• France heads CO2 coalition to defend smaller cars

    France is heading a coalition of EU nations threatening to veto any Commission proposals for reducing carbon dioxide emissions from new cars if they penalise smaller cars.

    [mailchimp_signup][/mailchimp_signup]In a growing difference of opinion between France and Germany, the French environment minister Jean-Louis Borloo told the Financial Times: ‘By virtue of the polluter pays principle, those with the biggest pollution should make the biggest progress.’

    The European news service Ends Daily said the message was reinforced by France’s president Nicolas Sarkozy in a letter to Germany’s commissioner Günter Verheugen, who as enterprise commissioner has been accused of favouring German car makers despite the requirement of his position for neutrality on national grounds.

    Borloo said France has the support of Italy, Spain, Romania and Slovenia for its stance, which is also supported by T&E. ‘Any EU regulation that constrains small vehicles, on which margins are very weak today, would evidently not encourage their development or commercialisation,’ he said.

    In February, the Commission published its proposals for the EU’s first mandatory targets for average emissions from new cars, and the draft legislation that follows the consultation process is expected later this month.

    • Portugal has brought back to EU discussion the idea that member states should be obliged to base at least half their national car taxation on CO2. The idea was proposed by the EC in 2005, but disappeared from debate when ministers showed little interest. Last month several EU finance ministers again expressed opposition, and as the measure needs all 27 states to approve it, it is effectively dead.

    This news story is taken from the December 2007 edition of T&E Bulletin.