EEP: Excess Emission Premium

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The price of many vehicles will be going up in January 2020. Find out what the Excess Emission Premium – also known as EEP – is and how it could affect you if you’re looking to change your car in the New Year.

As the world continues to focus on becoming greener by reducing global emissions, the automotive industry has been required to make some major changes. With increasingly stringent regulations, as well as the introduction of WLTP (the new global standard for testing car emissions and efficiency), vehicle manufacturers have had to take action as they work towards achieving future emissions targets – even axing less efficient models from their ranges.

1st January 2020 sees the introduction of a new lower band of emissions targets being implemented through European legislation, where every car manufacturer selling vehicles in the EU (and the UK post-Brexit) is required to achieve a specific average emission figure across sales of its whole vehicle range.

The target figure is 95 grams of carbon dioxide emitted for every kilometre travelled for manufacturers selling more than 300,000 vehicles in the EU within 12 months. If a manufacturer sell less than 300,000 units in the EU, there is a separate emissions calculation based on their ‘niche’ status.

For the moment at least, most petrol and diesel vehicles available for purchase fall outside of this target. Only manufacturers with a significant sales volume of small efficient city cars, electric vehicles and hybrids may be able to average out their total emissions below the all-important 95 gram figure in the short-term.

From 1st January 2020, the EU will impose an Excess Emissions Premium for vehicle ranges that score above their target figure. Charged at 95 Euros for each gram of CO2 above the target and applicable across all units sold, this penalty will affect the price of cars for most manufacturers.

So, what does that mean for you? Every manufacturer is striving to lower the net emissions across their vehicle range by investing in new technologies, but it is inevitable that the majority of cars will rise in price in the new year – by hundreds or even thousands of pounds.

If buying a new car is one of your New Year’s resolutions, you could save substantially if you change your car before the end of the 2019. Speak to your local Subaru dealer today to find out more.

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