Cars: Greenhouse Gas Emissions

• Background
• ACEA Agreement
• Progress Monitoring

Background

To control greenhouse gas (GHG) emissions from the transportation sector, the European Commission has signed voluntary agreements with the automotive industry to reduce the emissions of carbon dioxide (CO₂). Three agreements were signed in 1998-99, with the following associations:

• ACEA—European Automobile Manufacturers Association (Association des Constructeurs Européens d’Automobiles): BMW, DaimlerChrysler, Fiat, Ford, GM, Porsche, PSA Peugeot Citroën, Renault, VW Group.
• JAMA—Japanese Automobile Manufacturers Association: Daihatsu, Honda, Isuzu, Mazda, Mitsubishi, Nissan, Subaru, Suzuki, Toyota.
• KAMA—Korean Automobile Manufacturers Association: Daewoo, Hyundai, Kia, Ssangyong.

Cars sold by the above companies represent about 90% of the total EU vehicle sales.

The agreements define fleet-average CO₂ emission targets from new cars sold in the European Union, to be reached collectively by the members of each association. Carbon dioxide is the only gas covered by the agreements, other climate change emissions are currently not controlled.

The European Commission intends to extend the voluntary agreements (currently binding through 2008) to adopt more ambitious emission targets. The future agreements would likely also include such instruments as tax incentives or green driving initiatives. In case the voluntary emission targets are not met, the Commission may consider the introduction of mandatory CO₂ emission limits.

ACEA Agreement

The ACEA Agreement, signed in March 1998, includes the following major provisions:

1. CO₂ emission target of 140 g/km to be reached by 2008 (this target represents a 25% reduction from the 1995 level of 186 g/km)
2. Possibility to extend the agreement to 120 g CO₂/km by 2012
3. Intermediate target range of 165-170 g CO₂/km by 2003
4. Individual ACEA members to introduce models of 120 g CO₂/km or less by 2000

The limits apply to the collective ACEA members’ fleet of new passenger cars (Category M₁) produced or imported into the European Union. CO₂ emissions are measured over the NEDC test.

Japanese and Korean manufacturers (JAMA and KAMA) have signed similar commitments to that of ACEA, with the following differences:

• JAMA and KAMA target of 140 g CO₂/km is delayed by one year, to 2009
• JAMA has a wider 2003 intermediate target range of 165-175 g CO₂/km
• KAMA intermediate target of 165-170 g CO₂/km is delayed by one year, to 2004

The emission targets are to be met through technological advancements leading to increased fuel economy. The Commission estimated that the compliant fleet of passenger cars in 2008/09 would consume on average about 5.8 l gasoline/100 km or 5.25 l diesel/100 km. The CO₂ agreements have been an important factor driving the increased dieselization of the passenger car market in the EU.

Progress Monitoring

Progress toward the CO2 emission targets is monitored jointly by the European Commission and by ACEA. Annual progress reports are published by the Commission. ACEA progress through 2003 is illustrated and compared with the targets in Figure 1.

CO₂ emission figures for 2003 are listed in Table 1. While ACEA and JAMA have met their interim targets, KAMA stayed behind its commitment.

Table 1
Carbon Dioxide Emissions and Interim Targets (2003), g/km

	CO2 in 2003			Reduction since		Interim target
	Total	Gasoline	Diesel	1995	2002
ACEA	163	171	154	11.9%	1.2%	165-170 (2003)
JAMA	172	170	177	12.2%	1.1%	165-175 (2003)
KAMA	179	171	201	9.1%	2.2%	165-170 (2004)
EU-15	164	171	157	11.8%	1.2%	-

All three associations are facing challenges to reach the 140 g/km target by 2008/09—the average annual reduction rates in the remaining years would have to be 2.8% for ACEA, 3.1% for JAMA and 3.6% for KAMA.