EU vehicle legislation Review of CO legislation and taxes 2
The United Nations Framework Convention on Climate Change (UNFCCC) is an environmental treaty that looks to prevent man-made changes to the climate system. Out of this comes the Kyoto Protocol where many nations have agreed legally binding targets for reducing greenhouse gases. This has introduced trading in greenhouse gases, where credits can be purchased to offset reduction targets. As governments worldwide strive to lower their country’s emissions, there are knock-on effects to many industries, including the automotive industry. These effects have implications on vehicle manufacturers, and implications to customers purchasing the vehicles. One would like to think that these are harmonised across nations but unfortunately, this is not so. It is a complex picture of CO2 and fuel consumption that, at the end of the day, influences model line-up and vehicle sales. For the larger markets,
there are penalties that an OEM would need to pay if their vehicles do not meet emissions or fuel consumption targets. This article reviews the EU market as an example however, the next edition of proActive will take a look at two other major markets that apply regulatory penalties, namely US and China. Testing and Certification: Each vehicle type must undergo emissions testing to certify for fuel consumption, CO2 and criteria emissions. This sets the ‘official’ certified figures for each vehicle. In the case of CO2, the tested value must be within 4% of the certified or manufacturer declared figure.