EU commissioners at odds over car emissions

A dispute over the best way to reduce CO2 emissions from cars broke into the open yesterday when the EU's industry commissioner…

A dispute over the best way to reduce CO2 emissions from cars broke into the open yesterday when the EU's industry commissioner refused to present a draft law setting fines for car manufacturers.

Gunter Verheugen, a political heavyweight given his standing as Germany's nominee to the EU Commission, has spent months locked in a battle with environment commissioner Stavros Dimas over the shape of a new directive to curb car emissions.

The two men were in joint control of the initiative published yesterday in Brussels. But when Mr Dimas emerged alone to face the media, it was clear who had won the battle on the level of fines that errant car makers should face.

"The proposal is backed by credible penalties," said Mr Dimas, who noted that car manufacturers had failed to meet voluntary commitments to curb emissions and that road transport was the second biggest source of CO2 emissions within the EU after electricity power generation.

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Carmakers that fail to reduce emissions to a level of 120 grammes per kilometre (g/km) will face fines that start at €20 for every g/k over the limit, and which gradually rise to €95 for every g/km by 2015.

Mr Verheugen argued for lower fines and more flexibility for car manufacturers but was overruled by a commission keen to tap into growing public concerns over climate change.

Under the proposal, carmakers will be able to team up and pool their CO2 emissions to meet the EU targets. This should enable makers of heavier cars to buy emission credits from producers whose fleet is below the emissions limit. But the motor industry vowed to fight the directive when it is debated in the European Parliament and the European Council next year.

"A bad decision," said Ivan Hodac, secretary general of the European Automobile Manufacturers' Association. He said the fines were "totally unacceptable".

Environmental groups argued, however, that the fines were too low and allowable CO2 emission levels too high. "Last week, in Bali, the EU stood up like a lion for the world's climate - this week the union's executive arm is going down like a lamb and putting carmakers' short-term profits before our common survival," said Franziska Achterberg of Greenpeace.