Briefing

German manufacturers calling for weaker car fuel efficiency targets

July 10, 2012

In 2009, the EU set legally-binding targets for new cars to emit, on average, 130 grammes of CO2 per km by 2015 and 95g in 2020. Regulation (EC) No 443/2009 also requires the Commission to carry out a review of “…the modalities for reaching, by the year 2020, a long-term target of 95 g CO2/km in a cost-effective manner…” The outcomes of this review are expected in July and will include a formal proposal for average car CO2 emissions in 2020.

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The Regulation includes a mechanism to share the burden of emissions reductions between vehicle manufacturers. Manufacturers of predominantly larger (heavier) vehicles are allowed to produce cars with higher average CO₂ emissions per car than manufacturers of smaller (lighter) vehicles. The additional permitted allowance is currently the subject of intense lobbying by German producers of larger vehicles: Daimler, BMW and VW. This paper considers the issue and the implications of allowing more generous allowances for larger vehicles.

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