Car-CO2 debate divides EU lawmakers.(News)

Byline: Lawrence J. Speer

Before automakers in Europe are handed tougher CO2 limits, members of the European Parliament's environmental committee have to agree on exactly how tough the new rules will be.

On that subject, there is currently little agreement.

Committee members have different views on the European Commission's proposal to:

* Reduce average CO2 emissions from new cars to 120 grams per kilometer by 2012 from about 160g/km now

* Impose big fines on automakers that fail to meet their targets.

Auto industry supporters said in the April 8 debate that the Parliament should fight to reintroduce a plan to cut average CO2 emissions from new cars to 125g/km by 2015.

British Euro MEP Martin Callanan said that 2015 "is a more equitable date."

"We need to give manufacturers adequate lead time to adapt their products and processes," Callanan said.

But some left-leaning and Green politicians said Parliament should back the Commission's proposal and also start discussions on even tighter CO2 limits after 2012.

"We need to get serious today about a 2020 target, which is as important, if not more important, than one for 2012," said Luxembourg's Green Euro MEP Claude Turmes.

Fear of fines

Many MEPs expressed concern that automakers could be forced to pay fines amounting to hundreds of millions of euros if they failed to reach their 2012 targets. They want a gradual phase-in of sanctions between 2012 and 2015.

The Commission is proposing a [euro]20 fine for every gram of CO2 that a car is over the 120g/km limit starting in 2012. The proposal says that the fine should increase to [euro]95 per gram by 2015.

German MEP Anja Weisgerber claimed the Commission is targeting manufacturers of heavier, high-emission cars, such as Germany's BMW, Mercedes-Benz and Volkswagen, while being more lenient on manufacturers of smaller, lower-emission cars produced by carmakers such as Renault, PSA/Peugeot-Citroen and Fiat.

Weisgerber argued that the French and Italian brands sell significantly more cars than German premium carmakers so their total CO2 emissions are greater.

Give them a reward

English MEP Chris Davies said there should be incentives for manufacturers that make lower-emission fleets.

"Why isn't there any money being sent back to them?" he asked.

Italian Socialist MEP Guido Sacconi said he is optimistic that Parliament could reach agreement on a plan to implement the new CO2 rules by the end of the year.

Sacconi is charged with drafting the committee's report on the new CO2 limits.

After the meeting, Ivan Hodac, secretary general of ACEA, the European carmakers association, said: "Time may be too short to conclude by year-end."

Parliament's response to the Commission's proposed CO2 limit will go for final approval before the European Council of Ministers, which comprises of the heads of all EU national governments.

Heads of state and government from the 27 European Union countries hope to see the new CO2 limit finalized during France's six-month EU presidency, which begins July 1.

CAPTION(S):

ACEA's Hodac is pessimistic. * EU lawmaker Sacconi is optimistic.