EU seeks to force transport CO2 rules on trade partners

Being the world's largest economy, the EU can use its muscles on trade issues and help transform the global economy into a more sustainable one. This transformative power is being demonstrated by the landmark REACH legislation, which forces all manufacturers of chemical products to obey the EU's rules on consumer safety, health and the environment. Since manufacturers from around the globe obviously want to sell their products in the EU, they are forced to creating better, cleaner and safer products that match the Union's criteria. The law is spurring innovation.

A similar mechanism is set to emerge in the sector of green cars and airlines. Now that the EU's Environment Council on 20 February 2007 agreed on an ambitious target to cut greenhouse-gas emissions by 20% by 2020 in order to reduce global warming (earlier post), both these sectors will have to adapt. And the EU's reach will be global once again: any car maker or airline that wants to sell or fly into the EU, will have to obey the rules which are aimed at achieving a low carbon economy for the 21st century (earlier post): only green cars with low emissions will be allowed into the block, whereas foreign airlines will have to conform as all international routes will be included in the European Emissions Trading System (ETS). At least, this is a likely scenario (earlier post).

If the EU's emission reduction target is to be achieved, member states will first have to agree amongst themselves on two controversial plans which target emissions from transport:

1. the introduction of a mandatory CO2 cap for cars, which are responsible for more than 10% of all greenhouse-gas emissions in the EU (earlier post)
2. the inclusion of aviation in the EU's Emissions Trading Scheme, in order to reduce airlines' growing contribution to climate change

While ministers from all member states, except Poland, backed the broad lines of the Commission's strategy, many voiced concern regarding the impact that it would have on employment and the competitiveness of the EU's automobile sector.

Spain even suggested that the CO2 cap should be applied not only to European manufacturers but also to all vehicle manufacturers seeking to sell cars in the EU, regardless of their nationality. This would avoid placing European carmakers at a disadvantage with their competitors. And this would allow Europe to leverage its power on a global scale:
bioenergy :: biofuels :: energy :: sustainability :: car manufacturers :: airlines :: greenhouse gases :: emissions :: ETS :: EU ::

The Commission's plans to integrate aviation into the EU's CO2 emissions cap-and-trade system also received broad support from member states, but a majority of countries insisted that all routes – intra-EU and international – be covered by the scheme as of the same date.

This would effectively force foreign airlines to comply with EU aviation emissions rules. But US carriers are adamant that this would be illegal and that the EU must wait for a global agreement to be reached in the International Civil Aviation Organisation (ICAO).

More information and different positions of EU actors on the issue can be found at Euractiv.