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Thomas Puls Expertise 25. June 2020 Compendium: For Better CO2 Regulation of Motor Vehicles in Europe

The transportation sector faces special challenges in the process of decarbonization, since the need for mobility – both for people and goods – is rapidly increasing around the world, especially in the emerging economies. Because of road traffic’s key position in mobility, the future CO2 regulation of cars and trucks will play a substantial role in climate policy.

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Expertise
For Better CO2 Regulation of Motor Vehicles in Europe
Thomas Puls Expertise 25. June 2020

Compendium: For Better CO2 Regulation of Motor Vehicles in Europe

Expertise

German Economic Institute (IW) German Economic Institute (IW)

The transportation sector faces special challenges in the process of decarbonization, since the need for mobility – both for people and goods – is rapidly increasing around the world, especially in the emerging economies. Because of road traffic’s key position in mobility, the future CO2 regulation of cars and trucks will play a substantial role in climate policy.

Core theses: Climate protection

  • Europe’s share of the worldwide CO2 emissions is low and continuously decreasing.
  • No solution without China: Europe’s reduction of emissions is being eaten up by growth in emerging economies.
  • Motor vehicles account for approximately one-seventh of the CO2 emissions in the EU. Their share in transportation emissions is declining.

Core theses: CO2 regulation for motor vehicles

  • New vehicles in Europe have become considerably more efficient in recent years.
  • CO2 legislation in Europe shows the most stringent target values in an international comparison.
  • Europe has once again tightened the reins on the CO2 threshold levels for motor vehicles and is requiring a further reduction of CO2 within an even shorter span of time.
  • Even without a further tightening of the CO2 threshold levels after 2020, the motor vehicle industry is still on track to meet the EU’s climate policy targets by 2030.
  • Vehicle fleet threshold levels under 95 grams cannot be achieved with conventional engine types, and the market success of alternative engine types is still uncertain.
  • EU environmental legislation is not coherent and, for a long time, had other priorities than CO2 reduction. This had various consequences, including an increase of CO2 emissions.
  • Today’s CO2 laws regulate only new vehicles, completely disregarding the remaining vehicle fleet.
  • An effective reduction of CO2 emissions cannot address new vehicles alone but must take a much broader approach.

Core theses: Balance between climate protection and industrial policy

  • The EU is targeting a 20 per cent industry share of GDP for the year 2020. This goal is presently a long way away, since industrial and climate protection policy are not yet aligned.
  • The CO2 abatement costs vary greatly between sectors and are most pronounced in the automotive sector.
  • Emissions trading as the most economically efficient form of CO2 regulation can easily be applied to road traffic.
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Expertise
For Better CO2 Regulation of Motor Vehicles in Europe
Thomas Puls Expertise 25. June 2020

Thomas Puls: For better CO2 regulation of motor vehicles in Europe

Expertise

German Economic Institute (IW) German Economic Institute (IW)

Thomas Puls Expertise 25. June 2020

Compendium: For Better CO2 Regulation of Motor Vehicles in Europe

Thomas Puls Expertise 25. June 2020

Compendium: For Better CO2 Regulation of Motor Vehicles in Europe

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Thomas Puls Expertise 30. November 2023

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Enno Kohlisch / Oliver Koppel / Thomas Puls IW-Trends No. 4 13. November 2023

The Transformation of the Automotive Industry: An International Comparison of Germany's Innovation Performance

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