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Automobile manufacturers can choose either a water-based or a solvent-based OEM basecoat with abatement, to reduce VOC emissions. In practice both are capable of meeting EU standards, but which is better for the environment? To find an answer, life cycle assessment has been applied here to typical European coatings. The study concludes that there is no overall environmental benefit from either option since the emissions are about equally balanced in favour of each. Energy demand reduction and conservation measures applied to either technology should yield the greatest environmental benefits. Additional scope comes from better material usage through improved transfer efficiency.