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EU declares emissions regulation illegal

Monday, 15 Sep 2008 12:46
Environmental organisations have been angered by the committee's decision
The EU parliament's legal affairs committee, which met on September 9th, has ruled that a regulation forcing car makers to cut average CO2 emissions is illegal.

The legislation, which would see car producers having to make sure average emissions were 130 g/km or below for their model ranges, would allow authorities to levy substantial fines if it wasn't complied with.

However, the ruling by the committee has prompted fears that negotiations on targets, fines and start-dates may have to start from scratch next year.

Members of the committee, according to cleangreencars, apparently stated they had "utmost misgivings" about the way fines would be collected from car makers and how these would then be used as revenue for EU budgets.

"This decision is extremely serious," said Jay Nagley, cleangreencars' publisher. "The committee said that the proper legal basis for the regulation is Article 175 of the EC Treaty which deals with environmental laws.

"But it has been drafted under Article 95, which prevents market distortions. This isn’t just a technicality; the whole legal basis of the regulation could be challenged."

The new car CO2 regulation is self-evidently an environmental measure, so it is hardly surprising that this question has been raised.

It appears that the EU wanted a single pan-European regulation, so has tried to squeeze it through under single market rules in Article 95.

However, this looks like putting the cart before the horse as the regulation is primarily an environmental measure. What the EU is trying to avoid is a rule which would allow far more flexibility.

If proposals were to be re-drafted under Article 175, one country could set tougher CO2 limits than those in a neighbouring state.

The decision comes shortly after discussions in the European parliament’s industry committee.

Its members infuriated socialist MEPs by tabling amendments to water-down CO2 targets, extend deadlines for compliance, and cut fines for car makers.

The environment committee, which is leading the process, must now consider these views. It should have voted last week. However, amid rumours of heated rows and political tensions, the vote has been postponed until September 25th.

A plenary vote in parliament has been scheduled for October 20th. This is the date when elected representatives should have the opportunity to vote on final proposals, either paving the way for adoption of the rules by the end of the year, or dragging the issue on into 2009. The latter now seems most likely.

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