EU delays decision on 95g/km CO2 limit after lobbying from Germany

EU delays decision on 95g/km CO2 limit after lobbying from Germany

EU governments have delayed for a third time a target to cut average CO2 emissions from Europe’s new-car fleet to 95 grams per kilometer after lobbying from Germany on behalf of its automakers.

At a meeting of EU member states on Friday, Germany’s call to delay a vote on the limit was backed by Britain, the Czech Republic, Hungary, Poland and Slovakia, EU sources said on condition of anonymity.

German Chancellor Angela Merkel’s government aims to water down a deal agreed in June to cut average emissions of new cars sold in the EU to 95g/km by 2020 from about 130/g/km now. The 95g/km target is equivalent to fuel use of 4 liters per 100km (59 U.S. mpg/71 UK mpg).

An EU source said governments want more time to consider a German plan for a phase-in period. Under the German proposal the 95g/km limit would apply to 80 percent of cars produced in 2020, rising by 5 percentage points each year to reach full implementation only in 2024.

Greg Archer, clean vehicles manager of Transport & Environment, said in a statement that Germany’s attempts to change the 95g/km target was intended “to give a competitive advantage to BMW and Daimler, who already receive much higher targets than mainstream carmakers.”

Lithuania, holder of the EU presidency, said on Friday that the issue had been deferred for a debate and possible vote at a council of environment ministers in Luxembourg on Oct. 14.

A target to reduce average CO2 emissions from commercial vans to 147g/km by 2020 was endorsed on Friday, meaning the proposal is ready to be rubber-stamped by EU ministers before becoming law.

The European suppliers association CLEPA is backing both targets for cars and vans. “The targets are the best compromise between costs and CO2 emission reductions and they will help strengthen the competitive advantage of the European automotive industry,” said Jean Marc Gales, CLEPA CEO.

“Smart regulation would bring about safer, greener and more interconnected cars that would reinforce the European technological leadership,” Gales said in a statement.

Last month, EU sources said Renault and PSA/Peugeot-Citroen, under pressure from their German automaker partners, have reversed their stance and now support a phase-in period for the 95g/km limit for cars.

Renault and PSA stand to gain competitive advantage from tougher CO2 limits because they sell mostly small cars that have lower emissions than the larger vehicles sold by Germany’s premium brands.

Renault has an industrial alliance with Daimler while BMW has an engine tie-up with PSA. The two automakers have been pressured by their partners to adopt a common stance on CO2, according to EU diplomatic sources.