The European Council and the European Parliament have reached a provisional political agreement on stricter CO2 emission performance standards for new cars and vans. The purpose is to move towards a zero-emission mobility.
Pending a formal adoption, the co-legislators agreed to a:
- 55% CO2 emission reduction target for new cars and 50% for new vans by 2030 compared to 2021 levels
- 100% CO2 emission reduction target for both new cars and vans by 2035.
This agreement will pave the way for the modern and competitive automotive industry in the EU. The world is changing, and we must remain at the forefront of innovation. I believe we can take advantage of this technological transition. The envisaged timeline also makes the goals achievable for car manufacturers.
The regulatory incentive mechanism will be kept for zero- and low-emission vehicles (ZLEV) until 2030. As part this mechanism, if a manufacturer meets certain benchmarks for the sales of zero- and low-emission vehicles it can be rewarded with less strict CO2 targets. The co-legislators agreed to increase the benchmark to 25% for cars and 17% for vans until 2030.
The agreement includes wording on CO2 neutral fuels whereby following consultation with stakeholders, the Commission will make a proposal for registering vehicles running exclusively on CO2-neutral fuels after 2035 in conformity with EU law, outside the scope of the fleet standards, and in conformity with the EU’s climate neutrality objective.
The agreement includes a review clause that will ensure that in 2026, the Commission thoroughly assess the progress made towards achieving the 100% emission reduction targets and the need to review these targets taking into account technological developments, including with regard to plug-in hybrid technologies and the importance of a viable and socially equitable transition towards zero emissions.
In addition, the agreement includes a reinforcement of other provisions in the regulations such as:
- reducing the cap of emission credits that manufacturers can receive for eco-innovations that verifiably reduce CO2 emissions on the road, to up to 4g/km per year from 2030 until 2034 (currently set at 7g/km per year).
- The Commission will develop a common EU methodology, by 2025, for assessing the full life cycle of CO2 emissions of cars and vans placed on the EU market, as well as for the fuels and energy consumed by these vehicles. Based on this methodology, manufacturers may, on a voluntary basis, report to the Commission on the life cycle emissions of the new vehicles they place on the market.
The agreement maintains a derogation for small volume manufacturers until the end of 2035.
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