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DfT considers EC proposal for CO2 regulation of new cars

July 14, 2008

The Department for Transport (DfT) is consulting on the European Commission’s (EC’s) proposal for a Regulation concerning the carbon dioxide emissions of new cars. The objective behind the EC’s proposal is to encourage manufacturers to produce greener, more fuel-efficient vehicles.

The EC is seeking an emission target of 130g of carbon dioxide per kilometre by 2012. Such a target would be expected to bring about annual savings in carbon dioxide emissions of more than six million tonnes per year by 2020. The UK, however, would like to see a longer-term target adopted of 100g/km of carbon dioxide by 2020. The UK’s proposal would generate an additional saving of five million tonnes of carbon dioxide by 2020.

In the UK’s target, there is the potential to reduce emissions from new cars by about 40% over the next 12 years. By 2020, consumers buying new vehicles could find their running costs reduced by fuel efficiency — a significant consideration in view of rising fuel prices.

The Government sets out its view on the proposed regulation in the consultation document. It strongly supports a move to mandatory carbon dioxide targets and also endorses the EC’s approach as regards setting targets for individual manufacturers. The aim is to avoid distortions leading to unfair competition — included in the proposals, for example, are derogations for manufacturers who only sell cars in small volumes.

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