Avril 2013 Super crédits CO2 – argumentaire FGMM 1 CO2 Regulation for cars 2020 targets Meeting of IndustriAll Europe Trade Unions Automotive – April 8th, 2013 Super CO2 credits in debate

Avril 2013 Super crédits CO2 – argumentaire FGMM 2 CO2 regulation for cars Review of 2020 targets CO2 emissions (g/km) EU Roadmap by sector - horizon 2050  The European Union settled an ambitious target of 80 % reduction of greenhouse gases between 1990 and  In this perspective, the European Commission fixed target objectives of maximum emission for light vehicles newly launched in the market.  It gives the average level by vehicle to be achieved by all manufacturers of cars sold in Europe. 100% of new vehicles

Avril 2013 Super crédits CO2 – argumentaire FGMM 3 CO2 regulation for cars Adoption of the 2020 target European Commission target: average emission less than 95 grams of CO2 by kilometer in 2020 Following the target of 130 CO2 g/km before 2015, the post 2020 target must be re-discussed in two years. Experts count on a threshold from 60 to 70 CO2 g/km in This 2020 standard is currently under discussion in Brussels. It must be voted before June. The European Commission and Parliament are intensively lobbied by car manufacturers wishing to ease the objectives. The great Super-credits evolve: the multiplier is set to 1.3 for period for vehicles emitting less than 35 CO2g / km, with a maximum of vehicles by manufacturer during the period. The 95 CO2 g/km figure will be computed on the average of the cars effectively sold by the manufacturers (not on their offer). Emissions beyond the threshold fixed will be taxed at 95€ by gram of exceedance Manufacturers who sell fewer than 500 vehicles a year are exempted.

Avril 2013 Super crédits CO2 – argumentaire FGMM 4 CO2 regulation for cars Super CO2 credits in debate An amendment put down by German Members (CDU) of the European Parliament of suggests: To keep the current count of vehicles emitting less than 50 CO2 g/km for 2,5 vehicles until 2017; then for 2 vehicles until To also remove the ceiling of registrations by manufacturer. The distribution of efforts would no longer be the same between manufacturers in Europe and worldwide: the European objective sets a 27 % reduction of emitted gases for all. It is common knowledge that the tests on CO2 emissions are made on light-weight and optimized vehicles: CO2 emissions in real configuration are superior by 23 % to the level estimated in test.

Avril 2013 Super crédits CO2 – argumentaire FGMM 5 CO2 regulation for cars 2020 target is weakened The system of great credit weakens the CO2 reduction target by allowing to exceed the average limit fixed of 95 g/km of CO2.  Let us take the following example: Without great credit, the sale of one electric vehicle (0gCO2 / km) allows a manufacturer to sell one high emission vehicle (190gC02 / km) while still complying with the target to reach. With the system of great credits proposed by the opposite lobbies, the sale of one electric vehicle (0gCO2 / km) allows a manufacturer to sell 2 high emission vehicles (190gC02 / km) while still complying with the target to reach.. Reminder : the proposal of the same members of Parliament counts 2 vehicles from 2017, but 2,5 earlier. 0 gCO2/km 190 gCO2/km = 95g CO2 / km on average for 2 effectively registered vehicles. + = 95gCO2 / km on average for 3 effectively registered vehicles, but 126g CO2 / km in reality. + +

Avril 2013 Super crédits CO2 – argumentaire FGMM 6 CO2 regulation for cars Weakening car efficiency improvements created by super credits Vertical: actual regulation weakening created by super credits Horizontal: percentage of sales of very low emission vehicles Origin : Transport et Environnement - november 2012

Avril 2013 Super crédits CO2 – argumentaire FGMM 7 CO2 regulation for cars Innovations in energy efficiency It means slowing down most manufacturers and those who took risks and invested in significant programs : to progress in electro mobility: autonomy and reliability of batteries (fast reload), develop hybrid technologies (electricity or air) which lower the consumption by 30% on average in urban traffic and reduce pollution in the same proportion, to make lighter vehicles and to reduce the frictions by using composite materials. Electric vehicle face difficulties for sales in volume but the car sharing mode offers an effective solution to ease congestion in cities while lowering the production of greenhouse gas: example Autolib in Paris. Urban communities invest in battery reload stations and in car sharing. Are they going to maintain their effort while they are push other private actors in the same direction? The market launch of vehicles consuming less than 4 liters / 100km will push owners of vehicles consuming more than 8 liters / 100 km to replace them.

Avril 2013 Super crédits CO2 – argumentaire FGMM 8 CO2 regulation for cars Economic and ecological avantages 1.Reduction of greenhouse gas emissions : Cars are responsible for 13 % of CO2 emissions in the EU and are the sole contributor to greenhouse gas emissions in the transport sector. European emission average for new vehicles is 136 CO2 g/Km in 2011 (127.7 g/km in France) 2.Reduction of gas expenses by motorists : Between 3000 and 4000 € saved in the vehicle lifespan 3.European economic stimulus plan and employment: Savings in fuels will reach 36 Bn€ a year during the period, leading to a GDP (Gross Domestic Product) growth of 12 Bn€ By 2030, jobs will be created in the production and the R&D for more efficient vehicles 4.Reduction of oil imports: 100 Bn€ saved annually and a of 20 Bn€ gain in energy security Energy bill estimate (2011): 300 Bn€ in the EU; more than 70 Bn€ in France.

Avril 2013 Super crédits CO2 – argumentaire FGMM 9 CO2 regulation for cars Conclusion Depending on their position in the value chain, their vehicle ranges or their competitive situation, all actors of the automobile sector have inevitably different positions on the great credits system. Great credits have a negative impact on the general ambition of the regulation (payment) and on its profits in terms of employment (use), economy for the motorists, energy security and environmental progress. Individual lobbying does not help to determine a common position within IndustriAll Eu. Meet our commitmens : Tact of june 2012 The members of the IndustriAll European Trade Union claim Investments in a forward-looking policy : Based on the energy efficiency, the innovation, the sustainability and quality of jobs A real social democracy based on stable structures of participation and dialogue and negotiation Of important innovative European projects to meet the current challenges : Climate change, mobility and safety A debate in the European level on the future of the industry and the employment(use) in Europe

Avril 2013 Super crédits CO2 – argumentaire FGMM 10 CO2 regulation for cars Annexe - Legislative proposal The Commission's legislative proposal for implementing the 95 g/km target includes the following provisions:legislative proposal All manufacturers would be required to achieve the same level of reduction - 27% - from the 2015 target; The target would continue to be set on the basis of a vehicle's mass; Eco-innovations would continue to apply once the new test procedure for vehicle type approval is in place; Super-credits with a multiplier of 1.3 would apply in for vehicles emitting less than 35 g/km; this benefit would be limited to a maximum of cars per manufacturer over the period; The excess emissions premium would remain at €95 per g/km from the first gram of exceedance; Small-volume manufacturers would be given greater flexibility regarding when they can apply for their own reduction target; The smallest manufacturers, producing fewer than 500 cars per year, would be exempted from meeting the target; Niche manufacturers would receive a new target for 2020 of a 45% reduction from their 2007 level; The regulation would be reviewed by end-2014 in order to set reduction targets for post-2020.