This is an important milestone in the negotiations, but there still is some way to go before a final agreement is voted in the plenary of the European Parliament, commented Ivan Hodac, ACEA Secretary General in a press release. At this stage, we would simply like to stress once again that if super-credits are to achieve their aim of fostering innovation and bringing ultra-low-emission vehicles to the market, they need to be applied in a more meaningful way, as is the case in other regions of the world.

Under the super-credits incentive program, vehicles with extremely low emissions count more to meeting the manufacturers fleet CO2 target when they are registered. Super-credits are used worldwide, and many other regions have similar schemes. Hodac added, It is in everyones interest to get clean vehicles on the roads, and super-credits are the only EU-wide incentive to help put on the market today the technologies of the future.

Some manufacturers cannot meet the 2020 target without including some hybrid and electric engines in the fleet. However, most observers assume that in 2020 over 90 percent of the new European vehicle fleet will still be powered by conventional combustion engines. This means manufacturers must maintain their efforts to optimize current technology, while at the same time developing new low-emissions technologies.

ACEA noted that long-term targets have not yet been set. Hodac said, Europes auto industry delivers vehicles with the highest environmental standards in the world, and we are committed to continue doing so. However, it is only reasonable to first conduct proper impact assessments before fixing targets for beyond 2020 to ensure that such targets can be both ambitious and feasible.

In a separate statement, ACEA commented that the 2020 CO2 emissions targets for vans could hinder investments in future clean technologies. The Association stated that the target of 147 g CO2/km for vans is very ambitious and that independent research shows it will necessitate full hybrid technologies. Noting plummeting van sales, ACEA considers it difficult to invest in more costly technologies for the future.

Lower production volumes also do not allow the same economies of scale as for cars. Further, there is a huge diversity among Class I, II and III vans, meaning that there are few one size fits all technical solutions.

Hodac stated, In this context, super-credits provide concrete incentives for manufacturers to invest billions of euros in ultra-low-emission vans, despite there being extremely low consumer demand for these at the moment. According to the European Environment Agency, only 1 percent of vans sold in 2012 were liquefied petroleum gas and natural gas, and just 0.5 percent were electric.

Hodac added, Super-credits are one of the only EU-wide support mechanisms for innovative, clean technologies. If they are removed from the package, Europe will become one of the only major vehicle-producing regions with extremely limited incentive schemes for fuel-efficient vehicles. This will clearly put us at a strong disadvantage on the global market.

Finally, during the Competitiveness Council meeting on 29 May, EU ministers of industry stated that legislation on CO2 emissions from cars and vans must not threaten the competitiveness of the European automobile industry. A note circulated by a Council delegation states, The EUs strategy to improve the fuel economy of new cars and vans is positive and helping vehicle technology to become more efficient, but future objectives for European car makers should be realistic and achievable to maintain industry competitiveness.

ACEAs Hodac said, Any discussions on new regulatory requirements for the industry must reflect the current economic situation. Considering that most automobile manufacturers are losing money in Europe, the industry needs as supportive and competitive a regulatory framework as possible in order to retain its technological and environmental edge, and to keep production in Europe.

Europes legislation is more stringent than in other regions, creating a clear competitive disadvantage. The European automobile industry does not exist in a vacuum. It is a global player, said Hodac. Smarter regulation, accompanied by sound impact assessments, is needed to reinforce the automotive industrys competitiveness, and benefit the European economy as a whole.