first year and €3,363–€4,564 lifetime.
• €30 billion per year in total fuel-cost savings to consumers.
• An increase in EU GDP of €12 billion annually, and in annual spending on employment of €9 billion
• 25% reduction in fuel consumption, saving 160 million tons of oil at around €70 billion at today’s prices
• Avoided CO₂ emissions of around 420 million tons in the period to 2030
• Negative abatement cost for CO₂—that is, a net savings of between €80 and €295 per ton of CO₂ avoided

Contact: Peter Mock, peter@theicct.org

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