Euro 5 Impact Assessment - Automotive Industries Association of ...

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3. OBJECTIVES3.1. Policy objectivesThe proposal pursues the following general policy objectives:• Ensuring proper functioning of the internal market; and• Providing for a high level of environmental protection in the European Union.The specific objectives cover:• Setting harmonised rules on the construction of motor vehicles; and• Improving air quality by reducing pollutants emitted by the road transport sector.The operational objectives include:• Setting the next stage of emission limit values for passenger cars and light-dutyvehicles in a cost-effective way with specific focus on NO X , PM and HC.3.2. Consistency with horizontal objectives of the European Union3.2.1. Lisbon strategyThe policy objectives of Euro 5 are in line with the aims of the European Union’s Lisbonstrategy, which has three pillars, namely:• Making Europe a more attractive place to invest and workThe objectives of Euro 5 are supporting the integrity of the single market, providing foruniform standards for new vehicles sold throughout the European Union. It means that theautomotive industry in Europe is required to meet uniform regulations throughout theInternal Market of the EU. This will ensure that the European car industry remainscompetitive and an attractive industry to invest in. The proposal will also contribute toenhancing its competitiveness on world export markets.The CAFE Programme has shown that air pollution has significant effects onproductivity. 9 For example, the CAFE Cost-Benefit Analysis 10 assessed the effects of airpollution on activities of the population, namely by estimating the Restricted ActivityDays (RADs) and the Work Loss Days (WLDs) for each Member State that areattributable to air pollution. By seeking to reduce air pollution, the policy objectives ofEuro 5 contribute to increasing productivity in the European Union.• Knowledge and innovation for growthNew emission limits for vehicles encourage the development and implementation of newenvironmental technologies. The policy objectives therefore promote innovation andtechnological development, enabling the EU to keep pace with the technology910Methodology for the Cost-Benefit analysis for CAFE, Volume 2: Health Impact Assessment, AEATechnology Environment, February 2005, p. 85CAFE Cost Benefit Analysis: Baseline Analysis 2000 to 2020, AEA Technology Environment, April2005, p.18, p. 608
development of the automotive industry in the United States and in Japan. Europe hasworld leading diesel engine technology. However, one of the barriers to diesel vehicles inother parts of the world is the perception that they are too polluting. Policies whichsupport the development of cleaner diesel open up the potential for greater export ofEuropean technology to other parts of the world.• Creating more and better jobsIn the Impact Assessment of the Thematic Strategy on Air Pollution (SEC(2005) 1133) itwas demonstrated that reducing air pollution in the EU would have a negligible impact onemployment. As Euro 5 would be one of the measures considered in the ThematicStrategy, the overall employment impact of this proposal is also negligible. One of themain employment impacts is likely to be created by the demand for new vehiclecomponents. Given that new technology could be required, the employment impact willbe a mixture between high value added research and development activities and alsomanufacturing opportunities.3.2.2. Sustainable Development strategyAt the core of the European Union’s Sustainable Development strategy, as communicatedby the Commission to the European Council at Göteborg in 2001 11 and supported by theEuropean Council, is that “economic growth, social cohesion and environmentalprotection must go hand in hand”. The policy objectives of Euro 5 are in line with thestrategy by ensuring that the automotive industry grows in a more sustainable waythrough production of more environmentally friendly vehicles. Such vehicles bring socialbenefits through reducing the impacts on human health.11COM(2001)264 final.9
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