Europe inches towards CO2 deal

By Tim Pollard

Motor Industry

24 November 2008 17:29

The European Union is close to agreement on a radically lower CO2 limit to apply to all new cars, diplomats indicated today.

The EU’s 27 governments are set to agree a Europe-wide limit of 130g/km as a new-car average by 2015, according to sources in Brussels. The deal is likely to start from 2012, with full compliance three years later.

But there is still significant lobbying from different member states. French diplomats are proposing a stepped phase-in, from 65% compliance in 2012, to three-quarters by 2013, then the full 130g/km by 2015. Ironically, this would benefit German brands (who produce big, heavy cars) more than French car makers.

A full agreement is likely this week, our sources suggest. That’s when we’ll find out the small print – and how manufacturers will be penalised for not meeting the 130g/km average.

Radical cuts in CO2 emissions are just another straw on the industry’s back – and Europe is planning even further cuts to around 95g/km by 2020

By Tim Pollard