Reducing CO₂ emissions from passenger cars

Road transport is the second biggest source of greenhouse gas emissions in the EU, after power generation. It contributes about one-fifth of the EU's total emissions of carbon dioxide (CO2).

Road transport is one of the few sectors where emissions are still rising rapidly: between 1990 and 2008 emissions from road transport increased by 26%. This increase acted as a brake on the EU's progress in cutting overall emissions of greenhouse gases, which fell by 7%.

Passenger cars alone are responsible for around 12% of EU CO2 emissions. Although there have been significant improvements over recent years in vehicle technology – particularly in fuel efficiency, which translates into lower CO2 emissions – these have not been enough to neutralise the effect of increases in traffic and vehicle size.

The EU Regulation on passenger cars is the first main measure of the EU Strategy to reduce CO2 emissions from light-duty vehicles(cars and vans). Under the Regulation, average CO2 emissions from cars should not exceed 130 grams CO2 per km by 2015 and should drop further to 95g/km by 2020. The 130 grams target will be phased in between 2012 and 2015. It represents a reduction of 19% compared with the 2006 level (161.3 g CO2 per km).

This approach is similar to the legislation on CO2 emissions from light commercial vehicles (vans) adopted in 2011. Achieving these targets will help Member States reach the economy-wide reductions in greenhouse gases they have committed to deliver by 2020 under the climate and energy package.

Each manufacturer gets an individual annual target based on the average mass of all its new cars registered in the EU in a given year. As of 2012, manufacturers must ensure that 65% of the new cars registered in the EU each year have average emissions that are below their respective targets. The percentage rises to 75% in 2013, 80% in 2014 and 100% in 2015.

Indicative emissions are established for each car according to its mass on the basis of the emissions limit value curve in Annex I in the Regulation. The limit value curve is set in such a way that a fleet average of 130 grams of CO2 per km is achieved for the EU as a whole.

Only the fleet average is regulated, so manufacturers will still be able to make vehicles with emissions above their indicative targets if these are offset by other vehicles which are below their indicative targets.

In order to comply with the regulation, a manufacturer will have to ensure that the overall sales-weighted average of all its new cars does not exceed the limit value curve. The curve for passenger cars is also set in such a way that, compared to today, emissions from heavier cars will have to be reduced by more than those from lighter cars.

The precise formula for the limit value curve is:

Permitted specific emissions of CO₂ = 130 + a × (M – M0)

Where:

• M = mass in kg
• M0 = 1289.0
• a = 0.0457

Road transport is the second biggest source of greenhouse gas emissions in the EU, after power generation. It contributes about one-fifth of the EU's total emissions of carbon dioxide (CO2). Road transport is one of the few sectors where emissions are still rising rapidly: between 1990 and 2008 emissions from road transport increased by 26%. This increase acted as a brake on the EU's progress in cutting overall emissions of greenhouse gases, which fell by 7%. Passenger cars alone are responsible for around 12% of EU CO2 emissions. Although there have been significant improvements over recent years in vehicle technology – particularly in fuel efficiency, which translates into lower CO2 emissions – these have not been enough to neutralise the effect of increases in traffic and vehicle size.

The vans legislation is closely modelled on the legislation for cars. However, as the car market differs from the van market, there are some differences between the two regulations.

The limit value curve is different in its value and its slope because cars are lighter and emit less CO2 than vans. Therefore, the limit value curve is flatter for cars, meaning that more reductions are required from larger cars. This is not the case for vans, because there is little risk of an uncontrolled increase in the size of vans.

The phase-in period for vans also starts later than for cars because the light commercial vehicles regulation was adopted later. The rules on derogations for small-volume manufacturers are also different.

The chart below shows the actual position of the various car manufacturers in terms of the average CO2 emissions of the new cars they manufactured in 2006 (the year on which the Regulation's impact assessment was based).

The up-to-date information on average CO2 emissions of different manufacturers is available in a publicly accessible database [10.85 MB].

The relevant national authorities in each Member State will report annual registration figures for new cars to the European Commission, which will collate the data. Manufacturers will be invited to check that the data is correct. On that basis the Commission will publish, by 31 October each year, a list showing the performance of each manufacturer in terms of its average emissions and compliance with the annual emissions target. This will allow manufacturers' progress to be tracked. The data can be found in a publicly accessible database [10.85 MB].

Super-credits

Manufacturers which produce cars with extremely low emissions (below 50g/km) will be given extra incentives in the first few years. When calculating the average emissions of each manufacturer's fleet, each low-emitting car will be counted as 3.5 vehicles in 2012 and 2013, reducing to 2.5 in 2014, 1.5 vehicles in 2015 and one vehicle from 2016. This will lower the manufacturer's average emissions as calculated by the Commission, making it easier to meet the target.

Eco-innovations

Because the test procedure used for EU vehicle type approval is outdated, certain innovative technologies cannot demonstrate their CO2-reducing effects under the type approval test. As an interim procedure until the test procedure is revised, manufacturers which fit new cars with approved "eco-innovations" that reduce emissions will be able to count up to 7 g/km worth of emission savings towards the 130 g/km target. The savings must be independently verified. See also: eco-innovations.

Alternative fuel vehicles

Vehicles capable of running on E85 fuel (a mixture of petrol with 85% ethanol) will be considered, until the end of 2015, as having CO2 emissions 5% lower than the level  reported by the Member States provided that 30% of the filling stations in the Member State where the vehicle is registered offer this type of fuel. The fuel must comply with the sustainability criteria set by other legislation.

Manufacturers may form a pool to meet the specific emissions targets jointly. When forming a pool, manufacturers must respect the rules of competition law: the information they exchange should be limited to average specific emissions of CO2, their specific emissions targets, and their total number of vehicles registered.

In addition, manufacturers which sell fewer than 10,000 cars per year and which cannot or do not wish to join a pool can instead apply to the Commission for an individual target. Manufacturers selling between 10,000 and 300,000 cars per year can apply for a fixed target of a 25% reduction from their 2007 average emissions.

Cars are expected to become more fuel-efficient as a result of new investments and technologies. This will lead to fuel cost savings for users.

It is not certain that the cost of meeting the new targets for cars will be passed on by manufacturers to buyers. However, even if the purchase price of vehicles rises slightly, this will be more than compensated for by fuel savings over the vehicle's lifetime.

No, the emissions targets apply only to new cars. Cars registered before 2012 will not be affected. The lower fuel consumption of new cars may however provide a powerful incentive for replacing older cars by newer ones.

Yes. The Commission has a comprehensive strategy, adopted in 2007, which sets the objective of limiting average CO2 emissions from new vehicles to 120 g/km. This is to be achieved through setting emissions performance standards for cars and vans and through additional measures that can bring a further reduction of 10 grams CO2 per km.

Furthermore, to promote the purchase of fuel-efficient cars, an EU-wide system of consumer information on the CO2 emissions of all new cars is in operation.

Member States are also encouraged to promote fuel-efficient cars through their vehicle taxation policies.

Besides the regulation limiting CO2 emissions from new passenger cars, which was adopted in April 2009, the measures being taken to implement the strategy are:

• EU legislation to reduce CO2 emissions from new light commercial vehicles (adopted in May 2011)
• Improvements to car components with the highest impact on fuel consumption, such as:
  • standards on rolling resistance of tyres,
  • standards on the efficiency of mobile air conditioning,
  • on-board indicators incentivising more efficient driving,
  • gradual reduction in the carbon content of road fuels, notably through increased use of sustainably produced biofuels.

For more details on the implementation of the Strategy, see the progress report adopted in November 2010.

The Regulation on cars is directly applicable in the Member States and does not need to be transposed into national law through national legal instruments.

The Commission is currently conducting a study on how to reach the 2020 target of 95 g/km, and will present a proposal by 2013.