Reducing CO2 Emissions From New Cars

The aim of this report is to discuss the need for policy instruments that can help Europe reduce the specific CO₂ emissions (per km) from new passenger cars. It includes an analysis of the results of the 1998 voluntary agreement between the European Commission and the motor industry on CO₂ emissions from new cars.

Europe may in future make use of high energy and carbon taxes or a cap and trade system that covers carbon emissions from all sectors of society. In such a situation it does not necessarily follow that a supplementary tool that affects the specific emis- sions of new cars should be introduced. The next section of this report explains why this is something that the Council and the European Parliament should nevertheless contemplate.