# EUR-Lex - 52012PC0394 - EN

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# 52012PC0394

**Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) No 510/2011 to define the modalities for reaching the 2020 target to reduce CO2 emissions from new light commercial vehicles /* COM/2012/0394 final - 2012/0191 (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 (EU) No 510/2011 sets the CO2
reduction framework for the new van fleet to 2020. The
Regulation has a two-step operation. In the first period to 2017 the modalities
of compliance with the targets 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. The Commission is requested
to confirm that the 2020 van target is feasible. This target was established in
the co-decision process and, apart from its confirmation, 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 targets are 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 CONSULTATIONS'
AND IMPACT ASSESSMENT

Consultations with the interested parties

·
External expertise

An external study[4] 'Support for the revision of
Regulation (EU) 510/2011 on CO2 emissions from light commercial
vehicles'[5]
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 target.

·
Consultation of interested parties

Stakeholders have been formally consulted
through an on-line 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 light-duty vehicles (LDVs).

–
Public consultation

An on-line public consultation was carried
out in autumn 2011. Overall the responses give a message that regulating LDV
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[6].

–
Stakeholder meeting

A stakeholder meeting was held on 6
December 2011. The preliminary conclusions of the study were presented and presentations
from the meeting along with a summary of the discussion have been published[7]. Participants did not express
any substantial disagreement with the analysis presented; NGOs argued that
since costs are lower than had previously been thought, and emissions are
substantially lower than anticipated, the targets should be tightened.

The impact assessment

A joint impact assessment supporting the
current proposal and an equivalent proposal to amend Regulation (EC) No
443/2009 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) Confirmation of feasibility of the 2020
target for vans;

c) Modalities of meeting the van targets;

d) Simplification
and reduction of administrative burden;

e) Adaptation to the new test cycle;

f) Form and
stringency of legislation beyond 2020.

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

·
The 2020 target of 147g/km for vans is confirmed
as feasible at a lower cost.

·
Utility parameter should continue to be mass; the
limit value curve should continue to be linear and the slope of the curve
should be set at 100%.

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

·
The derogation procedure should be simplified by
introduction of a 'de-minimis' exclusion for the smallest manufacturers from
the obligation of having the 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 (EU) 510/2011 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 confirms the feasibility of the
average target of 147 g CO2/km for new light commercial vehicles to
be reached in 2020. It proposes to define the modalities of reaching the target
as follows:

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

–
The limit value curve remains linear with a
slope of 100% compared to the baseline fleet.

–
Manufacturers responsible for less than 500 registrations
of new light commercial vehicles per year are excluded from the obligation to
meet their specific emissions 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.

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

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.

2012/0191 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

amending Regulation (EU) No 510/2011 to define
the modalities for reaching the 2020 target to reduce CO2 emissions from
new light commercial vehicles

(Text with EEA relevance)

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 ([8]),

Having regard to the opinion of the
Committee of the Regions ([9]),

Acting in accordance with the ordinary
legislative procedure,

Whereas:

(1)       Article 13(1) 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[10]
requests the Commission, subject to confirmation of its feasibility, to review
the modalities of achieving the 147g/km target by 2020, including the formulae
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 147 g CO2/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[11]
and its implementing measures and innovative technologies.

(3)       According to the technical
analysis made for the impact assessment, the technologies to meet the target of
147 g CO2/km are available and the required reductions may be
achieved at a lower cost than estimated in the previous analysis carried out
previous to the adoption of Regulation (EU) No 510/2011. In addition, the
distance between the current average specific emissions of CO2 from
new light commercial vehicles and the target has also decreased. Therefore, the
feasibility of the target of 147 g CO2/km to be reached by 2020 is
confirmed.

(4)       In recognition of the
disproportionate impacts on the smallest manufacturers resulting from the
compliance with the 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 CO2 reduction of the vehicles
sold by these manufacturers, producers responsible annually for less than 500 new
light commercial vehicles are excluded from the scope of the specific emissions
target and the excess emissions premium.

(5)       The procedure to grant
derogation 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)       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.

(7)       Article 13(3) requests the
Commission to publish a report on the availability of data on footprint and
payload and their use as utility parameters in the formulae in Annex I. Whereas
this data is available and its potential use has been assessed in the impact
assessment, it has been concluded that it is more cost-effective to retain mass
in running order as the utility parameter for the 2020 target for light
commercial vehicles.

(8)       It is appropriate to
retain the approach towards setting the target based on a linear relationship
between the utility of the light commercial vehicle and its target CO2
emissions as expressed by the formulae in Annex I, since this allows
maintaining the diversity of the light commercial vehicle market and the
ability of manufacturers to address different consumer needs, and thus avoiding
any unjustified distortion of competition. It is however appropriate to update
this approach to reflect the latest available data on registrations of new
light commercial vehicles.

(9)       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.

(10)     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.

(11)     Regulation (EU) No 510/2011
should therefore be amended accordingly,

HAVE ADOPTED THIS REGULATION:

Article 1

Regulation (EU) No 510/2011 is amended
as follows:

(1)
In Article 1, paragraph 2 is replaced by the
following:

‘2.      From 2020, this Regulation sets a
target of 147 g CO2/km for the average emissions of new light
commercial vehicles registered in the Union as measured in accordance with
Regulation (EC) No 715/2007 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 light commercial vehicles registered in the EU in the previous calendar
year.’

(3)
In Article 11, paragraph 3 the last sentence is
deleted.

(4)
Article 13 is amended as follows:

(a)
Paragraph 1 is replaced by the following:

‘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
light commercial vehicles for the period beyond 2020.’

(b)
Paragraph 6 is amended as follows:

–
the second subparagraph is deleted;

–
the third subparagraph is replaced by the
following:

‘In order to reflect any change in the
regulatory test procedure for the measurement of specific CO2
emissions, the Commission shall adapt the formulae set out in Annex I by means
of delegated acts in accordance with Article 15, and subject to the conditions
laid down in Articles 16 and 17 while ensuring that reduction requirements of
comparable stringency for manufacturers and vehicles of different utility are
required under the old and new test procedures.’

(5)
In point 1 of Annex I, the following point (c) is
added:

‘(c)    from 2020:

Indicative specific emissions of CO2
= 147 + a × (M – M0)

Where:

M = mass of the vehicle in kilograms (kg)

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

a = 0,096.’

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]               Under framework contract ENV.C.3/FRA/2009/0043 on
vehicle emissions

[5]               http://ec.europa.eu/clima/policies/transport/vehicles/vans/studies_en.htm

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

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

[8]               OJ C , , p. .

[9]               OJ C , , p. .

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

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