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EU plans credit system, fines to push low-emission car production

EU plans credit system, fines to push low-emission car production
From Reuters - November 8, 2017

BRUSSELS (Reuters) - The European Union proposed tougher car emissions targets on Wednesday including a credit system for carmakers to encourage production of electric vehicles and fines for exceeding carbon dioxide limits.

The EU executives proposal aims to curb greenhouse gases from transport as part of the blocs push to cut emissions by at least 40 percent below 1990 levels by 2030.

But it has already met with opposition from nations with big automotive sectors, such as Germany.

The European Commission is keen for legislation to stimulate European industry to develop electric vehicles, afraid that it is falling behind China, Japan and the United States.

The competition is here, Commission Vice President Maros Sefcovic said, citing the use of Chinese electric cars by Brussels taxis firms. The car was invented in Europe and I believe it should be reinvented here.

The proposal calls for reduction of 30 percent of average CO2 emissions by 2030 from carmakers fleets compared with 2021 levels. It also sets an interim of a 15 percent reduction by 2025 to help ensure automakers kick start investment early.

If they are found in breach of new rules, carmakers face potential fines in the millions of euros, with penalties set at 95 euros for every gram of CO2 above the limit and for each new vehicle registered in that year.

The draft bill would allow carmakers to offset their overall target if the share of zero and low-emission vehicles in their fleet surpasses a benchmark set by regulators.

The bar for low-emissions vehicles is set at 50 grams per kilometer - ruling out most hybrid vehicles.

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