REPORT on the proposal for a regulation of the European Parliament and of the Council setting emission performance standards for new passenger cars as part of the Community's integrated approach to reduce CO₂ emissions from light-duty vehicles

27.10.2008 - (COM(2007)0856 – C6‑0022/2008 – 2007/0297(COD)) - ***I

Committee on the Environment, Public Health and Food Safety
Rapporteur: Guido Sacconi
Rapporteur for opinion (*): Werner Langen, Committee on Industry, Research and Energy
(*) Associated committees - Rule 47 of the Rules of Procedure

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a regulation of the European Parliament and of the Council setting emission performance standards for new passenger cars as part of the Community's integrated approach to reduce CO₂ emissions from light-duty vehicles

(COM(2007)0856 – C6‑0022/2008 – 2007/0297(COD))

(Codecision procedure: first reading)

The European Parliament,

–   having regard to the Commission proposal to the European Parliament and the Council (COM(2007)0856),

–   having regard to Articles 251(2) and 95 of the EC Treaty, pursuant to which the Commission submitted the proposal to Parliament (C6‑0022/2008),

–   having regard to the opinion of the Committee on Legal Affairs on the proposed legal basis,

–   having regard to Rule 51 of its Rules of Procedure,

–   having regard to the report of the Committee on the Environment, Public Health and Food Safety and the opinion of the Committee on Industry, Research and Energy(A6‑0419/2008),

1.  Approves the Commission proposal as amended;

2.  Calls on the Commission to refer the matter to Parliament again if it intends to amend the proposal substantially or replace it with another text;

3.  Instructs its President to forward its position to the Council and Commission.

Amendment  1 Proposal for a regulation Citation 1
Text proposed by the Commission	Amendment
Having regard to the Treaty establishing the European Community, and in particular Article 95 thereof,	Having regard to the Treaty establishing the European Community, and in particular Article 175 thereof,
Amendment  2 Proposal for a regulation Recital 4
Text proposed by the Commission	Amendment
(4) One of the implications of those commitments is for all Member States to reduce significantly emissions from passenger cars. Policies and measures should be implemented at Member State and Community level across all sectors of the Community economy, and not only within the industry and energy sectors, in order to generate the substantial reductions needed. Road transport is the second largest greenhouse gas emitting sector in the EU and its emissions continue to rise. If the climate change impact of road transport continues to increase, it will significantly undermine reductions made by other sectors to combat climate change.	(4) One of the implications of those commitments is that emissions from passenger cars must also be significantly reduced. This requires the imposition of rules on emissions for manufacturers and importers of new cars. Only a Community regulation can ensure that newly-registered vehicles are subject to the same conditions in all the Member States. If the overall aim of the Member States and the Community to reduce CO2 is to be achieved, it is not sufficient to take action only within the industry and energy sectors; the transport and household sectors should also be included. Road transport is the second largest greenhouse gas emitting sector in the EU and its emissions continue to rise. If the carbon emissions of road transport continue to increase, this will significantly undermine reductions made by other sectors to combat climate change.
Justification
It is not the Member States which must reduce emissions according to this regulation, but car manufacturers and importers. It is not the ‘climate change impact’ that threatens to increase further, but greenhouse gas emissions, particularly CO2.
Amendment  3 Proposal for a regulation Recital 10
Text proposed by the Commission	Amendment
(10) The Communications proposed an integrated approach with a view to reaching the Community target of 120 g CO2/km by 2012 and announced that the Commission would propose a legislative framework to achieve the Community objective by focusing on mandatory reductions of emissions of CO2 to reach the objective of 130 g CO2/km for the average new car fleet by means of improvements in vehicle motor technology. Consistent with the approach under the voluntary commitments adopted by the manufacturers, this covers those elements that are taken into account in the measurement of the CO2 emissions of passenger cars in accordance with Regulation (EC) No 715/2007 of the European Parliament and of the Council of 20 June 2007 on type approval of motor vehicles with respect to emissions from light passenger and commercial vehicles (Euro 5 and Euro 6) and on access to vehicle repair and maintenance information. A further reduction of 10 g CO2/km, or equivalent if technically necessary, will be delivered by other technological improvements and by an increased use of biofuels. In addition, consumer behaviour has an affect on overall emissions from passenger cars and therefore consumers should be provided with information regarding whether new passenger cars meet the emission targets set under this Regulation.	(10) The Communications proposed an integrated approach with a view to reaching the Community target of 120 g CO2/km by 2012 and announced that the Commission would propose a legislative framework to achieve the Community objective by focusing on mandatory reductions of emissions of CO2 to reach the objective of 130 g CO2/km for the average new car fleet by means of improvements in vehicle motor technology. Consistent with the approach under the voluntary commitments adopted by the manufacturers, this covers those elements that are taken into account in the measurement of the CO2 emissions of passenger cars in accordance with Regulation (EC) No 715/2007 of the European Parliament and of the Council of 20 June 2007 on type approval of motor vehicles with respect to emissions from light passenger and commercial vehicles (Euro 5 and Euro 6) and on access to vehicle repair and maintenance information.16 A further reduction of 10 g CO2/km, or equivalent if technically necessary, will be delivered by other technological improvements and by an increased use of sustainable biofuels. In addition, consumer behaviour has an affect on overall emissions from passenger cars and therefore consumers should be provided with information regarding whether new passenger cars meet the emission targets set under this Regulation.
Amendment  4 Proposal for a regulation Recital 10 a (new)
Text proposed by the Commission	Amendment
	(10a) In its resolutions of 24 October 2007 and 15 January 2008 on the Commission communications of 7 February 2007 the European Parliament pointed out that the development of new types of cars takes five to seven years and therefore called on the Commission not to set definitively binding CO2 emission targets before 2015.
Justification
In the light of the automobile industry's standard development and production cycles of five to seven years, binding targets can be set only with effect from 2015. An earlier target date would be at odds with economic realities.
Amendment  5 Proposal for a regulation Recital 11 a (new)
Text proposed by the Commission	Amendment
	(11a) In order to achieve zero-emission cars, the appropriations in the Seventh Framework Programme for Research and Development set aside for technologies pursuing that aim should be drastically increased.
Justification
It is important to invest more money in R+D on technologies to make zero-emission cars possible.
Amendment  6 Proposal for a regulation Recital 12
Text proposed by the Commission	Amendment
(12) In order to maintain the diversity of the car market and its ability to cater for different consumer needs, CO2 targets for passenger cars should be defined as a function of the utility of the cars on a linear basis. To describe this utility, mass is the most appropriate parameter because it provides a satisfactory correlation with present emissions and would therefore result in more realistic and competitively neutral targets and because data on mass is readily available. Data on the alternative utility parameter of footprint (track width times wheelbase) should, however, be collected in order to facilitate longer-term evaluations of the utility-based approach. In the establishment of the targets, the projected evolution of new cars' mass until 2012 should be taken into account, and potential incentives to increase vehicle mass just in order to benefit from a consequential increase of the CO2 reduction target should be avoided. Therefore, the possible future autonomous mass increase evolution of vehicles produced by the manufacturers and sold on the EU market should be taken into account when defining the targets for 2012. Finally, differentiation of targets should encourage emissions reductions to be made in all categories of cars while recognising that larger emission reductions can be made for heavier cars.	(12) In order to maintain the diversity of the car market and its ability to cater for different consumer needs, CO2 targets for passenger cars should be defined as a function of the utility of the cars on a linear basis. To describe this utility, mass is an appropriate parameter which provides a correlation with present emissions and would therefore result in more realistic and competitively neutral targets, and data on mass is readily available. Data on alternative utility parameters such as footprint (track width times wheelbase) should be collected in order to facilitate longer-term evaluations of the utility-based approach. The Commission should by 2014 review the availability of data and, if appropriate, adapt the utility parameter.
Amendment  7 Proposal for a regulation Recital 13
Text proposed by the Commission	Amendment
(13) The aim of this Regulation is to create incentives for the car industry to invest in new technologies. The Regulation actively promotes eco-innovation and takes into account future technological developments. In this way, the competitiveness of the European Industry is enhanced and more high-quality jobs created.	(13) The aim of this Regulation is to create incentives for the car industry to invest in new technologies. The Regulation actively promotes eco-innovation and takes into account future technological developments. The development of hybrid and electric cars should particularly be promoted, as they cause significantly lower emissions than traditional passenger cars. In this way, the competitiveness of the European Industry is enhanced and more high-quality jobs are created. The Commission may consider the possibility of including eco-innovation measures in the review of test procedures pursuant to Article 14(3) of Regulation (EC) No 715/2007, taking into consideration technical and economic impacts.
Amendment  8 Proposal for a regulation Recital 13 a (new)
Text proposed by the Commission	Amendment
	(13a) In recognition of the very high research and development and unit production costs of early generations of very low carbon vehicle technologies to be introduced into the marketplace following its entry into force, on an interim basis, this Regulation also incorporates specific provisions aimed at accelerating the introduction to the European Market of ultra low carbon vehicles at their initial stages of commercialisation.
Amendment  9 Proposal for a regulation Recital 13 b (new)
Text proposed by the Commission	Amendment
	(13b) The use of alternative fuels can offer significant CO2 reductions on a well-to-wheels basis. This Regulation therefore incorporates specific provisions aimed at promoting further deployment of alternative fuel vehicles in the European Market.
Justification
Development of vehicles that may use alternative fuels should be promoted. As alternative fuels offer the potential to significant reduce CO2 emissions on a well to wheels basis, the vehicle fleet should be adapted to enable the use of these fuels.
Amendment  10 Proposal for a regulation Recital 13 c (new)
Text proposed by the Commission	Amendment
	(13c) In recognition of the fact that biofuels can offer significant CO2 reductions on a well-to-wheels basis, and that manufacturers may offer vehicles with the capability to run on both conventional and alternative fuels to enable the transition to these lower CO2 fuels, this Regulation incorporates specific provisions aimed at promoting further deployment of alternative fuel vehicles in the European Market.
Justification
Fuel suppliers are not likely to provide a full refuelling network until there is adequate demand for the fuel. To overcome this problem, automakers are putting additional technology into alternative fuel vehicles to enable them to automatically sense and operate on combinations of petroleum and biofuels. This additional technological capability, positions these vehicles for the duration of their useful lives (average 12 years) to operate on biofuels. As these biofuels become more widely available, this could contribute to a very significant reduction in CO2 emissions from the vehicle fleet on a well to wheels basis. The EU is currently putting in placing criteria for biofuels to ensure their sustainability.
The emissions target does not make any difference between fossil CO2 and biologic CO2. If the scope of the legislation is to decrease the anthropogenic contribution of CO2 to the atmosphere, the aim should be to find alternatives to fossil fuel. The easiest way for the manufacturers to fulfil the proposed legislation is to changeover to diesel engines. But the legislation should also keep the door open to alternative fuel solutions, that today might have difficulties to live up the legislation in spite of the fact that they provide a CO2 reduction on a well-to-wheel-basis.
Amendment  11 Proposal for a regulation Recital 13 d (new)
Text proposed by the Commission	Amendment
	(13d) In order to reduce CO2 emissions, the development of alternative fuel, low emission and zero emission vehicles should be promoted. This Regulation will promote such technologies as the emission savings from alternative fuel, low emission and zero emission vehicles can be used to offset emissions from higher emission cars in the manufacturer's fleet or, as part of a commercial arrangement, in the fleet of another manufacturer in the same pool.
Amendment  12 Proposal for a regulation Recital 16
Text proposed by the Commission	Amendment
(16) Special purpose vehicles to which specific requirements apply for the purposes of type-approval, including vehicles built specifically for commercial purposes to accommodate wheelchair use inside the vehicle in accordance with Community policy to help disabled persons, should be excluded from the scope of this Regulation.	(16) Special purpose vehicles to which specific requirements apply for the purposes of type-approval, or vehicles built specifically for commercial purposes to accommodate wheelchair use inside the vehicle in accordance with Community policy to help disabled persons, should be excluded from the scope of this Regulation.
Justification
To allow vehicles build specifically to load and accommodate wheelchairs inside the vehicle, which are not homologated as wheelchair accessible vehicles but that have full EWVTA are to be excluded from this legislation. These amendments will provide parity for all wheelchair accessible vehicles in this regulation. This would be in accordance with the Communities policy to help disabled persons.
Amendment  13 Proposal for a regulation Recital 21
Text proposed by the Commission	Amendment
(21) Directive 2007/46/EC provides that manufacturers are to issue a certificate of conformity which must accompany each new passenger car and that Member States are to permit the registration and entry into service of a new passenger car only if it is accompanied by a valid certificate of conformity. Data collected by Member States should be consistent with the certificate of conformity issued by the manufacturer for the passenger car.	(21) Directive 2007/46/EC provides that manufacturers are to issue a certificate of conformity which must accompany each new passenger car and that Member States are to permit the registration and entry into service of a new passenger car only if it is accompanied by a valid certificate of conformity. Data collected by Member States should be consistent with the certificate of conformity issued by the manufacturer for the passenger car and should be based on this reference only. Should Member States, for justified reasons, not use the certificate of conformity to complete the process of registration and entry into service of a new passenger car, they should put the necessary measures in place to ensure adequate accuracy in the monitoring procedure. There should be a common European standard database for certificate of conformity data. It should be used as a single reference to enable Member States to more easily maintain their registration data when vehicles are newly registered. The Commission should ensure the use of electronic networks by the Member States, such as demonstrated in the REGNET project, that provide for further streamlining of the exchange of registration data, such as for CO2 emissions, for the purpose of accurate monitoring. Further, to enable manufacturers to respond to market developments, the Commission should, at the latest by 30 August for each monitoring year, make available an interim monitoring report to each manufacturer for that year.
Justification
All Member States should be obliged to use as a main reference (e.g. for CO2 figures) the certificate of conformity (CoC) as the basis for monitoring (at present about 12 EU Member States do not use this document the purpose of completing the national registration process). Therefore, a central European database for the collection of such data should be established. This would also allow manufacturers to provide timely updates in case of technical changes to their vehicles. It is key that manufacturers know early on what the official CO2 figure will be and hence the Commission’s provisional calculations and interim report must be on a half-yearly basis.
Amendment  14 Proposal for a regulation Recital 22
Text proposed by the Commission	Amendment
(22) Manufacturers' compliance with the targets under this Regulation should be assessed at the Community level. Manufacturers whose average specific emissions of CO2 exceed those permitted under this Regulation should pay an excess emissions premium in respect of each calendar year from 2012 onwards. The premium should be modulated as a function of the extent to which manufacturers fail to comply with their target. It should increase over time. In order to provide a sufficient incentive to take measures to reduce specific emissions of CO2 from passenger cars, the premium should reflect technological costs. The amounts of the excess emissions premium should be considered as revenue for the budget of the European Union.	(22) Manufacturers' compliance with the targets under this Regulation should be assessed at the Community level. Manufacturers whose average specific emissions of CO2 exceed those permitted under this Regulation should pay an excess emissions premium in respect of each calendar year from 2012 onwards. The premium should be modulated as a function of the extent to which manufacturers fail to comply with their target. It should increase over time. In order to provide a sufficient incentive to take measures to reduce specific emissions of CO2 from passenger cars, the premium should be higher than the technological costs. The amounts of the excess emissions premium should be considered as revenue for the budget of the European Union and used to increase support for CO2 reduction research and innovation activities in the automotive sector..
Justification
In order to be effectively ensuring compliance with the EU average target, the premium should be higher than the technological costs. It is important for the funds in question to be channelled into research and innovation activities in the automotive sector.
Amendment  15 Proposal for a regulation Recital 23 a (new)
Text proposed by the Commission	Amendment
	(23a) Directive 1999/94/EC of the European Parliament and of the Council of 13 December 1999 relating to the availability of consumer information on fuel economy and CO2 emissions in respect of the marketing of new passenger cars1 provides that consumers are to be supplied with clear fuel-consumption and specific CO2-emissions data for each passenger car, so as to enable them to make an informed purchase.
	1 OJ L 12, 18.1.2000, p. 16.
Justification
The promotional materials used when marketing a new passenger car must include fuel-consumption and specific CO2-emissions data for the model to which they refer.
Amendment   16 Proposal for a regulation Article 1
Text proposed by the Commission	Amendment
Subject matter and objectives	Subject matter, objectives and targets
This Regulation establishes CO2 emission performance requirements for new passenger cars in order to ensure proper functioning of the internal market and achieve the EU's overall objective that the average new car fleet should achieve CO2 emissions of 120 g CO2/km. The Regulation sets the average CO2 emissions for new passenger cars at 130 g CO2/km by means of improvement in vehicle motor technology as measured in accordance with Regulation (EC) No 715/2007 and its implementing measures. This Regulation will be complemented by additional measures corresponding to 10 g/km as part of the Community's integrated approach.	This Regulation establishes CO2 emission performance requirements for new passenger cars in order to ensure proper functioning of the internal market and achieve the overall objective of reducing CO2 emissions in the EU, including in the transport sector. The Regulation sets a target, for the new car fleet, of an average 120 g CO2/km as from 1 January 2012.
	From 2012 the Regulation sets the average CO2 emissions for new passenger cars at 130 g CO2/km by means of improvement in vehicle motor technology as measured in accordance with Regulation (EC) No 715/2007 and its implementing measures. This Regulation will be complemented by additional measures corresponding to 10 g/km as part of the Community's integrated approach. From 2020 the Regulation sets a target, for the new car fleet, of average emissions of no more than 95 g CO2/km as from 1 January 2020 by means of improvement in vehicle motor technology as measured in accordance with Regulation (EC) No 715/2007 and its implementing measures.
Amendment  17 Proposal for a regulation Article 2 ‑ paragraph 1
Text proposed by the Commission	Amendment
1. This Regulation shall apply to motor vehicles of category M1 as defined in Annex II to Directive 2007/46/EC with a reference mass not exceeding 2 610 kg and vehicles to which type-approval is extended in accordance with Article 2(2) of Regulation (EC) No 715/2007 ('passenger cars') which are registered in the Community for the first time and which have not previously been registered outside the Community ('new passenger cars').	1. This Regulation shall apply to motor vehicles of category M1 as defined in Annex II to Directive 2007/46/EC and vehicles to which type-approval is extended in accordance with Article 2(2) of Regulation (EC) No 715/2007 ('passenger cars') which are registered in the Community for the first time ('new passenger cars').
Justification
Eliminating mass as a reference for the scope of the Regulation will prevent very heavy vehicles from being exempt from it. In order to encourage European automobile producers to invest in new technologies increase energy efficiency and reduce CO2 emissions, it is necessary to avoid introducing specific advantages for new automobiles imported from outside the Community.
Amendment  18 Proposal for a regulation Article 2 – paragraph 3
Text proposed by the Commission	Amendment
3. It does not apply to special purpose vehicles as defined in paragraph 5 of Annex II to Directive 2007/46/EC.	3. It does not apply to special purpose vehicles as defined in paragraph 5 of Annex II to Directive 2007/46/EC or vehicles built specifically for commercial purposes to accommodate wheelchair use inside as defined in Regulation (EC) No 715/2007.
Justification
To allow vehicles build specifically to load and accommodate wheelchairs inside the vehicle, which are not homologated as wheelchair accessible vehicles but that have full EWVTA are to be excluded from this legislation. These amendments will provide parity for all wheelchair accessible vehicles in this regulation. This would be in accordance with the Communities policy to help disabled persons.
Amendment 19 Proposal for a regulation Article 2 – paragraph 3 a (new)
Text proposed by the Commission	Amendment
	3a. Vehicles designed to fulfil specific social needs as defined in Article 3(1)(fa) shall not be covered by the scope of this Regulation.
Justification
The number of such vehicles is relatively small, so that a derogation is justified to meet the requirement for social acceptability of these rules on CO2.
Amendment  20 Proposal for a regulation Article 3 ‑ paragraph 1 – point d a (new)
Text proposed by the Commission	Amendment
	(da) 'footprint' means the track width multiplied by the wheelbase as stated in the certificate of conformity and defined in section 2.1 and 2.3 of Annex I to Directive 2007/46/EC;
Amendment  21 Proposal for a regulation Article 3 – paragraph 1 – point f a (new)
Text proposed by the Commission	Amendment
	(fa) 'vehicles designed to fulfil specific social needs' means vehicles of category M1 which are either:
	(i) special purpose vehicles as defined in Directive 2007/46/EC with a reference mass exceeding 2000kg, or
	(ii) vehicles with a reference mass exceeding 2000kg and designed to carry seven or more occupants including the driver with the exclusion of vehicles of category M1G as defined in Directive 2007/46/EC, or
	(iii) vehicles with a reference mass exceeding 1760kg which are built specifically for commercial purposes to accommodate wheelchair use inside the vehicle.
Justification
The vehicles defined fulfil the needs of dedicated transport functions such as shuttle buses, rescue and recovery services. Such vehicles often have a specific vehicle construction (higher, wider or heavier bodies) with special gearing and hence slightly higher CO2 emissions. The segment volumes of these groups of vehicles are relatively low and the slightly higher CO2 emissions are negligible in terms of their overall impact on the CO2 legislation target.
Amendment  22 Proposal for a regulation Article 3 ‑ paragraph 1 – point f b (new)
Text proposed by the Commission	Amendment
	(fb) 'ultra low carbon vehicle' means a vehicle emitting less than 50 g CO2/km, measured in accordance with Regulation (EC) No 715/2007 and specified as the CO2 mass emission (combined) in the certificate of conformity.
Amendment  23 Proposal for a regulation Article 3 – paragraph 1 – point f c (new)
Text proposed by the Commission	Amendment
	(fc) 'alternative fuel vehicle' means a vehicle as defined in Regulation (EC) No 715/2007 and its implementing measures.
Justification
The Euro V Regulation already describes alternative fuel vehicles as vehicles with one fuel storage system that can run on different mixtures of two or more fuels (biofuels).
Amendment  24 Proposal for a regulation Article 4
Text proposed by the Commission	Amendment
For the calendar year commencing 1 January 2012 and each subsequent calendar year, each manufacturer of passenger cars shall ensure that its average specific emissions of CO2 do not exceed its specific emissions target determined in accordance with Annex I or, where a manufacturer is granted a derogation under Article 9, in accordance with that derogation.	For the calendar year commencing 1 January 2012 and each subsequent calendar year, each manufacturer of passenger cars shall ensure that its average specific emissions of CO2 do not exceed its specific emissions target determined in accordance with Annex I or, where a manufacturer is granted a derogation under Article 9, in accordance with that derogation.
	For the calendar year commencing 1°January 2020 and each subsequent calendar year, each manufacturer of passenger cars shall ensure that its average specific emissions of CO2 do not exceed its specific emissions target determined in accordance with Annex I as amended pursuant to Article 10(2a)(b).
Amendment  25 Proposal for a regulation Article 4 a (new)
Text proposed by the Commission	Amendment
	Article 4a
	Ultra low carbon vehicles
	Between 1 January 2012 and the year beginning 1 January 2016 for the purposes of determining compliance by individual manufacturers of passenger cars with the specific emissions target referred to in Article 4, each ultra low carbon vehicle registered in the European Union shall contribute to the calculation of the manufacturer's average specific emissions of CO2 on a multiplier basis of:
	2012-2013: 4 times
	2014: 3 times
	2015: 2 times.
	From 1 January 2016 this multiplier will cease to apply.
Amendment  26 Proposal for a regulation Article 4 b (new)
Text proposed by the Commission	Amendment
	Article 4b
	Specific emission target for alternative fuel vehicles
	For the purpose of determining compliance by individual manufacturers of passenger cars with the specific emissions target referred to in Article 4, the CO2 emissions as stated in the certificate of conformity for each alternative fuel vehicle, as defined in Regulation (EC) No 715/2007, registered in the European Union shall be reduced in a linear function from 0 to 20%, with a maximum of 25 g CO2/km, if at least 30% of the filling stations in the Member State where the vehicle is registered provide alternative fuels for these vehicles that meet the sustainability criteria set out in Directive ... [the Renewable energy directive]. The reduction shall not be valid for vehicles with a mass weight exceeding 2000 kg, or if it is achieved through the use of alternative fuels that are not available for commercial use within the Community.
Amendment  27 Proposal for a regulation Article 5 – paragraph 7
Text proposed by the Commission	Amendment
7. Except where notification is given under paragraph 3, the manufacturers in a pool for which information is filed with the Commission shall be considered as if they were one manufacturer for the purposes of this Regulation.	7. Except where notification is given under paragraph 3, the manufacturers in a pool for which information is filed with the Commission shall be considered as if they were one manufacturer for the purposes of meeting their obligations under Article 4. Monitoring and reporting information will be recorded, reported and available in the central register referred to in Article 6(4) for individual manufacturers as well as any pools.
Amendment  28 Proposal for a regulation Article 6 – paragraph 1
Text proposed by the Commission	Amendment
1. For the year beginning 1 January 2010 and each subsequent year, each Member State shall record information for each new passenger car registered in its territory in accordance with Part A of Annex II.	1. For the month beginning 1 January 2012 and each subsequent month, each Member State shall record information for each new passenger car registered in its territory in accordance with Part A of Annex II. This information shall be made available to the manufacturers and their designated importers or representatives in each Member State. Member States shall make every effort to ensure that reporting bodies operate in a transparent and non-bureaucratic manner.
Justification
Monitoring and reporting of average emissions should begin as and when the regulation is introduced, to avoid market distortion and discrimination against manufacturers. So the measures should not begin until 2012, should take place monthly and should be made available to vehicle manufacturers so that manufacturers and customers can be more involved in achieving the targets. This amendment seeks to ensure that national reporting bodies do not generate unnecessary operating costs and that they operate as effectively and with as little red tape as possible.
Amendment  29 Proposal for a regulation Article 6 – paragraph 2
Text proposed by the Commission	Amendment
2. By 28 February 2011 and each subsequent year, the Member State shall determine and transfer to the Commission the information listed in Part B of Annex II in respect of the preceding calendar year. The data shall be transmitted in accordance with the format specified in Part C of Annex II.	2. By 28 February 2011 and each subsequent year, the Member State shall determine and transfer to the Commission the information, verified by a certified auditor, listed in Part B of Annex II in respect of the preceding calendar year. The data shall be transmitted in accordance with the format specified in Part C of Annex II.
Justification
The verification of the Member States data by a certified auditor should ensure that Member States collect and monitor the CO2 figures from the Certificate of Conformity paper and that the car models are allocated to right manufacturers.
Amendment  30 Proposal for a regulation Article 6 – paragraph 5
Text proposed by the Commission	Amendment
5. Manufacturers may, within 2 months of being notified of the provisional calculation under paragraph 4, notify the Commission of any errors in the data specifying the Member State in which it considers that the error occurred.	5. Manufacturers may, within three months of being notified of the provisional calculation under paragraph 4, notify the Commission of any errors in the data specifying the Member State in which it considers that the error occurred.
The Commission shall consider any notifications from manufacturers and shall by 30 September either confirm or amend and confirm the provisional calculations under paragraph 4.	The Commission shall consider any notifications from manufacturers and shall by 31 March of the following year either confirm or amend and confirm the provisional calculations under paragraph 4.
Justification
The accuracy of the data collected by the Member States is crucial for the exact calculation of manufacturers’ specific reduction target figures. Therefore the period in which manufacturers can point out irregularities in the data should be extended to at least three months.
Amendment  31 Proposal for a regulation Article 6 – paragraph 7
Text proposed by the Commission	Amendment
7. Member States shall designate a competent authority for the collection and communication of the monitoring data in accordance with this Regulation and shall inform the Commission of the competent authority designated no later than 6 months after the entry into force of this Regulation.	7. Member States shall designate a competent authority for the collection and communication of the monitoring data in accordance with this Regulation and shall inform the European Parliament, the Council and the Commission of the competent authority designated no later than 6 months after the entry into force of this Regulation.
Amendment  32 Proposal for a regulation Article 7 ‑ paragraph 5
Text proposed by the Commission	Amendment
5. The amounts of the excess emissions premium shall be considered as revenue for the budget of the European Union.	5. The amounts of the excess emissions premium shall be considered as revenue for the budget of the European Union and used to increment research activities in support of the development of technological innovations for the reduction of vehicle CO2 emissions and the development of zero emission vehicles.
Justification
It is important for the funds in question to be channelled into research and innovation.
Amendment  33 Proposal for a regulation Article 8 ‑ paragraph 1 ‑ point d a (new)
Text proposed by the Commission	Amendment
	(da) the average mass for all new passenger cars in the Community in the preceding calendar year.
Justification
It is proposed that the average mass for all new passenger cars also be published.
Amendment  34 Proposal for a regulation Article 9 – paragraph 1
Text proposed by the Commission	Amendment
1. An application for a derogation from the specific emissions target calculated in accordance with Annex I may be made by a manufacturer which:	1. An application for a derogation from the specific emissions target calculated in accordance with Annex I may be made by a manufacturer which:
(a) is responsible for less than 10,000 new passenger cars registered in the Community per calendar year; and	(a) is responsible for less than 10,000 new passenger cars registered in the Community per calendar year; and
(b) is not connected to another manufacturer.	(b) is not connected to another car manufacturer or
	(ba) has connected undertakings, and these in total are responsible for less than 10 000 new passenger cars registered in the Community per calendar year.
Justification
This amendment clarifies and simplifies the scope of the derogation while remaining strictly below the 10,000 threshold. There may be cases where two connected manufacturers register fewer than 10,000 new passenger cars. They should be considered as unconnected.
Amendment  35 Proposal for a regulation Article 9 – paragraph 2 – point d
Text proposed by the Commission	Amendment
(d) a specific emissions target consistent with its reduction potential, including the technological potential to reduce its specific emissions of CO2.	(d) a specific emissions target consistent with the manufacturer's technical capability, financial means, and model CO2 reduction potential relative to direct competitors.
Justification
This amendment defines the criteria from which to determine and assess the individual targets in order to provide greater legal certainty and predictability while encouraging emissions reductions.
Amendment  36 Proposal for a regulation Article 9 – paragraph 3
Text proposed by the Commission	Amendment
3. Where the Commission considers that the manufacturer is eligible for a derogation under paragraph 1 and is satisfied that the specific emissions target proposed by the manufacturer is consistent with its reduction potential, including the technological potential to reduce its specific emissions of CO2, the Commission shall grant a derogation to the manufacturer. The derogation shall apply from 1 January of the year following the application.	3. Where the Commission considers that the manufacturer is eligible for a derogation under paragraph 1 and is satisfied with the specific CO2 emissions target proposed by the manufacturer, the Commission shall grant a derogation to the manufacturer. In taking this decision the Commission shall take into account the criteria specified in paragraph 2(d). The derogation shall apply from 1 January of the year following the application.
Justification
This amendment is necessary for reasons of consistency with the amendment to Article 9, paragraph 2, point (d).
Amendment  37 Proposal for a regulation Article 9 – paragraph 6
Text proposed by the Commission	Amendment
6. Where the Commission considers that the manufacturer is not giving effect to the programme of reduction set out in its application, the Commission may revoke the derogation.	6. Where the Commission considers that the manufacturer is not giving effect to the programme of reduction set out in its application, the Commission may impose an excess emissions premium on the manufacturer, as set out in Article 7.
Justification
If a manufacturer exceeds its emissions target set out in its application for a derogation, a revocation of the derogation would be a disproportionate measure. Instead, the same excess emissions premium system as it is foreseen for mass manufacturers should be applied to that manufacturer. This aligns the process for small manufacturers more closely to that for mass manufacturers.
Amendment  38 Proposal for a regulation Article 9 – paragraph 7 a (new)
Text proposed by the Commission	Amendment
	7a. An application for a derogation including the information supporting it, as well as any notification under paragraph 4, any revocation under paragraph 5 or 6, or measures referred to in paragraph 7 shall be made available to the public.
Amendment  39 Proposal for a regulation Article 9 – paragraph 7 b (new)
Text proposed by the Commission	Amendment
	7b. A manufacturer may apply to the Commission to be allowed to meet an alternative target that is a 25% reduction on its average specific emissions in 2006, instead of its specific emissions target calculated in accordance with Annex I, provided that:
	(a) it has no connected undertakings, and is responsible for between 10 000 and 300 000 new passenger cars registered in the Community per calendar year; or
	(b) it has connected undertakings, and these in total are responsible for between 10 000 and 300 000 new passenger cars registered in the Community per calendar year.
	Connected undertakings may apply to the Commission to be allowed to meet an alternative target that is a 25% reduction on their combined average specific emissions in 2006, instead of the average of their specific emissions targets calculated in accordance with Annex I, provided that those connected undertakings, taken together with any other connected undertakings, are responsible for between 10 000 and 300 000 new passenger cars registered in the Community per calendar year.
Justification
The Commission's proposal gives niche manufacturers (who make a narrow range of cars) targets that are unachievable and much tougher than their direct competitors. Their competitors, who either sell a wider range of cars or are part of a group, are not required to make the same level of effort even though they sell cars with similar CO2 emissions. The amendment allows niche manufacturers to choose a 25% minimum target. This is a very significant reduction in CO2 emissions compared to the industry average of 19%, and therefore results in a negligible impact on the environmental outcome.
Amendment  40 Proposal for a regulation Article 9 a (new)
Text proposed by the Commission	Amendment
	Article 9a
	Eco-innovations
	1. Eco-innovations are innovative technologies on the car that verifiably reduce CO2 emissions independently of driver behaviour but are not or only insufficiently reflected in the CO2 measurement according to Regulation (EC) No 715/2007.
	2. The Committee referred to in Article 12(1) of this Regulation shall decide upon applications for eco-innovations, including the real-world CO2 reduction associated with a technology.
	3. An application for an eco-innovation may be presented by manufacturers or suppliers of this technology. Applications must be substantiated by technical data on the CO2 reduction associated with a technology. Such data has to be certified by a third party. Institutions notified according to Article 43 of Directive 2007/46/EC may act as certifying third parties.
	4. Eco-innovations shall be considered in the monitoring of this Regulation on the basis of credits given for their installation as standard equipment in vehicle types or versions thereof. The credit associated with a technology shall be no higher than 75% of the real-world CO2 reduction decided according to paragraph 2. The Committee referred to in Article 12(1) may furthermore limit the validity of credits over time, or decide that these credits shall be applied degressively over a certain time period.
Justification
The final Regulation should offer incentives to increase the efficiency of auxiliaries / components even if their CO2 benefit is not reflected in the CO2 measurement according to Regulation 715/2007. Only technologies that lead to real-world CO2 reductions beyond any doubt should be considered as eco-innovations, their impact having to be certified by a competent technical service such as those used in EU type approval.
Amendment  41 Proposal for a regulation Article 10 ‑ paragraph 2 a (new)
Text proposed by the Commission	Amendment
	2a. The Commission shall amend Annex I:
	(a) by 30 June 2016 and 30 June every three years thereafter to provide for the figure M0 to be the average of the average mass of new passenger cars in the last three calendar years for which an average mass has been published in accordance with Article 8(1)(da); and
	(b) by 30 June 2019 to provide for the figure ‘130’ to be replaced by a figure no higher than ‘95’ and for the figure ‘a’ to lead to an effort sharing between manufacturers that is as consistent as possible with that implied by this Regulation for the year 2012.
	The amendments shall take effect from 1 January in the following year.
	Such amendment, designed to amend non-essential elements of this Regulation, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 12(3).
Amendment  42 Proposal for a regulation Article 10 - paragraph 3
Text proposed by the Commission	Amendment
3. The Commission shall review technological developments with a view to amending, as appropriate, the provisions of Regulation EC No 715/2007 on type approval of motor vehicles.	3. The Commission shall review technological developments with a view to amending, as appropriate, the provisions of Regulation (EC) No 715/2007 on type approval of motor vehicles. In particular the Commission shall review the procedures for measuring CO2 emissions and the possibilities for including the CO2 emission test in the in-service conformity assessment without hindering the rapid introduction of new and less proven technologies (e.g. batteries, fuel cells) to lower CO2 emissions.
Justification
Updating or replacement of the test procedures possible will be required to reflect changes in vehicle specifications and driver behaviour, with the purpose to ensure that real world emissions correspond to those measured at type approval. CO2 emissions from vehicles that have been used in ordinary traffic for some years might differ from what is measured during type approval. An inclusion of the CO2 emission test into the in-service conformity will improve to the legislation to ensure that CO2 emissions from cars in use do not increase compared to those measured at type approval. In vehicles with new, less proven technologies (e.g. batteries, fuel cells) some degradations should be allowed not to block the rapid introduction of new technologies with big potential to a long term reduction.
Amendment  43 Proposal for a regulation Article 10 - paragraph 3 – subparagraph 1 a (new)
Text proposed by the Commission	Amendment
	In particular the Commission shall make proposals by 2010, as appropriate, to ensure that the procedures for measuring CO2 emissions under Regulation (EC) No 715/2007 and its implementing measures are adapted and subsequently reviewed on a regular basis, in accordance with Article 14(3) of that Regulation, so as better to reflect real driving conditions and the real CO2 emission behaviour of cars, and to incorporate all relevant eco-innovations and additional measures within these procedures.
Amendment  44 Proposal for a regulation Article 10 - paragraph 3 a (new)
Text proposed by the Commission	Amendment
	3a. The Commission shall ensure that, by 2015, cars of all weights are covered by this Regulation.
Justification
Some passenger cars have a reference mass exceeding the 2 840 kg maximum mass specified in Article 2(2) of the EURO 5/6 Regulation. An example for such a car is the Hummer H2 with a kerb weight of 2 902 kg. Under the current proposal, these cars are exempt from the legislation. This loophole must be closed to avoid that an increase in very heavy SUVs puts the achievement of the EU fleet average target at risk.
Amendment  45 Proposal for a regulation Article 10 ‑ paragraph 3 b (new)
Text proposed by the Commission	Amendment
	3b. The Commission shall by 31 December 2014 table a proposal for a regulation setting the average emissions level referred to in Annex I, which may in any event not be higher than 95 g of CO2 , to be achieved by the new car fleet by 1 January 2020.
	That proposal shall be preceded by an overall assessment of the impact on the car industry and its allied industries, coupled with a precise cost-benefit analysis, taking into account the development of technological innovations for CO2 reduction. When setting the average emissions level, the Commission shall take into account the developments concerning international agreements relating to the post-2012 period.
	The Commission shall also consider the possibility of dispensing with the current distinction between the various measures that contribute to achieving the specific reduction target, particularly as regards measures relating to motor vehicles and other complementary measures.
Amendment  46 Proposal for a regulation Article 10 – paragraph 3 c (new)
Text proposed by the Commission	Amendment
	3c. The Commission shall by 2014, following an impact assessment, publish a report on the data availability of footprint, as an utility parameter for determining specific emissions targets and, if appropriate, amend Annex I in accordance with the regulatory procedure with scrutiny referred to in Article 12(3).
Amendment  47 Proposal for a regulation Article 11
Text proposed by the Commission	Amendment
From 1 January 2010, manufacturers shall ensure that labels, posters or promotional literature and material of the type referred to in articles 3, 5 and 6 of Directive 1999/94/EC indicate the extent to which the specific emissions of CO2 of the passenger car offered for sale differ from the specific emissions target for that passenger car under Annex I.	From 1 January 2010, the information provided to consumers concerning the specific CO2 emissions of passenger cars shall be governed by Directive 1999/94/EC.
Justification
The provision of information to consumers is best governed within the framework of Directive 1999/94/EC.
Amendment  48 Proposal for a regulation Article 11 a (new)
Text proposed by the Commission	Amendment
	Article 11a
	In-car driver information
	From 1 January 2012 manufacturers seeking type-approval for M1 vehicles as defined in Directive 2007/46/EC in accordance with Regulation (EC) No 715/2007 shall equip every vehicle with a fuel consumption monitor.
Justification
Many tests have confirmed that there is a discrepancy between real-life CO2 emissions and the emissions measured under the EU test-cycle. A fuel consumption monitor can help to close this discrepancy as it shows the driver how much fuel the car is consuming while driving. This can encourage eco-driving thereby leading to lower fuel consumption when the car is used in real life. Other positive side-effects of more economical driving styles are less accidents, reduction of NOx and particle emissions, less noise and less wear and tear of tyres and powertrain.
Amendment  49 Proposal for a regulation Annex II – part A – paragraph 2
Text proposed by the Commission	Amendment
2. The details referred to in paragraph 1 shall be taken from the certificate of conformity for the relevant passenger car. Where the certificate of conformity specifies both a minimum and a maximum mass for a passenger car, the Member States shall use only the maximum figure for the purpose of this Regulation.	2. The details referred to in paragraph 1 shall be taken from the certificate of conformity for the relevant passenger car. Where the certificate of conformity specifies both a minimum and a maximum mass for a passenger car, the Member States shall use only the maximum figure for the purpose of this Regulation. In the case of bi-fuelled vehicles (petrol/gas) whose certificates of conformity bear specific C02 emission figures for both types of fuel, the Member States shall use only the figure measured for the gas.
Justification
According to official figures, bi-fuelled vehicles are run almost exclusively on gas. Furthermore, the use of gaseous fuels as an alternative to petrol should be promoted, with a view to cutting carbon emissions and diversifying energy supplies.

EXPLANATORY STATEMENT

The proposal for a regulation, which sets CO₂ emission performance requirements for new passenger cars, forms part of a more ambitious strategy, under which the EU has resolutely and unilaterally committed itself to slashing greenhouse gas emission levels by at least 20% by 2020.

The road transport sector is the second highest source of greenhouse gas emissions in the EU, being responsible for 12% of all carbon dioxide emissions and, more importantly, is a sector in which emissions are continuing to increase. The significant progress made thanks to automotive technology has not been enough to neutralise the effect of the increase in traffic volumes and car sizes.

The events leading up to the drafting of this regulation are well known. Back in 1998, voluntary agreements between the Commission and the car industry helped towards a 13.5% reduction in CO₂ compared with 1995, even if they were viewed as insufficient to achieve the results that were needed. In February 2007, the Commission proposed that an integrated approach be adopted, centring on two components: emission reductions obtained through the improvement of engine technology with a view to meeting the target of an average 130g CO₂/km for the new car fleet, and reduction by another 10g CO₂/ km through further technological improvements and an increase in the use of biofuels by 2012. In October 2007, Parliament adopted a resolution welcoming the integrated approach in principle, but advocated more ambitious and longer‑term targets: a reduction to 125g CO₂/km by 2015 and a long‑term outlook target of 95g CO₂/km by 2020, and hopefully of 70g CO₂/km by 2025.

The proposal for a regulation adheres to the spirit and targets of the previous Communication, especially as regards targets, timescales and the adoption of an integrated approach. It also provides for the splitting of the specific target for each manufacturer on the basis on the utility parameter of ‘mass’. The proposal provides for a system of penalties, calculated on a base amount and increasing as from 2012, in the event of the set targets not being achieved. An exemption mechanism is envisaged for manufacturers whose sales within the EU do not exceed 10 000 units, with their nevertheless being assigned an ‘ad hoc’ specific target that would be negotiated with the Commission. Lastly, the proposal allows manufacturers the possibility of forming pools and hence of collectively meeting the targets set.

Your rapporteur can but express his overall approval of the proposal for a regulation as a whole, and in particular supports its subject matter, targets and objectives. He believes that the car industry should fit in with the overall targets for the reduction of CO₂ emissions, despite acknowledging its special characteristics (driver behaviour, car fleet renewal, infrastructure conditions). Therefore, while approving the targets and the timescales established by the Commission, he considers it a priority to revert to the position adopted by Parliament on long‑term targets and to propose an average level of emissions of no more than 95 g CO₂/km by 2020. The precise target – which your rapporteur hopes will become more ambitious – will be set by the Commission following a review of the Regulation that is to be conducted by 2014, and which will be preceded by an overall impact assessment coupled with an analysis of the economic, environmental and social effects on the entire production chain.

Your rapporteur fully supports the choice of the integrated approach in the launch phase of the system; he nevertheless wonders whether it would not be more appropriate to allow the car industry to decide on the arrangements for meeting the specific targets assigned. Whether that industry achieves the targets it has been set by way of technical advances, complementary measures or any other means, should not enter into the legislative debate, provided that those targets are quantifiable and can be assessed using the existing test cycles and those to be implemented in the future. Your rapporteur therefore calls on the Commission to consider the possibility of scrapping, in the long term, the current distinction between complementary measures and measures relating to motor vehicles.

Your rapporteur also supports the choice of the utility parameter: in its proposal, the Commission has opted for the mass parameter, which is, in its own words, provides ‘a satisfactory correlation with present emissions and would therefore result in more realistic and competitively neutral targets and … data on mass is readily available’.

However, the Commission does not automatically exclude the possibility of using an alternative parameter, to the extent that in its proposal it considers it appropriate for ‘Data on the alternative utility parameter of footprint (track width times wheelbase)… to be collected’.

In its October resolution, Parliament rejected by a large majority the introduction of the mass parameter, advocating the footprint option. Your rapporteur is aware that the footprint parameter provides greater guarantees from an environmental viewpoint as it is less prone to undesirable effects (increase in mass in order to have a less stringent reduction target).

Your rapporteur has not at this stage proposed any amendment to the Commission proposal as regards changing the utility parameter, but reserves the right to review Parliament’s position at the subsequent stages of the legislative process.

As regards excess emissions premiums, your rapporteur proposes that these be used to finance both incremental research (e.g. clean and energy efficient thermal engines, integrated safety systems) and innovative technologies (e.g. hydrogen and fuel cells, development of rechargeable hybrids, second generation biofuels).

Your rapporteur agrees with the Commission proposal as regards the issue of the penalties applicable in the event of the set targets not being met, despite expressing willingness to consider solutions that would make the system more flexible in the first phase of its application (2012-2015) while at the same time rewarding and encouraging a better approach from manufacturers.

Your rapporteur also suggests a series of technical adjustments to the Commission proposal, and in particular withdrawal of the reference mass of 2 610, as he believes that this would exclude too many heavy vehicles from the scope of the regulation.

Finally, your rapporteur had amended the article on the information to be provided to consumers, as he feels that this area should be governed by Directive 1999/94/EC.

OPINION OF COMMITTEE ON LEGAL AFFAIRS ON THE LEGAL BASE

19.9.2008

Mr Miroslav Ouzký

Chairman

Committee on the Environment, Public Health and Food Safety

BRUSSELS

Subject:           Opinion on the legal basis of the proposal for a regulation of the European Parliament and of the Council setting emission performance standards for new passenger cars as part of the Community's integrated approach to reduce CO2 emissions from light-duty vehicles (COM(2007)0856 – C6‑0022/2008 – 2007/0297(COD))

Dear Chair,

The Legal Affairs Committee decided to take up the question of the legal basis for the above-mentioned proposal for a regulation on its own initiative pursuant to Rule 35(3) of the Rules of Procedure.

The committee considered the above question at its meeting of 9 September 2008.

It is noted, in limine, that all Community acts must be founded upon a legal basis laid down in the Treaty (or in another legal act which they are intended to implement). The legal basis defines the Community's competence ratione materiae and specifies how that competence is to be exercised, namely the legislative instrument(s) which may be used and the decision-making procedure.

According to the Court of Justice the choice of legal basis is not a subjective one, but "must be based on objective factors which are amenable to judicial review"[1], such as the aim and content of the measure in question[2]. Furthermore, the decisive factor should be the main object of a measure.[3]

According to the case-law of the Court of Justice, a general Treaty article constitutes a sufficient legal basis even though the measure in question also seeks, in a subordinate manner, to attain an aim sought by a specific Treaty article[4].

The Commission is proposing Article 95 of the EC Treaty as the sole legal basis for the proposal for a regulation.

Article 95

1. By way of derogation from Article 94 and save where otherwise provided in this Treaty, the following provisions shall apply for the achievement of the objectives set out in Article 14. The

Council shall, acting in accordance with the procedure referred to in Article 251 and after consulting the Economic and Social Committee, adopt the measures for the approximation of the provisions laid down by law, regulation or administrative action in Member States which have as their object the establishment and functioning of the internal market. 2. Paragraph 1 shall not apply to fiscal provisions, to those relating to the free movement of persons nor to those relating to the rights and interests of employed persons.

3. The Commission, in its proposals envisaged in paragraph 1 concerning health, safety, environmental protection and consumer protection, will take as a base a high level of protection, taking account in particular of any new development based on scientific facts. Within their respective powers, the European Parliament and the Council will also seek to achieve this objective.

4. If, after the adoption by the Council or by the Commission of a harmonisation measure, a Member State deems it necessary to maintain national provisions on grounds of major needs referred to in Article 30, or relating to the protection of the environment or the working environment, it shall notify the Commission of these provisions as well as the grounds for maintaining them.

5. Moreover, without prejudice to paragraph 4, if, after the adoption by the Council or by the

Commission of a harmonisation measure, a Member State deems it necessary to introduce national provisions based on new scientific evidence relating to the protection of the environment or the working environment on grounds of a problem specific to that Member State arising after the adoption of the harmonisation measure, it shall notify the Commission of the envisaged provisions as well as the grounds for introducing them.

6. The Commission shall, within six months of the notifications as referred to in paragraphs 4 and 5, approve or reject the national provisions involved after having verified whether or not they are a means of arbitrary discrimination or a disguised restriction on trade between Member States and whether or not they shall constitute an obstacle to the functioning of the internal market.

In the absence of a decision by the Commission within this period the national provisions referred to in paragraphs 4 and 5 shall be deemed to have been approved.

When justified by the complexity of the matter and in the absence of danger for human health, the Commission may notify the Member State concerned that the period referred to in this paragraph may be extended for a further period of up to six months.

7. When, pursuant to paragraph 6, a Member State is authorised to maintain or introduce national provisions derogating from a harmonisation measure, the Commission shall immediately examine whether to propose an adaptation to that measure. 8. When a Member State raises a specific problem on public health in a field which has been the subject of prior harmonisation measures, it shall bring it to the attention of the Commission which shall immediately examine whether to propose appropriate measures to the Council.

9. By way of derogation from the procedure laid down in Articles 226 and 227, the Commission and any Member State may bring the matter directly before the Court of Justice if it considers that another Member State is making improper use of the powers provided for in this Article.

10. The harmonisation measures referred to above shall, in appropriate cases, include a safeguard clause authorising the Member States to take, for one or more of the non-economic reasons referred to in Article 30, provisional measures subject to a Community control procedure.

Aim and content of the proposal for a regulation

The proposal aims to ensure the proper functioning of the internal market for passenger cars by ensuring that average specific emissions of new passenger cars in the Community do not exceed 130g CO2/km from 2012 onwards.

The key aspects of the proposal are as follows:

· The proposal will apply to M1 vehicles (passenger cars).

· The proposal sets targets for the specific emissions of CO2 from new passenger cars in the Community as a function of their mass.

· The proposal sets mandatory targets for the specific emissions of CO2 of passenger cars from 2012 onwards. The targets will apply to the average specific emissions of CO2 in g/km for new passenger cars for each manufacturer which are registered in the EU in each calendar year. Manufacturers may form a pool in order to meet their targets. Where two or more manufacturers form a pool, the pool will be treated as if it is one manufacturer for the purposes of determining its compliance with the targets.

· Member States will be obliged to collect data on the new cars registered in their territory and to report this data to the Commission for the purposes of assessing compliance with the targets.

· If a manufacturer fails to meet its target, it will be required to pay an excess emissions premium in respect of each calendar year from 2012 onwards. The total premium payable will be calculated by multiplying the number of g CO2/km by which the manufacturer exceeded its target by the number of cars newly registered and by the excess emissions premium for the year. The excess emissions premium will be 20 euros for emissions in 2012, 35 euros for emissions in 2013, 60 euros for emissions in 2014 and 95 euros for emissions in 2015 and each subsequent year.

According to the Commission's explanatory memorandum, "Article 95 of the EC Treaty is the appropriate legal basis because of the need to ensure a level playing field for all economic actors in the internal market while at the same time ensuring a high level of protection of health and the environment."

This would appear to be supported by the following recitals:

(1) The objective of this Regulation is to set emission performance standards for new passenger cars registered in the Community which ensures the proper functioning of the internal market and delivers part of the Community's integrated approach to reducing CO2 emissions from light-duty vehicles.

(2) The internal market comprises an area without internal frontiers in which the free movement of goods, persons, services and capital must be ensured. The Community has put in place a well-functioning internal market in the automotive sector, which has created a solid basis for uninterrupted intra-Community trade in automotive products. The targets for CO2 emissions should be harmonised to avoid differing requirements between Member States, to preserve the achievements of the internal market and ensure the free movement of passenger cars within the Community while ensuring a high level of environmental protection.

(5) Adopting Community targets for new passenger cars is necessary to prevent fragmentation in the internal market resulting from the adoption of different measures at Member State level. Community targets provide manufacturers with more planning certainty and more flexibility to meet the CO2 reduction requirements than would be provided by separate national reduction targets. In setting emission standards it is important to take into account the implications for markets and manufacturers’ competitiveness, the direct and indirect costs imposed on business and the benefits that accrue in terms of stimulating innovation and reducing energy consumption.

(11) The legislative framework for implementing the average new car fleet target should ensure competitively neutral and socially equitable and sustainable reduction targets which are equitable to the diversity of the European automobile manufacturers and avoid any unjustified distortion of competition between automobile manufacturers. The legislative framework should be compatible with the overall objective of reaching the EU’s Kyoto targets and should be complemented by other more use-related instruments such as differentiating car and energy taxes.

As against this, other recitals justify the emission performance standards set: (3) on the UN Framework Convention on Climate Change and the objective adopted by the EU of achieving at least a 20% reduction in greenhouse gas emissions over 1990 levels by 2020; (4) on the need to reduce emissions from passenger cars, and (6) on the need to build on the existing EU process of measuring and monitoring CO2 emissions so as to ensure predictability and planning security for EU vehicle manufacturers.

Recitals (7), (8), (9) and (10) describe progress achieved with the Community strategy for reducing CO2 emissions, which is based on voluntary commitments from the car industry, improvements in consumer information and promotion of fuel-efficient cars via fiscal measures.

Recital (12) justifies the use of the parameter mass.

Recital (13) states that "The aim of this Regulation is to create incentives for the car industry to invest in new technologies. The Regulation actively promotes eco-innovation and takes into account future technological developments. In this way, the competitiveness of the European

Industry is enhanced and more high-quality jobs created."

Recital (14) makes it clear that the emission target applies to new cars registered in the Community for the first time.

Recital (15) states that the entity responsible for ensuring compliance with the regulation is to be that responsible for type-approval.

Recital (16) deals with exemptions for special purpose vehicles.

Recitals (17) and (18) deal with allowing flexibility to manufacturers in deciding how to meet their targets, in particular through pooling.

Recital (19) declares that "A robust compliance mechanism is necessary in order to ensure that the targets under this Regulation are met."

Recital (20) deals with rules on collection and reporting of emission date and Recital (21) with certificates of conformity.

Recital (22) deals with the payment of the "excess emissions premium" as follows: "Manufacturers' compliance with the targets under this Regulation should be assessed at the Community level. Manufacturers whose average specific emissions of CO2 exceed those permitted under this Regulation should pay an excess emissions premium in respect of each calendar year from 2012 onwards. The premium should be modulated as a function of the extent to which manufacturers fail to comply with their target. It should increase over time. In order to provide a sufficient incentive to take measures to reduce specific emissions of CO2 from passenger cars, the premium should reflect technological costs. The amounts of the excess emissions premium should be considered as revenue for the budget of the European Union." It should be noted that in Recital (26) it is stated, in particular, that power should be conferred on the Commission to "to establish methods for the collection of excess emissions premiums".

Recital (23) states that the regulation is without prejudice to the Community competition rules.

Recital (24) provides that the implementation of the regulation should be supported by the Community Financial Instrument for the Environment (LIFE+).

Recitals (25) and (26) deal with comitology, with the latter recital even specifying what non-essential elements may be amended or supplemented.

Lastly, Recital (27) deals with the repeal of Decision 1753/2000/EC and Recital (28) makes the usual declaration about subsidiary and proportionality.

As far as the substantive provisions are concerned:

Article 1 sets forth the regulation's subject-matter and objectives as follows:

This Regulation establishes CO2 emission performance requirements for new passenger cars in order to ensure proper functioning of the internal market and achieve the EU's overall objective that the average new car fleet should achieve CO2 emissions of 120 g CO2/km. The Regulation sets the average CO2 emissions for new passenger cars at 130 g CO2/km by means of improvement in vehicle motor technology as measured in accordance with Regulation (EC) No 715/2007 and its implementing measures. This Regulation will be complemented by additional measures corresponding to 10 g/km as part of the Community's integrated approach.

Article 2 defines the scope: The Regulation is to apply to category M1 vehicles with a reference mass not exceeding 2 610 kg, registered in the Community for the first time and not having been previously registered outside the Community (new passenger cars).

Article 3 contains the definitions.

Article 4 sets forth specific emissions targets in the following terms: For the calendar year commencing 1 January 2012 and each subsequent calendar year, each manufacturer of passenger cars shall ensure that its average specific emissions of CO2 do not exceed its specific emissions target determined in accordance with Annex I or, where a manufacturer is granted a derogation under Article 9, in accordance with that derogation.

Article 5 defines the conditions in which manufacturers may form a pool for the purposes of attaining the emissions target referred to in Article 4.

Article 6 deals with monitoring and reporting average emissions.

Article 7 sets out the provisions on the excess emissions premium:

1. In respect of each calendar year from 2012 onwards for which a manufacturer's average specific emissions of CO2 exceed its specific emissions target in that year, the Commission shall impose an excess emissions premium on the manufacturer or, in the case of a pool, the pool manager.

2. The excess emissions premium under paragraph 1 shall be calculated using the following formula:

Excess emissions x number of new passenger cars x excess emissions premium prescribed in paragraph 3.

Where:

'Excess emissions' means the positive number of grams per kilometre by which the manufacturer's average specific emissions exceeded its specific emissions target in the calendar year rounded to the nearest three decimal places; and

'Number of new passenger cars' means the number of new passenger cars for which it is the manufacturer and which were registered in that year.

3. The excess emissions premium shall be:

(a) in relation to excess emissions in the calendar year 2012, 20 euros;

(b) in relation to excess emissions in the calendar year 2013, 35 euros;

(c) in relation to excess emissions in the calendar year 2014, 60 euros; and

(d) in relation to excess emissions in the calendar year 2015 and subsequent

calendar years, 95 euros.

4. The Commission shall establish methods for the collection of excess emissions premiums under paragraph 1.

Those measures designed to amend non-essential elements of this Regulation, by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 12(3).

5. The amounts of the excess emissions premium shall be considered as revenue for the budget of the European Union.

Article 8 deals with publication of manufacturers' performance in terms of its specific emissions target.

Article 9 sets out a derogation for small volume independent manufacturers (responsible for fewer than 10 000 new passenger cars registered in the Community per calendar year).

Article 10 is the review and reporting clause.

Article 11 deals with consumer information.

Article 12 is the comitology clause.

Article 13 deals with Community financing.

Article 14 repeals Decision No 1753/2000/EC.

Article 15 deals with entry into force.

Annexes I and II deal with specific C02 emissions targets and monitoring and reporting emissions, respectively.

In the course of discussion in the committee, during which an opinion from the Legal Service was presented and debated, doubts were expressed as to the nature of the "excess emissions premium" provided for in Article 7 and as to whether Article 95 or Article 175 conferred competence on the EU to impose such a premium. Likewise, committee members expressed the utmost misgivings about the provisions under which the Commission is to establish methods for the collection of excess emissions premiums (Article 7(4)) and "The amounts of the excess emissions premium shall be considered as revenue for the budget of the European Union" (Article 7(5)).

At its meeting of 9 September 2008 the Committee on Legal Affairs accordingly decided, unanimously[5], in view of an opinion from the Council's Legal Service, that the proper legal basis was Article 175 of the EC Treaty.

Yours sincerely,

Giuseppe Gargani

• [1]  Case 45/86 Commission v. Council [1987] ECR 1439, para. 5.
• [2]  Case C-300/89 Commission v. Council [1991] ECR I-287, para. 10.
• [3]  Case C-377/98 Netherlands v. European Parliament and Council [2001] ECR I-7079, para. 27.
• [4]  Case C-377/98 Netherlands v. European Parliament and Council [2001] ECR I-7079, paras 27-28; Case C-491/01 British American Tobacco (Investments) and Imperial Tobacco [2002] ECR I-11453, paras 93-94.
• [5]  The following were present for the final vote: Giuseppe Gargani, (chairman), Rainer Wieland, (vice-chairman), Lidia Joanna Geringer de Oedenberg (vice-chairwoman), Francesco Enrico Speroni (vice-chairman), Sharon Bowles (for Diana Wallis (draftswoman)), Victor Boştinaru, Ieke van den Burg, Carlo Casini, Marek Aleksander Czarnecki, Bert Doorn, Monica Frassoni, Vicente Miguel Garcés Ramón, Jean-Paul Gauzès, Othmar Karas, Piia-Noora Kauppi, Klaus-Heiner Lehne, Katalin Lévai, Antonio Masip Hidalgo, Hans-Peter Mayer, Manuel Medina Ortega, Georgios Papastamkos, Aloyzas Sakalas, Gabriele Stauner, Daniel Strož, József Szájer, Jacques Toubon, Renate Weber, Jaroslav Zvěřina, Tadeusz Zwiefka.

OPINION of the Committee on Industry, Research and Energy (*) (3.9.2008)

for the Committee on the Environment, Public Health and Food Safetyon the proposal for a regulation of the European Parliament and of the Council setting emission performance standards for new passenger cars as part of the Community's integrated approach to reduce CO2 standards from light-duty vehicles
(COM(2007)0856 – C6‑0022/2008 – 2007/0297(COD))

Rapporteur (*): Werner Langen

(*) Associated committees – Rule 47 of the Rules of Procedure

SHORT JUSTIFICATION

Since 1995 there has been an EU Community strategy to reduce CO₂ emissions from cars. The strategy is based on three pillars: voluntary commitments from the car industry to cut CO₂ emissions, promotion of more fuel efficient cars via fiscal measures and improvements in consumer information. Between 1995 and 2007 vehicle engine technology made significant progress in fuel efficiency. Part of this improvement in fuel efficiency was, however, neutralised by the rising demand for larger vehicles. CO₂ emissions in the passenger car sector make up 12% of overall emissions in Europe. Cars are responsible for about 78% of all passenger transport in the EU.

1. Objectives of the draft regulation

With this proposed regulation the Commission seeks to achieve a single and binding target for CO2 emissions of 130 g CO₂/km by 2012. Parliament endorses this common aim and supports the Commission’s general objectives. However, the regulation that is to be adopted by the Council and Parliament must seek to achieve sustainable reduction targets that have a neutral effect on competition, are socially acceptable and take account of the wide variety of European car manufacturers and their position in international competition.

2. Options and slope

A particularly controversial point is a fair distribution of reduction targets between small and larger vehicles. Larger vehicles, for which European manufacturers have an 80% share of the world market, play a leading role in new technologies. The limit value curve in line with vehicle mass is crucial. The CO₂ target for the average of a manufacturer’s new car fleet based on average vehicle mass is the best basis for measurement. The significantly larger contribution by larger vehicles in comparison with smaller ones is conditioned by the slope of the limit value curve.

This opinion supports the Commission’s proposed 60% slope for the limit value curve. The reduction targets for larger vehicles are considerably higher than for small cars. A 60% slope means that the CO₂ emissions do not rise in parallel with increased weight, but far below the average. Vehicle weight (mass) is the best parameter for the specific CO₂ targets. Vehicle weight will cause less distortions of competition than other parameters. In Japan and China weight is already used as the basis for legislation on CO₂. It is easy to monitor developments as the data are available. As the vehicle manufacturers are developing platform concepts, the ‘footprint’ parameter would not be a suitable scale. The use of the ‘footprint’ parameter would lead to all vehicles on the same platform being given the same CO₂ target, regardless of their specifications and overall weight. Moreover, the ‘footprint’ parameter would place small and CO₂ -efficient city cars at a considerable disadvantage.

3. Complementary measures in the integrated approach

The limit value of 120 g CO2 /km in the integrated approach envisages a CO2 reduction of 10 g/km through complementary measures, including low-resistance tyres, reducing rolling resistance, tyre pressure monitoring systems, efficient air conditioning systems and gear-change indicators, which altogether can save about 5 g/km CO₂. In addition, the use of biofuels can save another 5 g/km CO_2. In order to implement new technologies and energy efficient measures, it makes sense to recognise ecological innovations as carbon reduction measures. As not all ecological innovations can be covered by testing procedures, and it is awkward and time-consuming to change the existing, internationally harmonised procedure, this opinion proposes to introduce an additional procedure under Article 6 and Annex IIa. Ecological innovations may include, in addition to the testing procedure, automobile technology measures, maintenance procedures, driver training, navigational infrastructure, energy-efficient lights, more solar technology in cars and the use of waste heat. The aim is to promote all measures that help improve environmental performance.

4. Introductory phase

As the development of new models and new platforms takes at least five to eight years, it makes sense to implement the target of 120 g CO2/km not on a particular date, but over a transitional period of several years. It is therefore proposed that in 2012 a quarter of a manufacturer’s new cars, in 2013 half, in 2014 three-quarters and in 2015 all of them would have to achieve the target of 120 g CO2/km, including the complementary measures. This flexibility is needed to allow manufacturers the leeway that they need for development and at the same time to make alternative routes possible.

5. Penalties

The Commission’s proposed fines of between €100 and €475 per tonne of CO2 are far higher than any conceivable trade prices for CO2 certificates in the industry and energy sectors. Penalties should not have the effect of weakening industry’s ability to innovate, but should provide an incentive for implementing measures and possibly fund replacement measures that would achieve the desired aim of reducing carbon emissions. This opinion’s proposed penalties of €10 to €40 per gram of CO2 for newly registered cars (corresponding to a per tonne CO2 price of up to €200) should achieve this. It should be assumed that consumer information and competition between manufacturers will anyway exert far greater pressure on manufacturers to keep to all the prescribed limit values.

6. Derogations

The Commission proposal provides for a number of derogations, the details of which must be examined. This opinion reduces the Commission’s proposed limit of less than 10 000 new cars sold per year in the EU to 5000 per year and an additional arrangement, limited to five years, has been introduced for those manufacturers which will find it difficult to achieve the reduction targets and are responsible for no more than 1% per year of new registrations in the EU.

7. Long-term aims

Long-term aims should be adopted in 2014 by Parliament and the Council on the basis of a survey and a Commission proposal. At that time it will also be possible to gain an overview of new technologies, including the introduction of alternative engine models, such as battery-driven vehicles. The long-term aims should also take account of the fact that the new engine models and hybrid-powered systems that are now being developed will have only a relatively short life cycle, as 10 years after their introduction onto the market, the next generation of local CO2-free propulsion systems could be available. Policies must therefore leave open the possibility of transition to new technologies. Implementation of the limits laid down in this regulation of 120 g CO2/km over the average of all vehicles already means that average fuel consumption must be reduced to about 5 litres per 100 km for petrol-driven vehicles and about 4.5 litres per 100 km for diesel vehicles. In comparison with current figures, these are very ambitious targets.

AMENDMENTS

The Committee on Industry, Research and Energy calls on the Committee on the Environment, Public Health and Food Safety, as the committee responsible, to incorporate the following amendments in its report:

Amendment  1 Proposal for a regulation Recital 4
Text proposed by the Commission	Amendment
(4) One of the implications of those commitments is for all Member States to reduce significantly emissions from passenger cars. Policies and measures should be implemented at Member State and Community level across all sectors of the Community economy, and not only within the industry and energy sectors, in order to generate the substantial reductions needed. Road transport is the second largest greenhouse gas emitting sector in the EU and its emissions continue to rise. If the climate change impact of road transport continues to increase, it will significantly undermine reductions made by other sectors to combat climate change.	(4) One of the implications of those commitments is that emissions from passenger cars must also be significantly reduced. This requires rules on emissions for manufacturers and importers of new cars. Only a Community regulation can ensure that newly-registered vehicles are subject to the same conditions in all the Member States. If the overall aim of the Member States and the Community to reduce CO2 is to be achieved, it is not sufficient to take action only within the industry and energy sectors, but the transport and household sectors should also be included. Road transport is the second largest greenhouse gas emitting sector in the EU and its emissions continue to rise. If the carbon emissions of road transport continue to increase, this will significantly undermine reductions made by other sectors to combat climate change.
Justification
It is not the Member States which must reduce emissions according to this regulation, but car manufacturers and importers. It is not the ‘climate change impact’ that threatens to increase further, but greenhouse gas emissions, particularly CO2.
Amendment  2 Proposal for a regulation Recital 5
Text proposed by the Commission	Amendment
(5) Adopting Community targets for new passenger cars is necessary to prevent fragmentation in the internal market resulting from the adoption of different measures at Member State level. Community targets provide manufacturers with more planning certainty and more flexibility to meet the CO2 reduction requirements than would be provided by separate national reduction targets. In setting emission standards it is important to take into account the implications for markets and manufacturers’ competitiveness, the direct and indirect costs imposed on business and the benefits that accrue in terms of stimulating innovation and reducing energy consumption.	(5) Adopting Community targets for new passenger cars is necessary to prevent fragmentation in the internal market resulting from the adoption of different measures at Member State level. Community targets provide manufacturers with more planning certainty and more flexibility to meet the CO2 reduction requirements and prevent distortions of competition arising between the Member States because of separate national reduction targets. Such distortions of competition would run entirely counter to the aim of creating a single internal market. In setting emission standards it is important to take into account the implications for markets and manufacturers’ competitiveness, the direct and indirect costs imposed on business and the benefits that accrue in terms of stimulating innovation and reducing energy consumption.
Justification
Only a unified European rule on the basis of Article 95 ECT can prevent distortions of competition, countries taking unilateral action, and special arrangements.
Amendment  3 Proposal for a regulation Recital 5 a (new)
Text proposed by the Commission	Amendment
	(5a) The EU’s car fleet is ageing rapidly. The high proportion of vehicles in the EU´s car fleet which are more than 10 years old undermines any new regulations on CO2 emissions. Particular attention must therefore be paid to renewing the fleet by providing incentives to purchase new vehicles.
Justification
To make sure the regulation is effective it is essential to promote the purchase of new vehicles. If consumers continue to favour second-hand vehicles, particularly those that are older than 10 years, there will be no tangible drop in CO2 emissions.
Amendment  4 Proposal for a regulation Recital 10
Text proposed by the Commission	Amendment
(10) The Communications proposed an integrated approach with a view to reaching the Community target of 120 g CO2/km by 2012 and announced that the Commission would propose a legislative framework to achieve the Community objective by focusing on mandatory reductions of emissions of CO2 to reach the objective of 130 g CO2/km for the average new car fleet by means of improvements in vehicle motor technology. Consistent with the approach under the voluntary commitments adopted by the manufacturers, this covers those elements that are taken into account in the measurement of the CO2 emissions of passenger cars in accordance with Regulation (EC) No 715/2007 of the European Parliament and of the Council of 20 June 2007 on type approval of motor vehicles with respect to emissions from light passenger and commercial vehicles (Euro 5 and Euro 6) and on access to vehicle repair and maintenance information. A further reduction of 10 g CO2/km, or equivalent if technically necessary, will be delivered by other technological improvements and by an increased use of biofuels. In addition, consumer behaviour has an affect on overall emissions from passenger cars and therefore consumers should be provided with information regarding whether new passenger cars meet the emission targets set under this Regulation.	(10) The Communications proposed an integrated approach with a view to reaching the Community target of 120 g CO2/km by 2012 and announced that the Commission would propose a legislative framework to achieve the Community objective by focusing on mandatory reductions of emissions of CO2 to reach the objective of 130 g CO2/km for the average new car fleet by means of improvements in vehicle motor technology. The objective of reducing CO2 emissions by means of improvement in motor technology should be underpinned by the development of ecotechnology incorporated into passenger cars, as well as the improvement of road infrastructure, better traffic management, measures to encourage the use of biofuels and appropriate tax arrangements.Consistent with the approach under the voluntary commitments adopted by the manufacturers, this covers those elements that are taken into account in the measurement of the CO2 emissions of passenger cars in accordance with Regulation (EC) No 715/2007 of the European Parliament and of the Council of 20 June 2007 on type approval of motor vehicles with respect to emissions from light passenger and commercial vehicles (Euro 5 and Euro 6) and on access to vehicle repair and maintenance information. A further reduction of 10 g CO2/km, or equivalent if technically necessary, will be delivered by other technological improvements and by an increased use of biofuels. In addition, consumer behaviour has an affect on overall emissions from passenger cars and therefore consumers should be provided with information regarding whether new passenger cars meet the emission targets set under this Regulation. It is also important, in the light of the forthcoming revision of Directive 1999/94/EC relating to the availability of consumer information on fuel economy and CO2 emissions in respect of the marketing of new passenger cars, to develop a clear classification of vehicles on the basis of their fuel efficiency and CO2 emissions.
Justification
Clear information for the consumer is very important. In the revision of Directive 1999/94/EC it is important to establish a clear classification of vehicles (e.g. Class A, A+, Class B, etc.).
Amendment  5 Proposal for a regulation Recital 11
Text proposed by the Commission	Amendment
(11) The legislative framework for implementing the average new car fleet target should ensure competitively neutral and socially equitable and sustainable reduction targets which are equitable to the diversity of the European automobile manufacturers and avoid any unjustified distortion of competition between automobile manufacturers. The legislative framework should be compatible with the overall objective of reaching the EU’s Kyoto targets and should be complemented by other more use-related instruments such as differentiating car and energy taxes.	(11) The legislative framework for implementing the average new car fleet target should ensure competitively neutral and socially equitable and sustainable reduction targets which are equitable to the diversity of the European automobile manufacturers and avoid any distortion of competition between automobile manufacturers. The legislative framework should be compatible with the overall objective of reaching the EU’s Kyoto targets and should be complemented by other more use-related instruments such as differentiating car and energy taxes.Taxes on passenger cars should relate to their polluting emissions and should be agreed at EU level in order to avoid further internal market fragmentation based on divergent taxation in the different Member States.
Justification
A definition of ‘justified’ distortions of competition by the Commission is unnecessary. In order to avoid further internal market fragmentation based on diversified application by Member States it is important to reach agreement on European level on taxes on passenger cars related to their polluting emissions.
Amendment  6 Proposal for a regulation Recital 11 a (new)
Text proposed by the Commission	Amendment
	(11a) In order to achieve zero-emission cars, the appropriations in the Seventh Framework Programme for Research and Development set aside for technologies seeking to make zero-emission cars possible should be drastically increased.
Justification
It is important to invest more money in R+D on technologies to make zero-emission cars possible.
Amendment  7 Proposal for a regulation Recital 12
Text proposed by the Commission	Amendment
(12) In order to maintain the diversity of the car market and its ability to cater for different consumer needs, CO2 targets for passenger cars should be defined as a function of the utility of the cars on a linear basis. To describe this utility, mass is the most appropriate parameter because it provides a satisfactory correlation with present emissions and would therefore result in more realistic and competitively neutral targets and because data on mass is readily available. Data on the alternative utility parameter of footprint (track width times wheelbase) should, however, be collected in order to facilitate longer-term evaluations of the utility-based approach. In the establishment of the targets, the projected evolution of new cars' mass until 2012 should be taken into account, and potential incentives to increase vehicle mass just in order to benefit from a consequential increase of the CO2 reduction target should be avoided. Therefore, the possible future autonomous mass increase evolution of vehicles produced by the manufacturers and sold on the EU market should be taken into account when defining the targets for 2012. Finally, differentiation of targets should encourage emissions reductions to be made in all categories of cars while recognising that larger emission reductions can be made for heavier cars.	(12) In order to maintain the diversity of the car market and its ability to cater for different consumer needs, CO2 targets for passenger cars should be defined as a function of the utility of the cars on a linear basis. To describe this utility, mass is an appropriate parameter which provides a correlation with present emissions and would therefore result in more realistic and competitively neutral targets and because data on mass is readily available. Data on alternative utility parameters such as footprint (track width times wheelbase) should be collected in order to facilitate longer-term evaluations of the utility-based approach. The Commission should by 2014 review the availability of data and, if appropriate, adapt the utility parameter.
Amendment  8 Proposal for a regulation Recital 13
Text proposed by the Commission	Amendment
(13) The aim of this Regulation is to create incentives for the car industry to invest in new technologies. The Regulation actively promotes eco-innovation and takes into account future technological developments. In this way, the competitiveness of the European Industry is enhanced and more high-quality jobs created.	(13) The aim of this Regulation is to create incentives for the car industry (vehicle manufacturers and suppliers) to invest in new technologies. The Regulation must therefore be set up to reward and take account of ecological innovations that reduce greenhouse gas emissions and thus support the leading market position of the EU automobile industry and its suppliers and take future technological developments sufficiently into account . This will promote the competitiveness of the EU industry sustainably and guarantee high-quality jobs in the European Union.
Justification
This draft regulation limits ecological innovations that can be considered for concessions to those that are best demonstrated by the existing testing procedure. A limitation to only 5 g CO2/km or, including biofuels, to 10 g CO2/km for the ‘complementary measures’ taken as a whole, is insufficient. It is far less than what is technologically and economically possible.
Amendment  9 Proposal for a regulation Recital 13 a (new)
Text proposed by the Commission	Amendment
	(13a) As part of the integrated approach to reducing CO2 emissions from light-duty vehicles eco-innovations should be defined and guaranteed by quantifiable standards. The existing European type-approval system does not encompass all technical options available for achieving improvements. It is therefore necessary to establish a method of assessing the potential for reducing CO2 emissions through the introduction of technological measures. Attention should be given to technologies which are not reflected at all or are reflected insufficiently in the measures taken under Regulation (EC) No 715/2007 and its implementing provisions. Approvals for eco-innovations shall be granted as a means to provide additional incentives to manufacturers by means of counting those benefits towards the achievement of their specific CO2 reduction targets. Furthermore, while new technologies may be costly for the automobile industry, they should nevertheless be encouraged by the Commission through a system of specific credits.
Amendment  10 Proposal for a regulation Recital 13 b (new)
Text proposed by the Commission	Amendment
	(13b) In order to ensure long-term predictability for the industry, while taking into account future technological developments, long-term targets for CO2 emissions of new passenger cars should be established taking into account a Commission impact assessment. Those targets should aim at achieving an average of 95 g of CO2/km in 2020.
Amendment  11 Proposal for a regulation Recital 13 c (new)
Text proposed by the Commission	Amendment
	(13c) This Regulation incorporates specific provisions aimed at promoting further deployment of alternative fuel, low emission vehicles and zero-emission vehicles on the EU market.
Amendment12 Proposal for a regulation Recital 13 d (new)
Text proposed by the Commission	Amendment
	(13d) It is particularly necessary, for the purposes of achieving environmental objectives and combating climate change, for the EU automobile industry to remain competitive at global level. Hence, it is important to adopt measures which are effective, particularly in view of the costs to the entire EU automobile sector, so as to ensure that its competitiveness is not undermined.
Amendment  13 Proposal for a regulation Recital 19
Text proposed by the Commission	Amendment
(19) A robust compliance mechanism is necessary in order to ensure that the targets under this Regulation are met.	(19) A penalty mechanism in accordance with the Treaty is necessary in order to ensure that the targets under this Regulation are met.
Justification
When penalties are laid down, all the circumstances must be taken into account and due regard paid to the scope of Article 95 ECT.
Amendment  14 Proposal for a regulation Recital 21
Text proposed by the Commission	Amendment
(21) Directive 2007/46/EC provides that manufacturers are to issue a certificate of conformity which must accompany each new passenger car and that Member States are to permit the registration and entry into service of a new passenger car only if it is accompanied by a valid certificate of conformity. Data collected by Member States should be consistent with the certificate of conformity issued by the manufacturer for the passenger car.	(21) Directive 2007/46/EC provides that manufacturers are to issue a certificate of conformity which must accompany each new passenger car and that Member States are to permit the registration and entry into service of a new passenger car only if it is accompanied by a valid certificate of conformity. Data collected by Member States should be consistent with the certificate of conformity issued by the manufacturer for the passenger car and should be based on this reference only. Should Member States, for justified reasons, not use the certificate of conformity to complete the process of registration and entry into service of a new passenger car they should put the necessary measures in place to ensure adequate accuracy in the monitoring procedure. There should be a common EU standard database for certificate of conformity data. It should be used as a single reference to enable Member States to more easily maintain their registration data when vehicles are newly registered. The Commission should ensure the use of electronic network by Member States, such as the one demonstrated in the Cultural Heritage in Regional Networks (REGNET) project, that provide for further streamlining of the exchange of registration data, such as for CO2 emissions, for the purposes of accurate monitoring. Furthermore, to enable manufacturers to respond to market developments, the Commission should, by 30 August for each monitoring year, make available an interim monitoring report to each manufacturer for that year.
Justification
All Member States should be obliged to use as a main reference (e.g. for CO2 figures) the certificate of conformity as the basis for monitoring (at present about 12 EU Member States do not use this document. Therefore, a central European database for the collection of such data should be established. This would also allow manufacturers to provide timely updates in case of technical changes to their vehicles. It is key that manufacturers know early on what the official CO2 figure will be and hence the Commission’s provisional calculations and interim report must be on a half-yearly basis.
Amendment  15 Proposal for a regulation Recital 22
Text proposed by the Commission	Amendment
(22) Manufacturers' compliance with the targets under this Regulation should be assessed at the Community level. Manufacturers whose average specific emissions of CO2 exceed those permitted under this Regulation should pay an excess emissions premium in respect of each calendar year from 2012 onwards. The premium should be modulated as a function of the extent to which manufacturers fail to comply with their target. It should increase over time. In order to provide a sufficient incentive to take measures to reduce specific emissions of CO2 from passenger cars, the premium should reflect technological costs. The amounts of the excess emissions premium should be considered as revenue for the budget of the European Union.	(22) Manufacturers' compliance with the targets under this Regulation should be assessed at the Community level. Manufacturers whose average specific emissions of CO2 exceed those permitted under this Regulation should pay an excess emissions premium in respect of each calendar year from 2012 onwards. The premium should be modulated in accordance with the extent to which manufacturers fail to comply with their target. It should be proportionate and consistent with other CO2 reducing instruments, such as the EU Emissions Trading Scheme. In order to provide a sufficient incentive to take measures to reduce specific emissions of CO2 from passenger cars, the premium should reflect technological costs. The amounts of the excess emissions premium should be used for the promotion of sustainable modes of transport which do not produce CO2 emissions, in particular transport networks, research into greater energy efficiency and the use of renewable energies in the transport sector as well as the promotion of the renewal of the fleet.
Amendment  16 Proposal for a regulation Article 1
Text proposed by the Commission	Amendment
Subject matter and objectives	Subject matter, purpose and objectives
This Regulation establishes CO2 emission performance requirements for new passenger cars in order to ensure proper functioning of the internal market and achieve the EU's overall objective that the average new car fleet should achieve CO2 emissions of 120 g CO2/km. The Regulation sets the average CO2 emissions for new passenger cars at 130 g CO2/km by means of improvement in vehicle motor technology as measured in accordance with Regulation (EC) No 715/2007 and its implementing measures. This Regulation will be complemented by additional measures corresponding to 10 g/km as part of the Community's integrated approach.	1. This Regulation establishes CO2 emission performance requirements for new passenger cars in order to ensure proper functioning of the internal market and achieve the EU's overall objective of reducing CO2 emissions in the EU, including in the transport sector. The Regulation sets the average CO2 emissions for the new car fleet at 120 g CO2/km. This Regulation also sets a target for the new car fleet of average emissions of no more than 95 g CO2/km as from 1 January 2020.
	2. This Regulation sets the average CO2 emissions for new passenger cars at 130 g CO2/km by means of improvement in vehicle motor technology as measured in accordance with Regulation (EC) No 715/2007 and its implementing measures.
	3. This Regulation will be complemented, as part of the Community’s integrated approach, by additional measures corresponding to at least 10 g CO2/ km.
Amendment  17 Proposal for a regulation Article 1 – paragraph 1 a (new)
Text proposed by the Commission	Amendment
	The Commission shall submit a proposal for a comprehensive procedure to identify all CO2 reduction measures, with a view to eliminating the distinction between propulsion-system or vehicle measures and additional measures on the one hand and eco-innovations on the other.
Justification
In order to promote technological progress in the automobile sector and provide motor manufacturers and suppliers with long-term investment security, it makes sense to set long-term objectives on the basis of a detailed account of current measures and a careful regulatory impact assessment, and thus to promote alternative technologies. These objectives should be set by means of a legislative procedure in the near future. The proposal must contain a comprehensive procedure so as to cover all CO2 reduction measures.
Amendment  18 Proposal for a regulation Article 2 – paragraph 1
Text proposed by the Commission	Amendment
1. This Regulation shall apply to motor vehicles of category M1 as defined in Annex II to Directive 2007/46/EC with a reference mass not exceeding 2 610 kg and vehicles to which type-approval is extended in accordance with Article 2(2) of Regulation (EC) No 715/2007 ('passenger cars') which are registered in the Community for the first time and which have not previously been registered outside the Community ('new passenger cars').	1. This Regulation shall apply to motor vehicles of category M1 as defined in Annex II to Directive 2007/46/EC with a reference mass not exceeding 2 610 kg and vehicles to which type-approval is extended in accordance with Article 2(2) of Regulation (EC) No 715/2007 ('passenger cars') which are registered in the Community for the first time ('new passenger cars').
Justification
In order to encourage European automobile producers to invest in new technologies increase energy efficiency and reduce CO2 emissions, it is necessary to avoid introducing specific advantages for new automobiles imported from outside the Community.
Amendment  19 Proposal for a regulation Article 2 – paragraph 2
Text proposed by the Commission	Amendment
2. A previous registration outside the Community less than three months before registration in the Community shall not be taken into account.	deleted
Justification
In order to encourage European automobile manufacturers to invest in technologies designed to increase energy efficiency and reduce CO2 emissions, it is necessary to avoid introducing specific advantages for new automobiles imported from outside the Community.
Amendment   20 Proposal for a regulation Article 2 – paragraph 3 a (new)
Text proposed by the Commission	Amendment
	3a. Vehicles with a particular social function pursuant to Article 3(1)(fd) shall not be covered by the scope of this Regulation.
Justification
The number of such vehicles is relatively small, so that a derogation is justified to meet the requirement for social acceptability of these rules on CO2.
Amendment  21 Proposal for a regulation Article 3 – paragraph 1 – point d a (new)
Text proposed by the Commission	Amendment
	(da) 'footprint' means the track width multiplied by the wheelbase as stated in the certificate of conformity and defined in section 2.1 and 2.3 of Annex I to Directive 2007/46/EC;
Amendment  22 Proposal for a regulation Article 3 – paragraph 1 – point f a (new)
Text proposed by the Commission	Amendment
	(fa) 'alternative fuel vehicle' means a vehicle as defined in Regulation 715/2007/EC and its implementing measures;
Amendment  23 Proposal for a regulation Article 3 – paragraph 1 – point f b (new)
Text proposed by the Commission	Amendment
	(fb) 'zero-emission vehicle' means a vehicle that, stationary or operating, submitted to the CO2 test procedure under Regulation 715/2007/EC does not produce any CO2;
Justification
This amendment does not change the meaning of the paragraph but provides more linguistic clarity.
Amendment  24 Proposal for a regulation Article 3 – paragraph 1 – point f c (new)
Text proposed by the Commission	Amendment
	(fc) 'eco-innovation' means any technological measures or innovations proven to deliver a quantifiable contribution to reducing CO2 emissions that is neither included or insufficiently considered in the CO2 test procedure under Regulation (EC) No 715/2007 nor legally required by the additional measures mentioned in Article 1. A single limited, but revisable, list of measures shall be established;
Amendment  25 Proposal for a regulation Article 3 – paragraph 1 – point f d (new)
Text proposed by the Commission	Amendment
	(fd) ´vehicles with a particular social function´ means the following vehicles in category M1:
	i) vehicles with a particular social function pursuant to Directive 2007/46/EC with a reference mass of over 2000 kg,
	ii) vehicles with a reference mass of over 2000 kg, intended for seven or more passengers plus driver, excluding vehicles in category M1G pursuant to Directive 2007/46/EC,
	iii) vehicles with a reference mass of over 1760 kg, manufactured exclusively for commercial purposes and in which a wheelchair can be used, in accordance with the Community policy on people with disabilities.
Justification
The number of such vehicles is relatively small, so that a derogation is justified to meet the requirement for social acceptability of these rules on CO2.
Amendment  26 Proposal for a regulation Article 3 – paragraph 2 – subparagraph 1 – introductory part
Text proposed by the Commission	Amendment
2. For the purposes of this Regulation, manufacturers will be considered to be connected if they are connected undertakings. 'Connected undertakings' means:	2. For the purposes of this Regulation, several manufacturers forming a connected undertaking will be considered to be a single manufacturer. 'Connected undertakings' means:
Justification
This amendment does not change the meaning of the paragraph but provides more linguistic clarity.
Amendment  27 Proposal for a regulation Article 4
Text proposed by the Commission	Amendment
For the calendar year commencing 1 January 2012 and each subsequent calendar year, each manufacturer of passenger cars shall ensure that its average specific emissions of CO2 do not exceed its specific emissions target determined in accordance with Annex I or, where a manufacturer is granted a derogation under Article 9, in accordance with that derogation.	Commencing 1 January 2012, each manufacturer of passenger cars shall ensure that in 2012 60% of its fleet, in 2013 70% of its fleet, in 2014 80% of its fleet and in 2015 and every year afterwards 100% of its fleet do not exceed the specific CO2 emissions target for a manufacturer’s fleet determined in accordance with Annex I or, where a manufacturer is granted a derogation under Article 9, in accordance with that derogation.
Amendment  28   Proposal for a regulation Article 4 – paragraph 1 a (new)
Text proposed by the Commission	Amendment
	In calculating the average specific CO2 emissions, each new passenger car with specific CO2 emissions of less than 50 g CO2 / km and each alternative fuel vehicle shall count as 1,5 cars and every zero-emission vehicle shall count as 3 cars up to and including 2015.
Amendment  29 Proposal for a regulation Article 4 – paragraph 1 b (new)
Text proposed by the Commission	Amendment
	In calculating the specific CO2 emissions, CO2 emission reductions delivered by eco-innovation shall be taken into account.
Amendment  30 Proposal for a regulation Article 5 – paragraph 1 a (new)
Text proposed by the Commission	Amendment
	1a. Manufacturers may form a pool for the purpose of meeting their obligations on introducing zero-emission vehicles as laid down in paragraph 2a of Annex I.
Amendment  31 Proposal for a regulation Article 5 – paragraph 2 – introductory part
Text proposed by the Commission	Amendment
2. An agreement to form a pool may relate to one or more calendar years provided that the overall duration of each agreement does not exceed five calendar years and must be entered into on or before 31 December in the first calendar year for which emissions would be pooled. Manufacturers which form a pool shall file information with the Commission:	2. An agreement to form a pool may relate to one or more calendar years and must be entered into on or before 31 December in the first calendar year for which emissions would be pooled. Manufacturers which form a pool shall file information with the Commission:
Justification
There are no reasons to limit pool formation to five years. The amendment does not affect the overall average reduction target of 130 g/km.
Amendment  32 Proposal for a regulation Article 5 – paragraph 5 – introductory part
Text proposed by the Commission	Amendment
5. Manufacturers may enter into pooling arrangements provided that their agreements are in compliance with Articles 81 and 82 of the Treaty and that, they allow open, transparent and non-discriminatory participation on commercially reasonable terms by any manufacturer requesting to become a member of the pool. Without limiting the general applicability of EU Competition rules to such pools, all members of a pool shall in particular ensure that no data sharing nor information exchange may occur in the context of their pooling arrangement, except the following information:	5. Manufacturers may enter into pooling arrangements provided that their agreements are in compliance with Articles 81 and 82 of the Treaty. Without limiting the general applicability of EU Competition rules to such pools, all members of a pool shall in particular ensure that no data sharing nor information exchange may occur in the context of their pooling arrangement, except the following information:
Justification
Pooling arrangements under which every external manufacturer could participate in the agreed conditions without discrimination would eventually result in introduction of a closed emissions trading system for the whole sector. In the context of undertakings' freedom to define themselves and taking account of EU competition rules, this phrase should be deleted. Pool agreements should be allowed only on a voluntary contract basis without being forced to admit external competitors.
Amendment  33 Proposal for a regulation Article 5 – paragraph 7
Text proposed by the Commission	Amendment
7. Except where notification is given under paragraph 3, the manufacturers in a pool for which information is filed with the Commission shall be considered as if they were one manufacturer for the purposes of this Regulation.	7. Except where notification is given under paragraph 3, the manufacturers in a pool for which information is filed with the Commission shall be considered as if they were one manufacturer for the purposes of meeting their obligations under Article 4 of this Regulation. Monitoring and reporting information will be recorded, reported and available in the central register for individual manufacturers as well as any pools.
Amendment  34 Proposal for a regulation Article 6 – paragraph 1
Text proposed by the Commission	Amendment
1. For the year beginning 1 January 2010 and each subsequent year, each Member State shall record information for each new passenger car registered in its territory in accordance with Part A of Annex II.	1. For the month beginning 1 January 2012 and each subsequent month, each Member State shall record information for each new passenger car registered in its territory in accordance with Part A of Annex II. This information shall be made available to the manufacturers and their named importers or representatives in each Member State. Member States shall make every effort to ensure that reporting bodies operate in a transparent and non-bureaucratic manner.
Justification
Monitoring and reporting of average emissions should begin as and when the regulation is introduced, to avoid market distortion and discrimination against manufacturers. So the measures should not begin until 2012, should take place monthly and should be made available to vehicle manufacturers so that manufacturers and customers can be more involved in achieving the targets. This amendment seeks to ensure that national reporting bodies do not generate unnecessary operating costs and that they operate as effectively and with as little red tape as possible.
Amendment  35 Proposal for a regulation Article 6 – paragraph 2
Text proposed by the Commission	Amendment
2. By 28 February 2011 and each subsequent year, the Member State shall determine and transfer to the Commission the information listed in Part B of Annex II in respect of the preceding calendar year. The data shall be transmitted in accordance with the format specified in Part C of Annex II.	2. By 31 July 2012 and each subsequent half-year, the Member State shall determine and transfer to the Commission the information, verified by a certified auditor, listed in Part B of Annex II in respect of the preceding calendar year. The data shall be transmitted in accordance with the format specified in Part C of Annex II.
Justification
Monitoring and reporting should start together with the implementation of the regulation in 2012 in order to avoid market distortion and discrimination of manufacturers. It is key that manufacturers know early on what the official CO2 figure will be and hence the Commission’s provisional calculations must be on a half-year basis. The verification of the Member States data by a certified auditor should ensure that Member States collect and monitor the CO2 figures from the Certificate of Conformity paper and that the car models are allocated to right manufacturers.
Amendment  36 Proposal for a regulation Article 6 – paragraph 4 – subparagraph 1 – introductory part
Text proposed by the Commission	Amendment
4. The Commission shall keep a central register of the data reported by Member States under this Article and by 30 June 2011 and each subsequent year shall provisionally calculate for each manufacturer:	4. The Commission shall keep a central register of the data reported by Member States under this Article and by 30 August 2012 and each subsequent half-year shall provisionally calculate for each manufacturer:
Justification
Monitoring and reporting of average emissions should begin as and when the regulation is introduced, to avoid market distortion and discrimination against manufacturers. So the measures should not begin until 2012. Manufacturers should receive information on admissible CO2 values in good time for each half-year for the sake of planning certainty.
Amendment  37 Proposal for a regulation Article 6 – paragraph 5
Text proposed by the Commission	Amendment
5. Manufacturers may, within 2 months of being notified of the provisional calculation under paragraph 4, notify the Commission of any errors in the data specifying the Member State in which it considers that the error occurred.	5. Manufacturers may, within three months of being notified of the provisional calculation under paragraph 4, notify the Commission of any errors in the data specifying the Member State in which it considers that the error occurred.
The Commission shall consider any notifications from manufacturers and shall by 30 September either confirm or amend and confirm the provisional calculations under paragraph 4.	The Commission shall consider any notifications from manufacturers and shall by 31 March of the following year either confirm or amend and confirm the provisional calculations under paragraph 4.
Justification
The accuracy of the data collected by the Member States is crucial for the exact calculation of manufacturers’ specific reduction target figures. Therefore the period in which manufacturers can point out irregularities in the data should be extended to at least three months.
Amendment  38 Proposal for a regulation Article 6 – paragraph 6
Text proposed by the Commission	Amendment
6. Where, on the basis of the calculations under paragraph 5, in relation to the calendar year 2010 or 2011, it appears to the Commission that a manufacturer's average specific emissions of CO2 in that year exceeded its specific emissions target for that year, the Commission shall notify the manufacturer.	deleted
Justification
Monitoring and reporting of average emissions should begin as and when the regulation is introduced, to avoid market distortion and discrimination against manufacturers. So the measures should not begin until 2012.
Amendment  39 Proposal for a regulation Article 6 – paragraph 7
Text proposed by the Commission	Amendment
7. Member States shall designate a competent authority for the collection and communication of the monitoring data in accordance with this Regulation and shall inform the Commission of the competent authority designated no later than 6 months after the entry into force of this Regulation.	7. Member States shall designate a competent authority for the collection and communication of the monitoring data in accordance with this Regulation and shall inform the European Parliament, the Council and the Commission of the competent authority designated no later than 6 months after the entry into force of this Regulation.
Amendment  40 Proposal for a regulation Article 7 – paragraphs 2 to 5
Text proposed by the Commission	Amendment
2. The excess emissions premium under paragraph 1 shall be calculated using the following formula:	2. The excess emissions premium under paragraph 1 shall be calculated using the following formula:
Excess emissions x number of new passenger cars x excess emissions premium prescribed in paragraph 3.	Excess emissions x number of new passenger cars not in accordance on average with the manufacturer's specific emissions target x excess emissions premium prescribed in paragraph 3.
Where:	Where:
'Excess emissions' means the positive number of grams per kilometre by which the manufacturer's average specific emissions exceeded its specific emissions target in the calendar year rounded to the nearest three decimal places; and	'Excess emissions' means the positive number of grams per kilometre by which the manufacturer's average specific emissions exceeded its specific emissions target in the calendar year rounded to the nearest three decimal places; and
'Number of new passenger cars' means the number of new passenger cars for which it is the manufacturer and which were registered in that year.	'Number of new passenger cars not in accordance on average with the manufacturer's specific emissions target' means the number of new passenger cars produced by the manufacturer and registered in the year concerned whose specific emissions of CO2 exceed their specific emissions targets and cannot be compensated for by other of the manufacturer's registered vehicles with emission of CO2 below their specific emissions targets.
3. The excess emissions premium shall be:	3. The excess emissions premium shall in the calendar year 2012 and subsequent calendar years be comparable to other CO2 reducing instruments, such as the EU Emissions Trading Scheme, but no more than EUR 40.
(a) in relation to excess emissions in the calendar year 2012, 20 euros;
(b) in relation to excess emissions in the calendar year 2013, 35 euros;
(c) in relation to excess emissions in the calendar year 2014, 60 euros; and
(d) in relation to excess emissions in the calendar year 2015 and subsequent calendar years, 95 euros.
4. The Commission shall establish methods for the collection of excess emissions premiums under paragraph 1.	4. The Commission shall establish methods for the collection of excess emissions premiums under paragraph 1.
Those measures designed to amend non-essential elements of this Regulation, by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 12(3).	Those measures designed to amend non-essential elements of this Regulation, by supplementing it, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 12(3).
5. The amounts of the excess emissions premium shall be considered as revenue for the budget of the European Union.	5. The amounts of the excess emissions premium shall be used for the promotion of sustainable modes of transport which do not produce CO2 emissions, in particular transport networks, research into greater energy efficiency and the use of renewable energies in the transport sector as well as the promotion of the renewal of the fleet.
Amendment  41 Proposal for a regulation Article 7 – paragraph 4 – subparagraph 1
Text proposed by the Commission	Amendment
4. The Commission shall establish methods for the collection of excess emissions premiums under paragraph 1.	4. The Commission shall establish methods for the collection of excess emissions premiums under paragraphs 1, 2 and 3.
Justification
It is up to the Community to lay down penalties in legislation. However, these need to be agreed with the Member States.
Amendment  42 Proposal for a regulation Article 8 – paragraph 1 – introductory part
Text proposed by the Commission	Amendment
1. By 31 October 2011 and each subsequent year, the Commission shall publish a list indicating for each manufacturer:	1. By 30 June 2013 and each subsequent year, the Commission shall publish a list which shall also appear on its website, indicating for each manufacturer:
Justification
The publication of manufacturers' data should begin as and when the regulation is introduced, to avoid market distortions and discrimination against manufacturers. So publication of the data should not start until 2013.
Amendment  43 Proposal for a regulation Article 8 – paragraph 2
Text proposed by the Commission	Amendment
2. From the 31 October 2013, the list published under paragraph 1 shall also indicate whether or not the manufacturer has complied with the requirements of Article 4 in respect of the preceding calendar year.	2. The list published under paragraph 1 shall also indicate whether or not the manufacturer has complied with the requirements of Article 4 in respect of the preceding calendar year.
Justification
The start date was already laid down in an amendment to Article 8, paragraph 1.
Amendment  44 Proposal for a regulation Article 9 – Title and paragraph 1
Text proposed by the Commission	Amendment
Specialist derogation for small volume independent manufacturers	Special target for small volume specialised manufacturers
1. An application for a derogation from the specific emissions target calculated in accordance with Annex I may be made by a manufacturer which:	1. An application for a derogation from the specific emissions target calculated in accordance with Annex I may be made by a manufacturer which:
(a) is responsible for less than 10,000 new passenger cars registered in the Community per calendar year; and	(a) is responsible for less than 0,1% of new passenger cars registered in the Community per calendar year; and
(b) is not connected to another manufacturer.	(b) is not connected to another manufacturer; or
	(c) if connected, is and was at time of the entry into force of this Regulation, a manufacturer of specific models with own development and production facilities.
Amendment  45 Proposal for a regulation Article 9 – paragraphs 7 a and 7 b (new)
Text proposed by the Commission	Amendment
	7a. A manufacturer may apply to the Commission for an alternative target of a 25% reduction in its average specific emissions compared to 2006, in place of the target calculated pursuant to Annex I, provided that
	(a) if it has no connected undertaking, its annual new car registrations in the EU fall between the figure laid down in paragraph 1 and 1% of the total EU market, or
	(b) if it has connected undertakings, its annual new car registrations in the EU, taken together with the connected undertakings, fall between the figure laid down in paragraph 1 and 1% of the total EU market.
	7b. Connected undertakings may apply to the Commission for an alternative target of a 25% reduction in their average specific emissions by comparison with 2006, in place of the target calculated pursuant to Annex I, if their annual new car registrations in the EU, taken together with the connected undertaking, fall between the figure laid down in paragraph 1 and 1% of the total EU market.
Justification
The target of a greater reduction in emissions (25%) will offer manufacturers of specific models a greater incentive to make more efforts in this area than fleet manufacturers. Since manufacturers of specific models are not generally covered by the derogation under Article 9(1), on grounds of fairness these additional provisions should be incorporated into the Commission proposal.
Amendment  46 Proposal for a regulation Article 10 – paragraph 1
Text proposed by the Commission	Amendment
1. In 2010, the Commission shall submit a report to the European Parliament and the Council reviewing the progress made to implement the Community's Integrated Approach to reduce the CO2 emissions from light-duty vehicles.	1. In 2010, the Commission shall submit a report to the European Parliament and the Council reviewing the progress made to implement the Community's Integrated Approach to reduce the CO2 emissions from light-duty vehicles. The Commission shall, in the same report, propose recommendations regarding credit and certification arrangements for the introduction of eco-innovations.
Amendment  47 Proposal for a regulation Article 10 – paragraph 3 a (new)
Text proposed by the Commission	Amendment
	3a. Whenever the Commission proposes new legislation affecting light-duty vehicles and their fuels in a manner that leads directly or indirectly to an increase in CO2 emissions, the Commission shall indicate this fact clearly in its proposals to the European Parliament and the Council and reflect any adverse impact on manufacturers’ compliance with the specific CO2 emissions target set out in this Regulation.
Justification
The automotive industry should be compensated for legislative proposals which increase CO2 emissions. This is coherent with the agreed principles of CARS21: stability, predictability and reaching the targets in the most cost efficient way. Therefore, it should be clearly indicated if any proposed regulations adversely affect the CO2-reduction target.
Amendment  48 Proposal for a regulation Article 10 – paragraph 3 b (new)
Text proposed by the Commission	Amendment
	3b. The Commission shall review technological developments and introduce, as appropriate, CO2-equivalent thresholds for other forms of energy used for passenger cars. Such measures, designed to amend the non-essential elements of this Regulation, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 12(3).
Amendment  49 Proposal for a regulation Article 10 – paragraph 3 c (new)
Text proposed by the Commission	Amendment
	3c. In order to better reflect the real CO2 emission behaviour of cars and the potential represented by additional measures and eco-innovations, the Commission shall regularly assess the test cycles used to measure CO2 emissions, as set out under Regulation 715/2007/EC, and adjust them accordingly.
Amendment  50 Proposal for a regulation Article 10 –paragraph 3 d (new)
Text proposed by the Commission	Amendment
	3d. The Commission shall by 2014, following an impact assessment, publish a report on the data availability of footprint, as an utility parameter to determine specific emissions targets and, if appropriate, amend Annex I in accordance with the regulatory procedure with scrutiny referred to in Article 12(3).
Amendment  51 Proposal for a regulation Article 11
Text proposed by the Commission	Amendment
Consumer information	Implementing measures
From 1 January 2010, manufacturers shall ensure that labels, posters or promotional literature and material of the type referred to in articles 3, 5 and 6 of Directive 1999/94/EC indicate the extent to which the specific emissions of CO2 of the passenger car offered for sale differ from the specific emissions target for that passenger car under Annex I.	The measures necessary for the implementation of Article 3(1)(fa), which are designed to amend non-essential elements of this Regulation, shall be adopted in accordance with the regulatory procedure with scrutiny referred to in Article 12(3).
Justification
The approval of eco-innovations at EU level via Comitology assures a harmonized approach. Comitology is an established procedure under Community law which the Commission uses regularly to reach common decisions to amend existing legislation or to introduce new legislation according to the competence of the Commission in the field of motor vehicle construction.
Amendment  52 Proposal for a regulation Annex I –point 1
Text proposed by the Commission	Amendment
1. For each new passenger car, the permitted specific emissions of CO2, measured in grams per kilometre shall be determined in accordance with the following formula:	1. For each new passenger car, the permitted specific emissions of CO2, measured in grams per kilometre shall be determined in accordance with the following formula:
Permitted specific emissions of CO2 = 130 + a × (M – M0)	Permitted specific emissions of CO2 = 130 + a × (M – M0)
Where:	Where:
M = mass of the vehicle in kilograms (kg)	M = mass of the vehicle in kilograms (kg)
M0 = 1289.0 × f	M0 = 1289.0
f = (1 + AMI)6
Autonomous mass increase (AMI) = 0 %
a = 0.0457	a = 0.0457
Amendment  53 Proposal for a regulation Annex I – point 2 a (new)
Text proposed by the Commission	Amendment
	2a. Each manufacturer shall ensure that in the year beginning 1 January 2020, and each subsequent year, at least 8% of all passenger cars it produces shall be zero-emission vehicles. In order to achieve this target manufacturers may make use of the pooling provisions laid down in Article 5(1a).
Amendment  54 Proposal for a regulation Annex II – Part A – point 1 – introductory part
Text proposed by the Commission	Amendment
1. For the year beginning 1 January 2010 and each subsequent year, Member States shall record the following details for each new passenger car registered in its territory:	1. For the month beginning 1 January 2012 and each subsequent month, Member States shall record the following details for each new passenger car registered in its territory:
Justification
The monitoring and reporting of average emissions should begin as and when the regulation is introduced, to avoid market distortion and discrimination against manufacturers. So the measures should not begin until 2012. Monthly reporting of data on new cars and on CO2 monitoring is necessary for manufacturers for reasons of planning certainty.
Amendment  55 Proposal for a regulation Annex II – part A – point 3 - introductory part
Text proposed by the Commission	Amendment
3. For the year beginning 1 January 2010 and each subsequent year, Member States shall determine, in accordance with the methods described in Part B, by manufacturer:	3. For the month beginning 1 January 2012 and each subsequent month, Member States shall determine, in accordance with the methods described in Part B, by manufacturer:

PROCEDURE

Title	Emission performance standards for new passenger cars
References	COM(2007)0856 – C6-0022/2008 – 2007/0297(COD)
Committee responsible	ENVI
Opinion by        Date announced in plenary	ITRE 17.1.2008
Associated committee(s) - date announced in plenary	10.4.2008
Drafts(wo)man        Date appointed	Werner Langen 4.3.2008
Discussed in committee	8.4.2008		27.5.2008		16.7.2008
Date adopted	1.9.2008
Result of final vote	+: –: 0:	31 19 2
Members present for the final vote	Jan Březina, Jerzy Buzek, Jorgo Chatzimarkakis, Giles Chichester, Dragoş Florin David, Pilar del Castillo Vera, Den Dover, Lena Ek, Adam Gierek, Umberto Guidoni, David Hammerstein, Rebecca Harms, Erna Hennicot-Schoepges, Mary Honeyball, Ján Hudacký, Werner Langen, Anne Laperrouze, Eluned Morgan, Angelika Niebler, Reino Paasilinna, Aldo Patriciello, Francisca Pleguezuelos Aguilar, Anni Podimata, Miloslav Ransdorf, Herbert Reul, Teresa Riera Madurell, Mechtild Rothe, Paul Rübig, Amalia Sartori, Andres Tarand, Britta Thomsen, Patrizia Toia, Claude Turmes, Nikolaos Vakalis, Adina-Ioana Vălean, Dominique Vlasto
Substitute(s) present for the final vote	Alexander Alvaro, Pilar Ayuso, Dorette Corbey, Christian Ehler, Göran Färm, Robert Goebbels, Matthias Groote, Françoise Grossetête, Gunnar Hökmark, Marie-Noëlle Lienemann, Pierre Pribetich, Vittorio Prodi, Esko Seppänen, Silvia-Adriana Ţicău
Substitute(s) under Rule 178(2) present for the final vote	Alessandro Foglietta, Umberto Pirilli

PROCEDURE

Title	Emission performance standards for new passenger cars
References	COM(2007)0856 – C6-0022/2008 – 2007/0297(COD)
Date submitted to Parliament	19.12.2007
Committee responsible        Date announced in plenary	ENVI 17.1.2008
Committee(s) asked for opinion(s)        Date announced in plenary	ITRE 17.1.2008		IMCO 17.1.2008		TRAN 17.1.2008
Not delivering opinions        Date of decision	IMCO 25.3.2008		TRAN 22.1.2008
Associated committee(s)        Date announced in plenary	ITRE 10.4.2008
Rapporteur(s)        Date appointed	Guido Sacconi 26.2.2008
Legal basis disputed        Date of JURI opinion	JURI 9.9.2008
Discussed in committee	8.4.2008		28.5.2008		16.7.2008		9.9.2008
Date adopted	25.9.2008
Result of final vote	+: –: 0:	46 19 0
Members present for the final vote	Adamos Adamou, Georgs Andrejevs, Margrete Auken, Pilar Ayuso, Johannes Blokland, Frieda Brepoels, Hiltrud Breyer, Martin Callanan, Dorette Corbey, Magor Imre Csibi, Chris Davies, Mojca Drčar Murko, Edite Estrela, Anne Ferreira, Karl-Heinz Florenz, Alessandro Foglietta, Elisabetta Gardini, Matthias Groote, Françoise Grossetête, Satu Hassi, Gyula Hegyi, Jens Holm, Marie Anne Isler Béguin, Caroline Jackson, Dan Jørgensen, Christa Klaß, Eija-Riitta Korhola, Holger Krahmer, Peter Liese, Linda McAvan, Roberto Musacchio, Riitta Myller, Péter Olajos, Miroslav Ouzký, Vittorio Prodi, Frédérique Ries, Guido Sacconi, Daciana Octavia Sârbu, Amalia Sartori, Carl Schlyter, Horst Schnellhardt, Bogusław Sonik, María Sornosa Martínez, Antonios Trakatellis, Evangelia Tzampazi, Thomas Ulmer, Anja Weisgerber, Åsa Westlund, Anders Wijkman, Glenis Willmott
Substitute(s) present for the final vote	Inés Ayala Sender, Sergio Berlato, Niels Busk, Hanne Dahl, Lena Ek, Christofer Fjellner, Ambroise Guellec, Rebecca Harms, Jutta Haug, Johannes Lebech, Kartika Tamara Liotard
Substitute(s) under Rule 178(2) present for the final vote	Georg Jarzembowski, Werner Langen, Pierre Pribetich, Seán Ó Neachtain