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Electric Car Hype Hiding A Quiet Revolution

September 13, 2011
Electric Car Hype Hiding A Quiet Revolution

By Erik Kirschbaum

BERLIN (Reuters) September 12, 2011   - Electric cars and hybrids may be capturing headlines and the imagination of green-leaning consumers around the world as one automaker after another announces plans to push into the brave new world of fossil fuel-free mobility.

But away from the spotlight, carmakers have been quietly delivering significant cuts in CO2 emissions with some re-engineering of internal combustion engines, technology advances, weight reduction and aerodynamic improvements.

Increasingly stringent fuel economy standards in Europe and the United States that were mandated due to climate change concerns have been the main catalyst. Yet with rising fuel prices and a waxing awareness of global warming, consumers have also been clamoring for more fuel-efficient vehicles.

"Carmakers have finally gotten the message and have made a good start in making cuts in CO2 emissions but only after they were forced to," said Dorothee Saar, an industry analyst at the German Environmental Aid Association (DUH) in Berlin ahead of the Frankfurt international car show starting on Tuesday.

Cars are responsible for about 10 percent of the world's greenhouse gas emissions, which most scientist believe are responsible for climate change that could lead to rising sea levels, more powerful storms, droughts and floods.

"Before 2008 they had only voluntary targets that were largely ignored. They're moving forward now because they know if they don't cut emissions they'll pay heavy fines. They're doing better but there is still a lot of untapped potential."

In the European Union, CO2 emissions fell 3.7 percent last year to 140 grams per kilometer after dropping 5.1 percent in 2009. Average emissions are down from 186 grams in 1995. The EU is on track to meet a 130 grams target by 2015 set in 2008 in the face of heavy resistance. The limit will be 98 grams in 2020.

In the United States, notorious around the world for its gas guzzlers, the Obama administration announced plans in August to raise fuel economy requirements by 53 percent by 2025. The proposal requires companies to reach an average fuel efficiency across their U.S. fleets of 54.5 miles per gallon by 2025.

"The industry has done what they have agreed to with the CO2 reduction goals but the problem is that they are aiming at moving targets," said Philippe Houchois, car industry analyst at UBS in London. "The CO2 targets get tougher all the time.

"Everyone has made good progress because they have to with the regulations," he added. "There are no obvious laggards. But as the requirements continue to move, they are going to have to have sell more electric cars to be able to meet the targets."

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Source: www.moneycontrol.com
 
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