2ND EU presents scaled-down plan for car-CO2 cuts

dpa German Press Agency Published: Wednesday February 7, 2007

Brussels- The European Commission on Wednesday presented scaled-down plans for stricter limits on carbon-dioxide (CO2) emissions from new passenger cars sold in Europe, which Green lawmakers slammed as tailormade to the demands of German carmakers. The proposal, which still must be backed by legislation, foresees a legally binding emissions limit of 130 grams of CO2 per kilometre travelled.

This corresponds to fuel consumption of 4.5 litres per 100 kilometres for diesel cars and 5 litres per 100 kilometres for petrol cars, the commission said.

It proposed that a further 10 grams per kilometre should be cut through fuel-efficient tyres and other new technology and through more use of bio-fuels.

An original blueprint, which was shelved last week, set a mandatory emissions target of 120 grams of CO2 per kilometre by 2012.

Rejecting environmentalist's claims that the EU executive had bowed to industry pressure, EU industry commissioner Guenther Verheugen of Germany told reporters that the scheme was the "most ambitious" of its kind in the world.

Verheugen said that even though consumer kept buying gas-guzzlers, "that doesn't relieve car makers from their obligation to help fight climate change." The commission's blueprint was due to be unveiled two weeks ago, but was postponed at the last minute in order to heal a split on the issue within the 27-member European Union executive.

German car manufacturers had lobbied the commission intensively, warning of factory closures and job losses.

The automotive industry is a main pillar of the European economy, representing 3 per cent of European Gross Domestic Product (GDP) and 7 per cent of employment, or some 6 million people, in the bloc's manufacturing sector.

The commission's proposal will now be debated by the European Parliament and the governments of the 27 member states, which have the power to reject, amend or veto the bill.

Signalling tough negotiations ahead in the EU's law-making assembly, Green Euro MPs on Wednesday said that the commission's proposal confirmed that the demands of the German car industry had taken priority over tackling climate change.

"Parliament has now the chance to ensure that the German car industry does not act as a brake on EU efforts to combat climate change," Green lawmakers said in a statement.

German Chancellor Angela Merkel, whose country currently holds the rotating EU presidency, has already vowed to fight moves to impose a compulsory cap on vehicle CO2 emissions.

Carbon dioxide emissions are seen as the main cause for global warming. With an average emission level of 163 grams of CO2 per kilometre from new European cars sold in 2005, Europe's car industry looks almost certain of failing to fulfil its voluntary agreement to cut emissions to 140 grams per kilometre by 2008.

Japanese and Korean car manufacturers have agreed to do so a year later.

The EU rift comes only weeks after Merkel and Commission President Jose Manuel Barroso identified the fight against climate change as the bloc's biggest challenge.

Auto manufacturers have come under increased pressure from the commission in recent months to step up efforts to slash CO2 emissions as part of a wider EU drive to combat global warming.

Transport is the one sector of the European economy where CO2 emissions have been rising rapidly in recent years, accounting for currently one-fifth of the EU's total CO2 emissions. Passenger cars are responsible for some 12 per cent of these emissions.

© 2006 dpa German Press Agency