ACEA agreement

The ACEA agreement refers to a voluntary agreement between the European Automobile Manufacturers Association (ACEA) and the European Commission to limit the amount of carbon dioxide (CO₂) emitted by passenger cars sold in Europe. With 18 million cars sold each year, Europe is the last major car market in the world.

Signed in 1998, the agreement sought to achieve an average of 140 g/km of CO₂ by 2008 for new passenger vehicles sold by the association's cars in Europe. This target represents a 25% reduction from the 1995 level of 186 g/km and is equivalent to a fuel economy of 5,8 L/100 km or 5,25 L/100 km for petrol and diesel engines respectively. However, the average for the whole car market for 2008 was 153.7 g/km, so the target has not been achieved.

Besides the agreement with ACEA, the European Commission also closed agreements with the Japan Automobile Manufacturers Association (JAMA) and Korea Automobile Manufacturers Association (KAMA). However, for the latter two the target date is 2009 instead of 2008 and as ACEA accounts for 86,4% of car sales in Europe,<ref name="ec.europa.eu">http://ec.europa.eu/environment/co2/pdf/cars_ia_final_report.pdf PDF </ref>the impact of the latter two is much smaller.

The ultimate EU target to which these agreements are to contribute, is to reach an average CO₂ emission (as measured according to Commission Directive 93/116/EC<ref>EUR-Lex - 31993L0116 - EN</ref>) of 130 g/km for all new passenger cars by 2015.

The European Commission announced in late 2006 that it is working on a proposal for legally-binding measures and limits.

In February 2007, the Commission acknowledged the failure of the voluntary agreement<ref>Communication from the Commission to the Council and the European Parliament on the Result of the review of the Community strategy to reduce CO2 emissions from passenger cars and light commercial vehicles</ref>. Following this, a proposal of regulation was introduced by the Commission in December 19th 2007.

Implementation

The agreement defines fleet-average CO₂ emission targets from new cars sold in the European Union, to be reached collectively by the members of the association. CO₂ is the only gas covered by the agreements, other greenhouse gas emissions are currently not controlled (see carbon dioxide equivalent). How the target is to be achieved is not specified, and are expected by the Commission to be mainly by technological developments and market changes linked to these developments.

Apart from the 140 g/km target, the ACEA should evaluate in 2003 the potential for additional improvements with a view to moving further towards the objective of emission targets:

• In the range of 165-170 g/km CO₂ in 2003.
• 140 g/km of CO₂ by 2008.
• 130 g/km of CO₂ by 2015.

Concerning costs, a report for the European Commission last year showed that the cost of meeting the target for new cars of 120 g/km of CO₂ would be on average € 577 per car,<ref name="ec.europa.eu"/> which could be earned back in a few years time due to the improved fuel economy implied in the reductions.

Progress towards the target

2005 report <ref name="transportenvironment.org">http://www.transportenvironment.org/docs/Publications/2006/2006-10_how_clean_is_your_car_brand.pdf PDF</ref>

Fiat has already reached the 2008 goal, 3 year in advance (achieving 139 g/km). Citroen (144 g/km) and Renault (149 g/km) are on track to meet the 140 g/km commitment in 2008. Ford (151 g/km) and Peugeot (151 g/km) are almost on track. These brands were also relatively good performers in 1997 and yet still managed to reduce their CO₂ emissions significantly.

2007 report <ref name="jato2007">http://www.jato.com/PressReleases/Fiat%20tops%20the%20eco%20league%20with%20lowest%20average%20CO2%20emissions%20in%202007%2018.4.2008.pdf</ref>

Only Fiat was able to reach the 2008 planned goal of 140 g/km, with a value of 137.3 g/km. Peugeot (141.9 g/km) and Citroen (142.2 g/km) are still on track.

2008 report <ref name="jato2008">http://www.jato.com/PressReleases/Geneva%202009%20C02%20Brands%20Release%20-%20REVISED%20-%20FINAL.pdf</ref> <ref name="jato2008-quattroruote.it">http://www.quattroruote.it/news/articolo.cfm?codice=174328</ref>

Only two brands were able to reach the 2008 planned goal of 140 g/km: Fiat, with a value of 133.7 g/km and Peugeot, with 138.1 g/km. The Fiat Auto Group (including the Fiat, Alfa Romeo, Lancia, Abarth, Ferrari and Maserati brands) was the only group to reach the planned value, averaging 138.4 g/km. The average for the whole car market for 2008 is 153.7 g/km, so the target has not been achieved.

2009 report <ref name="jato2009-abmnews.com">http://www.abmnews.com/blog/marche-auto/fiat/4106/per-il-terzo-anno-consecutivo-fiat-automobiles-conquista-il-primato-europeo-nella-riduzione-delle-emissioni-di-co2</ref> <ref name="jato2009-automotive.it">http://community.automotive.it/profiles/blogs/fiat-si-conferma-leader</ref>

More brands reached the (now expired) 2008 140 g/km goal: Fiat (127.8 g/km), Toyota (130.1 g/km), Peugeot (133.6 g/km), Renault (137.5 g/km), Citroen (137.9 g/km) and Ford (140.0 g/km). Fiat, however, was the only brand to reach the 2015 goal of 130 g/km, 6 years in advance. The Fiat Auto Group (including the Fiat, Alfa Romeo, Lancia, Abarth, Ferrari and Maserati brands) averaged to 131.0 g/km.

Longer-term target

The Commission will support research efforts towards reaching the European Road Transport Research Advisory Council (ERTRAC)<ref>See ERTRAC Strategic Research Agenda, December 2004, available at: http://www.ertrac.org/publications.htm</ref> research target of "Improvements in vehicle efficiency [that] will deliver as much as a 40% reduction in CO₂ emissions for passenger cars for the new vehicle fleet in 2020". This would correspond to a new car fleet average of 95 g/km of CO₂ (COM/2007/19).

Some environmental groups insist on the need for a longer-term target that doubles fuel efficiency of new cars over the next decade, 80 g/km of C0₂ by 2020. <ref>http://www.transportenvironment.org/docs/Press/2007/2007_02_12_te_letter_environment_council.pdfPDF{{ #if: 517 KiB| (517 KiB)}} </ref>

See also

• Biofuels directive
• Car taxation
• Conventional car
• Emission standard
• European Common Transport Policy
• Energy policy of the European Union
• European exhaust emission standards
• Fuel efficiency
• Hybrid vehicle
• Vehicle efficiency

External links

• European Commission page on agreements with automotive industry
• Commission´s website with annual monitoring and progress reports of the agreements.
• Lack of Disclosure from European Automakers Threatens Investors (April 2005), World Resources Institute (WRI)
• The official ACEA - Commission Agreement itself: Commission Recommendation of 5 February 1999 on the reduction of CO₂ emissions from passenger cars (notified under document number C(1999) 107), (1999/125/EC)
• How Clean is Your Car Brand? The car industry's commitment to the EU to reduce CO₂ emissions: a brand-by-brand progress report. European Federation for Transport and Environment, October 2006
• EU to introduce legislation as car makers fail on emission targets AFP, 3 November 2006
• Dieselnet.com overview of the ACEA agreement from the pages of dieselnet.com

In the media

• Feb 07, 2007, BBC: EU car CO₂ fight only beginning
• Feb 07, 2007, European Commission: EU plans legislation to cut CO₂ emissions from cars
• Feb 06, 2007, International Herald Tribune: EU to compromise on auto emissions
• Jan 31, 2007, Transport & Environment: Europe set to clean up fuels but stalls on cars
• Jan 31, 2007, European Commission: EU proposes stricter fuel standards to cut CO₂ emissions
• Jan 24, 2007, The Guardian: Grand plan for a low-carbon Europe goes up in smoke
• Oct 19, 2004: European Environment Agency: Poor European test standards understate air pollution from cars