PURPOSE: to adopt stricter CO2 emission standards for cars and vans to make road transport cleaner.

LEGISLATIVE ACT: Regulation (EU) 2019/631 of the European Parliament and of the Council setting CO2 emission performance standards for new passenger cars and for new light commercial vehicles, and repealing Regulations (EC) No 443/2009 and (EU) No 510/2011.

CONTENT: t his Regulation establishes CO2 emissions performance requirements for new passenger cars and for new light commercial vehicles in order to contribute to achieving the Union's target of reducing its greenhouse gas emissions to reach the EU wide 30% reduction target by 2030 compared to 2005 of the non ETS (Emissions Trading System) sector.

Emission reduction targets

The Regulation aims to ensure that from 2030 onwards, new cars and vans emit on average 37.5% and 31% less CO2 respectively compared to 2021 levels. Over the period 2025-2029, CO2 emissions from both cars and vans shall be required to emit 15% less CO2. These are objectives at the scale of the EU park. The effort to reduce CO2 emissions will be distributed among manufacturers on the basis of the average mass of their vehicle fleet.

These are EU wide fleet targets. The CO2 reduction effort will be distributed among manufacturers on the basis of the average mass of their vehicle fleet.

A dedicated incentive mechanism shall be introduced to facilitate a smooth transition towards zero-emission mobility. That mechanism should be designed so as to promote the deployment on the Union market of zero- and low-emission vehicles. Also, a specific transitional measure should be put in place to enable access to zero- and low-emission vehicles to consumers from Member States with low levels of market penetration of such vehicles.

From 1 January 2025, a zero- and low-emission vehicles' benchmark equal to a 15 % share of the respective fleets of new passenger cars and new light commercial vehicles shall apply respectively. From 1 January 2030, the following zero- and low-emission vehicles' benchmarks shall apply, respectively: (a) a benchmark equal to a 35 % share of the fleet of new passenger cars; and (b) a benchmark equal to a 30 % share of the fleet of new light commercial vehicles.

Derogations for certain manufacturers

A manufacturer may apply for a derogation from the specific emissions target if he produces fewer than 10 000 new passenger cars or 22 000 new light commercial vehicles registered in the Union per calendar year and is not part of a group of related manufacturers.

The procedure for granting derogations from the 95 g CO2/km EU fleet-wide target to niche car manufacturers ensures that the emissions reduction effort required by those niche manufacturers is consistent with that of large-volume manufacturers with regard to that target. It is appropriate to continue to provide those niche manufacturers with the possibility of being granted a derogation also from the targets applicable from 2025, until 2028.

Deterring emissions fraud

The new rules aim to ensure the robustness and representativeness of the reported emission data:

- stricter rules have been agreed for the transition from the old NEDC test procedure to the more accurate WLTP test procedure as the basis for calculating the specific emission targets for manufacturers. particular consideration should be given to identifying methods, including the use of data from on-board fuel and/or energy consumption monitoring devices, for detecting strategies through which a vehicle's CO2 performance is artificially improved in the type-approval test procedure;

- the Commission shall no later than 2023 evaluate the possibility of developing a common Union methodology for the assessment and the consistent data reporting of the full life-cycle CO2 emissions of passenger cars and light commercial vehicles that are placed on the Union market. The Commission shall transmit to the European Parliament and to the Council that evaluation, including, where appropriate, proposals for follow-up measures, such as legislative proposals;

- more emphasis shall be placed on monitoring emissions under real driving conditions. The Commission shall monitor the real world representativeness of the CO2 emission values based on data from the fuel consumption meters installed in new cars and vans. In order to prevent an increase in the emissions gap, the Commission is to assess the feasibility of developing a mechanism for the adjustment of the manufacturers' specific targets as of 2030 and if appropriate submit a legislative proposal to this effect. The Commission must also as part of the review in 2023 assess the feasibility of developing real-world emission test procedures.

Socially fair transition

The effects of the transition of the automotive sector on in particular employment shall be addressed via a provision on a socially fair and just transition. The Commission is to consider the possibility of allocating revenue from the excess premiums to a dedicated fund or relevant programmes aimed at ensuring a just transition and if appropriate submit a legislative proposal by 2027.

Review and reporting

The Commission shall, in 2023, thoroughly review the effectiveness of this Regulation and submit a report to the European Parliament and to the Council with the result of the review. In the report, the Commission shall consider, inter alia:

- the real-world representativeness of the CO2 emission and fuel or energy consumption values;

- the deployment on the Union market of zero- and low-emission vehicles;

- the roll-out of recharging and refuelling infrastructure reported under Directive 2014/94/EU of the European Parliament and of the Council;

- the potential contribution of the use of synthetic and advanced alternative fuels produced with renewable energy to emissions reductions.

The report shall, where appropriate, be accompanied by a proposal for amending this Regulation, in particular, the possible revision of the EU fleet-wide targets for 2030 and the introduction of binding emissions reduction targets for 2035 and 2040 onwards for passenger cars and light commercial vehicles.

ENTRY INTO FORCE: 15.5.2019.

APPLICATION: from 1.1.2020.

The European Parliament adopted by 521 votes 63 with 34 abstentions, a legislative resolution on the proposal for a Regulation of the European Parliament and of the Council setting emission performance standards for new passenger cars and for new light commercial vehicles as part of the Union's integrated approach to reduce CO2 emissions from light-duty vehicles and amending Regulation (EC) No 715/2007 (recast).

The position of the European Parliament adopted at first reading under the ordinary legislative procedure amended the Commission proposal as follows:

Objective

The proposed regulation establishes CO2 emissions performance requirements for new passenger cars and for new light commercial vehicles in order to contribute to achieving the Union's target of reducing its greenhouse gas emissions, and the objectives of the Paris Agreement and to ensure the proper functioning of the internal market.

Emission reduction targets

The amended text establishes an emission reduction target of 37.5% of the average of the 2021 specific emission targets for the entire European fleet of new cars and 31% for light commercial vehicles by 2030 with a benchmark of 15% by 2025.

From 1 January 2030, the following zero- and low-emission vehicles' benchmarks shall apply: (a) a benchmark equal to a 35 % share of the fleet of new passenger cars, and (b) a benchmark equal to a 30 % share of the fleet of new light commercial vehicles.

In the case of zero-emission vehicles of category N with a reference mass exceeding 2 610 kg or 2 840 kg, as the case may be, they shall, from 1 January 2025, be counted as light commercial vehicles falling within the scope of the Regulation if the excess reference mass is due only to the mass of the energy storage system.

Monitoring and reporting of average emissions

In order to assess the full life-cycle emissions from passenger cars and light commercial vehicles at Union level, the Commission should no later than 2023 evaluate the possibility of developing a common Union methodology for the assessment and the consistent data reporting of the full life-cycle CO2 emissions of such vehicles placed on the Union market. The Commission should adopt follow-up measures, including, where appropriate, legislative proposals.

Real-world CO2 emissions and fuel or energy consumption

The Commission shall monitor and assess the real-world representativeness of the CO2 emissions and fuel or energy consumption values. Furthermore, the Commission shall regularly collect data on the real-world CO2 emissions and fuel or energy consumption of passenger cars and light commercial vehicles using on-board fuel and/or energy consumption monitoring devices, starting with new passenger cars and new light commercial vehicles registered in 2021.

Starting from 1 January 2021, the Commission shall ensure that the following parameters relating to real-world CO2 emissions and fuel or energy consumption of passenger cars and light commercial vehicles are made available at regular intervals to it, from manufacturers, national authorities or through direct data transfer from vehicles: (i) vehicle identification number; (ii) fuel and/or electric energy consumed; (iii) total distance travelled; (iv) for externally chargeable hybrid electric vehicles, the fuel and electric energy consumed and the distance travelled distributed over the different driving modes.

Vehicles in-service

The Commission will have powers to establish and implement a procedure for verifying the correspondence between the CO2 emissions of vehicles in-service, as determined in accordance with the WLTP procedure established in Regulation (EU) 2017/1151, and the CO2 emission values recorded in the certificates of conformity.

In developing that procedure, particular consideration should be given to identifying methods, including the use of data from on-board fuel and/or energy consumption monitoring devices, for detecting strategies through which a vehicle's CO2 performance is artificially improved in the type-approval test procedure.

Socially acceptable and fair transition

The amended text stresses the importance of taking into account the social effects of such a transition throughout the whole automotive value chain and to address proactively the implications on employment. Targeted programmes at Union, national and regional levels should be considered for the re-skilling, and redeployment of workers, as well as education and job-seeking initiatives in adversely affected regions, in close dialogue with the social partners and competent authorities.

Review and report

The Commission shall, in 2023, thoroughly review the effectiveness of the Regulation and submit a report to the European Parliament and to the Council with the result of the review. In the report, the Commission shall consider, inter alia :

- the real-world representativeness of the CO2 emission and fuel or energy consumption values;

- the deployment on the Union market of zero- and low-emission vehicles, in particular with respect to light commercial vehicles;

- the roll-out of recharging and refuelling infrastructure reported under Directive 2014/94/EU of the European Parliament and of the Council;

- the potential contribution of the use of synthetic and advanced alternative fuels produced with renewable energy to emissions reductions;

- the CO2 emissions reduction actually observed at the existing fleet level;

- the functioning of the incentive mechanism for zero- and low emission vehicles;

- the impact of the Regulation on consumers, particularly on those on low and medium incomes, as well as aspects to further facilitate an economically viable and socially fair transition towards clean, competitive and affordable mobility in the Union.

The Commission shall, in that report, also identify a clear pathway for further CO2 emissions reductions for passenger cars and light commercial vehicles beyond 2030 in order to significantly contribute to achieving the long-term goal of the Paris Agreement.

The report shall, where appropriate, be accompanied by a proposal for amending the Regulation.

The European Parliament adopted by 389 votes to 239, with 41 abstentions, amendments to the proposal for a Regulation of the European Parliament and of the Council setting emission performance standards for new passenger cars and for new light commercial vehicles as part of the Union's integrated approach to reduce CO2 emissions from light-duty vehicles and amending Regulation (EC) No 715/2007 (recast).

The matter was referred back to the committee responsible for interinstitutional negotiations.

The main amendments to the Commission proposal adopted in plenary session concern the following points:

Objective : the proposed Regulation seeks to establish CO2 emissions performance requirements for new passenger cars and for new light commercial vehicles in order to achieve the Union’s climate targets and to comply with its climate commitments at international level, in a manner which is consistent with the proper functioning of the internal market.

Emission reduction targets : Parliament has proposed an emission reduction target of 40% of the average of the 2021 specific emission targets for the entire European fleet of new cars and light commercial vehicles by 2030 with a benchmark of 20% by 2025.

Zero or low emission vehicles are expected to account for 35% of the market share of new car and light commercial sales by 2030, and 20% by 2025.

Additional reduction targets : the Commission shall, where appropriate, submit a legislative proposal to the European Parliament and the Council in order to set additional emissions reduction targets for new passenger cars and new light commercial vehicles from 1 January 2031 with a view to maintaining at least the emissions reduction trajectory achieved in the period up to 2030.

Measurement of CO2 emissions under real operating conditions : CO emission reductions should be achieved under normal vehicle operation and use. Members therefore proposed to include a strict prohibition of defeat devices in the Regulation.

Compliance with this Regulation shall be measured, from 1 January 2023 , by means of a real-world CO2 emissions test. The Commission shall be empowered to adopt delegated acts, at the latest two years after the date of application of this Regulation, in order to supplement this Regulation by developing the real-world CO2 emissions test using the portable emission measurement system (PEMS).

However, until that test becomes applicable, compliance with this Regulation shall be ensured by using data from the fuel consumption meters reported by manufacturers and coupled with a limit, set for each manufacturer in 2021 as a percentage difference that is not to be exceeded.

Premiums : Parliament proposed that manufacturers whose average CO2 emissions exceed these targets shall pay a premium to the EU budget, to be used, inter alia , to promote skill formation and reallocation of workers in the automotive sector in all affected Member States, in particular in the regions and the communities most affected by the transition. Members also called for support for the manufacture of Union battery and battery cell, if possible, located close to vehicle manufacturing sites.

Vehicle labelling : by 31 December 2019 , the Commission shall a relevant legislative proposal in order to provide consumers with accurate, robust and comparable information on the fuel consumption, CO2 emissions and air pollutant emissions of new passenger cars placed on the market. The Commission shall also evaluate the options for introducing a fuel economy and CO2 emissions label for new light commercial vehicles , and, where appropriate, submit a relevant legislative proposal to that end.

The Commission shall develop, by means of delegated acts, a common Union methodology for the consistent data reporting, as from 2025, by manufacturers of the lifecycle CO2 emissions of all fuel types and vehicle powertrains they put on the market.

No later than 31 December 2026, the Commission shall submit a report with an analysis of the overall life-cycle emissions from new light duty vehicles in the Union.

The Committee on the Environment, Public Health and Food Safety adopted the report by Miriam DALLI (S&D, MT) on the proposal for a regulation of the European Parliament and of the Council setting emission performance standards for new passenger cars and for new light commercial vehicles as part of the Union's integrated approach to reduce CO2 emissions from light-duty vehicles and amending Regulation (EC) No 715/2007 (recast).

The committee recommended that the European Parliament adopt its position at first reading under the ordinary legislative procedure, taking into account the recommendations of the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission.

Objective : the proposed Regulation seeks to establish emissions performance requirements for new passenger cars and for new light commercial vehicles in order to achieve the Union’s climate targets and to comply with its climate commitments at international level , in a manner which is consistent with the proper functioning of the internal market.

EU fleet-wide targets :

From 1 January 2025 : an EU fleet-wide target equal to a 20 % reduction of the average of the specific emissions targets in 2021 shall apply from 1 January 2025 to the new passenger car fleet and to the new light commercial vehicles fleet. A benchmark equal to a 20 % market share of the sales of new passenger cars and new light commercial vehicles in 2025, shall apply to the share of zero- and low-emission vehicles . From 1 January 2030 : an EU fleet-wide target equal to a 45 % reduction (compared to 30% as proposed by the Commission) of the average of the specific emissions targets in 2021 shall apply to the new passenger car fleet and the new light commercial vehicles fleet. A benchmark equal to a 40 % market share of the sales of new passenger cars and new light commercial vehicles in 2030, shall apply to the share of zero- and low-emission vehicles .

The proposed Regulation shall apply to alternatively fuelled vehicles with a maximum authorised mass above 3 500 kg but not exceeding 4 250 kg , provided that the mass in excess of 3 500 kg is exclusively due to the excess of mass of the propulsion system in comparison with the propulsion system of a vehicle of the same dimensions equipped with a conventional internal combustion engine with positive ignition or compression ignition.

Realistic fuel consumption values : consumers require realistic fuel consumption values in order to make well-informed purchasing decisions. In turn, such information will help renew consumer confidence. However, the report noted that there is an increasing gap between official type approval figures and real-world CO2 emissions for new passenger vehicles. There is concern that this gap significantly reduces the effectiveness of the current CO2 regulations and requires immediate attention for the post 2020 regulations. Although, in comparison with the New European Driving Cycle (NEDC), the introduction of the new Worldwide Harmonised Light Vehicle Test Procedure (WLTP test procedure) can be expected to reduce the gap between reported CO2 emission values and actual emissions from vehicles, such gap will nonetheless persist. It is, therefore, essential to continue the efforts to develop and establish tests to be performed both in the laboratory and elsewhere which reflect reality as completely as possible by measuring actual energy consumption and emissions under real driving conditions. To this end, the Commission shall include such tests in the regulatory framework as soon as they have been developed.

Until the real-world CO2 emissions test becomes applicable, compliance with this Regulation shall be measured on the basis of data from fuel consumption meters and subject to a limit set for each manufacturer in 2021 as a percentage difference, that is not to be exceeded, between that data and the manufacturer’s specific CO2 emissions that is measured for the purpose of type approval certification procedures initiated from 2021 onwards.

Accuracy standards : where appropriate accuracy standards for on-board fuel consumption measurement equipment are not available, the Commission shall mandate work to agree the technical standards and introduce them into Union law no later than 1 January 2020.

Premiums : the report noted that manufacturers whose average CO2 emissions exceed these targets shall pay a premium to the EU budget , to be used, inter alia , for the re-skilling and redeployment of workers affected by changes in the automotive sector.

Labelling : by 31 December 2019, the Commission shall a relevant legislative proposal in order to provide consumers with accurate, robust and comparable information on the fuel consumption, CO2 emissions and air pollutant emissions of new passenger cars placed on the market. The Commission shall also evaluate the options for introducing a fuel economy and CO2 emissions label for new light commercial vehicles, and, where appropriate, submit a relevant legislative proposal to that end.

Additional reduction targets : the Commission shall submit a legislative proposal to the European Parliament and the Council in order to set additional emissions reduction targets for new passenger cars and new light commercial vehicles from 1 January 2031 with a view to maintaining at least the emissions reduction trajectory achieved in the period up to 2030.

Reporting and delegated acts : from 1 January 2025 onwards manufacturers shall report to the Commission, based on a harmonised Union methodology, the lifecycle CO2 emissions of all new passenger cars and light commercial vehicles they put on the market as from that date. For that purpose, the Commission shall adopt, no later than 31 December 2022, delegated acts in order to supplement this Regulation by specifying detailed rules on the procedures for reporting the full lifecycle CO2 emissions of all fuel types and vehicle powertrains registered on the Union market.

No later than 31 December 2026, the Commission shall submit a report to the European Parliament and the Council with an analysis of the overall life-cycle emissions from new light duty vehicles in the Union, including an analysis of options for possible regulatory measures, in order to better direct future policy efforts in emissions cuts in the sector. That analysis shall be made publicly available.

PURPOSE: to set new targets for the EU fleet wide average CO2 emissions of new passenger cars and light commercial vehicles (vans) that will apply from 2025 and 2030.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: following the Paris Agreement, the world has committed to move towards a low-carbon economy. Until now, the CO2 emission reduction standards for cars and vans in place in Europe have represented a fundamental tool to push for innovation and investments in low carbon technologies. However, in the absence of tighter standards for the period beyond 2020, the EU risks losing its technological leadership in this area.

The current CO2 emission standards for cars and vans until 2020/21 have contributed to significantly reduce CO2 emissions from light duty vehicles. However, with current implemented policies GHG emissions are not expected to sufficiently decrease to reach the 2030 EU target of at least 40% emission reduction compared to 1990.

This proposal is part of a broader mobility package which includes measures on the demand and supply of low-emission vehicles using alternative fuels through the proposed amendments to Directive 2009/33/EC on clean vehicles , Directive 92/106/EEC on combined transport and Regulation (EC) No 1073/2009 on passenger coach services.

IMPACT ASSESSMENT: the policy options were grouped into five key elements. The preferred options within these groups are as follows:

CO2 emission targets : to set new EU fleet-wide CO2 targets equal to a 30% reduction in 2030 compared to the 2021 targets , both for cars and for vans; distribution of effort amongst manufacturers from 2025 onwards ; incentives for low- and zero-emission vehicles (LEV/ZEV) : the use of a crediting system whereby a manufacturer exceeding a certain benchmark level of ZEV/LEV would be rewarded by getting a less strict CO2 target; elements for cost-effective implementation : to maintain the eco-innovation provisions, pooling provisions and derogations; strengthening of the governance : to establish an empowerment for the Commission to allow (i) the collection, publication and monitoring of real world fuel consumption data and creating an obligation to report deviations linked to a correction mechanisms and (ii) to correct reported CO2 emission values in case of deviations detected through improved market surveillance.

CONTENT: this proposal seeks to set cost-effective CO2 emission reduction targets for new light-duty vehicles up to 2030 combined with a dedicated incentive mechanism to increase the share of zero/low-emission vehicles. More specifically, it will provide a clear signal and predictability for industry to invest, stimulate employment, foster innovation and competitiveness.

In concrete terms, the proposed revision:

specifies the EU fleet wide CO2 targets applicable to new passenger cars and new light commercial vehicles from 2020, 2025 and 2030 . The Regulation shall repeal Regulations (EC) No 443/2009 and (EU) No 510/2011 and shall apply from 2020 in order to ensure a coherent transition to a new target regime starting from 2025. It therefore includes the already established EU fleet wide targets for 2020 of 95g/km (NEDC based) for passenger cars and 147g/km (NEDC based) for light commercial vehicles, as well as new targets for 2025 and 2030. Starting from 2021, the specific emission targets will be based on the new emissions test procedure, the Worldwide Harmonised Light Vehicle Test Procedure (WLTP); defines the categories of vehicles that fall within the scope of this Regulation by reference to the type approval legislation. It also clarifies that the de minimis exemption applicable to manufacturers responsible for less than 1000 new registrations per year should not apply where a manufacturer eligible for such an exemption nevertheless applies for and is granted a derogation; sets out the general obligation for a manufacturer to ensure that the average CO2 emissions of its fleet of newly registered vehicles in a calendar year do not exceed its annual specific emissions target . Specific targets are laid down in the proposal. From 2025, the specific emissions target for a manufacturer should be calculated taking into account the share of zero- and low-emission vehicles in the manufacturer's fleet; sets out the formula for calculating the financial penalties in case a manufacturer exceeds its target. The excess emission premium from the existing Regulations is maintained, i.e. 95 euro/g CO2/km ; maintains the possibility for small volume manufacturers (i.e. those responsible for 1 000 to 10 000 registrations for cars, and 1 000 to 22 000 registrations for vans) to apply for a derogation from their specific emissions targets. provides an empowerment for the Commission to monitor and assess the real world representativeness the WLTP test procedure and to ensure that the public is informed; clarifies the process for adjusting the reference mass value to ensure that the specific emission targets continue to reflect the EU fleet wide target; includes a requirement for the Commission to provide a report in 2024 on the effectiveness of this Regulation, where appropriate accompanied by a proposal.

DELEGATED ACTS: the proposal contains provisions empowering the Commission to adopt delegated acts in accordance with Article 290 of the Treaty on the Functioning of the European Union as regards the interpretation of the eligibility criteria for derogations, the content of the applications, and the content and assessment of programmes for the reduction of specific emissions of CO2.