EU gives carmakers credits for "eco-innovations"

The European Commission is offering carmakers “credits” to encourage them to pump more money into low carbon technology. Under legislation adopted by the European Commission yesterday, manufacturers can receive credits […]

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By Vicky Ellis

The European Commission is offering carmakers “credits” to encourage them to pump more money into low carbon technology. Under legislation adopted by the European Commission yesterday, manufacturers can receive credits if they fit new cars with so-called “eco-innovations” which reduce CO2 emissions.

EU legislation demands that by 2015, carbon emissions from all new cars registered in the EU should not exceed 130 grams per km, around one-fifth below 2007 levels.Manufacturers whose fleet average exceeds the limit from 2012 will have to pay a penalty for each car registered.

New or carbon-cutting technology, such as solar panels converting sunlight into electric energy, would qualify as an “eco-innovation”, but an energy-efficient in-car music system would not.