EU to fine high-emitting car makers

Wednesday, December 19, 2007

EU agrees 2012 proposals
130g/km of CO2 demanded
Fines for any higher-emitting cars

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The European Union has proposed that car makers who fail to meet carbon dioxide reduction targets by 2012 will be fined.

Under the scheme, for every gram of CO2 that a car manufacturer emits over the 130g/km target, it will be fined 30 Euros (£14.35) from 2012. This will grow to 95 Euros (£58.90) per gram in 2015.

The fines will be based on the average emissions of each manufacturer's total sales, rather than each individual car. However, every manufacturer currently exceeds the proposed 130g/km limit.

Estimates suggest car makers could be liable for fines of around £9 billion a year if the proposals are given the go-ahead, with a significant proportion of the costs being passed on to car buyers.

That could mean buyers of Mercedes or BMWs are charged up to £2500 more than at present.

BMW said the proposals were 'naive steps' that would distort the market in favour of makers of smaller cars.

A Peugeot spokesman said: 'These plans are anti-ecological, anti-social, anti-economical and anti-competitive in relation to non-European Union car makers.'

However, the EU has given makers of bigger cars the option of pooling their sales with other car companies making lower-emitting cars.

In addition, fuel and car-part manufacturers have been asked to step up their research into areas such as gearboxes, air-conditioning systems and biofuels.

The proposals need to be ratified by the member nations of the EU before they can come into effect.