London-UK plans to copy and paste European Union regulations on corporate average carbon dioxide targets for cars and vans when the EU completely leaves at the end of December.
The UK government has issued an advisory document explaining its plans and suggesting amendments to the continuity issue as it shifts EU regulation to reduce CO2 emissions to the UK regulatory regime.
The proposal will keep the regulatory regime “as close as possible to a typical business (BAU) scenario for manufacturers”, the advisory document says.
The changes will take effect on January 1, 2021, at the end of the transition period that includes the UK’s withdrawal from the EU.
The UK decided to leave the EU in 2016 in part so that it could escape EU regulations if it wished, but the automaker said it did not want a two-stage system that had to comply with both regulations.
David Bailey, professor of business economics at the Birmingham School of Business, UK, said, “The government had no choice but to obey the regulations. “The manufacturer does not want a different set of regulations, and having the same set makes sense to encourage selling electric vehicles in the UK.”
The UK government has further limited what can be changed as EU CO2 regulations remain the same in Northern Ireland and continue to follow EU single market regulations under the terms of the EU withdrawal agreement signed by Prime Minister Boris Johnson.
For the government to enact a proposed plan to ban the sale of all vehicles equipped with internal combustion engines, including plug-in hybrids, by 2035, the sale of electric vehicles must be encouraged.
All aspects of the EU regulation are kept in consensus documents, including super credits for the sale of ultra-low emissions vehicles in 2021 and 2022.
Automakers will be fined 86 British pounds instead of 95 euros per gram of CO2 exceeding the limit. This is currently an average of 95 grams per kilometer.
The individual automaker’s target is still based on the average weight of vehicles sold, but instead of using the weight of vehicles sold in the UK, the system will continue to account for the average of vehicles sold across the EU.
“Because the British fleet is heavier than the EU27, moving from the EU fleet average to a UK-specific value immediately makes our regulatory targets more demanding for all manufacturers,” the advisory document said.
According to European Union data, the average weight of cars sold in the UK in 2018 was 1,466 kg, reaching the EU average of 1,420 kg.
The UK will also maintain the EU’s demeaning system, allowing automakers selling less than 300,000 models per year in Europe to negotiate more relaxed targets.
The target is revised to take into account the percentage of EU sales by car manufacturers in the UK. For example, if 50% of a manufacturer’s EU sales are in the UK, the UK threshold is 150,000.
With these changes, Jaguar Land Rover will continue to leverage its softer targets in the UK, where nearly half of the 228,626 units sold in the EU and EFTA regions last year.
If JLR continues to use tampering in the UK, it could be disputed among other automakers that haven’t been tampered with right now, but with a similar share of their sales. For example, according to data from the British Automobile Manufacturers Association SMMT, JLR had a market share of 4.87% in the UK last year, while Toyota, which did not deserve EU demeanor, had a share of 4.55%.
The British government said in the document that “over time, it may become more appropriate to move to a fixed threshold for damage to the UK bay.”
The same equation based on UK sales ratio within EU sales applies to automakers selling less than 10,000 vehicles with separate targets within the EU system.
Anyone who registers less than 1,000 vehicles under the EU system is outside the scope of the regulation and its threshold remains unchanged in the UK to help small automakers in countries in excess of 1,000, taking into account European figures .
The UK plans to maintain EU targets of reducing CO2 emissions from cars and vans by 15% from 2025 and by 37.5% for cars and 31% in vans by 2030 according to the proposed plan.
Automakers can form the pool as they do now. “If the contract complies with Competition Law 1998,” the advisory document said.
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