German Environment Minister Proposes Automakers Buy Carbon Offsets

7 September 2005

German environment minister Jürgen Trittin has proposed that should automakers fail to meet targeted reduction of CO₂ from new cars they should contribute to a fund to purchase CDM (Clean Development Mechanism) certificates to finance emission reduction projects in developing counties.

Trittin floated the proposal in a letter to the president of the German Association of the Automotive Industry (VDA), but extended the reach of the concept to all European manufacturers and importers.

European automakers have committed to a voluntary target of 120 g/km CO₂ emitted from new cars by 2012, which would correspond to an average fuel consumption of some 4.9 liters/100km (48 mpg US).

The minister’s proposal comes in response to the VDA’s recent acknowledgement of responsibility for taking action to address climate change issues, but rejection of upper limits on fuel consumption.