Carbon dioxide (CO2) emissions will have to be significantly reduced in the decades ahead. A system of negotiable CO2 emission rights seems to be a very opportune tool to regulate the average CO2 levels emitted by cars sold in the Netherlands. This report provides an initial description of such a system. Based on a literature review and a number of interviews with the actors involved, a development path is mapped out to reveal how the system can be put in place in the Netherlands. The system focuses on vehicle dealers. The essence of the system is a CO2 emission ceiling for all sources together with the possibility for trading in emission rights amongst the sources. In practice, the system formulates a norm for a car's CO2 emissions per kilometre. Since deviation from this norm, up or down, is known for every car, a manufacturer selling a car with an emission value of x above the norm can compensate by selling a car with an emission value of x below the norm. Alternatively, the manufacturer can purchase an emissions surplus from another manufacturer. An important choice evident here is whether an average norm can be used for all cars sold or whether a differentiation should apply to different segments. It is proposed to begin with a CO2 pooling system as a yardstick for a system of negotiable CO2 emission rights, whereby the same principle applies, enabling dealers selling a car whose CO2 emissions are below average to earn commission or a fee. The CO2 pooling system is special in the sense that the tariffs (the bonus/malus amounts) are determined in advance. A project plan is presented in order to detail, together with a number of the actors involved, the notion of negotiable CO2 emission rights for the Dutch car sector.
Abstract