EUPolicies: Reducing emissionsSingling out the car industry to achieve the EU Kyoto targets will neither help the economy nor the environment, writes Ivan Hodac
The challenges of climate change and the most appropriate way to reduce CO2 emissions from cars will prove to be a key dossier for Europe and for the European automotive industry for many years to come. Much is at stake and the consequences of political decisions to be taken in the coming months have to be weighted carefully.
There should be no doubt on the matter: the European automobile industry has an unwavering commitment to the reduction of carbon emissions.
However, improved vehicle technology alone cannot do the job even though CO2 emissions from new cars have decreased significantly over the past decade. In fact, the majority of emissions are now caused by an ageing car fleet on Europe's roads, growing congestion, a lack of traffic management and an increase in kilometres driven. Therefore, a strategy to reduce emissions from cars should affect all factors and actors involved.
The voluntary commitment the car industry signed in 1998 to help the EU meet its Kyoto targets holds important findings to be used in designing any future policy on car regulations and CO2. Between 1995 and 2005, the industry's commitment has decreased emissions from new cars by over 13 per cent, through vehicle technology only.
On average, CO2 emissions from new cars have decreased from 185 to 160 grammes per kilometre, a reduction of 25 grammes. One-third of all European cars leaving the factories today emit fewer than 140 grammes. Every year, more than one million cars are put on the market that emit 120 grammes or less.
This result is impressive but could have been even better. In reality, the gross reduction achieved by the automotive industry between 1995 and 2005 is nearly 40 grammes. But conflicting EU regulations, a weak demand for fuel-efficiency and a consumer preference for larger and safer cars have offset a significant portion of this achievement. These external factors need to be taken into account when assessing the car industry's achievements, as was agreed in the terms of the 1998 commitment.
More importantly, the new policy framework currently under consideration by the EU institutions needs to be realistic and pragmatic. A co-ordinated effort on EU level to shape consumer demand has never materialised. Now it is time to deliver, by implementing a harmonised CO2 related taxation scheme for cars and for alternative fuels.
A one-sided, vehicle technology focused approach will not only fail to do enough for the environment, it is bound to have severe consequences for employment levels in the EU. Independent studies, commissioned by the European Commission, have found that reducing CO2 emissions through vehicle technology is up to 10 times more expensive than other measures, such as an increasing use of biofuels, better infrastructure, traffic management and adopting adequate driving styles or "eco-driving". These studies warn that a focus on vehicle technology puts car manufacturing in the EU at risk, because of the prohibitive rise in production costs.
A future policy framework should take into account what is technologically possible, cost-effective and affordable for the consumer - both in the short and in the longer term. The European motor industry constitutes one of the most stable pillars of the EU economy. It provides direct employment to over two million people and supports the jobs of 10 million others in the EU. The industry invests € 20 billion - 4 per cent of turnover - per year in research and development. Ireland is not an automobile producer, but thanks to the presence of some important suppliers, the Irish connection with the automotive sector is stronger than many think.
PRESERVING THE ENVIRONMENT has a high priority for the industry. The European car manufacturers are world leaders in many fields of expertise. Car noise and polluting levels have been decreased by over 90 per cent. Over the past decade, over 50 new, CO2 cutting technologies were introduced, and the European manufacturers build the best and the cleanest diesel engines in the world.
The CO2 performance of diesel cars is hard to beat, even in city traffic, and their fuel-economy has been instrumental to the outstanding CO2-performance of European brands.
Further reducing CO2 emissions through technological measures is a complex endeavour. There is no such thing as "one solution". In the short term, progress will involve many incremental steps in engine technology, aerodynamics, tyre material and reducing weight.
Of course, longer-term solutions are also on the way. Especially hydrogen and fuel cell engines are likely to deliver significant results on the longer term.
Still, significant further CO2 reductions are only possible if all relevant parties become involved: the car industry, fuel providers, policy makers and car users. Therefore, the future EU strategy to reduce CO2 emissions from cars should include infrastructure adjustments and biofuels to their full extent; and ought to address the obvious "demand" challenge - the fact that cars are bought and driven by consumers - by including eco-driving and CO2-related taxation. Such a policy framework will benefit the environment and will strengthen the automotive industry, not force the sector out of Europe.
Ivan Hodac is secretary general of ACEA, the European Automobile Manufacturers' Association, in Brussels. The ACEA members are BMW Group, DAF Trucks, DaimlerChrysler, Fiat, Ford of Europe, General Motors Europe, Man Nutzfahrzeuge, Porsche, PSA Peugeot Citroën, Renault, Scania, Volkswagen and Volvo