Battle over EU car emissions takes greener path

By Pete Harrison - Analysis

BRUSSELS (Reuters) - A key European Union vote on curbing tailpipe emissions from cars ended in chaos last week, but a consensus is now emerging in favor of swiftly enforced limits and tight controls on potential loopholes.

The lawmakers who will swing any further vote say they want a carbon dioxide limit as soon as possible and rules that spur car makers to innovate, without opening loopholes for inaction.

The EU's executive Commission has proposed cutting CO2 from cars by 18 percent to 130 grams per km by 2012 as part of an ambitious plan to lead the world in reining in climate change, and many nations are expected to follow its strategy.

But auto making nations have successfully pressed for a softening of the plan, led by Germany, which specializes in powerful, luxury vehicles like Mercedes and BMW, which emit the most greenhouse gases.

The big car makers have argued that a rush to legislate puts jobs and export earnings at risk.

But the environment panel of the European Parliament, which shares the duty of drafting legislation with EU member states, last Thursday rejected the latest changes to the draft laws, saying they were too soft on the auto industry.

The vote could yet prove to be parliament's final say before heading into negotiations on the final laws with member states.

JOB CREATION

"The car lobby asked for too much, and so they got nothing," said Greenpeace campaigner Franziska Achterberg.

In addition, car parts suppliers, who provide 60-80 percent of any cars value, are increasingly getting across their message that the technology is ready now and they welcome swift action.

"This does not endanger jobs -- it will create jobs and benefit economies," said auto expert Paul Nieuwenhuis at Cardiff Business School. "Manufacturers' fight for a delay to 2015 is a difficult one to justify as they already bought from the suppliers a lot of the technology they need to meet the goal."

Nieuwenhuis said the industry might be suffering a backlash due to the perception it has already been too successful in making its voice heard. "If lobbying is too intense it can become counter productive," he said.

That view was shared by car manufacturers group ACEA, which also said realism had been thrown out in favor of idealism.

"It is a pity it wasn't about the issues and arguments any more, as if the interests of industry weren't also the same as the interests of society," said ACEA's Ivan Hodac.

"We have to get away from the emotion of the debate and find a realistic framework that helps both the environment and the industry," he added.