Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Council Directives 70/156/EEC and 80/1268/EEC as regards the measurement of carbon dioxide emissions and fuel consumption of N1 vehicles

(presented by the Commission)

EXPLANATORY MEMORANDUM

A. Objective of the proposal

The objective of the proposal is to amend Directive 80/1268/EEC, as last amended by Directive 1999/100/EC, in order to extend the scope of the Directive to N1 vehicles (light commercial vehicles). Currently, this Directive only applies to M1 vehicles (passenger cars). The proposal introduces harmonised mandatory requirements for the measurement of carbon dioxide and fuel consumption of N1 vehicles. It is therefore a first prerequisite to enable, monitor, and evaluate possible future fuel economy related measures for N1 vehicles in the EU.

B. Legal Basis

The measures are proposed on the basis of Article 95 of the EC Treaty. The measures form part of the European type-approval system and compliance will be mandatory for new approvals to be issued by national authorities. This legislative approach is fully supported by the operators in the market.

The text is relevant for the EEA agreement.

C. Background

1. Existing measures regarding the reduction of CO2 emissions in the transport sector

The Communication from the Commission to the Council and the European Parliament on EU policies and measures to reduce greenhouse gas emissions: towards a European Climate Change Programme (ECCP), proposes an implementation strategy to reduce the emission of greenhouse gases, including measures in the transport sector.

With regard to passenger cars, the Commission adopted a Communication in 1995 which proposed a strategy to address the issue of increasing total CO2 emissions from this category of vehicles. The Environment Council in its conclusions of 25 June 1996 endorsed this strategy. The overall strategy, aiming for a fleet average CO2 emission level from new passenger cars of 120 g/km by 2005 (2010 at the latest) has three main pillars: an agreement with industry, a fuel economy labelling scheme and fiscal measures. However these measures need to be underpinned by legislation to monitor CO2 emissions of new passenger cars.

With regard to the first pillar, in 1998, the European Automobile Manufacturers Association (ACEA) entered into a commitment to achieve fleet average CO2 emissions of 140 g/km by 2008. This was followed by equivalent commitments by JAMA and KAMA (respectively the Japanese and Korean Association of car manufacturers) and was supplemented by Decision 1753/2000/EC of the European Parliament and Council, of 22 June 2000, establishing a scheme to monitor the average specific emissions of CO2 from passenger cars. Moreover, Directive 1999/94/EC of the European Parliament and of the Council, of 13 December 1999, relating to the availability of consumer information on fuel economy and CO2 emissions in respect of the marketing of new passenger cars completed the work on the second pillar. All of these measures make use of the harmonised measurement procedure, as laid down in Directive 80/1268/EEC, as a basic instrument in order:

1. To set clear overall targets of industry's commitments;

2. To provide comparable CO2 emission and fuel consumption figures for all vehicle models; and

3. To enable a transparent monitoring and evaluation of achieved progress.

2. Light commercial vehicles and CO2 emissions

Light commercial vehicles (N1 vehicles) are defined as vehicles used for the carriage of goods and having a maximum mass not exceeding 3.5 tonnes. The N1 segment covers a wide variety of vehicle types, ranging from the smaller car-derived transportation vehicles, sport utility vehicles and multi-purpose vehicles, to pick-ups and larger vans, the vast majority being diesel fuelled. Each base model usually has a relatively large number of different versions that are a result of the combination of different configurations (height of the roof, double cabin, wheel base, pick-up version, ...). Data supplied by ACEA indicate that currently the 11 major manufacturers of N1 vehicles produce 94 base models, each of them having at least 10 different versions. The distinction between M1 (passenger cars) and N1 vehicles is not always straight-forward as manufacturers have the possibility to approve similar models as either M1 or N1, depending on their use.

In 2000, approximately 1.8 million N1 vehicles were sold EU-wide, compared with more than 14 million passenger cars. The market is divided among all major car manufacturers as well as certain truck manufacturers. Additionally, there are a considerable number of 'coach builders', that assembly special purpose vehicles in small quantities.

In the Community, light commercial vehicles account for approximately 10% of total road transport CO2 emissions. As AUTO-OIL II programme has demonstrated, there is a upward trend in the modal share of N1 vehicles in total CO2 emissions, due to increased market shares in recent years.

Until now, no action was taken at Community level in order to monitor or improve fuel economy and CO2 emission for this category of vehicles. During the discussions in the European Parliament and the Council the issue was raised to include light commercial vehicles in the monitoring scheme. However, as the harmonised measurement procedure of Directive 80/1268/EEC is only applicable to M1 vehicles, the basic instrument for such action was unavailable. The goal of this proposal, i.e. the extension of the scope of the Directive to N1 vehicles, is therefore a prerequisite to enable and monitor possible future fuel economy related measures for light commercial vehicles in the EU. In this respect, the Environment Council of October 1999 took note of the envisaged Commission's studies on the possibilities of extending the scope of Directive 80/1268/EEC to light commercial vehicles as a first step to include light commercial vehicles in the CO2 emission reduction strategy. The Commission is currently investigating which measures are most appropriate in the field of the improvement of fuel economy and CO2 emissions of N1 vehicles.

In preparation of this proposal, TÜV Rheinland has performed a study under contract of the Commission in order to investigate the technical implications of extending the scope of Directive 80/1268/EEC to N1 vehicles.

D. Involvement of interested parties

1. Position of the Member States

Experts of Member States have been consulted and informed of the content of this proposal through the Commission's consultative group, the Motor Vehicle Emission Group (MVEG). A majority of the experts are supportive of the proposal.

2. Position of the industry

The motor industry has been involved from the earliest discussions. In general, the industry is supportive of the proposal.

E. basis and content of the proposal

1. Extension of the scope

The dynamometer test method ('type I test') for the determination of exhaust emissions specified in Annex III of Directive 70/220/EEC is applicable to M1 and N1 vehicles. As an alternative, diesel vehicles of category N1 can be granted type-approval for exhaust emissions pursuant to Directive 88/77/EEC. The very same test method as in Directive 70/220/EEC is used in Directive 80/1268/EEC for the measurement of fuel consumption and CO2 emissions, but it is currently only applicable to passenger cars. Therefore, the application of the test method can be extended straight-forward to cover N1 vehicles as well, in accordance with Directive 70/220/EEC.

It is proposed that the new provisions should apply:

* from 1 July 2003 for new type-approvals (of category N1);

* from 1 January 2006 for existing type-approvals of vehicles in category N1, class I, and 1 January 2007 for existing type-approvals in category N1, class II and III.

The dates which apply to existing type-approvals have been aligned with the corresponding dates of Directive 98/69/EC relating to emissions of M1 and N1 vehicles in order to avoid recurring type-approval of a particular vehicle type, which would needlessly increase the costs associated with the proposal.

Currently the Directive contains a provision indicating that during the test the technical service should check whether the exhaust emissions comply with the regulatory limits of Directive 70/220/EEC. This provision cannot be applicable for N1 vehicles, which are granted type-approval with respect to their emissions according to Directive 88/77/EEC.

2. Influence of the pay-load

The measurement procedure, which is already used for emissions testing of N1 vehicles according to Directive 70/220/EEC, does not take into account the increased weight of the vehicle as a result of the carriage of goods. The same applies to other variables, such as driving behaviour, maintenance and climatic and topographic conditions. Data supplied in the TÜV study have shown that the pay-load has a significant impact on the actual fuel consumption and CO2 emissions. The relative increase of CO2 emissions with a 30% pay-load, which is considered as an average loading factor for this type of vehicles, ranges from 4 to 12%, depending on the vehicle type and the driving cycle. Similar measurements from ACEA on the regulatory driving cycle only show a relative increase between 4 and 6%. The data also show there is a consistent relationship between the measurements with and without pay-load, i.e. the ranking of vehicles according to their fuel consumption is not affected by the pay-load. This proves that the measurement procedure is well fitted for the relative comparison of fuel efficiency, which is important for the customer and for tax differentiation, and for the consistent monitoring of fuel efficiency improvements over time.

Any change in the test procedure, such as the inclusion of a pay-load, would lead to a divergence between the emissions according to Directive 70/220/EEC and this Directive. Considering the large number of different versions, this would result in a substantial amount of additional testing and associated costs, while creating limited additional benefits with respect to the existing measurement procedure.

In view of the apparent direct relationship between the pay-load and the fuel consumption, it could be considered to develop a calculation method in order to assess the influence of the pay-load on fuel consumption and CO2 emissions. Such information could be provided to the public by introducing specific requirements for N1 vehicles in Directive 1999/94/EC of the European Parliament and the Council relating to the availability of consumer information on fuel economy and CO2 emissions in respect of the marketing of new passenger cars. Additionally, the existing proportionality between the pay-load and the fuel consumption needs to be monitored in order to detect whether manufacturers would optimise fuel economy in an unladen state only, while allowing significant deterioration at higher pay-loads.

3. Exemption for small volume manufacturers

Unlike the situation for passenger cars, the production of light commercial vehicles is not solely shared among EU-wide or global companies. A considerable number of so-called 'coach-builders' assemble a limited number of special purpose vehicles. The production volume is usually limited to several hundreds a year, divided in different versions. These manufacturers usually purchase the engine or a chassis in which the engine is already installed. Such (diesel) engines have already been granted type-approval with respect to their emissions according to Directive 88/77/EEC. The vehicle as a whole is type-approved through a multi-stage procedure, in order to allow such niche manufacturers to carry out the final equipping.

However, these small and medium sized companies do not have the necessary infrastructure (dynamometer) nor the expertise to perform emissions or CO2 measurements. In view of the limited number of vehicles, the manufacturer's additional cost to comply with this proposal would therefore be disproportionate to the actual benefits. In case the engine is type-approved with regard to its emissions according to Directive 88/77/EEC, it is therefore proposed to introduce an exemption for small volume manufacturers.

F. Subsidiarity

1. Objective of the proposed measures in relation to the obligations placed upon the Commission

The objective is to extend the scope of existing measures. It is an essential part of the Commission's work in the field of the reduction of greenhouse gas emissions in the transport sector, in particular for N1 vehicles.

2. Compared competence of the Community and of the Member States

The harmonisation of the type-approval legislation of vehicles is an issue of exclusive Community competence.

3. Forms of action available for the Community

The most appropriate form of action is legislation based on a Directive or a Regulation. As a separate Directive permitting the application of the EC type-approval put in place by Directive 70/156/EEC, as last amended by Directive 2000/40/EC, the proposal adopts the legal requirements necessary in this sector.

4. Availability of an approach with general objectives leaving execution to Member States

A uniform detailed directive is necessary to be coherent with the requirements of the framework Directive 70/156/EEC, as last amended by Directive 2000/40/EC.

G. Conclusions

This proposal for a Directive of the European Parliament and of the Council will introduce harmonised requirements for the measurement of carbon dioxide and fuel consumption of N1 vehicles in the EU. It is therefore a prerequisite to enable, monitor and evaluate possible future fuel economy related measures for N1 vehicles in the EU.

2001/0255 (COD)

Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Council Directives 70/156/EEC and 80/1268/EEC as regards the measurement of carbon dioxide emissions and fuel consumption of N1 vehicles

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 95 thereof,

Having regard to the proposal from the Commission [1],

[1] OJ C

Having regard to the opinion of the Economic and Social Committee [2],

[2] OJ C

Acting in accordance with the procedure laid down in Article 251 of the Treaty [3],

[3] OJ C

Whereas:

(1) Council Directive 80/1268/EEC of 16 December 1980 relating to the carbon dioxide emissions and fuel consumption of motor vehicles [4] is one of the separate Directives under the type-approval procedure laid down by Council Directive 70/156/EEC of 6 February 1970 on the approximation of the laws of the Member States relating to the type-approval of motor vehicle and their trailers [5].

[4] OJ L 375, 31.12.1980, p. 36; Directive as last amended by Commission Directive 1999/100/EC (OJ L 334, 28.12.1999, p. 36).

[5] OJ L 42, 23.2.1970, p. 1; Directive as last amended by Directive 2000/40/EC of the European Parliament and of the Council (OJ L 203, 10.8.2000, p. 9).

(2) The Communication from the Commission to the Council and the European Parliament on EU policies and measures to reduce greenhouse gas emissions: towards a European Climate Change Programme (ECCP) [6], proposes an implementation strategy to reduce the emission of greenhouse gases, including measures in the transport sector. The Green paper 'Towards a European strategy for the security of energy supply' [7] likewise calls for efforts to improve fuel economy of motor vehicles.

[6] COM(2000) 88 final.

[7] COM(2000) 769 final.

(3) Under the Community strategy to reduce CO2 emissions from passenger cars, as outlined in the Communication from the Commission to the Council and the European Parliament - A community strategy to reduce CO2 emissions from passenger cars and improve fuel economy [8], the harmonised measurement methodology, as laid down in Directive 80/1268/EEC, has been used as a basic instrument. With a view to permitting subsequent measures to reduce fuel consumption and CO2 emissions in the sector of light commercial vehicles, it is necessary to extend the scope of that Directive to include vehicles of category N1 as well.

[8] COM(1995) 689 final.

(4) As referred to in Decision No 1753/2000/EC of the European Parliament and the Council of 22 June 2000 establishing a scheme to monitor the average specific emissions of CO2 from new passenger cars [9], the Commission has carried out a study to investigate the possibilities and implications of a harmonised procedure for measuring the specific CO2 emissions from vehicles of category N1. In this respect, it is considered technically acceptable and most cost-effective to apply the existing emissions test of Council Directive 70/220/EEC of 20 March 1970 on the approximation of the laws of the Member States on measures to be taken against air pollution by emissions from motor vehicles [10], also for the measurement of fuel consumption and CO2 emissions for that category of vehicles.

[9] OJ L 202, 10.8.2000, p. 1.

[10] OJ L 76, 6.4.1970, p. 1; Directive as last amended by Directive 2001/1/EC of the European Parliament and the Council (OJ L 35, 6.2.2001, p. 34).

(5) Many small volume manufacturers buy from suppliers engines which are type-approved with respect to emissions according to Council Directive 88/77/EEC of 3 December 1987 on the approximation of the laws of the Member States relating to the measures to be taken against the emissions of gaseous and particulate pollutants from compression ignition engines for use in vehicles, and the emission of gaseous pollutants from positive ignition engines fuelled with natural gas or liquified petroleum gas for use in vehicles [11]. A considerable number of those manufacturers do not have the necessary infrastructure or expertise to perform the exhaust or CO2 emissions testing. It is therefore necessary to grant an exemption for small volume manufacturers, since the additional costs they would have to incur in order to comply with this Directive would be disproportionately high.

[11] OJ L 36, 9.2.1988, p. 33; Directive as last amended by Commission Directive 2001/27/EC (OJ L 107, 18.4.2001, p. 10).

(6) Those measures also have an impact on provisions in the annexes to Directive 70/156/EEC.

(7) Directives 70/156/EEC and 80/1268/EEC should therefore be amended accordingly,

HAVE ADOPTED THIS DIRECTIVE:

Article 1

Row 39 of Part I of Annex IV to Directive 70/156/EEC is replaced by the following:

>TABLE POSITION>

Article 2

Annex I to Directive 80/1268/EEC is amended as set out in the Annex to this Directive.

Article 3

1. With effect from 1 May 2003 for vehicles of category N1, Member States may not, on grounds relating to the emission of carbon dioxide or to fuel consumption:

(a) refuse, in respect of any given type of motor vehicle, to grant EC type-approval or national type-approval;

(b) prohibit the registration, sale or entry into service of vehicles pursuant to Article 7 of Directive 70/156/EEC;

if the CO2 emission and fuel consumption figures have been determined in accordance with the requirements of Directive 80/1268/EEC, as amended by this Directive.

2. With effect from 1 July 2003, for a new type of vehicle of category N1, Member States:

(a) shall no longer grant EC type-approval pursuant to Article 4 (1) of Directive 70/156/EEC, and

(b) shall refuse to grant national type-approval, except where the provisions of Article 8 (2) of Directive 70/156/EEC are invoked,

if the CO2 emission and fuel consumption figures have not been determined in accordance with the requirements of Directive 80/1268/EEC, as amended by this Directive.

3. With effect from 1 January 2006 for vehicles of category N1, Class I, and with effect from 1 January 2007 for vehicles of category N1, Class II and Class III, Member States shall:

(a) consider certificates of conformity which accompany new vehicles pursuant to Directive 70/156/EEC to be no longer valid for the purpose of Article 7(1) of that Directive,

(b) refuse the registration, sale or entry into service of new vehicles which are not accompanied by a valid certificate of conformity pursuant to Directive 70/156/EEC, except where the provisions of Article 8(2) are invoked,

if the CO2 emission and fuel consumption figures have not been determined in accordance with the requirements of Directive 80/1268/EEC, as amended by this Directive.

Article 4

Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by 30 April 2003 at the latest. They shall forthwith inform the Commission thereof.

When Member States adopt those provisions, they shall contain a reference to this Directive or be accompanied by such a reference on the occasion of their official publication. Member States shall determine how such reference is to be made.

Article 5

This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Communities.

Article 6

This Directive is addressed to the Member States.

Done at Brussels,

For the European Parliament For the Council

The President The President

ANNEX

Annex I to Directive 80/1268/EEC is amended as follows:

1. Point 1. is replaced by the following:

"1. SCOPE This Directive applies to the measurement of carbon dioxide emissions and fuel consumption of motor vehicles of category M1 and N1. It does not apply to a type of N1 vehicle if both:

- the engine type fitted to that type of vehicle has received type-approval pursuant to Directive 88/77/EEC, and

- the total annual world-wide production of N1 vehicles of the manufacturer is less than 2 000 units."

2. Point 2.3. is replaced by the following:

"2.3. For the test described in point 6, a vehicle representative of the vehicle type to be approved will be submitted when the technical service responsible for the type-approval tests carries out the tests itself. For M1 vehicles and N1 vehicles, type-approved with respect to their emissions according to Directive 70/220/EEC, the technical service will check during the test that this vehicle conforms to the limit values applicable to that type, as described in Directive 70/220/EEC."

3. In point 6.1 the following paragraph is added:

"Vehicles which do not attain the acceleration and maximum speed values required in the operating cycle must be operated with the accelerator control fully depressed until they once again reach the required operating curve. Deviations from the operating cycle must be recorded in the test report."

IMPACT ASSESSMENT FORM THE IMPACT OF THE PROPOSAL ON BUSINESS WITH SPECIAL REFERENCE TO SMALL AND MEDIUM-SIZED ENTERPRISES( SMEs)

Title of proposal

Proposal for a Directive of the European Parliament and the Council amending Council Directive 70/156/EEC and Directive 80/1268/EEC as regards the measurement of carbon dioxide emissions and fuel consumption of N1 vehicles

Document reference number

The proposal

1. Taking account of the principle of subsidiarity, why is Community legislation necessary in this area and what are its main aims-

The harmonisation of the type-approval legislation of vehicles is an issue of exclusive Community competence.

The objective of the proposal is to extend the scope of the Directive 80/1268/EEC to N1 vehicles (light commercial vehicles). The proposal introduces harmonised mandatory requirements for the measurement of carbon dioxide and fuel consumption of N1 vehicles. It is therefore a first prerequisite to enable, monitor, and evaluate possible future fuel economy related measures for N1 vehicles in the EU.

The impact on business

2. Who will be affected by the proposal-

- which sectors of business- Manufacturers of light commercial vehicles

- which sizes of business (what is the concentration of small and medium-sized firms) The large majority of light commercial vehicles are manufactured by large companies Additionally, there are a considerable number of 'coach builders', usually small and medium sized companies, that assembly special purpose vehicles in small quantities.

- are there particular geographical areas of the Community where these businesses are found These businesses are found throughout the Community.

3. What will business have to do to comply with the proposal-

The proposal only involves the inclusion of the measurement of fuel consumption and CO2 emissions in the type-approval procedure of N1 vehicles (light commercial vehicles). A large amount of these vehicles are already tested and type-approved with regard to their emissions according to an identical procedure (as in Directive 70/220/EEC), so in this case no additional cost would be necessary, except when manufacturers would want to make a more detailed distinction between fuel consumption figures of different versions of the same type. Vehicles of which the engine is type-approved according to 88/77/EEC will need to undergo additional testing.

4. What economic effects is the proposal likely to have-

- on employment The proposal is likely to have no effect on employment.

- on investment and the creation of new businesses The proposal is likely to have little effect on the creation of new businesses or on investment, except for an increase of the required capacity of testing equipment.

- on the competitiveness of businesses- There will be no direct effect on the competitiveness

5. Does the proposal contain measures to take account of the specific situation of small and medium-sized firms (reduced or different requirements, etc.)-

Yes.

A considerable number of so-called 'coach-builders' assemble a limited number of special purpose vehicles. The production volume is usually limited to several hundreds a year, divided in different versions. These manufacturers usually purchase the engine or a chassis in which the engine is already installed. Such (diesel) engines have already been granted type-approval with respect to their emissions according to Direcive 88/77/EEC. The vehicle as a whole is type-approved through a multi-stage procedure, in order to allow such niche manufacturers to carry out the final equipping.

However, these small and medium sized companies do not have the necessary infrastructure (dynamometer) nor the expertise to perform emissions or CO2 measurements. In view of the limited number of vehicles, the manufacturer's additional cost to comply with this proposal would therefore be disproportionate to the actual benefits. In case the engine is type-approved with regard to its emissions according to Directive 88/77/EEC, it is therefore proposed to introduce an exemption for small volume manufacturers.

Consultation

6. List the organisations which have been consulted about the proposal and outline their main views.

MVEG (Motor vehicle emissions group)

ACEA-JAMA (European and Japanese Automobile Manufacturers Association)

The industry has been consulted during the preparation of and discussions on the proposal. They have been an important contributor. In general, the industry is supportive of the proposal. However, the industry did prefer a more far-reaching exemption and a more flexible system for extension of type-approvals.