Deal casts doubt on Auto-Oil II talks

Date: 02/07/1998

By Simon Coss

THIS week's agreement between EU governments and MEPs to introduce compulsory rules to reduce pollution from cars by 2005 has left the European Commission unsure how to proceed with its 'Auto-Oil' programme.

When it unveiled the Auto-Oil package of proposed anti-pollution measures two years ago, the Commission envisaged a two-stage process for reducing road transport emissions by 60-70&percent; by the year 2010.

The first step in this process was to agree on a series of measures to come into force by the year 2000.

This was then to be followed up by a further round of negotiations - Auto-Oil II - involving the Commission, the car and oil industries and other interested 'stakeholders' such as environmental groups. These would build on the initial accord and set out tougher limits for 2005.

But the deal struck this week in conciliation talks between the Council of Ministers and the European Parliament on the original Auto-Oil plans has made the proposed second stage of talks appear somewhat redundant.

As MEPs and governments have already agreed on binding car emission and fuel quality standards for 2005, Commission officials are now left with the problem of deciding what to do about Auto-Oil II.

“It is hard to say what will happen now. A process will continue but it is hard to say exactly how it will work,” admitted one.

While at first glance the agreement struck in the conciliation talks appears to be a ringing endorsement of the Commission's programme, going further in less time than it could have dared to hope, experts say it is not that simple.

“Partly there is a sense of great achievement here, but there is also a sense of disappointment. We had envisaged an Auto-Oil II programme and who is to say it would not have come up with even tougher measures than those agreed in conciliation?” asked one official.

It does seem likely that talks will continue in some form or other. The Auto-Oil II 'process' is already under way, with future meetings between the interested parties pencilled in.

However, it is unclear what will now be discussed. The Commission does have to address a number of relatively minor issues before the end of 1999, but most of the major subjects have been covered by this week's conciliation deal.

One possibility is that the talks could begin to look at more long-term air pollution problems, such as reducing emissions from factories and power stations. “The intention was always to make an assessment of these other sources,” said one Auto-Oil insider.

Meanwhile, the deal struck this week has met with a lukewarm response from both the Union's oil and car industries.

EU carmakers' lobby ACEA is unhappy with the fuel quality aspects of the agreement. Under the deal, diesel and petrol sold within the Union after 2005 will have to contain no more than 50 parts per million (ppm) of sulphur - less than one-third of the current limit.

ACEA had called for a 30 ppm ceiling, arguing that carmakers would find it hard to reduce carbon dioxide emissions unless 'cleaner' fuels were introduced.

Oil lobby Europia claims that, for “political” reasons, the conciliation committee went further than it needed to.