Council adopts climate-energy legislative package

Publication date: 06 April 2009

Source: Council of the EU

This package is designed to achieve the EU's overall environmental target of a 20 % reduction in greenhouse gases and a 20 % share of renewable energy in the EU's total energy consumption by 2020. It includes the following acts:

New rules for cleaner cars in Europe

The Council adopted a regulation setting the first legally-binding standards for CO2 emissions from new passenger cars, to apply as of 2012 (3741/08; 8041/09 ADD1).

The main objective of this new law is to reduce the contribution of road transport to global warming, thus helping the EU to meet its objective of a 20% reduction in greenhouse gas emissions by 2020.

The regulation will give legal effect to the EU's existing goal of reducing average emissions from new cars to 120gr CO2 / km. This is to be achieved in two ways: A reduction to 130gr CO2 / km through engine technology plus an additional cut of 10gr CO2 / km through more efficient vehicle features, for instance air-conditioning systems or tyres.

The new regulation makes these objectives binding for the average fleet of a given car manufacturer in successive stages: In 2012, 65 % of their car fleet must meet the target, in 2013 75 % and in 2014 80 %. From 2015, the whole fleet needs to comply with the CO2 emissions objective. The Council proposed this phase-in so as to respect the length of industrial planning and production cycles and give the automotive industry the necessary time to adjust.

To send a signal to industry for further production cycles, Council and European Parliament introduced in addition an objective of 95gr CO2 / km for 2020. By 2013, the Commission has to review the modalities for reaching this target.

If car manufacturers do not comply, they face penalties depending on how far their fleet exceeds the targets and on the number of their new passenger cars. From 2012 until 2018, EUR 5 per newly registered car must be paid for the first gram above the objective. For the second gram of exceedance EUR 15 are due and EUR 25 for the third gram. For emissions of more than 3 grams over the limit, EUR 95 are charged per newly registered vehicle.

From 2019, the penalty will be EUR 95 per new car for every gram above the target. Manufacturers can improve their fleet emissions performance by including eco-innovations, i.e. new technology that is not measured through the standard EU CO2 emissions test, or by producing ultra-low emissions cars, which emit less than 50gr CO2 / km. Niche manufacturers can be excluded from the regulation under certain conditions. EU.

The regulation will come into force shortly after its publication in the Official Journal of the EU and be effective without implementing measures although the emissions targets will apply only as of 2012.

New environmental quality standards for fuels and biofuels

The Council approved the revision of a directive that will improve air quality and reduce greenhouse gas emissions through environmental standards for fuel. It will also facilitate the more widespread blending of biofuels into petrol and diesel and, to avoid negative consequences, set ambitious sustainability criteria for biofuels.

The revised directive introduces for the first time a reduction target for greenhouse gas (GHG) emissions from fuels. By 2020, fuel suppliers have to decrease by 6% climate harming emissions over the entire life-cycle of their products. This can be reached in particular by admixing biofuels to petrol and diesel as well as by improving production technology in refineries.

Member states may require an additional 4% reduction from fuel companies, achieved through the supply of energy for electric vehicles or other clean technologies, including carbon credits from third countries (so-called "Clean Development Mechanism").

To enable these GHG emissions cuts, petrol may have a higher biofuel content. From 2011, petrol may contain up to 10% ethanol. In order to avoid damage to old cars, however, fuel with 5% ethanol (E5) will continue to be available until 2013, with the possibility for member states to extend that period.

The directive also lays down stringent environmental and social sustainability criteria for biofuels, which correspond to those in the directive on the promotion of energy from renewable sources (3736/08).

The directive also imposes limits on the content of sulphur and metallic additives in engine fuel. In order to minimise emissions of volatile air pollutants, the maximum vapour pressure of fuel is also prescribed.

The revised environmental quality standards as well as the sustainability criteria for biofuels will apply from 2011.

Member states are required to transpose the directive into national law by the end of 2010.

A regulatory framework for carbon capture and storage

The Council adopted a directive setting up a regulatory framework for the geological storage of carbon dioxide. The new act (3739/08; 8036/09 ADD1) is intended to make the deployment of this technology in the EU possible, which could help to mitigate climate change.

Whether to use carbon capture and storage or not is still a matter for independent decision by each EU member state. For EU countries that wish to do so, the directive sets out the conditions for the assessment of storage sites, for authorisation procedures and for the closure of such sites. In order to ensure harmonized application throughout the European

Union, the Commission will review draft storage permits and draft decisions on closure prepared by national authorities before their final approval.

Operators are obliged to monitor storage sites and report to the member state's authorities, both while storing carbon dioxide and after the closure of sites and the cessation of storage activities. Responsibility for a site reverts to a public authority when sufficient proof is obtained that the carbon dioxide will be completely and permanently contained.

Member states are required to transpose the directive into national law within two years.