Low emission car measures under the EU’s CO2 regulations for passenger cars

The way the 2020 target will be met is presently being considered by the European Parliament and Council following a Commission proposal in 2012. The Commission proposed to reintroduce a system of “supercredits”. Supercredits, which proponents say will encourage supply of ultra-low carbon vehicles, also allow carmakers to supply less fuel-efficient conventional cars, weakening the emission target. This paper outlines the potential effects of different proposals for supercredits on the 95g target to help inform policymakers. It is based upon the results of an independent analysis of the options by Ricardo-AEA.