07 June 2008

Cars and greenery

The European Commission wants greener cars

The Economist Intelligence Unit ViewsWire - Jun 6th 2008
Original URL

As part of its drive to stem the rise in greenhouse gas emissions from transport, the European Commission is preparing the ground for an overhaul of EU rules on the information that must be provided to consumers regarding fuel consumption and CO2 emissions of new cars.

Advertising the facts

With fuel consumption by passenger cars generating 12% of overall EU CO2 emissions, the Commission has already proposed a controversial directive aimed at slashing average emissions from new cars and vans from 160g per km to 130g/km by 2012, with further legislative measures to contribute another 10g/km, bringing the overall improvement to 120g/km.

Among these flanking measures (together with the pending directive on biofuels) is a planned revision of the 1999 directive on car labelling, which is meant to enable consumers to make an informed choice among more or less fuel-efficient and low-emission models. This requires dealers to label all new cars displayed in their showrooms, provide national guides on the fuel efficiency of all new cars on the market, and include such data in billboard posters, promotional literature and print advertisements.

Not getting through

A study for the Commission by a German consultancy, however, concluded that the 1999 directive “does not yet show the desired effectiveness”, either in informing and influencing consumers or in promoting a more energy-efficient passenger car fleet. Labels are not displayed on all vehicles or are poorly visible; not all dealers provide the national guides; and some ads contain little or no relevant information or the data are printed too small.

In general, fuel economy and environmental impact play only a minor role in vehicle purchase decisions, and fuel consumption is mostly important only because of the cost. True, interest is growing slowly with greater awareness of climate change and CO2 emission issues. But the major factors remain a car’s reliability, safety qualities, comfort and price, as well as its size, engine power and the manufacturer’s image.

Last autumn the European Parliament, giving its opinion on the Commission’s new strategy for car emissions, recommended that information on fuel economy and emissions performance should occupy at least 20% of ad space, similar to the health warning on cigarette packets. “This information should be upfront and not buried away in the small print,” said Chris Davies, the UK Liberal Democrat MEP who guided the resolution through the European Parliament. “We need to encourage carmakers to compete on the basis that their cars are safe and stylish and environmentally friendly.”

Going public

The Commission has now launched an online public consultation that will run through July 28th, to test consumers’ awareness of the existing rules and their reaction to possible revisions, in particular: the addition of comparative ratings for cars’ performance, from best (A) to worst (G)–similar to the system introduced in 1992 for energy efficiency of household appliances, which has proven quite effective; and extension of the rules to nonprint media (television, radio, Internet and cinema ads). This idea, together with Mr Davies’ call for mandatory environmental warnings in print ads, is anathema to the European Publishers Council, which has sounded the alarm about “new threats to press freedom”.

The consultation will provide inputs for the Commission’s proposal to revise the 1999 directive, which is expected to surface before year-end.

Copyright © The Economist Newspaper Limited 2008

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