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Construction of European Fuel Economy Regulations for Passenger Cars

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Divergence and Convergence of Automobile Fuel Economy Regulations

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Abstract

This chapter looks at how Europe’s fuel economy regulations for passenger cars have been constructed. As demonstrated in Introduction, Europe currently has the highest fuel economy standards in the world. How and why has the EU introduced these standards, even before Japan and the United States? What factors influenced these regulations, and which actors were instrumental in the decision-making process? This chapter argues that the European fuel economy regulations have been progressed by conflicts over business interests between Germany and France , both of which are motivated to increase the competitiveness of its automobile industry within the European market. Backed up by the EU’s dynamic decision-making process, business conflicts between Germany and France in turn led to the EU to commit the strictest fuel economy regulations in the world that triggered the regulatory convergence. The primary focus is placed on supranational decision-making at the EU level. This is because fuel economy regulations are formulated as EU law, which supersedes the domestic environmental regulations of the member states. The positions and interests of the member states will be also mentioned in order to understand who influenced the process of establishing the EU fuel economy regulations, as well as how and why.

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Notes

  1. 1.

    The UN Conference on the Human Environment (UNCHE) raised international awareness on human interaction with the environment. The conference was attended by 113 countries, 19 inter-governmental agencies and more than 400 inter-governmental and non-governmental organizations.

  2. 2.

    In 1990, the total CO2 emission from fuel combustion in EU was 4,051 million tonnes of CO2, and the number has decreased to 3,576.8 million tonnes of CO2 in 2009 (IEA 2009, p. 46).

  3. 3.

    Transport sector accounts for 912.9 million tons of CO2. Emissions from other sector are as follows: 1,337 million tons of CO2 from electricity and heat production; 181.1 million tons of CO2 from other energy industry own use; 891.9 million tons of CO2 from manufacturing industries and construction; and 683.5 million tons of CO2 from other sectors including residential sector.

  4. 4.

    European fuel economy regulation was first expressed by Litres per 100 km (l/100 km) until 1994, but later expressed by CO2 emissions per kilometres (g/km) since 1995 onwards. Therefore, it is more accurate to express ‘European CO2 emission reductions from new cars’, but for the convenience, this book treats g/km target as ‘fuel economy regulation’, since the target is comparable with Japan and the US.

  5. 5.

    Under the weight-based fuel economy regulations, fuel economy regulation is differentiated according to the weight of vehicles, as long as the mean of all vehicles sold in Europe satisfied the desired target. This means that manufactures produce heavy cars would have to achieve less fuel economy efficiency that manufactures that produce lighter vehicles.

  6. 6.

    In existed literatures, industry self-regulation occurs when corporations design and enforce the rules themselves. These rules are generally adopted voluntarily. According to Haufler (2001, pp.8–9), there are two models of industry self-regulation. First model is to create a technical standard that specify the physical qualities required for sale and use of industrial or commercial products and services, for the sake of market promotion. Good example of this model is International Organization for Standarzation (ISO). The second model is based on social or political demands from outside the business community, namely, safeguard prior to government regulation. The context of the ACEA self-regulation in setting its fuel economy regulation falls into the second model.

  7. 7.

    This would be equal to 40 % improvement of fuel economy of cars (The ENDS Report 1992b).

  8. 8.

    They opposed on using fiscal system for environmental ends at the MVEG meeting, held on 9th December 1992 (The ENDS Report 1992a, 1996).

  9. 9.

    Based on interview with Ms. Franziska Achterberg, Greenpeace EU transport campaigner. Interviewed at Brussels, Belgium (21st May 2012).

  10. 10.

    Based on interview with Dr. Peter Mock, Europe Lead, International Council on Clean Transportation (ICCT). Phone interview (18th May 2012).

  11. 11.

    Based on interview with Mr. Greg Archer, Programme Manager, Transport and Environment (T&E). Interviewed at Brussels, Belgium (22nd May 2012); and interview with Dr. Peter Mock, ICCT.

  12. 12.

    Based on interview with Ms. Franziska Achterberg, Greenpeace EU.

  13. 13.

    Based on an interview with a Policy Officer, Transport and Ozone Unit, Climate Action Directorate General, European Commission. Interview at Brussels, Belgium (15th May 2012).

  14. 14.

    ‘Institutional stickiness’ refers to “the ability or inability of new institutional arrangements to take hold where they are transplanted” (Boetike et al. 2008, p.332). The concept is closely related to one of the conventional approaches in political science called ‘historical institutionalism’. The approach focuses on institutions in order to find sequences of social, political, and economic behaviours of actors, i.e. how certain choices of actors in past cultivates present institutional arrangements (so-called ‘path dependence’) and how past institutional arrangements ‘lock-in’ to present institutions (so-called ‘lock-in effect’) (Steinmo et al. 1992).

  15. 15.

    The French and Italian automobile manufactures were about to clear the 140 g/km voluntary target in 2008. In contrary, the average fuel economy of German automobile manufactures was 180 g/km in 2006, and 165 g/km in 2008. See T&E (2009).

  16. 16.

    Based on interview with Mr. Greg Archer, T&E.

  17. 17.

    Based on interview with Mr. Petr Dolejsi, Mobility & Sustainable Transport Director, European Automobile Manufacturer's Association (ACEA). Interview conducted at Brussels, Belgium (16 May 2012).

  18. 18.

    Based on interview with Mr. Pierre Laurent, Senior manager, Technical Department, European Association of Automotive Suppliers (CLEPA). Interviewed at Brussels, Belgium (22nd May 2012).

  19. 19.

    The ‘integrated approach’ was one of the key strategies for the European car industry (ACEA 2007b). Since the ‘integrated approach’ reduce burdens on the car industry to purely pursing on technological innovations by giving spaces to the introduction of bio-fuels, eco-driving and model shifts, this approach serves the interest of the European car industry. This approach has even appeared in the final report released by the Competitive Automotive Regulatory System for the 21st Century (CARS21) , which was launched by the European Commission aiming to “make recommendations for the short-, medium-, and long-term public policy and regulatory framework of the European automotive industry” (CARS21 2006). Actually, ‘integrated approach’ was also promoted by the Japanese automobile industry at the APP (see Iguchi (2012) for details). This suggests that integrated approach was employed between Japanese, European, and American automobile industry to avoid the cost of raising fuel economy regulation elsewhere.

  20. 20.

    It aims to encourage manufactures to produce low-carbon vehicles, by counting new cars of less than 50 g/km as 3.5 in 2012, 3.5 in 2013, 2.5 in 2014, 1.5 in 2015, and 1 car from 2016 on. This means one sales of new car less than 50 g/km counts as 3.5 cars sold in 2012.

  21. 21.

    Under this system, manufacturers can form a pool for the purpose of meeting their obligations.

  22. 22.

    It allows manufacturers to use innovative technologies from parts suppliers to achieve their specific emission targets of up to 7 g/km.

  23. 23.

    Based on interview with Mr. Greg Archer, T&E.

  24. 24.

    Based on interview with Mr. Greg Archer, T&E.

  25. 25.

    Ibid.

  26. 26.

    Quoted from interview with Mr. Petr Dolejsi, ACEA.

  27. 27.

    Based on interview with Ms. Franziska Achterberg, Greenpeace EU.

  28. 28.

    Quoted from interview with a Policy Officer, European Commission.

  29. 29.

    Based on interview with Dr. Richard Smokers, TNO Delft. Interviewed at Delft, Netherlands (24th May 2012).

  30. 30.

    Based on interview with Ms. Franziska Achterberg, Greenpeace; Interview with Mr. Greg Archer, T&E.

  31. 31.

    Interview with Dr. Richard Smokers, TNO Delft.

  32. 32.

    Based on interview with Mr. Greg Archer, T&E.

  33. 33.

    Based on interview with Ms. Franziska Achterberg, Greenpeace EU.

  34. 34.

    This means manufactures can count the sales of one vehicle emitting below 35 g/km as 1.3 vehicles.

  35. 35.

    For instance, it proposed a phase-in on the stringency of the regulations, where 80 % of new cars must meet 95 g/km by 2020, and fully meet by 2024 (T&E 2013). In other words, the proposal delays the target being met four years later, in 2024, not 2020.

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  1. Department of International Relations, Faculty of Foreign Studies, Kyoto Sangyo University, Kyoto, Japan

    Masahiko Iguchi

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Iguchi, M. (2015). Construction of European Fuel Economy Regulations for Passenger Cars. In: Divergence and Convergence of Automobile Fuel Economy Regulations. Springer, Cham. https://doi.org/10.1007/978-3-319-17500-3_3

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