European Automakers Not On-Track to Meet Voluntary CO₂ Reductions

12 May 2005

The Financial Times reports that Europe’s carmakers improved fuel efficiency last year at only half the rate required to meet the targets for reduced emissions of carbon dioxide promised to the European Commission.

Provisional figures for CO₂ emissions from new cars show the European industry produced an average efficiency of 160 grams per kilometre last year, down only 1.8 per cent on the previous year. To meet the target of 140 g/km by 2008 the carmakers need an annual rate of improvement of 3.3 per cent, suggesting they may have to accelerate the introduction of expensive new technologies to boost fuel efficiency.

Ivan Hodac, secretary general of the European Association of Automobile Manufacturers (ACEA) said: “It is correct that more efforts will have to be made. The road ahead is difficult. But there is absolutely no reason to conclude today that we will not reach the target.”

The Commission has made clear it will consider tighter constraints on carmakers if the voluntary goal is missed, to ensure greenhouse gas emissions are reduced.

To meet the target, manufacturers are relying on new technologies and on persuading customers to choose smaller cars, which use less fuel. Heavy investment is going into making small cars more attractive, while Toyota’s Aygo and BMW’s 1-Series were both launched in part to help meet the target. But small vehicles tend to be less profitable.

Talks are due to start later this year between carmakers and the Commission about the follow-on to the 2008 target. The Commission had pencilled in a 2012 goal of 120 g/km, but manufacturers say this cannot be met through technical means, only by forcing customers to buy small cars.

Canada recently reached a voluntary agreement with automakers for a reduction of CO₂ emissions in new cars sold in that country. (Earlier post.)