Cost of ambitious new car CO2 targets well below previous estimate – ICCT

The cost of introducing ambitious CO2 reduction targets for cars by 2025 is much less than previously estimated, according to preliminary figures released by research group the ICCT. Cutting car CO2 to around 75g of CO2 per km is estimated to cost around €600 extra per vehicle beyond the agreed 95g/km 2021 target.

Motorists would therefor be paid back for their extra investment within a few years, the ICCT said. The figures do not allow for electric vehicles and hybrids making up a large share of sales in 2025, which would make it easier for carmakers to reduce the average emissions of their fleets and meet EU targets.

‘The ICCT study shows industry claims that more fuel efficient cars are unaffordable is scaremongering,’ said T&E’s clean vehicles director Greg Archer. ‘2025 car standards will save drivers money within a few years and reduce CO2 emissions.’

Last year a German study claimed costs of €4,000 would be incurred.

The EU will need ambitious CO2 reduction standards for cars along with the introduction of targets for trucks if the EU is to meet its 2030 climate goals. The two measures would alone result in road transport CO2 savings of 17.4% on 2005 levels by 2030, according to a separate study released by the ICCT this month.

Along with new CO2 targets for cars and trucks, tightened car testing rules and a speedier transition to electric vehicles, support for advanced biofuels and higher fuel taxes could reduce CO2 emissions by 24% below the 2005 baseline by 2030, the study found. The EU is widely expected to propose new standards for trucks, along with updated standards for cars, in its ‘Decarbonisation of Transport’ communication set to be published in July.

Carlos Calvo Ambel, T&E transport and energy analyst, said: ‘Action to improve the efficiency of new cars, vans and trucks, improved tests and EU-wide action to accelerate the shift to electric mobility offers Europe’s best hope of cutting its carbon emissions in line with its climate commitments. At the same time these steps will deliver economic benefit from lower spending on oil imports, create jobs and lower bills for drivers and hauliers. It’s a big win-win.’