EC Proposes Regulation to Reduce CO2 Emissions from Vans
October 29, 2009 // Published as a news service by IHS
The European Commission (EC) proposed legislation to reduce the average carbon dioxide (CO2) emissions of light commercial vehicles (LCVs, or vans) to 175 grams per kilometer (g/km) of CO2.
The Oct. 28 proposal, which will be phased in between 2014 and 2016, also contains a long-term emission reduction target of 135 g/km by 2020.
The format of the proposed legislation is similar to the proposal on passenger car CO2 emissions that was agreed upon at the end of 2008.
The new proposal is one of the last outstanding elements of the European Union (EU) strategy to improve the fuel economy of light-duty vehicles, which account for about 12% of the EU's total CO2 emissions.
The proposal underlines the EU's commitment to putting in place concrete measures to deliver on its greenhouse gas reduction commitments in the run-up to the Copenhagen climate change conference.
"This legislation is another important step for the EU in combating climate change and reaffirms the EU's commitment and leadership ahead of the Copenhagen conference," said Stavros Dimas, EC environment commissioner.
"As well as ensuring the vans sector make a fair contribution to efforts to tackle climate change, it will also generate important fuel-savings for consumers and stimulate innovation in industry, which will enable them to take full advantage of the transition to a low-carbon economy."
The EC's proposal now goes to the European Council and the European Parliament as part of the co-decision legislative procedure.
How Legislation Will Work
The draft legislation is closely modeled on the legislation regarding CO2 emissions from passenger cars - Regulation (EC) No 443/2009 - and provides for average CO2 emissions from new vans to be reduced to 175 g/km.This will be phased in from 2014 to 2016. For the long term, it provides for average emission to be reduced to 135 g/km by 2020.
Emissions limits are set according to the weight of the vehicle, using a limit value curve. The curve is set in such a way that a fleet average of 175 g/km is achieved. Manufacturers must ensure that, as of 2014, vehicles registered in the EU during that time have average emissions that are below the limit value curve, taking into account 75% of the vehicles.
For the calendar year 2015, the percentage rises to 80%; from 2016, 100% of the fleet have to comply on average. Only the fleet average is regulated, so manufacturers will still be able to make vehicles with emissions above the limit value curve, provided these are balanced by other vehicles that are below the curve.
Affected Vehicles
The vehicles affected by the legislation are vans, which account for around 12% of the market for light-duty vehicles.
This includes vehicles used to carry goods weighing up to 3.5 tons (vans and car-derived vans, known as N1) and weighing less than 2,610 kilograms when empty.
The progress of manufacturers will be monitored each year by EU member states on the basis of new vehicle registration data.
Penalties for Manufacturers
The proposal provides manufacturers with an incentive to reduce CO2 emissions through an excess emissions premium to be paid if average emission levels exceed the limit value curve.
This premium will be based on the number of grams of CO2 per kilometer that the manufacturer's registered vehicles are above the curve, on average, multiplied by the number of vehicles.
In the initial period until 2018, the level of the premium will be €5 for the first g/km above the curve, €15 for the second g/km, €25 for the third and €120 for every further g/km exceeding the limit value curve.
Starting in 2019, the first g/km will cost €120 per vehicle. This value is higher than the one for cars (€95) because of the differences in compliance costs. Manufacturers are expected to meet the target set by the legislation, so significant penalties should be avoided.
Competitiveness Through Flexibility
The EC's new proposal aims to safeguard Europe's competitiveness by stimulating the development of cutting-edge automotive technologies. In order to promote all innovations, a mechanism is included to credit vehicles that are fitted with innovations that reduce emissions but are not covered by the standard CO2 emission test procedure.
Further vehicles with extremely low emissions (below 50 g/km) will be given additional incentives up to 2018.
A degree of flexibility is also built into the proposal. Manufacturers may group together to form a pool and act jointly in meeting the specific emissions targets. Independent manufacturers who sell fewer than 22,000 vehicles per year can also apply to the EC for an individual target instead.
Further Information
For more information, see the EC's MEMO/09/485, Questions and answers on the proposed regulation to reduce CO2 emissions from light commercial vehicles and the EC's web site, Regulation on CO2 from light commercial vehicles.
Source: European Commission (EC).