MEPs and Council Presidency reach deal on CO2 emissions from cars

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Following a series of meetings between MEPs and the French Presidency of the Council, the two sides have informally agreed details of future targets on CO2 emissions from cars. The compromise reached on Monday evening still needs to be endorsed by the full Council and put to a first reading vote at Parliament’s December plenary session in Strasbourg.

The informal compromise reached last night concerns a draft regulation which sets emission performance standards for new passenger cars (the “M1″ category) registered in the EU. These account for 12% of overall EU emissions of carbon dioxide (CO2), the main greenhouse gas, according to European Commission’s figures. The new regulation is part of the EU’s effort to reduce CO2 emissions by 20% by 2020.

The compromise backs the Commission’s proposed target of an average of 120g of CO2/km for the whole car industry by 2012, compared to the current levels of 160g/km. A target of 130g/km is to be reached by improvements in vehicle motor technology.  A further 10g/km reduction, to reach the 120g/km target, should be obtained by using other technical improvements such as better tyres or the use of biofuels.

The key elements of the compromise are as follows:

* long term target:  the compromise introduces a long term target for 2020 for the new car fleet of average emissions of 95 g CO2/km;
* phase in: the compromise says that manufacturers will be given interim targets of ensuring that average CO2 emissions of 65% of their fleets in January 2012, 75% in January 2013, 80 % in January 2014 and 100% from 2015, comply with the car manufacturer’s specific CO2 emissions target;
* excess emissions premiums: the compromise provides that manufacturers exceeding the carbon dioxide targets set by the regulation will have to pay the following fines (so called excess emissions premiums):

from 2012 until 2018:

# 5 Euro for the first gram of CO2
# 15 Euro for the second gram of CO2
# 25 Euro for the third gram of CO2
# 95 Euro from the fourth gram of CO2 onwards.

From 2019 manufacturers will have to pay 95 euro for each gram exceeding the target.

Parliaments rapporteur, Guido Sacconi (PES, IT) expressed his full satisfaction with the agreement reached last night: “The regulation on CO2 emissions from cars is one of the most important results the European Union is bringing to the conference in Poznan next week - one reason more to reach an agreement in December on the whole climate package”.

If it is to be adopted, the informal compromise will now have to need to get the backing of Parliament’s political groups, as well as representatives of the full Council (in COREPER), before being tabled to a first reading plenary vote planned at the December II session.