11 Aug 2007

EU Weighs Car-bon Trading System

The European Commission is considering an emissions trading system whereby makers of high-polluting cars will help pay for greener models


The European Commission is examining the idea of an emissions trading system for car manufacturers that would force makers of high-polluting cars to pay money towards those producing greener cars.

According to a report in German daily Handelsblatt, the amount of carbon dioxide (CO2) a car may emit in the future could be determined by its weight.

Manufacturers producing cars that do not conform to this threshold will have to pay duties to those who fulfil the criteria or fall under them.

German conservative MEP Karl-Heinz Florenz told the paper the plans amounted to an emissions trading system for cars.

Currently the EU applies such a system to industry whereby firms are given pollution credits. Those using more than their allocated credits have to buy from firms that do not need all their credits.

The commission's plans for the car industry follow an announcement by Brussels in February that from 2012 all new cars should have an average limit of 130 grammes per kilometre of CO2 emissions.

Of this, ten grammes in reduction would come through additional measures such as more efficient air conditioning and the use of biofuels.

At the moment, the average emissions of European cars is 160 g/km.

But the February proposal, unveiled only after a bitter struggle with the car industry, was short on detail about how it would actually work.

There were also divisions within the industry itself. German car-manufacturers - often of big luxury cars - were pitted against French and Italian car-makers, who generally produce more energy-efficient cars.

They argued that the 130 g/km limit would put less of a burden on smaller car makers such as Fiat.

German car manufacturers have indicated they are in favour of a system based on the weight of cars.

For its part, the commission is supposed to come forward with concrete plans in the autumn on how lower emissions in cars should be reached.

It has denied the report.

"For the moment, the emissions trading system will not apply to cars," said an environment spokesperson on Monday.