Car emission talks reach ‘critical’ stage

Date: 28/05/1998

By Simon Coss

NEGOTIATIONS between the auto industry and the European Commission on reducing carbon dioxide emissions from cars have reached a "critical" stage, according to EU officials.

The governing board of Union carmakers' lobby ACEA will vote tomorrow (29 May) on whether to accept a provisional agreement on carbon dioxide (CO2) reductions struck between the organisation's officials and the Commission. The board's decision must be unanimous.

The central issue of the size of cuts to be made by the industry and by when appears to have been agreed. This follows the Commission's announcement in March that it regarded ACEA's offer to reduce average CO2 emissions to 140 grammes per kilometre by 2008 as a good basis for negotiations.

However, other important sticking points remain.

These include how many diesel-powered cars should be produced in future, what standards cars imported into the Union should be required to meet and what commitments the oil industry should make to ensure it produces cleaner fuels in future.

The Commission has also expressed concern that carmakers could be trying to reach their targets solely through improved technology rather than reducing the number of vehicles they build.

"I don't think there is any question about the 140 grammes per kilometre issue. The question is about these other conditions and assumptions," explained one Commission expert.

On the imports issue, both sides agree that it should not be too difficult to come to a satisfactory arrangement.

ACEA is adamant, however, that the question of fuel quality, particularly the rapid introduction of new 'clean burn' petrol, must also be resolved speedily. "Good fuels are necessary if we want to achieve the CO2 goals," explained one expert.

The car manufacturers argue that new, cleaner fuels will achieve 10-15% of the overall CO2 reduction target. "Everyone must arrive at an agreement on this issue. But from the point of view of industry it cannot be an agreement at any cost," said the ACEA's expert.

In theory, the Commission could impose a provisional deal on the car industry if the current negotiations collapse.

However, officials say that they would much prefer to continue pursuing the option of a mutually agreed solution.

The car lobby is extremely powerful in many member states and Environment Commissioner Ritt Bjerregaard would find it difficult to force a deal through the Council of Ministers if carmakers did not like it.

Bjerregaard is set to produce a progress report on the talks early next month.

See also p18.