Reducing CO2 emissions for passenger cars in Europe

Electric car legislation

CO2 passenger car legislation in Europe

If you want to reduce global warming emissions, we should be looking at how to cut carbon dioxide produced by motor vehicles.

Back in 2007, the car industry and the European Union negotiated a voluntary agreement just a few years ago to reduce the emissions from 240 grams per km. Click here to read more.  But the car industry discovered that more money could be made by selling bigger cars and the agreements seemed to be thrown out of the window.

After a year, the emission was 160 grams per kilometer, and there’s no chance of reaching it. We need firm legal action, some firm proposals to reduce those emissions down to 140 to 120 and up to 100.

This will put pressure on the car industry, and they can do it because there’s an EU legislation already existing to reduce carbon dioxide emission. It seems hard to obtain, but experts around the world show how the car industry can produce significant reductions in carbon dioxide, virtually overnight. Implementation of such laws are vital for the future of our planet.


The Huge Environmental Impact of Cars

From Visually.

EU commission is being aggressive throughout the year, last 2015, there’s a new policy that the commission plans to reduce carbon dioxide emission by one-third by the year 2030 in three key industries. The three industries are automotive, housing, and agriculture. EU Commission presented justification the needs to cut CO2 emissions, but it requires technologies and investment to meet this ambition.

Its almost certain your requirements for car industry will spark serious discussion between automakers, environmentalist, and European policy makers. The carmakers already managed to cut CO2 emissions by 30% over the last two decades. Currently, car makers are obliged to cut carbon dioxide emissions to 95 grams of carbon dioxide per one kilometer by the year 2021. They are still required to reduce 70 or 80 grams per kilometer by 2025.

According to European motor industry representatives, it is simply impossible to cut CO2 emissions by additional 30% in less than one decade. The car makers fear that the new CO2 emission would require them to invest them significantly to new technologies. Over the last 20 years, the car manufacturers managed to cut carbon dioxide emissions mainly due to improvements in internal combustion engines technologies.

However, to meet new requirements, car manufacturers would need to up their spending on new technologies such as hybrid electric vehicles. Even though EU provides 80 billion euros to support its one of the R&D programs.

Car makers fear that the support may not be enough, and they need to up their own R&D spending significantly as well. However, there is a bright side of these requirements for component suppliers. Last 2013, European automotive industries and trade industries also include that component purchases. Representatives from 30 to 40% of current industry cost, so in case car makers are developing new technologies, this would be beneficial for component suppliers such as Bosch and Continental.

Moreover, unlike car makers, component producers are able to pass the cost incurred to the end consumers. So as a result of CO2 strict requirements, we may witness the increasing bargaining power of component suppliers in the European automotive industry supply chain.

Now some countries in Europe are also giving grants and financial schemes to companies who decide to go green. In Germany for example the government is giving a € 1bn incentive package for electric car purchases. In Malta, another European country, the government will give €4000 to anyone who purchase a 100% electric car. There was a huge interest for this scheme both in Malta and in Germany and companies to Greenr taxi  company in Malta took full advantage and set up companies based on 100% electric vehicles.