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

  2. EU Roadmap by sector - horizon 2050 CO2 regulation for carsReview of 2020 targets • The European Union settled an ambitious target of 80 % reduction of greenhouse gases between 1990 and 2050. • 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. CO2 emissions (g/km) 100% of new vehicles

  3. CO2 regulation for carsAdoption 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 2025. 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 2020-2023 period for vehicles emitting less than 35 CO2g / km, with a maximum of 20 000 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.

  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 2023. To also remove the ceiling of 20.000 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.

  5. CO2 regulation for cars2020 targetisweakened 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. =95g CO2 / km on average for 2 effectively registered vehicles. 0 gCO2/km 0 gCO2/km 190 gCO2/km + =95gCO2 / km on average for 3 effectively registered vehicles, but 126g CO2 / km in reality. + +

  6. CO2 regulation for carsWeakeningcar efficiencyimprovementscreated by super credits Vertical: actualregulationweakeningcreated by super credits Horizontal: percentage of sales of very low emissionvehicles Origin : Transport et Environnement - november 2012

  7. CO2 regulation for carsInnovations 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.

  8. CO2 regulation for carsEconomic and ecological avantages 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) Reduction of gas expenses by motorists : Between 3000 and 4000 € saved in the vehicle lifespan European economic stimulus plan and employment: Savings in fuels will reach 36 Bn€a year during the 2025 - 2030period, leading to a GDP (Gross Domestic Product) growth of 12 Bn€ By 2030, 110 000 jobs will be created in the production and the R&D for more efficient vehicles 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.

  9. CO2 regulation for carsConclusion 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. • Meetourcommitmens: 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 democracybased 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

  10. CO2 regulation for carsAnnexe - Legislative proposal The Commission's legislative proposal for implementing the 95 g/km target includes the following provisions: 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 approvalis in place; Super-creditswith a multiplier of 1.3 wouldapply in 2020-2023 for vehiclesemittinglessthan 35 g/km; thisbenefitwouldbelimited to a maximum of 20 000 cars per manufacturer over the period; The excessemissions premium wouldremainat €95 per g/km from the first gram of exceedance; Small-volume manufacturerswouldbegivengreaterflexibilityregardingwhentheycanapply for theirownreductiontarget; The smallestmanufacturers, producingfewerthan 500 cars per year, wouldbeexemptedfrom meeting the target; Niche manufacturerswouldreceive a new target for 2020 of a 45% reductionfromtheir 2007 level; The regulationwouldbereviewed by end-2014 in order to set reductiontargets for post-2020.