Explanatory Memorandum to COM(2012)393 - Modalities for reaching the 2020 target to reduce CO2 emissions from new passenger cars - Main contents
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| dossier | COM(2012)393 - Modalities for reaching the 2020 target to reduce CO2 emissions from new passenger cars. |
|---|---|
| source | COM(2012)393  |
| date | 11-07-2012 |
· General context
The EU has a stated objective of limiting global climate change to a temperature increase of 2ºC above pre-industrial levels. To achieve this, global emissions need to peak by 2020 and be reduced by at least 50% globally by 2050 compared to 1990. The European Council reconfirmed the EU target of an 80-95% reduction by 2050 compared to 1990 in the context of the necessary reductions by developed countries as a group.
Current policies would only lead to about a 40% GHG ("GHG") emission reduction by 2050. The Commission Roadmap for moving to a competitive low carbon economy in 2050[1] sets out how to meet the 2050 target of reducing domestic emissions by 80% in the most cost-effective way. The Roadmap shows that every sector of the economy must contribute and, depending on the scenario, compared to 1990 transport emissions need to be between +20 and -9% by 2030 and decrease by 54% to 67% by 2050[2].
While emissions from other sectors are generally falling road transport is one of the few sectors where emissions have risen rapidly. Between 1990 and 2008 emissions from road transport increased by 26%. In 2008 around 70% of transport CO2 emissions came from road transport[3]. As a result, it is the second biggest source of GHG emissions in the EU, and contributes about one-fifth of the EU's total emissions of CO2.
In March 2011 the Commission adopted the 'Roadmap to a Single European Transport Area – Towards a competitive and resource efficient transport system'. It sets out a transport strategy within a frame of achieving a 60% reduction in transport GHG emissions by 2050.
· The Regulation
Regulation (EC) 443/2009 sets the CO2 reduction framework for the new car fleet to 2020. The Regulation has a two-step operation. In the first period to 2015 the modalities of compliance with the target have been established. For the second period to 2020 the target cannot become effective without implementing the necessary modalities, which are to be determined in a review. This target was established in the co-decision process and is not reconsidered in the review.
Failure to determine or implement the modalities would have a detrimental effect on vehicle manufacturers and parts suppliers who need certainty with regard to the technology and vehicles that will be needed to meet the target.
Modalities are aspects of the implementation which impact on how the emission target is achieved. Key modalities in the current Regulation include the limit value curve which is defined by the utility parameter and the function describing the relationship between the utility parameter and CO2 emissions (setting the shape and slope). Other modalities include the excess emissions premium scheme, eco-innovations, derogations, pooling, the phasing-in of the targets and granting of super-credits for a limited period of time.
2. INTERESTED PARTIES' CONSULTATION AND IMPACT ASSESSMENT
Consultations with interested parties
· External expertise
An external study: Support for the revision of Regulation (EC) 443/2009 on CO2 emissions from cars i has provided the main analysis underlying this proposal. It includes an evaluation of different modalities and assesses their costs. The PRIMES-TREMOVE model has been used to assess the overall impacts of the 2020 targets.
· Consultation of interested parties
Stakeholders have been formally consulted through an online questionnaire and through a stakeholder meeting. Input from stakeholders has been taken into account in assessing the different possible options to regulate CO2 emissions from cars.
– Public consultation
An on-line public consultation was carried out in autumn 2011. Overall the responses give a generally clear message that regulating vehicle emissions is important, should be carried out in line with long term GHG goals, be based on new vehicle average emissions and be technologically neutral. Opinion was highly divided on whether the current legislation is working well. The main reason appears to be that many think that the current legislation is not sufficiently robust. There is strong support for setting targets beyond 2020, regardless of other measures that may be implemented. The results of the public consultation have been summarised and published[5].
– Stakeholder meeting
A stakeholder meeting was held on 6 December 2011. The completed study was presented and presentations from the meeting along with a summary of the discussion have been published[6]. Participants did not express any substantial disagreement with the analysis presented; NGOs argued that since costs are lower than had previously been thought, the targets should be tightened.
Impact assessment
A joint impact assessment supporting the current proposal and an equivalent proposal to amend Regulation (EU) No 510/2011 has been prepared. A broad approach has been taken to identifying policy options which covers issues raised in the legislation, those arising with implementation and those assessed in the studies analysing possible approaches to improve the legislation's effectiveness. The following aspects were analysed:
a) Do nothing option;
b) Modalities of meeting the car target;
c) Simplification and reduction of administrative burden;
d) Adaptation to the new test cycle;
e) Form and stringency of legislation beyond 2020.
Based on an analysis of their economic, environmental and social impacts the impact assessment reached the following conclusions:
· The utility parameter should continue to be mass for cars; the limit value curve should continue to be linear.
· The evidence indicates that the slope of the curve should be set at a relatively low level to reduce market distortions.
· The Excess Emissions Premium should be maintained at €95 per g/km per vehicle.
· The Regulation should be updated to bring it into line with the Lisbon Treaty.
· The derogation procedure should be simplified by introduction of a de-minimis exclusion for the smallest manufacturers from the obligation of having a CO2 target. In addition, more flexibility regarding the date of granting small volume derogations should be allowed.
The EU has already acted in this area when it adopted Regulation (EC) 443/2009 based upon the environment chapter of the Treaty. The single market also provides grounds to act at EU level rather than at Member State level so as to ensure common requirements across the EU and thus minimise costs for manufacturers.
The adoption of the proposal will not lead to the repeal of existing legislation.
Summary of the proposed action
The proposal amends the Regulation to implement the modalities of meeting the 95 gCO2/km target for new passenger cars to be reached in 2020. The main modalities implemented are as follows:
– The utility parameter continues to be the vehicle's mass in running order.
– The limit value curve remains linear with a slope of 60% compared to the baseline fleet which is kept as the 2006 fleet in line with the 2015 limit value curve.
– Super-credits for cars emitting below 35 gCO2/km are introduced between 2020 and 2023 with a multiplier of 1.3 and limited to a cumulative figure of 20 000 vehicles per manufacturers over the duration of the scheme.
– The 'niche' derogation target is updated for 2020.
– Manufacturers responsible for less than 500 registrations of new passenger cars per year are excluded from the obligation of having a CO2 target.
– More flexibility is allowed in the timing of decisions granting small volume derogations.
– Eco-innovations are retained when a revised test procedure is implemented.
– The Excess Emissions Premium is maintained at €95 per g/km per vehicle.
– The Committee procedure provisions are updated to be compatible with the Lisbon Treaty.
As industry benefits from indications of the regulatory regime that would apply beyond 2020, the proposal includes a further review to take place by, at the latest, 31 December 2014.
The proposal does not require additional financial resources.
5. OPTIONAL ELEMENTS
· Review/revision/sunset clause
The proposal includes a review clause.
· European Economic Area
The proposed act concerns an EEA matter and should therefore extend to the European Economic Area.