Research Report
A Study on the European Commission’s Proposal on Post-2020 CO2 Emission Targets for Cars and Vans
Ⅰ. Backgrounds and Purposes
▶ European Commission’s proposal Regulation on Post-2020 CO2 emission standards for new cars and new light commercial vehicles
○ On 8 November 2017, European Commission Proposed a Regulation COM(2017)676
- Proposal Regulation setting CO2 emission targets for post-2020 as one of “Clean Mobility Package”
▶ Understanding CO2 emission reduction strategy of transport under the EU “2030 climate and energy framework”
○ EU Transport CO2 emission reduction targets by 2030
- 80-95% reduction of total GHGs of EU by 2050 compared to the level of 1990
- 40% reduction of total GHGs of EU by 2030 compared to the level of 1990
- 30% reduction of Non-ETS including transport by 2030 compared to the level of 2005 (60% reduction of EU transport by 2050 compared to the level of 1990)
○ “Low-Emission Mobility Strategy” and “Clean Mobility Package”
- transition to the zero-and low emission vehicles
▶ Analysis of Regulation COM(2017)676
○ to look at some aspects of the EU’s climate & energy policy by analyzing the EU’s new emission reduction standards for post-2020 passenger cars and light commercial vehicles
○ to Understand the CO2 emissions reduction strategies in the transportation sector, especially in the automotive industry, and the strategic attitudes of the EU to zero-and low emissions vehicles, including electric vehicles.
Ⅱ. Major Content
▶ Significance and Purposes of Regulation COM(2017)676
○ Significance
- Manufacturers around the world who are registering new passenger cars and new light commercial vehicles in the EU markets from 2020 must comply with this Regulation.
○ Purposes
- achieving the EU’s commitment to the Paris Agreement, protection the EU consumers and enhancing the competitiveness of the EU auto industry
▶ Analysis on the Key contents of Regulation COM(2017)676
○ strengthening ‘EU fleet-wide targets’ and imposing ‘specific emission targets’ of CO2
- setting 15% reduction from 2025 & 30% reduction from 2030 of the average of the specific emission targets in 2021, and imposing the‘specific emission targets’ of CO2 for an individual manufacturers
○ introducing the WLTP procedure and imposing high excess emissions premium
- getting rid of the gap between the official emission value and real-world CO2 value
- 2020/2021(phase-in period): 95g CO2/km for Cars & 147g CO2/km for light commercial vehicles
- (excess emissions x EUR 95) x number of newly registered vehicles
○ Providing incentives for zero-and low emission vehicles
- super-credits for less than 50g CO2/km vehicles
- compensating 15% by 2025 and 30% by 2030
○ Flexibilities for cost-effective compliance
- eco-innovation, pooling and derogation
○ Review and Report
- in 2024, submit a report on the effectiveness of the Regulation to the European Parliament and the Council
Ⅲ. Expected Effects
○ Newly considering Korea’s CO2 emission reduction strategy of the road transport sector through examining the EU’s post-2020 CO2 emission targets of road transport sector, and setting Korea’s direction towards decarbonization of transport sector
○ EU’s post-2020 Cars’ CO2 emission standards can be used as a basis for establishing the framework for a new CO2 regulation in Korea
○ Possible to establish the development direction and relation of CO2 regulation and automobile industry for the future
○ The development direction of the new automobile industry can be a driving force for improving energy efficiency and expanding the use of renewable energy and alternative energy.