While John McCain's idea of a gas tax holiday was a hit in the U.S. (well, it was a hit with him and Hillary Clinton, anyway), the European Commission is saying no in all sorts of languages to the possibility of the EU capping the value-added tax on fuel. Automotive News Europe reports that the EC shot down a proposal by French president Nicolas Sarkozy to cap the tax by saying any such move was the wrong response to high oil prices and would require unanimous agreement anyway. Sarkozy didn't specify how high he thought oil prices should go before the tax cap kicked in, but it doesn't look like he even needs to bother. The EC's stand is that, "changing taxation on fuels in order to combat increasing prices would send the wrong message to producing countries. This would show them that they could increase prices, and citizens would have to pay for this. So that's really the wrong message," Commission energy spokesman Ferran Tarradellas told ANE. Funny, that's not the message we heard when McCain and Clinton were all 'bout the gas tax holiday.

[Source: Automotive News Europe]

The German arguments to European Commission rules aimed at lowering average vehicle CO₂ emissions has been well covered. Because many of the major German brands make large, powerful vehicles, the German administration felt that they were being dealt with unfairly. France, for its part, has automakers which quite nearly complied with the proposed standards just as they were and did not want to see German automakers get any special treatment. Can't we all just get along? Maybe, since Automotive News is reporting that representatives from the two feuding nations have gotten together and are hashing out their differences. We don't have any details on just what changes are being suggested to the proposal, but an anonymous source claims that there are few sticking points left on the table. According to reports, France would like to see a deal made before June 9, when there is a meeting between Frech President Nicolas Sarkozy and German Chancellor Angela Merkel scheduled in Bavaria. Stay tuned.

[Source: Automotive News - sub. req'd]

It seems so often the case that proposed regulations start out quite high and are then bartered down when the affected parties complain loud enough. This could again be the case with European Union legislation targeting automobile emissions. When the laws were first being considered, the bar was set at 120 grams of C0₂ per kilometer for an entire automaker's fleet of vehicles. First, we heard news that German car companies may be able to negotiate a break on these requirements, and now we hear that the entire industry could get a few more years via a graduated scale to bring their offerings in line with the law. After all is said and done, we wonder what the legislation will look like, if it ever goes through at all.

[Source: Automotive News]

Just the other day, we wrote a post highlighting a quote from Nabil Kassem, professor at Stockholm's Royal Institute of Technology, who commented, "Driving a hydrogen-powered car in 2030 will be a common thing" As always, there are many commentators on AutoblogGreen who have much to say on the merits (or lack thereof) of hydrogen. So, for those interested in the idea of a "hydrogen economy" or "hydrogen society" (for good or for bad), it seems that the European Union is estimating that there will be 16 million hydrogen-powered vehicles on European roadways by 2030. Any such scenario must also include plans on creating an infrastructure to handle these cars, and the EU is figuring on this as well. Their goals (sub. req'd to read this WSJ article) include cutting oil usage by 40 percent through the use of hydrogen and they are putting their money where their mouths are by approving a $1.4 billion investment into research for using hydrogen as an alternative fuel.

[Source: Auto Observer]

U.S. and European Union lawmakers made important legislative decisions late last year. In the U.S., the CAFE rules got hammered out and in the EU, the European Commission decided on some CO₂ laws. While these are both just steps along the way to cleaner vehicles, Automotive News Europe's Jason Stein is pretty convinced that the European CO ₂debate is really just beginning.

Stein writes that the once-united voice of the auto industry (courtesy of the ACEA, the European auto manufacturers association, is splintering into an every-manufacturer-for-itself shouting match. We've already seen Porsche make its case for an exemption from the rules, and if one goes others will follow. In the broader scheme of things, we're starting to see questions about devilish details like tires. The EU is also trying to figure out carbon capture rules and just where the line is between CO₂ and safety. I'm going to agree with Stein here. This discussion is nowhere near settled.

[Source: Automotive News Europe]

After admitting that no one thought about the environmental or the economic implications of turning specific cropsinto biofuels, the EU has decided to think again about the use of those fuels. The EU's target for biofuels was 10 percent by 2010 but this target is now going to be reviewed.

Stavros Dimas (pictured on the right), the EU's Commissioner for Environmental affairs said that the EU didn't forecast the actual implications that this 10 percent goal could have on the environment. Some recent studies show that intensive production of some biofuel sources, such as cereals, actually increases food prices and forest surface destruction, a surface which is then intended for agriculture. Dimas said that the EU will review this percentage until everybody is sure than the remedy is not worse than the problem.

When the EU announced the 10 percent goal, biofuels were thought to be one of the best solutions: no special new technology had to be created and the plants had captured previously the CO₂ that was released after combustion. Dimas was remarkably hard against palm oil for biodiesel and has asked for drastic measures against importing it into the EU.

Related:

• German biodiesel producers must become efficient, facing tough times with the taxman
• Ethanol promoters say ethanol is one "realistic solution" to high oil prices
• UN annouces International Conference on Biofuels

[Source: El País]

It looks like the German auto industry officials aren't the only ones who want to put the brakes on proposed EU carbon dioxide emissions limits. The UK government is now urging the European Union to give car-makers more time as well. UK Transport Minister Ruth Kelly wants plans for a 125 g/km limit by 2015 scrapped in favor of a 100 g/km limit that would be enacted between 2020 and 2025. The few remaining car makers in Britain - like Aston Martin, Jaguar, Bentley and Rolls-Royce - would have a hard time meeting the EU rules and Kelly wants them to have more time. Since most of the car-makers affected by the rules produce low volume, high dollar machines, perhaps a better approach would be to impose the rules as they are currently proposed and let them pay hefty fines. In the grand scheme such low volume cars emitting more would probably have less impact on the environment than millions of higher volume cars. Let the market decide. If customers don't want to pay a lot more, it will provide incentive for the companies to produce more efficient vehicles.

[Source: Times of London]

The allure of hydrogen cars is in their lack of emissions, and this was enough to cause the European Union's executive arm to recently suggest a 470 million euro (665 million dollars) investment into the technology.

EU Industry Commissioner Guenter Verheugen said, "I'm absolutely not sure that the hydrogen powered car is the car of the future. It is a technology that is really promising and it is important that we give that technology the possibility to be developed."

Although manufacturers such as BMW, General Motors, Honda and Mazda all have hydrogen vehicles that are already on the roads, Verheugen recognizes that the cars are not likely to make a large dent in the overall emissions from cars anytime soon. He said, "Whether it will work I do not know. But what I know is that in the next 10 years we will not have hydrogen powered cars on our streets -- not in a quantity that will count in any way for (bringing down) the emissions."

In addition to the hefty sum allotted for research, the EU would also like to set up standard rules for the manufacturers so that it was easier for them to bring hydrogen vehicles to market. Some day, maybe.

[Source: Physorg]