If the EU impose the strict new standards on manufacturers, then drivers could save £3,300 over their car lifetime. The new report claims that if CO2 emissions from the average vehicle were limited to 95g per km, then the use of fuel would be cut by 1/4. The new innovations to the car would add around £860 to the average price of a car in the year 2020.
The extra cost would actually be offset in less than 3 years, through savings of £350 when it comes to fuel. The joint report that has been put together by Cambridge Econometrics and Ricardo-AEA have said that once all cars and vans in the EU meet standards, then the vehicle fleet of Europe will actually be £35 billion cheaper to run per year.
CO2 Emissions Report coincides with the car standards vote
This report has been timed to coincide with the first series of car standards votes in the European Parliament. The limit of 95g is proposed by the commission. The argument is that if strict standards are maintained then the competiveness of Europe’s car makers can be sustained and it will also aid the EU in meeting it’s targets of reducing CO2 emissions in transport by 60% in 2050.
Some German MPs however have feated that the impact on manufacturers may lead to them building heavier and bigger cars. The report last week was commissioned b organisations who have the belief that car makers in Europe must ratchet up their efficiency to be able to compete with US manufacturers, as they are facing President Obama’s demand of 93g in 2025, which is a rather demanding target for US car makers that are starting from a low base.
CO2 Emissions technologies could create jobs
This new report has estimated that the increased spending on vehicle technologies will create atleast 350,000 jobs if the 95g limit is imposed throughout Europe. Naturally, this figure will probably be contested.