# EUR-Lex - 52012PC0393 - EN

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# 52012PC0393

**Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EC) No 443/2009 to define the modalities for reaching the 2020 target to reduce CO2 emissions from new passenger cars /* COM/2012/0393 final - 2012/0190 (COD) */**

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EXPLANATORY
MEMORANDUM

1.           CONTEXT
OF THE PROPOSAL

·
General context

The EU has a stated objective of limiting
global climate change to a temperature increase of 2oC above pre-industrial
levels. To achieve this, global emissions need to peak by 2020 and be reduced
by at least 50% globally by 2050 compared to 1990. The European Council
reconfirmed the EU target of an 80-95% reduction by 2050 compared to 1990 in
the context of the necessary reductions by developed countries as a group.

Current policies would only lead to about a
40% GHG ("GHG") emission reduction by 2050. The Commission 'Roadmap
for moving to a competitive low carbon economy in 2050'[1] sets out
how to meet the 2050 target of reducing domestic emissions by 80% in the most
cost-effective way. The Roadmap shows that every sector of the economy must
contribute and, depending on the scenario, compared to 1990 transport emissions
need to be between +20 and -9% by 2030 and decrease by 54% to 67% by 2050[2].

While emissions from other sectors are
generally falling road transport is one of the few sectors where emissions have
risen rapidly. Between 1990 and 2008 emissions from road transport increased by
26%. In 2008 around 70% of transport CO2 emissions came from road
transport[3].
As a result, it is the second biggest source of GHG emissions in the EU, and
contributes about one-fifth of the EU's total emissions of CO2.

In March 2011 the Commission adopted the
'Roadmap to a Single European Transport Area – Towards a competitive and
resource efficient transport system'. It sets out a transport strategy
within a frame of achieving a 60% reduction in transport GHG emissions by 2050.

·
The Regulation

Regulation (EC)
443/2009 sets the CO2 reduction framework for the new car fleet to
2020. The Regulation has a two-step
operation. In the first period to 2015 the modalities of compliance with the
target have been established. For the second period to 2020 the target cannot
become effective without implementing the necessary modalities, which are to be
determined in a review. This target was established in the co-decision process
and is not reconsidered in the review.

Failure to determine or
implement the modalities would have a detrimental effect on vehicle
manufacturers and parts suppliers who need certainty with regard to the
technology and vehicles that will be needed to meet the target.

Modalities are aspects
of the implementation which impact on how the emission target is achieved. Key
modalities in the current Regulation include the limit value curve which is defined
by the utility parameter and the function describing the relationship between
the utility parameter and CO2 emissions (setting the shape and
slope). Other modalities include the excess emissions premium scheme,
eco-innovations, derogations, pooling, the phasing-in of the targets and
granting of super-credits for a limited period of time.

2.           INTERESTED
PARTIES' CONSULTATION AND IMPACT ASSESSMENT

Consultations with interested parties

·
External expertise

An external study: 'Support
for the revision of Regulation (EC) 443/2009 on CO2 emissions from
cars'[4]
has provided the main analysis underlying this proposal. It includes an
evaluation of different modalities and assesses their costs. The PRIMES-TREMOVE
model has been used to assess the overall impacts of the 2020 targets.

·
Consultation of
interested parties

Stakeholders have been
formally consulted through an online questionnaire and through a stakeholder
meeting. Input from stakeholders has been taken into account in assessing the
different possible options to regulate CO2 emissions from cars.

–
Public consultation

An on-line public
consultation was carried out in autumn 2011. Overall the responses give a
generally clear message that regulating vehicle emissions is important, should
be carried out in line with long term GHG goals, be based on new vehicle
average emissions and be technologically neutral. Opinion was highly divided on
whether the current legislation is working well. The main reason appears to be
that many think that the current legislation is not sufficiently robust. There
is strong support for setting targets beyond 2020, regardless of other measures
that may be implemented. The results of the public consultation have been
summarised and published[5].

–
Stakeholder meeting

A stakeholder meeting
was held on 6 December 2011. The completed study was presented and
presentations from the meeting along with a summary of the discussion have been
published[6].
Participants did not express any substantial disagreement with the analysis
presented; NGOs argued that since costs are lower than had previously been
thought, the targets should be tightened.

Impact assessment

A joint impact
assessment supporting the current proposal and an equivalent proposal to amend
Regulation (EU) No 510/2011 has been prepared. A broad approach has been taken
to identifying policy options which covers issues raised in the legislation,
those arising with implementation and those assessed in the studies analysing
possible approaches to improve the legislation's effectiveness. The following
aspects were analysed:

a)
'Do nothing' option;

b) Modalities of
meeting the car target;

c) Simplification and
reduction of administrative burden;

d) Adaptation to the
new test cycle;

e) Form and stringency
of legislation beyond 2020.

Based on an analysis of
their economic, environmental and social impacts the impact assessment reached
the following conclusions:

·
The utility parameter should
continue to be mass for cars; the limit value curve should continue to be
linear.

·
The evidence indicates that
the slope of the curve should be set at a relatively low level to reduce market
distortions.

·
The Excess Emissions Premium
should be maintained at €95 per g/km per vehicle.

·
The Regulation should be
updated to bring it into line with the Lisbon Treaty.

·
The derogation procedure
should be simplified by introduction of a 'de-minimis' exclusion for the
smallest manufacturers from the obligation of having a CO2 target.
In addition, more flexibility regarding the date of granting small volume
derogations should be allowed.

3.           LEGAL
ELEMENTS OF THE PROPOSAL

The EU has already
acted in this area when it adopted Regulation (EC) 443/2009 based upon the
environment chapter of the Treaty. The single market also provides grounds to
act at EU level rather than at Member State level so as to ensure common
requirements across the EU and thus minimise costs for manufacturers.

The adoption of the
proposal will not lead to the repeal of existing legislation.

Summary of the proposed action

The proposal amends the Regulation to implement
the modalities of meeting the 95 gCO2/km target for new passenger
cars to be reached in 2020. The main modalities implemented are as follows:

–
The utility parameter continues to be the vehicle's
mass in running order.

–
The limit value curve remains linear with a
slope of 60% compared to the baseline fleet which is kept as the 2006 fleet in
line with the 2015 limit value curve.

–
Super-credits for cars emitting below 35 gCO2/km
are introduced between 2020 and 2023 with a multiplier of 1.3 and limited to a
cumulative figure of 20 000 vehicles per manufacturers over the duration of the
scheme.

–
The "niche" derogation target is
updated for 2020.

–
Manufacturers responsible for less than 500
registrations of new passenger cars per year are excluded from the obligation of
having a CO2 target.

–
More flexibility is allowed in the timing of
decisions granting small volume derogations.

–
Eco-innovations are retained when a revised test
procedure is implemented.

–
The Excess Emissions Premium is maintained at
€95 per g/km per vehicle.

–
The Committee procedure provisions are updated
to be compatible with the Lisbon Treaty.

As industry benefits from indications of
the regulatory regime that would apply beyond 2020, the proposal includes a
further review to take place by, at the latest, 31 December 2014.

4.           BUDGETARY
IMPLICATION

The proposal does not
require additional financial resources.

5.           OPTIONAL
ELEMENTS

·
Review/revision/sunset
clause

The proposal includes a
review clause.

·
European Economic Area

The proposed act
concerns an EEA matter and should therefore extend to the European Economic
Area.

2012/0190 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

amending Regulation (EC) No 443/2009 to
define the modalities for reaching the 2020 target to reduce CO2 emissions
from new passenger cars

THE EUROPEAN
PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the
Treaty on the Functioning of the European Union, and in particular Article
192(1) thereof,

Having regard to the
proposal from the European Commission,

After transmission of
the draft legislative act to the national Parliaments,

Having regard to the
opinion of the European Economic and Social Committee[7],

Having regard to the
opinion of the Committee of the Regions [8],

Acting in accordance
with the ordinary legislative procedure,

Whereas:

(1)       Article 13(5) of
Regulation (EC) No 443/2009 of the European Parliament and of the Council of 23
April 2009 setting emission performance standards for new passenger cars as
part of the Community's integrated approach to reduce CO2 emissions
from light-duty vehicles [9]
requires the Commission to review the modalities for reaching the 95g CO2/km target by 2020 in a
cost-effective manner in particular the formula in Annex I and the derogations
in Article 11. The proposal to amend the Regulation
is requested to be as neutral as possible from the point of view of
competition, socially equitable and sustainable.

(2)       It is appropriate to
clarify that for the purpose of verifying compliance with the target of 95gCO2/km,
CO2 emissions should continue to be measured in accordance with
Regulation (EC) No 715/2007 of the European Parliament and of the Council of 20
June 2007 on type approval of motor vehicles with respect to emissions from
light passenger and commercial vehicles (Euro 5 and Euro 6) and on access to
vehicle repair and maintenance information[10]
and its implementing measures and innovative technologies.

(3)       In recognition of the high
research and development and unit production costs of early generations of
ultra-low carbon vehicles it is appropriate to accelerate and facilitate, on an
interim basis and to a limited extent, the process of their introduction into
the Union market at their initial stages of commercialization.

(4)       In
recognition of the disproportionate impacts on the smallest manufacturers
resulting from compliance with specific emissions targets defined on the basis
of the utility of the vehicle, high administrative burden of the derogation
procedure and only marginal benefit in terms of avoided CO2 from the
vehicles sold by these manufacturers, producers responsible annually for less
than 500 new passenger cars are excluded from the scope of the specific
emissions target and the excess emissions premium.

(5)       The procedure to grant
derogations to small-volume manufacturers shall be simplified to allow for more
flexibility in terms of the timing of application for a derogation by the
manufacturers and the decision to grant it by the Commission.

(6)       The procedure to grant
derogations to niche manufacturers should be continued for 2020. However, in
order to ensure that the reduction effort required by niche manufacturers is
consistent with that of large volume manufacturers, a target 45 % lower than
the average specific emissions of niche manufacturers in 2007 should therefore apply
from 2020.

(7)       To enable the automotive
industry to carry out long-term investments and innovation it is desirable to
provide indications of how this Regulation should be amended for the period
beyond 2020. These indications should be based on an assessment of the
necessary rate of reduction in line with the Union's long term climate goals
and the implications for the development of cost effective CO2
reducing technology for cars. It is therefore desirable for these aspects to be
reviewed, the Commission to make a report and if appropriate proposals made for
targets beyond 2020.

(8)       The Regulation requires
the Commission to carry out an impact assessment in order to review the test
procedures to reflect adequately the real CO2 emissions behaviour of
cars. This work is proceeding through the development of a World Light Duty
Test procedure in the framework of the United Nations Economic Commission for
Europe but is not yet complete. In view of this, Annex I to Regulation (EC) No
443/2009 establishes emission limits for 2020 as measured according to
Regulation (EC) No 715/2007 and Annex XII to Regulation (EC) No 692/2008. When
the test procedures are amended, the limits set in Annex I should be adjusted
to ensure comparable stringency for manufacturers and classes of vehicles.

(9)       It
is appropriate to adjust the wording of Article 3(2) of Regulation (EC) No
443/2009 to ensure that the concept of connected undertakings is in line with
the provisions of Council Regulation (EC) No 139/2004 of 20 January 2004 on the
control of concentrations[11]
between undertakings as well as with Article 3(2) of Regulation (EU) No
510/2011 of the European Parliament and of the Council of 11 May 2011 setting
emission performance standards for new light commercial vehicles as part of the
Union's integrated approach to reduce CO2 emissions from light-duty
vehicles[12].

(10)     Regulation (EC) No 443/2009
confers powers on the Commission to implement some of its provisions in accordance with the procedures laid down in Council Decision
1999/468/EC of 28 June 1999[13]. As a
consequence of the entry into force of the Treaty of Lisbon, those powers need
to be aligned to Articles 290 and 291 of the Treaty on the Functioning of the
European Union.

(11)     In
order to ensure uniform conditions for the implementation of Regulation (EC)
No 443/2009, implementing powers should be conferred on the Commission.
Those powers should be
exercised in accordance with Regulation (EU) No 182/2011 of the
European Parliament and of the Council of 16 February 2011 laying down the
rules and general principles concerning mechanisms for control by the Member
States of the Commission's exercise of implementing powers[14].

(12)     The
power to adopt acts in accordance with Article 290 of the Treaty on the
Functioning of the European Union should be delegated to the Commission in
order to supplement the rules on derogations from the specific emissions
targets, to amend data requirements for the purpose of monitoring of CO2
emissions and to adjust the formulae for calculating the specific CO2
emissions in Annex I to changes in the vehicle mass value and the regulatory test procedure for the measurement of specific CO2
emissions referred to in Regulation (EC) No 715/2007.
It is of particular importance that the Commission carry out appropriate
consultations during its preparatory work, including at expert level. The
Commission, when preparing and drawing up delegated acts, should ensure a
simultaneous, timely and appropriate transmission of relevant documents to the
European Parliament and to the Council.

(13)     It is appropriate to retain
the approach towards setting the target based on a linear relationship between
the utility of the car and its target CO2 emissions as expressed by
the formulae in Annex I, since this allows maintaining the diversity of the passenger
car market and the ability of manufacturers to address different consumer
needs, and thus avoiding any unjustified distortion of the market.

(14)     The Commission has assessed
the availability of footprint data and its use as the utility parameter in the
formulae in Annex I. This data is available and its potential use has been
assessed in the impact assessment, on the basis of that assessment it is
concluded that the utility parameter used in the formula for 2020 should be
mass. Nevertheless, the lower cost and merits of a change to footprint as the utility
parameter should be considered in the future review.

(15)     Regulation (EC) No 443/2009
should therefore be amended accordingly,

HAVE ADOPTED THIS
REGULATION:

Article 1

Regulation (EC) No 443/2009 is amended
as follows:

(1)
In Article 1, the second paragraph is replaced
by the following:

"From 2020 onwards, this Regulation sets a
target of 95 g CO2/km as average emissions for the new car fleet as
measured in accordance with Regulation (EC) No 715/2007 and Annex XII to
Regulation (EC) No 692/2008 and its implementing measures, and innovative
technologies."

(2)
In Article 2, the following paragraph 4 is
added:

‘4.      Article 4, Article 8(4)(b) and (c),
Article 9 and Article 10(1)(a) and (c) shall not apply to a manufacturer which
is responsible together with all of its connected undertakings for less than 500
new passenger cars registered in the EU in the previous calendar year.’

(3)
In point (a) of Article 3(2) the first indent is
replaced by the following:

"- the power to exercise more than half
the voting rights; or"

(4)
Following Article 5 the following article shall
be inserted:

"Article 5a

Super-credits for 95 g CO2/km
target

1.       In calculating the average specific
emissions of CO2, each new passenger car with specific emissions of
CO2 of less than 35 g CO2/km shall be counted as 1.3
passenger cars in the period from 2020 to 2023 and as 1 passenger car from 2024
onwards.

2.       The maximum number of new passenger
cars to be taken into account in the application of the multipliers set out in
paragraph 1 for the period 2020 to 2023 shall not exceed a cumulative total of
20 000 new registrations of passenger cars per manufacturer."

(5)
In Article 8, paragraph 9 is replaced by the
following:

"9.      The Commission shall adopt
detailed rules on the procedures for monitoring and reporting of data under
this Article and on the application of Annex II by means of implementing acts.
Those implementing acts shall be adopted in accordance with the examination
procedure referred to in Article 14(2).

The Commission may adopt delegated acts in
accordance with Article 14a to amend Annex II as regards data requirements and
data parameters."

(6)
In Article 9, paragraph 3 is replaced by the
following:

"3.      The Commission shall adopt
detailed arrangements for the collection of excess emissions premiums under
paragraph 1 by means of implementing acts. Those implementing acts shall be
adopted in accordance with the examination procedure referred to in Article
14(2)."

(7)
Article 11 is amended as follows:

(a)      In paragraph 3 the last sentence is
deleted.

(b)     In paragraph 4, second subparagraph,
point (b) is replaced by the following:

"(b)    if the application is in relation
to point (a) and (b) of Annex I, point 1, a target which is a 25 % reduction on
the average specific emissions of CO2 in 2007 or, where a single
application is made in respect of a number of connected undertakings, a 25 %
reduction on the average of those undertakings' average specific emissions of
CO2 in 2007."

(c)     In paragraph 4, second subparagraph,
the following point (c) is added:

"(c)    if the application is in relation
to point (c) of Annex I, point 1, a target which is a 45 % reduction on the
average specific emissions of CO2 in 2007 or, where a single
application is made in respect of a number of connected undertakings, a 45 %
reduction on the average of those undertakings' average specific emissions of
CO2 in 2007."

(8)
(b)     Paragraph 8 is replaced by the
following:

"8.      The Commission shall adopt delegated
acts in accordance with Article 14a laying down rules to supplement paragraphs
1 to 7 of this Article, as regards the eligibility criteria for derogations,
the content of the applications, and the content and assessment of programmes
for the reduction of specific emissions of CO2."

(9)
In Article 12(2), the first sentence is replaced
by the following:

"The Commission shall adopt detailed
provisions for a procedure to approve the innovative technologies referred to
in paragraph 1 by way of implementing acts. Those implementing acts shall be
adopted in accordance with the examination procedure referred to in Article
14(2) of this Regulation."

(10)
Article 13 is amended as follows:

(a)     In paragraph 2, the third subparagraph
is replaced by the following:

"Those measures shall be adopted by means
of delegated acts in accordance with Article 14a."

(b)     The second subparagraph of paragraph 3
is deleted.

(c)     Paragraph 5 is replaced by the
following:

"5. By 31 December 2014, the Commission
shall review the specific emissions targets, modalities and other aspects of this
Regulation in order to establish the CO2 emission targets for new
passenger cars for the period beyond 2020."

(d)     Paragraph 7 is replaced by the
following:

"7.      The Commission shall be empowered
to adopt delegated acts in accordance with Article 14a to adapt the formulae in
Annex I in order to reflect any change in the regulatory test procedure for the
measurement of specific CO2 emissions referred to in Regulation (EC)
No 715/2007 and Regulation (EC) No 692/2008 while ensuring that reduction
requirements of comparable stringency for manufacturers and vehicles of
different utility are required under the old and new test procedures."

(11)
Article 14 is replaced by the following:

"Article
14
Committee procedure

1.       The Commission shall be assisted by
the Climate Change Committee established by Article 9 of Decision No
280/2004/EC of the European Parliament and of the Council. That committee shall
be a committee within the meaning of Regulation (EU) No 182/2011.

2.       Where reference is made to this
paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply."

(12)
The following Article 14a is inserted:

"Article
14a
Exercise of the delegation

1.       The power to adopt delegated acts is
conferred on the Commission subject to the conditions laid down in this
Article.

2.       The power to adapt delegated acts
referred to in the second subparagraph of Article 8(9), Article 11(8), the
third subparagraph of Article 13(2) and Article 13(7), shall be conferred on
the Commission for an indeterminate period from [the date of entry into force
of this Regulation].

3.       The delegation of power referred to in
the second subparagraph of Article 8(9), Article 11(8), the third subparagraph
of Article 13(2) and Article 13(7) may be revoked at any time by the European
Parliament or by the Council. A decision to revoke shall put an end to the
delegation of the power specified in that decision. It shall take effect the
day following the publication of the decision in the Official Journal of the European
Union or at a later date specified therein. It shall not affect the validity of
any delegated acts already in force.

4.       As soon as it adopts a delegated act,
the Commission shall notify it simultaneously to the European Parliament and to
the Council.

5.       A delegated act adopted pursuant to
the second subparagraph of Article 8(9), Article 11(8), the third subparagraph
of Article 13(2) and Article 13(7) shall enter into force only if no objection
has been expressed either by the European Parliament or by the Council within a
period of two months of notification of that act to the European
Parliament and the Council or if, before the expiry of that period, the
European Parliament and the Council have both informed the Commission that
they will not object. That period shall be extended by two months at the
initiative of the European Parliament or of the Council.

(13)
In point 1 of Annex I, the following point (c)
is added:

"(c)       From 2020:

Specific emissions of CO2 = 95 + a ×
(M – M0)

Where:

M = mass of the vehicle in kilograms (kg)

M0 = the value adopted pursuant to
Article 13(2)

a = 0,0333."

Article 2

This Regulation shall
enter into force on the third
day following that of its publication in the Official Journal of the
European Union.

This
Regulation shall be binding in its entirety and directly applicable in all
Member States.

Done at Brussels,

For the
European Parliament                       For the Council

The President                                                 The
President

[1]               COM/2011/0112 final

[2]               Excluding
international maritime emissions

[3]               EU
transport in figures 2011, European Commission

[4]               http://ec.europa.eu/clima/policies/transport/vehicles/cars/docs/study_car_2011_en.pdf

[5]               http://ec.europa.eu/clima/consultations/0012/index_en.htm

[6]               http://ec.europa.eu/clima/events/0048/index_en.htm

[7]               OJ C , , p. .

[8]               OJ C , , p. .

[9]               OJ L 140, 5.6.2009, p. 1.

[10]             OJ L 171, 29.6.2007, p.1.

[11]             OJ L 24, 29.1.2004, p. 1.

[12]             OJ L 145, 31.5.2011, p. 1.

[13]             OJ L 184, 17.7.1999, p. 23.

[14]             OJ L 55 of 28.2.2011, p. 13.