Passenger cars in Europe – Impact of CO2 policy

Posted on November 30, 2010 by

Passenger car segment is a key contributor to the GHG emissions across the globe and it remains one of the fastest growing one, driven by the emerging markets. CO2 emissions from new passenger cars are coming under regulations across many developed markets. In the European Union, the automotive industry will have to achieve very ambitious emission targets in accordance to new regulations enacted in April 2009. These regulations define the emission standards for new passenger cars. The targets are defined for 2020 with mean reduction of around 40% as compared to 2007 levels. Penalties could be the fallout of not being able to meet the targets.

It is expected that significant financial and technical resources will be required to meet these targets that could translate into additional cost of euro 1900 per car by 2020.