Fuel efficient vehicles are good for EU employment, drivers, economy and the planet. Over 100,000 new manufacturing jobs could be created in Europe by investing in the development and manufacturing of fuel efficient technologies to make cars greener, a new report published today (1) by Transport & Environment (T&E), the sustainable transport campaigners, says. The report, conducted by the Dutch consultancy CE Delft, dispels industry’s claims that reducing CO2 emissions from cars would have a negative impact on automotive jobs and competitiveness in Europe. It also highlights that money saved through using less fuel increases consumers’ disposable income, which in turn creates extra jobs across the EU economy.
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In 2009, legislation was adopted that requires cars sold in Europe to
emit an average of 130g CO2/km by 2015 and 95g by 2020. In July 2012,
the Commission proposed to confirm the 95g target for 2020 and the way
it should be met (2).
“CE Delft have reviewed 23 studies and concluded that low carbon cars
are likely to be good for jobs,” says T&E’s Greg Archer. “For
instance, one recent study (3) shows cutting CO2 emissions from cars
could create over one hundred thousand high-quality, engineering jobs
in Europe.”
Low carbon cars save money that can boost the sluggish EU economy
The European Commission (4) estimates the new regulation will boost
the EU economy by an average €12bn per year between 2020-2030, thanks
to much lower fuel consumption resulting from tougher CO2 targets. It
also forecasts annual expenditure on labour will increase by €9bn.
This is because vehicle manufacturing is labour intensive while fuels
are mostly made from imported oil and need fewer jobs. The CE Delft
report supports these conclusions.
For drivers, a target of 95g will provide annual fuel savings of over
€500. These savings will be much greater than the additional costs of
buying a more fuel efficient car, enabling drivers to recover their
costs in 1.5 to 2.5 years. More importantly, the savings would rise
to over €750 per year and still payback in around three years if a
more ambitious target (80g/km) was adopted. Since Europe will also
import less oil, it will also increase resiliency to oil price shocks
and improve the balance of trade.
Archer adds, “The US recently announced its plans to double fuel
economy by 2025. In Europe the planned improvement is around a third;
that’s good, but not good enough. Without tougher CO2 targets,
European carmakers risk losing their competitive edge in the global
markets.”
“We want a 2020 target of 80g/km and 60g/km (5) by 2025. This would
drive advanced technologies into the market and ensure Europe retains
its leadership”, Archer concludes.
Flexibilities in the proposal will reduce the benefits
The EC proposal extends to 2023 the system of over-rewarding sales of
electric vehicles, known as “supercredits”, which will weaken the CO2
target. “Supercredits reward manufacturers for selling imaginary
vehicles. They create the illusion fuel economy is improving whilst
actually allowing carmakers to sell gas-guzzlers that don’t count
towards their target; this is madness!” Archer says.
It would be much more effective to require carmakers to sell at least
2.5% of vehicles with ultra-low emissions by 2020. Those manufacturers
that overachieved the sales target would be rewarded through a
relaxation of their overall CO2 target. At the same time, those that
underachieved would be expected to do more to improve the efficiency
of the conventional vehicles they sell. The EU should also do much
more to support the shift to electric and hydrogen vehicles – such as
through investing in refueling and fast recharging stations along key
highways.
“The Parliament and Council have the opportunity to improve the
Commission proposal”, Archer concludes, “by setting more ambitious
targets and closing loopholes. Low carbon vehicles are part of the
solution to Europe’s economic problems – good for jobs and the
economy, good for drivers and good for the environment too.”
