At a Brussels briefing last night, UK MEPs were encouraged to work with industry to help deliver a workable CO2 tailpipe regulation for new cars. SMMT made it clear that car makers are not opposed to a robust new regulation, however, tailpipe targets must be delivered with appropriate lead times and any penalties must be consistent with the price of carbon.
‘It is important that we protect choice in the market place and diversity of UK car manufacturing,’ said SMMT chief executive Paul Everitt. ‘We host seven volume car makers delivering 1.5 million new models each year, as well as the largest number of niche and low volume producers in Europe. It is essential that new CO2 rules are built on a thorough understanding of our industry and we welcome the opportunity to brief our colleagues in the European Parliament.’
Key issues for car makers include:
Lead times
The industry supports a 2015 implementation date for new tailpipe targets. This will allow manufacturers to plan and develop new models to meet the targets. The European Commission has proposed a 2012 start date which SMMT argues is unrealistic because it does not reflect seven-year product life-cycles.
Penalties
Proposed fines are disproportionate and inconsistent with the market price of carbon. Penalties could be as much as 14 times more onerous than under schemes like ETS – the European emission trading scheme. In addition, the Commission’s own assessment suggests production costs could increase by six per cent per car.
Innovation
The automotive sector is Europe‘s largest investor in R&D at €20bn per annum. SMMT believes there should be eco-credits for manufacturers whose products exceed regulatory targets. This will be an incentive for manufacturers to go beyond the targets rather than just working towards them.
Market Diversity
The market in the UK is vibrant and diverse and the regulation must not distort this. Choice and product diversity must be watchwords for those shaping the regulation.
