By Art Patnaude
BRUSSELS--European Union rules aimed at reducing vehicle
pollution were criticized Tuesday by the German automobile
industry, which is expected to continue lobbying heavily against
the regulation ahead of a more formative decision set for later
this week.
Proposed regulation requiring manufacturers' new car fleets to
emit an average of 95 grams of carbon dioxide per kilometer by 2020
will face scrutiny in the European Commission when leaders of the
28-member bloc meet in Brussels on Thursday.
"The European Union is failing to provide a powerful impulse for
technological development and a market ramp-up of alternative
drives despite an economic crisis," said Matthias Wissmann,
president of the VDA German Auto Industry Association.
The Irish Presidency on Monday secured a compromise on the deal,
which it said struck a balance between "environmental ambition and
economic considerations."
Groups on either side have continued to argue their points
Tuesday. The deal had been heavily contested in recent weeks by
German luxury car makers--such as BMW AG (BMW.XE) and Daimler AG
(DAI.XE)--whose more highly polluting cars could mean bigger
adjustments will be needed compared to their peers.
At the center of the debate were so-called super credits, which
will give manufacturers additional incentives to produce cars with
emissions of 50 grams of carbon dioxide or less--namely electric or
hybrid cars. German industry was a proponent of super credits,
while environmental groups have said they weaken the deal, as does
the lack of agreement on an even lower 2025 target.
"It is in everyone's interest to get clean vehicles on the
roads, and super-credits are the only EU-wide incentive to help put
on the market today the technologies of the future," said The
European Automobile Manufacturers' Association, representing
members including BMW, DAF Trucks, and Daimler.
Rebecca Harms, co-president of The Greens/European Free Alliance
political group in parliament, said: "These (EU) proposals go some
way towards tackling CO2 emissions and the growing problem of air
quality, but ultimately the automobile lobby was successful in
preventing a binding target and slowing the possible development of
ambitious new technologies."
EU leaders will meet in Brussels on Thursday and Friday. An
approval from the Commission is likely to come on Thursday, and
would also help secure the legislation's passage through the
European Parliament next month.
Write to Art Patnaude at art.patnaude@dowjones.com
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