EU Warns Carmakers Over Exhaust Emissions

The European automotive industry has moaned for years about too many rules and regulations from Brussels that make their products unnecessarily expensive.

One of the touchy topics is emissions reduction. In the hopes of heading the EU off at the pass, Volkswagen, Fiat, Volvo and several other manufacturers agreed to reduce the output of harmful carbon dioxide emissions to 140 grams per kilometer by 2008. In its yearly report, the European Commission was critical of the slow progress the industry has made in reducing emissions in new cars. In 2004, carbon dioxide emissions were still at 161 grams.

"The situation is not satisfactory. I urge industry to step up their efforts. We expect that industry sticks to its commitments," said EU Enterprise Commissioner Günter Verheugen.

At the current rate, the commissioner for industry and the environment fears that the car industry's self-imposed goal will be impossible to reach.

Regulatory measures threatened

"If carmakers do not live up to their commitment ... then the European Commission would not hesitate to replace the carrot for the stick, in this case the stick could be, for example, regulatory action," said European Commission spokesman Gregor Kreuzhuber.

Up until now, and faithful to its policy of cooperation with industry, Brussels has accepted that the automakers would respect their pledges on limiting the pollution caused by new cars.

Legislation would be likely to upset the sector were the commission to act, and indeed the spokesman gave no timeframe for when any measures might be taken.

However, he said that the commission hoped to publish a review on the issue before the end of the year.

"We are currently reviewing the whole process and the commission will act when we see that it is useful and necessary," he said. "If it becomes clear that the voluntary approach does not work, then the commission will step in."

Private vehicles account for more than 10 percent of EU carbon dioxide emissions and its strategy for reducing them relies on carmakers in Europe, Japan and Korea respecting self-made targets.

Industry association: EU too hasty

The European Automobile Manufacturer's Association (ACEA) said the commission was being too hasty by suggesting it might take action.

"It's not appropriate to talk about legislation at this stage," ACEA communications director Sigrid de Vries told AFP. "It's too early to tell if we will reach the targets."

The ACEA said in a statement that European car manufacturers had significantly reduced carbon dioxide emissions in recent years, with 30 percent of new cars below the target average, compared to 2.6 percent a decade ago.

But the European Federation for Transport and Environment -- a Brussels-based non-governmental organization -- welcomed the news that the commission was finally preparing to act.

"The one piece of good news in the commission report is the acknowledgement that legally-binding options to reduce emissions are now on the table," its director, Jos Dings, said in a statement.

"The existing voluntary commitment with carmaker associations lacks transparency and fails to punish poor performance or reward progress."