• SMMT: TfL congestion charge plans will neither cut congestion nor drive down CO2
• MEPs to debate car CO2 emissions reduction strategy tonight

In an initial response to Transport for London’s consultation on emissions-related congestion zone charges, the Society of Motor Manufacturers & Traders has said that current proposals will neither significantly cut CO2 nor reduce congestion in the capital and that, given the complexity of the scheme, more time is needed for discussion.

The consultation began on 10 August 2007 on proposals to charge cars with band G CO2 emissions £25 to drive in the present central London Congestion Charging Zone, combined with a 100% discount for the cars with the lowest emissions.

TfL's own figures claim the plan promises a CO2 saving of up to 8,100 tonnes. That compares to total ground-based transport emissions in London of 9.7 million tonnes. In other words, the SMMT points out, the maximum benefit for the capital would be a CO2 reduction of 0.084%.

To put this in context, the SMMT notes that improvements at UK car and commercial vehicle manufacturing sites have cut CO2 from 2.14 to 1.36 million tonnes in four years, a saving of 36.5%. Average new car CO2 emissions have also come down by 12% in a decade, saving an estimated one million tonnes of CO2 each year in the UK.

The SMMT says concerns about environmental improvements come after a report on the scheme from the Centre for Economics & Business Research Ltd., ‘Green tax or white elephant?’ suggested that the proposed CO2-graduated congestion changes could encourage between 4-10,000 additional cars onto central London roads.

The CEBR report’s key conclusions are:

- Transport for London’s own assessment is that the overall social cost of the proposed ERCC is greater than its environmental benefits. They value the net annual loss to society at £9 million.

- There is a real risk that the eventual outcome may be even worse than Transport for London’s own negative overall assessment suggests. The scheme may be both damaging to the environment and costly to road users in time and money.

- Regardless of whether the scheme will help or hinder the global battle against climate change, it will cost an estimated £6½ million to set up and a further £1½-2½ million per annum in on-going additional operating and monitoring expenditure.

- The annual budget for the additional operating and monitoring expenditure of the ERCC alone is large enough to purchase offsets for 100,000 to 170,000 tonnes of carbon dioxide — which is twelve-to-twenty times the maximum carbon dioxide saving that Transport for London believe the proposals can achieve.

“The motor industry has asked the mayor for an extension to the consultation period to work with Transport for London,” said SMMT chief executive Christopher Macgowan. “The issues are complex and TfL must be absolutely clear about the scheme's aims. Its execution must also deliver the greatest benefit both in terms of congestion and CO2 reduction and the charges to drivers must be proportionate.”

This evening, the European Parliament will debate the proposal from the EC that CO2 emissions from cars and light vehicles should be capped at an average of 130g/km from 2012. The Parliament’s Environment Committee (rapporteur Chris Davies, MEP) has proposed a tighter g/km limit applying to manufacturers with less dependence on advances in tyres and other factors.

The Committee proposes that binding annual emissions targets should be set with effect from 1 January 2009 with the objective of promoting technical improvements to vehicles in order to ensure that, by these means alone, average emissions from all passenger cars placed on the EU market from 1 January 2012 do not exceed 120g CO2/km;

It calls on the Commission to ensure that 'complementary measures' are put in place and reduce the emissions from passenger cars by an extra 10g CO2/km; and insists that from 1 January 2020 average emissions should not exceed 95g CO2/km, and believes that the EU should provide support for the necessary promotion of innovation through the Seventh Framework Programme for Research; emphasises the need for intensive promotion of research and development of zero-emission vehicles, such as electric vehicles.

The Environment Committee’s report advocates an automotive-specific carbon trading regime, while the Parliament’s Health Committee proposes enlarged statutory emissions notices in car advertising.

The debate motions can be read in full at: www.europarl.europa.eu/sides/getDoc.do?type=REPORT&reference=A6-2007-0343&language=EN&mode=XML