EU Lawmakers Give Boost To Green Vehicles

BELGIUM: October 23, 2008

BRUSSELS - Europe's local authorities and bus companies will have to buy greener, more fuel-efficient vehicles in future, following a vote by European Union lawmakers.

The move is expected to boost eco-friendly vehicles by increasing their share of local governments' annual demand for around 110,000 cars, 110,000 vans, 35,000 lorries and 17,000 buses in the EU.

Lawmakers adopted proposals on Wednesday forcing local governments to look at the environmental impacts, and not just the price, when buying vehicles.

But they allowed opt-outs for heavy machinery, such as military vehicles, quarry trucks and fire engines.

The EU executive said the move would reduce the consumption of costly petrol and diesel as well as help the bloc achieve its ambitious goals of cutting carbon dioxide emissions by a fifth by 2020.

It also said the legislation would encourage green technologies by helping them gain economies of scale, which in turn can drive down prices for consumers.

"It sends a clear signal to the market on the competitive value of technologies which save energy and protect the environment," said Antonio Tajani, commission Vice-President in charge of transport.

The proposals were adopted with 641 votes in favour and 37 against, and are expected to be swiftly approved by member states.

(Reporting by Bate Felix; editing by Pete Harrison)