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WPIC: EU's stricter carbon emissions standards will boost platinum demand
Sep 27,2020 15:54CST
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SMM9, March 27: a few days ago, the EU Green Agreement updated the draft Climate Target Plan 2030, proposing to increase the 2030 greenhouse gas emission reduction target from 40% to 55% (that is, 55% lower than the 1990 carbon level), and intends to incorporate this target into the climate law. (WPIC), the World Platinum Investment Committee, said this would help increase demand for diesel vehicles, thereby boosting demand for platinum.

"increasing sales of (MHEV) gasoline and diesel models, including the plug-in electric vehicle (PHEV), is a very cost-effective way for automakers to avoid upcoming fines and reduce future annual fines," WPIC said.

In addition, WPIC noted that carmakers and regulators "seemed to agree" to take bold steps to further accelerate sales of MHEV, including diesel, the UK's highest-selling market segment this year.

As the transport sector is one of the important factors affecting carbon emissions, some institutions believe that this measure of the European Union may directly affect the formulation of automobile carbon emission standards. The establishment of carbon emission standards for passenger cars in the European Union can be traced back to 1998, and there has been a stage every decade since then.

The period from 2020 to 2030 is the third stage of the formulation of EU passenger vehicle carbon emission standards. According to the original emission plan, the average carbon emissions of 95% of new cars sold in the EU in 2020 must be 95g / km. By 2021, the average carbon emissions of 100% of new cars will have to meet this requirement. Vehicles that exceed the carbon emission standards will be fined 95 euros / g, and carbon emissions will reach 80.8g / km in 2025 and 59.4g/km in 2030.

According to the draft climate target plan for 2030 released by the European Union a few days ago, in order to achieve the new target of 55% reduction in greenhouse gas emissions, carbon dioxide emissions per kilometer of passenger vehicles need to be reduced to 50% of that in 2021, that is, 47.5g gamma km, 20% lower than the original 59.4g/km target.

In terms of the trend in 2021, WPIC said that if the excess emissions of the 13 largest European automakers (26g / km) remain unchanged this year, carmakers will face a fine of 27 billion.

Cars
carbon emissions
environmental pollution

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