[pic] | EUROPEAN COMMISSION |

Brussels, 10.11.2010

COM(2010) 656 final

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, AND THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE

Progress report on implementation of the Community’s integrated approach to reduce CO 2 emissions from light-duty vehicles

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, AND THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE

The progress report on implementation of the Community’s integrated approach to reduce CO 2 emissions from light-duty vehicles

INTRODUCTION

On 7 February 2007, the Commission adopted Communication COM(2007)19 final[1] outlining a comprehensive new strategy to reduce carbon dioxide emissions from new cars and vans sold in the European Union. Subsequently, Article 13 of Regulation (EC) 443/2009[2] requires the Commission to submit to the European Parliament and Council a report reviewing the progress made towards implementation of the Community’s integrated approach to reducing CO2 emissions from light-duty vehicles.

The present report provides a final evaluation of the pre-2007 strategy and reviews the progress made towards the different elements of the 2007 strategy.

FINAL EVALUATION OF PRE-2007 STRATEGY

Before 2007, the Community's strategy was based on three pillars, as outlined by the Commission in its Communication of 1995[3] and subsequently supported by the Council and European Parliament[4]. This structure allowed for the combination of measures addressing both supply (voluntary commitments) and demand (labelling and taxation).

The pre-2007 strategy focused on targets for 2008 and 2009 and the data for these years have only recently become available. The statistics and monitoring data described in the following text show, as expected in the preparation of the 2007 Strategy, that the objectives of the pre-2007 strategy were only partly achieved.

First pillar: car industry voluntary commitments

The voluntary commitments undertaken by the European (ACEA), Japanese (JAMA) and Korean (KAMA) car manufacturer associations relate to average new car emission targets of 140 gCO2/km by 2008 (ACEA target) or by 2009 (JAMA and KAMA target). The commitments specify that new passenger car CO2 emissions will be measured according to Commission Directive 93/116/EC[5], which is the basis on which the targets were established. Changes to the test procedure since the entry into force of that Directive need to be taken into account in the monitoring of the commitments by correcting the measured CO2 emissions. The correction made is a 0.7 % downward adjustment and this correction factor had been applied in assessing the progress made by the manufacturing associations ACEA, JAMA and KAMA[6].

Chart 1: Evolution of CO2 emissions from new passenger cars by association(adjusted for changes in the test cycle procedure)

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Table 1: Average CO2 emissions from new passenger cars by association (adjusted for changes in the test cycle procedure)

Efficiency requirements for air-conditioning systems | In progress |

Fitting of accurate tyre pressure monitoring systems | ( |

Tyre rolling resistance limits | ( |

Gear shift indicators | ( |

Reaching 175 (160) gCO2/km for new light commercial vehicles | In progress |

Increased use of biofuels | ( |

Taxation | Limited progress |

Consumer information | Limited progress |

Ecodriving | Limited progress |

NEXT STEPS

MID-TERM ACTION

- The Clean and Energy Efficient Vehicles strategy[31] sets out a strategy for encouraging the development and uptake of clean and energy efficient ("green") vehicles. All future legislative proposals aiming at reducing CO2 emissions from new passenger cars and light commercial vehicles should be based on the principles that all reductions have to be measurable, monitorable and accountable.

The specific actions linked to the scope of the Strategy foreseen by the Commission in the timeline 2010-2020 include review of modalities of reaching the 2020 target of 95 gCO2/km set out in the cars legislation, and possibly modalities of the long-term target as proposed in the draft regulation on CO2 from light commercial vehicles. In addition, the Commission is committed to propose a new test-cycle to reflect more accurately the real world driving conditions as well as the specific CO2 emissions and fuel consumption related to it.

The Commission is also planning to look into the possibility of measurement and certifications of CO2 emissions from heavy duty vehicles. Should such methods be agreed and approved, the Commission will consider implementing efficiency standards for new heavy duty vehicles.

The Commission will also further develop its life cycle analysis of energy use in vehicles. It will consider whether this well to wheel approach can be integrated in long term targets for vehicles.

LONG-TERM VISION

The Commission's preliminary work on the decarbonisation issues over longer time horizon indicates that, to be compatible with the 2°C objective, by 2050 the range of domestic CO2 reductions needed from the EU economy will have to amount to roughly 70%[32] as compared to 1990 levels. The transport sector will have to make significant contribution to the reduction effort. Contrary to that, GHG emissions from road transport have increased by 26% since 1990.

The EU must improve its resource efficiency and energy security, reduce air pollution and maintain its leading role in fighting against climate change. With aggregate transport related CO2 emissions steadily rising despite technological advances, the road transport sector deserves particular attention. Wider efforts will be needed to make sustainable mobility a reality. The strategy discussed in this report primarily focuses on vehicles being placed on the market, while an important aspect is the way that they are subsequently used.

The implementing legislative measures of the Strategy have extended its timeline by including a long-term target for 2020. Such a long-term vision is necessary in view of the scale of the emission reductions needed and the planning periods for the industry. This enables industry to prepare for the next steps in CO2 reduction and a similar target was therefore included in the Commission proposal for a regulation setting CO2 emission standards for light commercial vehicles.

To improve planning certainty for the automotive sector while ensuring that CO2 reductions from light-duty vehicles continue to take place, the Commission considers, based on a thorough impact assessment, to also propose a target for passenger car emissions to be reached by 2025. Among other options, the Commission will assess the feasibility of the target suggested by the European Parliament of reaching 70 gCO2/km by 2025 as indicated in its Resolution of 24 October 2007 on the Community Strategy to reduce CO2 emissions from passenger cars and light-commercial vehicles (P6-TA(2007)0469)[33]. Further reduction steps shall also be considered for light commercial vehicles. The consideration of long term targets beyond 2020 will have to take into account the possible market penetration of alternative energy, especially electricity.

[1] Communication from the Commission to the Council and the European Parliament - Results of the review of the Community Strategy to reduce CO2 emissions from passenger cars and light-commercial vehicles http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52007DC0019:EN:NOT

[2] Regulation (EC) 443/2009 of the European Parliament and of the Council of 23 April 2009 setting emission performance standards for new passenger cars, OJ L 140, 5.6.2009

[3] COM(95) 689 A Community strategy to reduce CO2 emissions from passenger cars and improve fuel economy.

[4] Council conclusions of 25.6.1996, European Parliament resolution of 22.9.1997

[5] http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31993L0116:en:NOT

[6] More information related to the 0.7% correction can be found in COM(2002) 693 final and COM(2004) 78 final.

[7] Monitoring system - the annual reports on the CO2 emissions from new passenger cars: http://ec.europa.eu/environment/co2/co2_monitoring.htm

[8] 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;

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32009R0443:EN:NOT

[9] The target of 130 gCO2/km is phased-in from 2012 to 2015 where only 65% of the new fleet should comply with the target in 2012, 75% in 2013, 80% in 2014, and 100% as of 2015.

[10] Specific emissions of new passenger cars in this table are not adjusted as in Table 1 and Chart 1 because Regulation (EC) No 443/2009 requires the use of figures according to Regulation (EC) No 715/2007.

[11] http://ec.europa.eu/enterprise/sectors/automotive/files/projects/report_scrapping_schemes_en.pdf The decrease of CO2 emissions from passenger cars was achieved at extremely high costs during the crisis. The study from IHS Global Insight Assessment of the Effectiveness of Scrapping Schemes for Vehicles: Economic, Environmental and Safety Impacts concluded that: In general, if the sole reason for scrapping schemes was emissions reduction then we would have to conclude (as do most other studies) that they are an expensive mechanism for emissions abatement – at least in terms of the general 2009 scheme design parameters. … allocating the entire net financial cost of the scrapping schemes purely to CO 2 reduction leads to a cost estimate of ¬ 1100 per tonne CO 2 saved .

[12] http://ec.europa.eu/environment/air/transport/co2/co2_monitoring.htm

[13] http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32006L0040:en:NOT

[14] http://ec.europa.eu/enterprise/sectors/automotive/documents/consultations/2008-future-regulation/index_en.htm

[15] Regulation (EC) No 661/2009 of the European Parliament and Council of 13 July 2009 concerning type-approval requirements for the general safety of motor vehicles, their trailers and systems, components and separate technical units intended therefor;

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32009R0661:EN:NOT

[16] Estimate by TNO, quoted in ACEA position during public consultation on gear shift indicators.

[17] http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52009PC0593:EN:NOT

[18] Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC;

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32009L0028:EN:NOT

[19] http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31998L0070:EN:NOT

[20] http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:01998L0070-20090625:EN:NOT

[21] COM(2009) 192 final

[22] Public consultation available at: http://ec.europa.eu/energy/renewables/consultations/2010_10_31_iluc_and_biofuels_en.htm

[23] http://www.europarl.europa.eu/activities/committees/studies/download.do?language=fr&file=31259

[24] http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32009R1222:EN:NOT

[25] http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52005PC0261:EN:NOT

[26] see Taxation trends in the European Union at http://ec.europa.eu/taxation_customs/resources/documents/taxation/gen_info/economic_analysis/tax_structures/2010/2010_full_text_en.pdf and the ACEA Tax Guide http://www.acea.be/index.php/news/news_detail/acea_tax_guide_2010/

[27] http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52007PC0052:EN:NOT

[28] http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32003L0096:EN:NOT

[29] COMPANY CAR TAXATION: Subsidies, Welfare and Environment http://ec.europa.eu/taxation_customs/resources/documents/taxation/gen_info/economic_analysis/tax_papers/taxation_paper_22_en.pdf

[30] http://ec.europa.eu/information_society/activities/esafety/doc/studies/energy/energy_eff_study_final.pdf

[31] http://ec.europa.eu/enterprise/sectors/automotive/competitiveness-cars21/energy-efficient/index_en.htm

[32] COM(2010)265final http://ec.europa.eu/environment/climat/pdf/2010-05-26communication.pdf

[33] http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P6-TA-2007-0469