European institutional investors under the IIGCC banner have written to policy makers across the European Union calling for a prompt decision to tighten the EU testing regime to include ‘real-drive’ data on CO2 emissions – arguing they have lost “significant value” in the Volkswagen emissions-rigging crisis.
The 118 members of the Institutional Investors Group on Climate Change (IIGCC) have combined assets of €12trn and the open letter states: “IIGCC members base their investment decisions on official data regarding these regulatory risks.
“As a result of Volkswagen’s conduct, our members have lost significant investment value. Trust in emissions data urgently needs to be restored so that investors can be sure that official data is reliable.”
RI reported yesterday that VW has withdrawn from environmental data body the CDP.
Stephanie Pfeifer, CEO of the investor group, said IIGCC members rely on official data about the regulatory risks arising from vehicle emissions. It was important, she said, for public health and investor confidence that the EU has a “strong and predictable” regulatory framework where standards are not watered down for particulate or greenhouse gas emissions.“The pace of the low-carbon transition needs to accelerate and reliable data on emissions is essential to help investors identify those car manufacturers that are leading the step change in innovation necessary to drive that transition,” Pfeifer said.
The investors’ demands:
- Go beyond UNECE (United Nations Economic Commission for Europe) requirements for the Worldwide Harmonized Light Vehicles Test Procedures (WLTP) and phase-in real driving emission test procedures for CO2.
- Introduce real driving emissions test procedure for non-CO2 pollutants as soon as possible.
- Either strengthen requirements for national authorities to conduct mandatory real driving emissions test procedures for non-CO2 pollutants or establish an independent European type approval authority.
- Set 2025 CO2 emissions standards “fully in line with the EU’s 2030 and 2050 climate-energy objectives”.