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 CO2 emissions from light-duty vehicles
Date: 2010-11-10
Institutions: European Commission
Subjects: EU environmental policy, air quality, environmental standard, motor car, motor fuel, motor vehicle industry, motor vehicle pollution, pollution control, reduction of gas emissions, report

EN 

EN 

   EN 

 
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 CO2 emissions from light-duty vehicles 

EN 

   EN 

 
 
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 CO2 emissions from light-duty vehicles 

1. 

INTRODUCTION 

On 7 February 2007, the Commission adopted Communication COM(2007)19 final1 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) 443/20092 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. 

2. 

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 19953 and subsequently supported by the Council and 
European  Parliament4.  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/EC5,  which  is  the  basis  on  which  the  targets  were 

1 

2 

3 

4 
5 

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  
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 
COM(95) 689 A Community strategy to reduce CO2 emissions from passenger cars and improve fuel 
economy.  
Council conclusions of 25.6.1996, European Parliament resolution of 22.9.1997 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31993L0116:en:NOT  

EN 

2 

   EN 

                                                 
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 KAMA6.  

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

225

200

175

150

125

100

75

50

25

0
1995

KAMA
JAMA

ACEA

140 gCO2/km

130 gCO2/km

95 gCO2/km

2000

2005

2010

2015

2020

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

gCO2/km 

2000 

2001 

2002 

2003

2004

2005

2006

2007 

2008  2009

ACEA 

169.2  167.0  164.4  162.5

160.7

160.0

159.7

157.0  152.3  145.1

JAMA 

179.6  176.6  173.7  172.0

169.7

166.2

161.4

159.5  153.7  142.6

KAMA 

184.2  185.5  183.5  178.7

167.5

166.6

164.3

161.1  151.5  141.8

Based on the latest monitoring data7, it is now clear that the 2008 target for ACEA was not 
achieved.  On  the  other  hand  JAMA  and  KAMA  achieved  significant  reductions  in  CO2 
emissions during this period and were very close to reaching their 2009 target. The financial 
and  economic  crisis  contributed  to  the  observed  decreases  in  2009  due  to  a  change  of 
consumer behaviour. 

6 

7 

More information related to the 0.7% correction can be found in COM(2002) 693 final and COM(2004) 
78 final. 
Monitoring  system  -  the  annual  reports  on  the  CO2  emissions  from  new  passenger  cars: 
http://ec.europa.eu/environment/co2/co2_monitoring.htm  

EN 

3 

   EN 

 
                                                 
Second pillar: consumer information 

This aspect is evaluated in section 3.9 since it also forms an element of the 2007 strategy. 

Third pillar: the promotion of fuel efficient cars via fiscal measures 

This aspect is evaluated in section 3.10 since it also forms an element of the 2007 strategy. 

3. 

PROGRESS OF IMPLEMENTATION OF THE 2007 STRATEGY 

The  2007  strategy  aimed  at  reaching  the  Community  objective  of  an  equivalent  of 
120 gCO2/km by 2012 through a legislative framework addressing supply oriented measures. 
The package of measures listed the following elements: 

•  to  reach  an  objective  of  130  gCO2/km  for  the  average  new  car  fleet  by  means  of 

improvements in vehicle motor technology; 

•  setting minimum efficiency requirements for air-conditioning systems; 

•  the compulsory fitting of accurate tyre pressure monitoring systems; 

•  setting maximum tyre rolling resistance limits in the EU for tyres fitted on passenger cars 

and light commercial vehicles; 

•  the  use  of  gear  shift  indicators,  taking  into  account  the  extent  to  which  such  devices  are 

used by consumers in real driving conditions; 

•  fuel efficiency progress in light-commercial vehicles (vans) with the objective of reaching 

175 gCO2/km by 2012 and 160 gCO2/km by 2015; 

•  increased use of biofuels maximizing environmental performance. 

Beyond the legislative framework, the Commission's strategy to further reduce CO2 emissions 
should  have  encouraged  additional  efforts  for  other  means  of  road  transport  (heavy  duty 
vehicles, etc.), actions by Member States (CO2 related taxation and other fiscal incentives, use 
of  public  procurement,  traffic  management,  infrastructure,  etc.)  and  by  consumers  (buyers' 
informed choices, responsible driving behaviour).  

The package of measures listed the following demand/behaviour oriented elements: 

•  taxation; 

•  consumer information; 

•  ecodriving. 

3.1. 

Achievement of the EU objective of 120 gCO2/km in 2012 

While  evaluation  of  the  progress  of  Strategy  implementation  is  set  out  in  the  following 
sections, a straightforward assessment of the achievement of its 2012 objective is not possible. 
In the process of its implementation, the timeframe and the overall ambition of the Strategy 

EN 

4 

   EN 

have  been  amended.  The  main  element  of  the  Strategy,  Regulation  (EC)  443/20098,  enters 
fully  into  force  only  in  2015.  Also  many  of  the  additional  implementing  measures  have 
different dates for entry into force, usually later than 2012. Furthermore, a new element of a 
long-term perspective, i.e. the 2020 target, was included in the CO2 from cars regulation and 
subsequently in the proposal for an equivalent regulation for light commercial vehicles. This 
longer-term  vision  should  compensate  for  a  delay  of  short-term  reductions.  Therefore,  it  is 
clear that despite the progress in implementing the Strategy and an expected further decrease 
of  CO2  emissions,  even  prior  to  full  entry  into  force  of  all  measures,  it  is  unlikely  that  the 
objective of an equivalent of 120 gCO2/km will be achieved in 2012. 

The  following  sections  of  this  report  focus  on  more  detailed  information  on  progress  with 
each of the elements of the strategy. 

3.2. 

Reaching 130 gCO2/km for new passenger cars 

This  objective  is  implemented  by  Regulation  (EC) No 443/20098.  The  fleet  average  to  be 
achieved in the period 2012-2015 by all new passenger cars (M1 category vehicles) registered 
in the EU is 130 gCO2/km. Due to a phase-in mechanism, the 130 gCO2/km target only enters 
into  full  force  in  20159.  A  limit  value  curve  implies  that  heavier  cars  are  allowed  higher 
emissions than lighter cars while preserving the overall fleet average. This is consistent with 
the  Strategy's  goal  that  the  legislative  framework  should  ensure  competitively  neutral  and 
socially equitable reduction targets. A second target of 95 gCO2/km announced in the Strategy 
as  a  target  for  further  consideration  is  included  for  2020.  The  modalities  of  reaching  this 
target are to be defined by 2013. 

Table 2: Average CO2 emissions from new passenger cars registered in the European Union 
(not adjusted for changes in the test cycle procedure)10 

2000 

2001 

2002 

2003 

2004 

2005 

2006 

2007 

2008 

2009 

gCO2/km 

172.2  169.7  167.2  165.5  163.4  162.4  161.3  158.7  153.6  145.7

According to the EU monitoring data, the manufacturers are on track to meet the targets set in 
Regulation (EC) No 443/2009. The average specific CO2 emissions from new passenger cars 
registered in the EU27 in 2009 were 145.7 gCO2/km. While part of the reductions in 2008 and 
2009  might  have  been  due  to  the  financial  and  economic  crisis  as  well  as  the  design  of  the 
scrappage schemes11 implemented in several Member States, the decreasing trend since 2000 

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;  

10 

11 

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. 
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. 
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.  … 

EN 

5 

   EN 

 
                                                 
is evident. The monitoring system also indicates that there has been some downsizing of the 
car fleet as the average engine power, vehicle mass and engine capacity slightly decreased in 
2009. This may also result from the adoption of the CO2 from  cars Regulation encouraging 
manufacturers to start preparing for compliance with the new CO2 standard.  

The  data  available  for  registrations  of  new  passenger  cars  indicate  that the  average  specific 
CO2 emissions of 65% of new passenger cars registered in 2009 were below 130 gCO2/km. 
This means that on average the 2012 target was already met in 2009. This is, however, only 
the  assessment  of  the  European  average.  A  detailed  assessment  of  manufacturers  and  their 
distance to interim targets set out in Regulation (EC) No 443/2009 for the period 2012-2014 is 
not possible with available data from the existing monitoring systems established pursuant to 
Decision (EC) 1753/2000. For more information on the 2009 data, see the monitoring report 
for 200912 which elaborates on these aspects in more details. 

3.3. 

Air-conditioning systems 

Directive 2006/40/EC of the European Parliament and of the Council of 17 May 2006 relating 
to emissions from air conditioning systems in motor vehicles and amending Council Directive 
70/156/EEC13 aims at reducing direct emissions of specific fluorinated greenhouse gases from 
the  air-conditioning  systems  fitted  to  passenger  cars  (M1  category)  and  light  commercial 
vehicles (N1, class I). 

By  2011  the  Commission  will  present  a  proposal  to  reduce  fuel  consumption  and 
CO2 emission  impacts  of  mobile  air  conditioning  systems.  A  public  consultation  in 
preparation of the proposal was held in 2008 and its results are available on the Commission's 
website14.  Currently  the  Commission  is  developing  an  appropriate  testing  procedure  for 
mobile air-conditioning systems. 

3.4. 

Tyre pressure monitoring systems 

Low  tyre  pressure  can  increase  fuel  consumption  and  CO2  emissions  by  4%,  reduce  tyre 
lifespan  by  45%  and  can  cause  accidents.  Fitting  tyre-pressure  monitoring  systems  (TPMS) 
should contribute to both greater fuel efficiency and safety.  

Article 9 of Regulation (EC) No 661/200915 provides for the mandatory equipping of all M1 
category  vehicles  (passenger  cars)  with  TPMS.  All  new  car  models  should  be  fitted  with 
TPMS  by  November  2012  and  all  new  cars  by  November  2014.  The  systems  will  alert  the 
driver when the tyre pressure falls by 20% from its normal warm running pressure.  

A  second  phase  of  TPMS  requirements  is  currently  under  discussion  with  Member  States. 
This would require an earlier alert (perhaps when the tyre pressure has fallen by 15% from its 

12 
13 
14 

15 

allocating the entire net financial cost of the scrapping schemes purely to CO2 reduction leads to a cost estimate of 
€ 1100 per tonne CO 2 saved.  
http://ec.europa.eu/environment/air/transport/co2/co2_monitoring.htm  
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32006L0040:en:NOT  
http://ec.europa.eu/enterprise/sectors/automotive/documents/consultations/2008-future-
regulation/index_en.htm  
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  

EN 

6 

   EN 

                                                                                                                                                         
normal  warm  running  pressure).  If  agreed,  the  second  phase  would  come  into  effect  some 
three years after the first phase, and would increase the potential CO2 savings. 

3.5. 

Tyre rolling resistance limits for new passenger cars  

Regulation (EC) No 661/200915 requires all new car models to be equipped with low rolling 
resistance  tyres  (LRRT)  by  November  2013.  This  will  be  extended  to  all  new  cars  by 
November 2014. A second phase, with stricter rolling resistance limits, will apply for new car 
models from November 2017 and all new cars from November 2018.  

Expected fuel savings from the increased use of fuel efficient tyres which will be achieved by 
the  combination  of  tyre  rolling  resistance  limits  (Regulation  (EC)  No  661/2009)  and  the 
labelling scheme (Regulation (EC) No 1222/2009, see section 3.9) are estimated at between 
2.4 and 6.6 Mtoe (million tonnes of oil equivalent) in 2020 depending on the speed of market 
transformation.  The  CO2  savings  from  all  vehicle  types  are  expected  to  range  from  1.5  to 
4 million tonnes per year. 

3.6. 

Gear shift indicators 

Article  11  of  Regulation  (EC)  No  661/2009  requires  all  vehicles  of  M1  category  with  a 
reference  mass  not  exceeding  2 610  kg  and  vehicles  to  which  type-approval  is  extended  in 
accordance with Regulation (EC) 715/2007 to be equipped with gear shift indicators. All new 
car models should have gear shift indicators by 2012 and all new cars by 2014. 

The  technical  CO2  reduction  potential  of  gear  shift  indicators  is  estimated  at  6%  in  case  of 
100% utilization rate16. However, it must be recognised that the real reductions will be lower 
than this, depending on the degree to which drivers respond to the indicator. 

3.7. 

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

On  28  October  2009  the  Commission  adopted  a  new  legislative  proposal  (COM/2009/0593 
final)17  to  reduce  CO2  emissions  from  light  commercial  vehicles  (vans).  The  proposal  is 
closely modelled on the legislation on the CO2 emissions from passenger cars, including two 
steps of emission reduction.  

If adopted, the effect of the Regulation will be evident only in the years after 2012 which is 
beyond the target date of the 2007 Strategy. 

3.8. 

Increased use of biofuels 

Directive  2009/28/EC18  sets  binding  targets  for  Member  States  to  achieve  a  10%  share  of 
renewable  energy  in  the  transport  sector  by  2020.  It  requires  national  action  plans  that 
establish estimated trajectories for the development of renewable energy sources including the 
transport sector and along with Directive 98/70/EC relating to the quality of petrol and diesel 

16 
17 
18 

Estimate by TNO, quoted in ACEA position during public consultation on gear shift indicators. 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52009PC0593:EN:NOT 
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  

EN 

7 

   EN 

                                                 
fuels19, establishes sustainability criteria for biofuels, which include minimum greenhouse gas 
savings on life cycle basis compared to petrol and diesel. 

Directive 98/70/EC was revised in 200920 and introduced a requirement on fuel suppliers to 
reduce  the  greenhouse  gas  intensity  of  energy  supplied  for  road  transport  by  6%  by  2020 
(Low  Carbon  Fuel  Standard)  and  thus  optimise  biofuels'  contribution  to  the  2007  strategy. 
The CO2 emissions reduction possibility of vehicles running on biofuels is also recognised in 
Regulation (EC) No 443/2009 temporarily allowing for a 5% reduction in reported emissions 
from vehicles designed to run on a mixture of petrol with 85 % ethanol (E85) under certain 
conditions, including compliance with biofuel sustainability criteria.  

Based on Eurostat data, the EU27 share of biofuels in the total final consumption of petrol and 
diesel  for  transport  was  3.5%  in  2008  (10.1  Mtoe),  up  from  2.6%  in  2007.  Biodiesel 
accounted  for  81%  of  total  biofuel  use  compared  with  18%  for  ETBE  and  ethanol.  There 
remains  some  uncertainty  over  the  actual  greenhouse  gas  savings  delivered  by  land-using 
biofuels  because  of  the  greenhouse  gas  emissions  arising  from  indirect  land  use  change. 
Without taking account of these emissions, the net greenhouse gas savings achieved in the EU 
from  biofuels  placed  on  the  market  and  consumed  in  2007  were  calculated  as  14.0Mt  CO2-
eq.21  The  Commission  is  currently  reviewing  the  impact  of  indirect  land-use  change  on 
greenhouse  gas  emissions.22  This  will  be  addressed  in  a  report  and  possible  legislative 
proposal.  

3.9. 

Consumer information 

Directive 1999/94/EC aims at ensuring that information related to the fuel economy of new 
passenger cars offered for sale or lease in the Community is made available to consumers in 
order to enable them to make an informed choice. 

Fuel economy labels for all new cars have to be displayed at the point of sale. The point of 
sale has to display the official fuel consumption and CO2 emission data of all new passenger 
car models displayed or offered for sale or lease. A guide on fuel economy and CO2 emissions 
is  prepared  each  year.  All  promotional  literature  must  contain  the  official  fuel  consumption 
and specific CO2 emission data for the passenger car model to which it refers. In addition, in a 
number  of  Member  States  the  authorities  or  other  organisations  maintain  Internet  websites 
which display the official fuel consumption and CO2 emissions of new passenger car models 
offered  on  their  national  markets,  often  with  a  possibility  to  compare  different  models  or 
indentify best-in-class vehicles.  

A number of Member States link their labels to the CO2-based vehicle taxation and include 
the  costs  of  fuel.  Increasingly,  Member  States  revise  their  labels  to  include  some  form  of 
colour-coded  scheme  helping  to  understand  car  performance.  Moreover,  some  countries 
provide additional information relating to the cost of running a car and related vehicle tax.23 

19 
20 
21 
22 

23 

EN 

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31998L0070:EN:NOT  
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:01998L0070-20090625:EN:NOT  
COM(2009) 192 final  
Public 
http://ec.europa.eu/energy/renewables/consultations/2010_10_31_iluc_and_biofuels_en.htm 
http://www.europarl.europa.eu/activities/committees/studies/download.do?language=fr&file=31259 

consultation 

available 

8 

at: 

   EN 

                                                 
The  Directive  is  considered  a  useful  tool  in  raising  awareness  and  possibly  helping  the 
manufacturers to sell more fuel-efficient cars but it is difficult to objectively assess its direct 
impact.  The  Directive  is  scheduled  for  revision  to  make  the  scheme  more  effective,  in 
particular,  to  improve  the  readability  and  understanding  of  the  Directive's  tools,  and  ensure 
easier and wider access to the mandatory information. 

In  order  to  improve  consumer  awareness,  in  certain  Member  States  voluntary  codes  of 
conduct  or  guidance  for  the  use  of  environmental  statements  in  car  advertisements  are  in 
place.  These  initiatives  are  usually  coordinated  by  consumer  groups  or  advertising 
associations  and  aim  at  ensuring  that  promotional  material  is  in  compliance  with  EU  and 
national legislation. 

Additional consumer information will be provided by a tyre labelling scheme which will enter 
into force in 2012 as required in Regulation (EC) No 1222/200924. The fuel efficiency (rolling 
resistance),  wet  grip  and  external  rolling  noise  performances  of  tyres  will  be  displayed  by 
means  of  a  grading  (A-G scale).  It  aims  at  encouraging  consumers  to  purchase  tyres  which 
meet even lower limits than those prescribed by the mandatory requirements. 

Expected fuel savings from the increased use of fuel efficient tyres which will be achieved by 
the  combination  of  tyre  rolling  resistance  limits  (Regulation  661/2009,  see  section  3.5)  and 
the  labelling  scheme  (Regulation  1222/2009)  are  estimated  at  between  2.4  and  6.6  Mtoe 
(million tonnes of oil equivalent) in 2020 depending on the speed of market transformation. 
The CO2 savings from all vehicle types are expected to range from 1.5 to 4 million tonnes per 
year. 

3.10.  Taxation 

In 2005, the Commission presented a proposal for a Directive25 that would require Member 
States  to  restructure  their  passenger  car  taxation  systems.  Among  other  issues,  the  proposal 
aims  to  promote  sustainability  by  restructuring  the  tax  base  of  both  registration  taxes  and 
annual  circulation  taxes  so  as  to  include  elements  directly  related  to  CO2  emissions  of 
passenger  cars  in  those  Member  States  that  apply  such  taxes.  The  proposal  aims  only  to 
establish  an  EU  structure  for  passenger  car  taxes  and  not  to  harmonise  tax  rates  or  oblige 
Member States to introduce new taxes. Although the proposal has not yet been adopted, more 
than  half  of  Member  States  have  in  the  meantime  amended  their  car  taxation  schemes  and 
introduced a CO2-related element26. 

In  2007,  the  Commission  presented  an  amendment  to  the  Energy  Taxation  Directive27  that 
aims  at  reducing  the  distortions  in  fuel  taxation  in  the  EU  and  at  further  approximating  the 
taxation  of  petrol  and  diesel  (the  so  called  "commercial  diesel  proposal").  The  proposal 
addressed fuel  taxation for both, private  and  commercial transport use. It aimed at reducing 
distortions  in  the  internal  transport  market:  hauliers  involved  in  international  activities  or 
located  in  or  near  the  border  of  a  low  taxing  country  take  advantage  of  the  significant 

24 
25 
26 

27 

EN 

Taxation 

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32009R1222:EN:NOT  
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52005PC0261:EN:NOT 
see 
at 
http://ec.europa.eu/taxation_customs/resources/documents/taxation/gen_info/economic_analysis/tax_str
Guide 
uctures/2010/2010_full_text_en.pdf 
http://www.acea.be/index.php/news/news_detail/acea_tax_guide_2010/  
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52007PC0052:EN:NOT  

European 

ACEA 

Union 

trends 

Tax 

and 

the 

the 

in 

9 

   EN 

                                                 
differences  in  national  excise  duties  on  diesel  fuel  by  filling  up  in  Member  States  with  the 
lowest  taxes,  sometimes  making  detours  (fuel  tourism)  which  are  prejudicial  to  the 
environment. Consequently, the Commission proposal aimed at narrowing these differentials 
and thereby reducing environmental damages. As far as private use is concerned, the proposal 
introduced the principle that non-commercial diesel and unleaded petrol should, in principle, 
be taxed at the same level and at least as high as commercial diesel.  

Based on the impact assessments and supporting studies, both proposals would contribute to 
the  reduction  of  CO2  emissions  from  passenger  cars  by  influencing  consumer  choice  and 
behaviour  via  the  costs  of  operating  a  vehicle.  However,  these  proposals  have  not  yet  been 
adopted.  

The  Commission  is  currently  considering  a  general  revision  of  the  Energy  Taxation 
Directive28 in the context of the Europe 2020 Strategy, that would support the EU's objectives 
to combat climate change and ensure a more sustainable and resource-efficient economy. 

In  2009  the  Commission  financed  an  external  study  on  the  taxation  of  company  cars29. 
Company  cars  (passenger  light-duty  vehicles)  account  for  roughly  50%  of  sales  of  new 
passenger cars in the EU. The study concluded that CO2 emissions are boosted by incentives 
to buy fuel and larger cars. The estimates in the report lay in the range of fuel consumption 
and  CO2  emissions  from  car  transport  increasing  by  4  to  8%.  The  study  concluded  that 
schemes for company car taxation implemented by Member States seem to work against the 
goal of reducing CO2 emissions from passenger cars and road transport. 

3.11.  Ecodriving 

In  2009  the  Commission  financed  an  external  study  on  the  Impact  of  Information  and 
Communication  Technologies  on  Energy  Efficiency  in  road  transport30  which  estimated 
potential savings of fuel via ICT based systems. The study examined three different types of 
systems  (eco-solutions,  advanced  driver  assistance  systems,  and  traffic  management 
solutions)  with  regards  to  their  impact  on  CO2  reduction.  ICT  enhanced  ecodriving 
demonstrated an energy saving potential of up to 15%. This could be achieved by providing 
the  driver  real  time  information  about  fuel  consumption,  energy-use  efficiency  and 
appropriate  gear  selection  together  with  additional  upcoming  preview  information  from 
enhanced  map  data  including  road  slope,  curvature  and  road  attributes  such  as  speed  limits 
and stop signs. The main barrier is the issue of driver compliance and thus high uncertainties 
regarding  actual  CO2  savings  which  might  be  overcome  by  systems  that  automatically 
implement  fuel  efficient  driving.  Other  promising  systems  are  "pay  as  you  drive"  schemes, 
platooning and advanced cruise control. 

Fuel-efficient driving, through the provision of driver training (eco-driving), is likely to have 
a positive impact on CO2 emission reductions in existing vehicles but the uncertainty of driver 
compliance  remains  an  important  barrier.  It  is  expected  that  the  fuel  efficient  driving  styles 
and patterns are likely to have a limited impact on emission reductions in the longer-term due 

28 
29 

30 

EN 

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32003L0096:EN:NOT  
COMPANY 
Environment 
http://ec.europa.eu/taxation_customs/resources/documents/taxation/gen_info/economic_analysis/tax_pa
pers/taxation_paper_22_en.pdf 
http://ec.europa.eu/information_society/activities/esafety/doc/studies/energy/energy_eff_study_final.pdf  

TAXATION: 

Subsidies, 

Welfare 

CAR 

and 

10 

   EN 

                                                 
to the deployment of advanced vehicle technologies. These new technologies are expected to 
increasingly  automate  eco-driving  techniques,  reducing  the  potential  benefits  of  operational 
measures.  For  example  the  current  generation  of  hybrid  vehicles  already  automate  gear 
changes, retrieve brake energy and prevent unnecessary idling, and tyre pressure monitoring 
systems which automatically warn drivers if tyres need to be inflated will become compulsory 
in the future. 

4. 

SUMMARY CONCLUSIONS 

The strategy presented in COM(2007)19 final aimed at reaching the Community objective of 
120  gCO2/km  by  2012  via  the  legislative  framework.  While  we  have  observed  significant 
decreases  in  the  average  CO2  emissions  from  new  passenger  cars,  especially  in  2008  and 
2009,  the  2012  goal  of  the  Strategy  is  unlikely  to  be  achieved.  It  is  clear  that  the  2009 
reductions of CO2 emissions are in part due to the economic crisis as well as the deployment 
of new technologies by vehicle manufacturers, and there is no guarantee that this year's strong 
decrease will continue once the economy recovers.  

Moreover,  as  set  out  in  section  3.1,  the  timeline  of  the  Strategy  was  amended  by  the 
European  Parliament  and  the  Council  during  the  co-decision  process  to  adopt  Regulation 
(EC) No 443/2009 by shifting the date of full entry into force of the Regulation to 2015, and 
including  a  2020  target.  The  timeline  going  beyond  2012  is  also  set  for  other  measures 
implementing the Strategy.  

The  Commission  expects 
in  Regulation 
(EC) No 443/2009 will be achieved and that the average specific CO2 emissions from the new 
light-duty fleet will fall substantially by 2015 due to the regulatory measures announced in the 
Strategy. 

targets  for  2012-2015  specified 

that 

the 

In  summary,  despite  a  low  probability  of  achieving  the  2012  target,  the  Strategy  and  its 
implementing measures have played an important role in driving decrease of CO2 emissions 
from light-duty vehicles. 

Table 3: Progress of implementation of the Strategy to reduce CO2 from light-duty vehicles 

Reaching 130 gCO2/km for new passenger cars 

Efficiency requirements for air-conditioning systems 

Fitting of accurate tyre pressure monitoring systems 

Tyre rolling resistance limits  

Gear shift indicators 

(cid:57) 

In progress 

(cid:57) 
(cid:57) 
(cid:57) 

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

In progress 

Increased use of biofuels 

(cid:57) 

EN 

11 

   EN 

Taxation 

Consumer information 

Ecodriving 

5. 

NEXT STEPS 

5.1.  MID-TERM ACTION 

Limited progress 

Limited progress 

Limited progress

The  Clean  and  Energy  Efficient  Vehicles  strategy31  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. 

5.2. 

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 

31 
32 

http://ec.europa.eu/enterprise/sectors/automotive/competitiveness-cars21/energy-efficient/index_en.htm  
COM(2010)265final http://ec.europa.eu/environment/climat/pdf/2010-05-26communication.pdf  

EN 

12 

   EN 

                                                 
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. 

33 

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

EN 

13 

   EN