The Financial Times (FT) has reported that the European Commission has backed down and will not propose legislation to limit CO2 emissions from new cars to an average of 120g/km by 2012.
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Instead, according to the FT, the Commission will present new legislation forcing oil companies to blend biofuel into gasoline, and a range of other measures including fitting cars with indicators to tell drivers when they need to inflate their tyres or change gear.
This would represent a victory for the European motor industry, particularly the German industry which has been lobbying hard in recent days. The industry was supported by the German chancellor, Angela Merkel, who is reported to have said that Germany would block legislation that did not differentiate between car sizes.
The report said senior European Commission officials now expect a final target close to a figure of 130g/km by 2012, which would still be lower than Japan’s 138g/km target by 2015.
The European auto industry looks certain to fail to fulfil its 1999 voluntary agreement to cut average new car emissions to 140g/km by 2008 (average new car emissions are estimated at 162g/km in 2005).
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By GlobalDataThe FT reports that the latest news has angered oil companies, who will be required to mix petrol with 5% ethanol from 2011, and 10% from 2020. In addition they must also reduce emissions in extracting and transporting fuel.
