Massive challenges for both industry and politicians

Date: 24/03/05

Two MEPs discuss where to strike the balance between the car industry and the environment

Europe has a responsibility to produce a good regulatory framework for cleaner cars, says Dorette Corbey

The environmental performance of cars has been improved dramatically over the past decades. New cars have become more fuel-efficient and they emit less toxic emissions than cars in the 1970s. At the same time we are driving more and we are driving heavier cars, which more than offsets the gains we have made. Environmental innovation is therefore essential for the sustainability and competitiveness of the European car industry.

Following the establishment of the Commission's High Level Group on CARS 21, I have taken the initiative to start a Low Level Group on Clean Cars. The idea is that low-emission cars are a key element for ensuring a viable future of the European automotive industry. In four informal discussions, members of the European Parliament, representatives of non-governmental organisations, car manufacturers and other interested persons will be discussing ideas on how to ensure that the European automotive industry will remain a strong global competitor, a source of high quality employment and a producer of environmentally sustainable vehicles. My intention is that the Low Level Group reports to the European Commission and the High Level Group CARS 21 in July.

This initiative fits well with the work of the new European Commission, which has made achieving the Lisbon objectives its key priority. Lisbon is not just about competitiveness, but should have a broader aim to improve the quality of life of European citizens. This means ensuring a strong economic base, but also a healthy and environmentally friendly society. Here, the car industry can contribute by finding solutions for the environmental problems we face. The transport sector continues to increase its emissions of greenhouse gasses. Millions of European citizens live in urban areas with bad air quality. The development and production of clean cars that have a better environmental performance is a duty of European car manufacturers. This needs to be accompanied by a co-ordinated policy from member states to make clean cars cheaper and dirty cars more expensive. For example, by means of taxation, but governments can also do a lot with public transport, using cleaner buses and taxis.

Investment in the better environmental performance of the cars that Europe produces becomes even more interesting when we look at the main growth market for future car sales. In Asia, China and India are rapidly growing and this will continue. Chinese consumers will want to enjoy the pleasure of driving cars at an affordable price. But will current European cars be able to continue to enter the Chinese market? Some parts of China are suffering from serious air quality problems, and this is likely to happen in other developing countries too. The authorities have already taken measures against this. Future Asian demand can only be sustainable if the cars are increasingly environmentally friendly.

In the EU the Parliament and the Commission will need to keep the pressure on, but also engage in a dialogue with industry to make environmental innovation a joint objective, creating a strong car industry with high quality employment that is known worldwide for producing the safest and the cleanest cars.

Europe has a responsibility to produce a good regulatory framework. Of course. But should we follow the example of California by setting a radical zero-level standard? And how can Europe step into the hydrogen economy? Is there a need to co-ordinate and stimulate hydrogen research? Member states have a particular responsibility in better co-ordinating their taxation policies to promote cleanest available car technology and punish or ban the dirtiest cars and fuels.

Industry, NGOs, member states and the EU all have different responsibilities. But there is one very important task that all have in common: informing the public about the need to reform our energy use, our industry, our transport system and also our own behaviour. Let's unite our efforts.

• Dutch socialist MEP Dorette Corbey is a member of the European Parliament's environment committee.

Let's work together with the industry on their integrated approach, says Karsten Friedrich Hoppenstedt

There is no doubt that the European vehicle manufacturing industry is a significant contributor to Europe's economies and societies through employment, trade, research and development and, last but not least, tax contributions. The industry also shows its continued commitment to increase the safety and environmental friendliness of its products. It is nevertheless clear that the EU needs some additional actions in the near future to fulfil its own targets concerning the Kyoto Protocol and the Clean Air Directive.

The challenge for the EU lies in the task of implementing political measures, which achieve the aim of protecting the environment and human health without damaging the competitiveness of the European vehicle manufacturing industry. There are a variety of conditions that have to be met by the political measures used so that this can be achieved.

First, the costs of technical measures to fulfil the environmental targets have to take global competitiveness into consideration. Europe can have the most environmentally benign vehicles in the world, but if these vehicles cannot be sold on the world market nothing is gained for the environment in the long run and a lot is lost for European competitiveness.

Second, political measures always have to achieve the goal in the most cost-effective way. In cases where the aim is to reduce emissions, which occur in several sectors, these sectors should contribute according to their costs. In addition, political measures, which leave the market mechanism intact and which leave the technical or organisational decision to fulfil the requirement to the company concerned, are more cost-effective than dirigistic measures.

The EU strategy to reduce CO2 emissions of passenger cars consists of three main elements: commitment of the car industry to reduce average CO2 emissions of the new vehicle fleet, CO2 labeling of new cars in the show rooms and advertising to inform the customer, and CO2 taxation of vehicles.

The first element of this strategy is so far a success. As part of their commitment, the European car manufacturers have reduced the average CO2 emissions of their new cars from 185 g/km in 1995 to 163 g/km in 2003. The ultimate target is 140g/km in 2008. The CO2 labeling and the CO2 taxation activities have so far not been successful in changing consumer behaviour.

As part of its commitment, the car industry was asked in 2003 about the further technological potential to reduce the average CO2 emissions of the new vehicle fleet towards a 120 g/km target in 2012. The car industry argues that this target would not be achievable, because the costs of technological means to reduce average CO2 emissions of cars are increasing, so that the 120 g/km target would seriously undermine the international competitiveness of the industry. Instead, the car industry is proposing a so-called 'integrated approach' to reduce car-related CO2 emissions, which suggests involving all stakeholders addressing vehicle technology, fuels, infrastructure and consumer behaviour. The car industry argues that this approach could reduce CO2 emissions by a higher amount at lower costs than the vehicle technology focused approach.

Does this integrated approach make sense? Is it a better way forward than the current approach? In my view, yes. One of the most crucial CO2-relevant aspects of mobility is the propulsion of vehicles. This propulsion of vehicles depends on the optimal interplay of vehicle technologies and fuels. On top of this, fuels can be provided incurring different intensities of CO2 emissions. Probably the second most crucial CO2-relevant aspect is congestion. As one example, again an optimised interplay of navigation technology in the car and the infrastructure can reduce CO2 emissions substantially. Here estimates range from 10% to 20%. My conclusion concerning car- related CO2 emissions: let's explore the integrated approach with all stakeholders involved, but it has to deliver at least something equivalent to the 120g/km target.

• German Christian Democrat MEP Karsten Friedrich Hoppenstedt is a member of the Parliament's economic and monetary affairs committee.

Two MEPs discuss where to strike the balance between the car industry and the environment.