EU Carmaking Nations in CO2 Deal as Italy Signs Up
Date: 21-Aug-07
Country: GERMANY/BELGIUM
Author: Markus Wacket and Pete Harrison
The deal will help ease Italian opposition to ambitious European Union plans to lead the world in cutting global warming gases, but it will still need the approval of other EU member states and the European Parliament.
"This is a very important point for Italy, but it is not the only one," said an Italian government source. "If parliament can agree to this, then some of our main concerns about the overall package are addressed."
The European Union executive had proposed cutting carbon dioxide from cars by an average of 18 percent to 130 grams per km by 2012, mindful of UN warnings that climate change will bring more droughts, extreme weather and rising sea levels.
It hoped a further 10 grams could be cut by introducing better tires, fuels and air-conditioning.
But the plan was opposed by several countries led by Germany, which warned it might damage export earnings and threaten jobs in manufacturers like BMW and Mercedes.
Last month, Britain, France and Germany agreed to stick to the CO2 targets, phasing them in between 2012 and 2015, but there was no agreement on how much to fine manufacturers that fail to reach their goal after Rome fought hard for Italian manufacturers.
Italy argued for modest fines for violators at the lower end of the scale.
SAFETY MARGIN
German government sources told Reuters on Thursday an agreement had been reached ahead of a meeting between Chancellor Angela Merkel and Italy's Prime Minister Silvio Berlusconi on Tuesday.
The fines should be a maximum of 15 euros per gram for cars exceeding the limit by less than three grams, rising to 95 euros per gram for cars that far exceed the limits.
An Italian government source said the fine would be 5 euros for the first gram of excess CO2, 10 euros for the second, and 15 euros for the third, and the system would last indefinitely.
"It's important to create a margin of safety for the car makers, as consumer demand also affects the type of cars they sell," said the Italian government source.
Any binding deal must be approved by the European Parliament, and three-way talks between parliament, member states and the Commission are scheduled for November 24.
It could also be derailed in discussions between member states earlier that day, with a group of countries led by the Netherlands calling for a swifter phase-in of curbs to help the environment.
EU sources said parliament had drawn a "red line" in negotiations to protect a planned long-term goal of cutting CO2 to 95 g per km by 2020.
The EU Commission declined to comment on the reported deal.
(Editing by Mark John and James Jukwey)