Cars, CO2 and eco-innovations Jos Dings T&E, the European Federation for Transport and Environment EPP hearing, Brussels, 5 June 2008

Austria, Belgium, Czech Republic, Denmark, Estonia, France, Germany, Greece, Hungary, Italy, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovenia, Spain, Sweden, Switzerland, UK 49 Members – 21 Countries T&E membership

Future oil will be a lot more expensive …

… and a lot dirtier than todays

History and theory show that lower oil demand means lower oil prices ROW – Rest of the World

~ 130 barrels of oil ~ 11,000 extra EU oil imports

Car efficiency standards 1Are efficient – overwhelming evidence that consumers only value fuel savings over the first 1-2 years, not all the rest; 2Are effective – very few other measures thinkable with double digit savings; 3Are not distorting competition - rules apply to everyone selling in market; 4HELP citizens manage fuel bills; 5Create added value and jobs in supply chain, rather than wealth transfers to oil exporting countries; 6Have no negative side effects of e.g. biofuels

our views on the proposal A very flexible proposal – fleet averaging, pooling, attribute- based, … Problematic is lack of ambition: 130 by 2012 is only 7% less and 4 years later than what industry had promised to achieve by itself (140 by 2008) Not even an indication of post-2012 target – 80 g/km for 2020 is needed. Penalties are low – all measures up to 150 per g/km CO2 have a positive payback for consumer

Phase in ? Postponement ! The best half of the fleet already met 130 in 2006

We eco-innovation

And we would to have a perfect test cycle

But we are if eco-innovation is used to weaken innovation

Unfortunately thats what it is … Its used to further weaken existing requirements: emissions on the test cycle It weakens innovation on measured emissions: drivetrains, weight, and aerodynamics, by far the most important eco-innovations A very murky verification procedure – certainly not better regulation and cutting red tape …. Please be honest and say that you think, even after the weakening from 120 to 130, the regulation is still too tough and want to further weaken it, in times of record oil prices

… and weight based standards make it even worse … Weight based standards severely punish car makers that eco-innovate on weight !! 4.6 g/km punishment for every 100 kg saving People concerned about eco-innovations should support footprint-based CO2 standards.

On other escapes Flexfuels: an ability to burn 85% ethanol does not make a car green Any fuel is scarce, also biofuel Car maker does not have any control of E85 supply Environmental performance ethanol doubtful Supercredits: why would selling one car of 70 g/km entitle you to sell 5 gas guzzlers of 190 g/km ?

So whats the way forward then ? 1 car makers should be responsible for making their products more energy efficient 2 short term: establish efficiency requirements for items like lights, air conditioners, tyres etc; 3 medium term: include these items in test cycle 4 fuel suppliers should be responsible for supplying low- carbon fuel

Thank you !!