PURPOSE: to reduce by 2020 the CO2 emissions from new light commercial vehicles.

LEGISLATIVE ACT: Regulation (EU) n° 253/2014 of the European Parliament and of the Council amending Regulation (EU) No 510/2011 to define the modalities for reaching the 2020 target to reduce CO2 emissions from new light commercial vehicles.

CONTENT: this Regulation amends Regulation (EC) No 510/2011 in order to define the modalities for reaching the 2020 target to reduce CO2 emissions from new light commercial vehicles. In view of the link between CO2 emissions and fuel consumption, the objective is to contribute to reducing fuel consumption and related costs for owners of such vehicles in a cost-effective manner.

The main points of the Regulation are as follows:

2020 objectives: from 2020, a target of 147 g CO2/km is set for the average emissions of new light commercial vehicles registered in the Union. CO2 emission will continue to be measured in accordance with Regulation (EC) No 715/2007 and its implementing measures, and innovative technologies.

The Regulation applies to manufacturers that are responsible for more than 1 000 new light commercial vehicles registered in the Union in the previous calendar year.

Innovative technologies : the Regulation provides that upon application by a supplier or a manufacturer, CO2 savings achieved through the use of innovative technologies or a combination of innovative technologies (“innovative technology packages”) shall be considered. The total contribution of those technologies to reducing the specific emissions target of a manufacturer may be up to 7 g CO2/km .

The Commission shall adopt by means of implementing acts detailed provisions for a procedure to approve the innovative technologies or innovative technology packages, by 31 December 2012.

Test procedure : in a recital, it is stressed that a new, more realistic and reliable test procedure should be agreed as soon as feasible.

In order to ensure that specific CO2 emissions quoted for new passenger cars and new light commercial vehicles are brought more closely into line with the emissions actually generated during normal conditions of use, the Worldwide harmonized Light vehicles Test Procedure (WLTP), in the framework of the United Nations Economic Commission for Europe, should be applied at the earliest opportunity.

Review: by 31 December 2015, the Commission shall review the Regulation in order to establish the CO2 emissions targets for new light commercial vehicles for the period beyond 2020. It shall submit a report with the result of that review. That report shall include any appropriate proposals for amending this Regulation, including the possible setting of a realistic and achievable target , based on a comprehensive impact assessment that will consider the continued competitiveness of the light commercial vehicle industry and its dependent industries. When developing such proposals, the Commission shall ensure they are as neutral as possible from the point of view of competition and are socially equitable and sustainable.

ENTRY INTO FORCE: 23/03/2014.

The European Parliament adopted by 552 votes to 110 with 12 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 510/2011 to define the modalities for reaching the 2020 target to reduce CO 2 emissions from new light commercial vehicles. Parliament adopted its position in first reading following the ordinary legislative procedure. The amendments adopted in plenary are the result of an agreement between Parliament and Council. They amend the proposal as follows:

2020 target : from 2020, the Regulation sets a target of 147 g CO2 /km for the average emissions of new light commercial vehicles registered in the Union, as measured in accordance with Regulation (EC) No 715/2007 and its implementing measures, and innovative technologies.

Manufacturers which are responsible for fewer than 1000 new light commercial vehicles registered in the Union in the previous calendar year will be excluded from the scope of the specific emissions target and the excess emissions premium.

Innovative technologies : the amended text stipulates that, upon application by a supplier or a manufacturer, CO 2 savings achieved through the use of innovative technologies or a combination of innovative technologies (“innovative technology packages”) shall be considered.

The total contribution of those technologies to reducing the specific emissions target of a manufacturer may be up to 7 g CO 2 /km.

The Commission shall adopt by means of implementing acts detailed provisions for a procedure to approve the innovative technologies or innovative technology packages.

Test procedures : a recital states that a new, more realistic and reliable test procedure should be agreed as soon as feasible. Parliament considers that work on a World Light Duty Test procedure (WLTP) in the framework of the United Nations Economic Commission for Europe should be applied at the earliest opportunity.

With a view to ensuring that real world emissions are adequately reflected, and measured CO 2 values are strictly comparable, the Commission should ensure that those elements in the testing procedure that have a significant influence on measured CO 2 emissions are strictly defined in order to prevent the utilisation of test cycle flexibilities by manufacturers.

Evaluation and reports : by 31 December 2015, the Commission shall review the specific emissions targets in order to establish the CO2 emissions targets for new light commercial vehicles for the period beyond 2020. In that regard, the assessment of the necessary rate of reduction shall be in line with the Union's long-term climate goals and the implications for the development of cost effective CO 2 -reducing technology for light commercial vehicles. The Commission shall submit a report with the result of that review. That report shall include any appropriate proposals for amending the Regulation , including the possible setting of a realistic and achievable target, based on a comprehensive impact assessment that will consider the continued competitiveness of the light commercial vehicle industry and its dependent industries. When developing such proposals, the Commission shall ensure they are as neutral as possible from the point of view of competition and are socially equitable and sustainable.

The Committee on the Environment, Public Health and Food Safety adopted the report by Holger KRAHMER (ADLE, DE) on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 510/2011 to define the modalities for reaching the 2020 target to reduce CO2 emissions from new light commercial vehicles.

The Committee on Industry, Research and Energy, in exercising its prerogatives as an associated committee in accordance with Article 50 of Parliament’s Rules of Procedure , was also consulted for an opinion on this report.

The committee recommended that the European Parliament’s position adopted at first reading under the ordinary legislative procedure should amend the Commission’s proposal as follows:

2025 target : Members called for the target in this Regulation from 2025 onwards to be set within an indicative range of 105g CO2/km to 120 g CO2/km as average fleet emissions of new light commercial vehicles and for the Commission to complete a review on the modalities for reaching such a target in a cost-effective manner.

CO2 emissions : in order to ensure that this Regulation delivers the anticipated reduction in emissions, the report suggested a new World Light Duty Test procedure (WLTP) in the framework of the United Nations Economic Commission for Europe. The test procedure should if feasible be changed not later than 1 January 2017 to the WLTP and incorporated into Union law.

Super-credits : given that super-credits are an important tool for manufacturers in generating technological change and in providing an incentive to invest in innovative low emission technologies, Members stated that they were in favour of this scheme to be extended beyond 2018 .

Speed limit devices : as of 1 January 2014 and each subsequent calendar year, each manufacturer of light commercial vehicles shall equip their light commercial vehicles with speed limitation devices with a maximum speed of 120 km/h .

Monitoring emissions : the Commission should monitor real reported CO2 emission values by vehicle type and manufacturer on the basis of the best available sources of information and publish in its annual monitoring reports how those values compare with type approval values.

Procedure to approve the innovative technologies : the Commission should , by 31 December 2013, submit revised implementing provisions for eco-innovation approval so as to facilitate application procedures for the deployment of innovative technologies and subsequently issue a manual setting out the correct application procedures.

Evaluation and reports : by 1 January 2017, the Commission should complete a review of the specific emissions targets and of the derogations. On the basis of such a review and an accompanying impact assessment which includes an overall assessment of the impact on the car industry and its dependent industries, the Commission should, if appropriate and in accordance with the ordinary legislative procedure, submit a proposal to the European Parliament and the Council to amend this Regulation in a way which is as neutral as possible from the point of view of competition and which is socially equitable and sustainable.

PURPOSE : to amend Regulation (EU) n° 510/2011 to define the modalities for reaching the 2020 target to reduce CO2 emissions from new light commercial vehicles

PROPOSED ACT : Regulation of the European Council and the Parliament.

BACKGROUND: while emissions from other sectors are generally falling, road transport is one of the few sectors where emissions have risen rapidly. Between 1990 and 2008 emissions from road transport increased by 26%. As a result, it is the second biggest source of GHG emissions in the EU, and contributes about one-fifth of the EU's total emissions of CO2.

In March 2011 the Commission adopted the 'Roadmap to a Single European Transport Area – Towards a competitive and resource efficient transport system'. It sets out a transport strategy within a frame of achieving a 60% reduction in transport GHG emissions by 2050.

Regulation (EU) No 510/2011 sets the CO2 reduction framework for the new van fleet to 2020. It operates in two steps. In the first period to 2017 the modalities of compliance with the targets have been established. For the second period to 2020 the target cannot become effective without implementing the necessary modalities, which are to be determined in a review. The Commission is requested to confirm that the 2020 van target is feasible.

Failure to determine or implement the modalities would have a detrimental effect on vehicle manufacturers and parts suppliers who need certainty with regard to the technology and vehicles that will be needed to meet the target.

Key modalities in the current Regulation include the limit value curve which is defined by the utility parameter and the function describing the relationship between the utility parameter and CO2 emissions (setting the shape and slope). Other modalities include the excess emissions premium scheme, eco-innovations, derogations, pooling, the phasing-in of the targets and granting of super-credits for a limited period of time.

IMPACT ASSESSMENT: a joint impact assessment supporting the current proposal and a proposal to amend Regulation (EC) No 443/2009 has been prepared. The following aspects were analysed: (a) 'do nothing' option; (b) modalities of meeting the car target; (c) simplification and reduction of administrative burden; (d) adaptation to the new test cycle; (e) form and stringency of legislation beyond 2020.

LEGAL BASIS: Article 192 of the Treaty on the Functioning of the European Union. (TFEU).

CONTENT: the proposal confirms the feasibility of the average target of 147 g CO2/km for new light commercial vehicles to be reached in 2020 . It proposes to define the modalities of reaching the target as follows:

· the utility parameter continues to be vehicle's mass in running order

· the limit value curve remains linear with a slope of 100% compared to the baseline fleet ;

· manufacturers responsible for less than 500 registrations of new light commercial vehicles per year are excluded from the obligation to meet their specific emissions target;

· more flexibility is allowed in the timing of decisions granting small-volume derogations ;

· eco-innovations are retained when a revised test procedure is implemented ;

· excess Emissions Premium is maintained at €95 per g/km per vehicle.

As industry benefits from indications of the regulatory regime that would apply beyond 2020, the proposal includes a further review to take place by 31 December 2014.

BUDGETARY IMPLICATIONS: the proposal has no implications for the EU budget.

DELEGATED ACTS: the proposal contains provisions empowering the Commission to adopt delegated acts in accordance with Article 290 of the Treaty on the Functioning of the EU.