EU proposal calls for carbon credits instead of EV quotas
11 October 2017
According to an article published by news agency Reuters, the EU is planning a system of emissions credits for vehicle manufacturers. However, unlike the Californian model upon which it is based, the credits cannot be traded. This solution is proposed instead of introducing binding production quotas for electric vehicles (EV). The EU has previously stated it has no plans to introduce EV quotas, similar to those planned in China, and has dismissed speculation that such quotas were planned.
Reuters reports that its sources said the proposal is expected on 8 November ‘and will introduce new CO2 standards for cars and vans for beyond 2020 to help to achieve the bloc’s goal of cutting greenhouse gas emissions by at least 40 percent below 1990 levels by 2030. The sources said the European Commission’s draft law will set a target for passenger car fleets of a 25-35 percent reduction in average CO2 emissions by 2030 and 30-40 percent for vans. The final figures within the ranges will be decided in a high-level discussion among EU commissioners closer to the date.’
The credits will be based on the performance of carmakers, measured by sales of low-emission vehicles as a proportion of their fleets, the sources added. European carmakers have previously lobbied for a 20 percent cut in the EU’s emissions targets and have called for compliance to be conditional on consumer uptake of electric cars. Perhaps acknowledging the need to boost consumer uptake, the EU’s new proposal also includes the provision of €1 billion of funding by 2020. €800 million is earmarked for the expansion of the charging infrastructure and a further €200 million for battery research and development.
Commenting on the proposal, Europe’s climate commissioner Miguel Arias Canete said: ‘Beyond setting a general emission-reduction target for cars and vans, we are considering, for the first time, different kinds of incentives to accelerate the penetration of clean vehicles ... Personally, I do not like mandates or quotas.’ He added that a credit system instead of quotas would ‘allow a more flexible approach, which would provide a continuous incentive for innovation.’
On the subject of developing the charging network, the joint venture established by German carmakers to install and operate fast-charging points in several EU member states has now founded the company European High Power Charging GmbH & Co. KG, based in Munich, to implement its plans. The company will employ 50 staff, with BMW, Porsche, Daimler and Ford of Europe each having a 25% stake. Porsche represents the entire VW Group with Audi, for example, being involved in planning and execution.
Following an article in the Stuttgarter Zeitung on Tuesday, Manager Magazin reported on Wednesday that a BMW spokeswoman confirmed the foundation of the company, saying: ‘with the operational start of the joint venture, we are now [...] on the home straight.’
Initially, 400 fast-charging stations are to be installed across Europe and the first could be operational in 2017 already. Manager Magazin further reports that it is not yet clear who will supply the charging points but ‘possible suppliers should prove their technology with the first stations.’