Japanese relent over car exhaust levels

Date: 03/06/1999

By Renée Cordes

JAPANESE carmakers have bowed to EU pressure and agreed to cut carbon dioxide emissions from exhaust fumes after several months of tough negotiations with European Commission officials.

The voluntary deal has averted the threat of binding EU legislation to govern emissions from cars used in the Union.

Under the terms of the new deal, the Japan Automobile Manufacturers' Association (JAMA) has promised to match last year's commitment made by European automakers to reduce emissions. The accord is set to be approved by the full Commission next Wednesday (9 June) and by EU environment ministers at the end of this month.

JAMA spokesman Darcy Nicolle, whose 13 members account for about 11% of the EU market according to the most recent figures, described the new target as "very ambitious".

JAMA has promised to set an overall emissions reductions target under the agreement, but says it will work out precise details later. "It will take a bit of time," added Nicolle.

The accord is a key part of the EU's strategy for meeting the commitment it made at the 1997 Kyoto climate change conference to reduce emissions of six greenhouse gases by 8% by 2012 at the latest.

Last year, the European Automobile Manufacturers Association agreed to cut average fuel consumption to about six litres per 100 kilometres by 2008. This would effectively trim carbon dioxide emissions from more than 180 to 140 grammes per kilometre.

While Japanese carmakers say such reductions are feasible, their Korean counterparts have staunchly resisted signing a voluntary agreement, claiming that they should be given greater leeway because they lack clean-energy technology and have only about 5% of the EU market.

Commission officials say they will consider coming forward with proposals for legislation to force Korea to reduce emissions, although this will most certainly not happen until after the new Commission takes office this autumn.

The Commission is also discussing possible voluntary accords on boosting energy efficiency with several other industry groups.

Although the Japanese were initially reluctant to reach agreement on CO2 emissions, they finally fell into line because of the looming threat of mandatory legislation.

The accord comes just months before the current agreement on import quotas for Japanese cars expires, and as car-makers step up their efforts to grab market share from their European rivals.

Some manufacturers, such as Nissan and Honda, already have production plants in EU member states which cut costs and circumvent quotas. Last year, JAMA members built more than a million cars in the EU for the first time ever, more than triple the figure in 1991.