Brussels – Lower CO₂ emission reduction targets for new passenger cars and light commercial vehicles, incentives for manufacturers, including the use of low-carbon steel produced in the EU, and “super-credits” for certain electric vehicles: These are the key elements of the proposal adopted today (4 November) by the European Parliament’s Committee on the Environment (ENVI) regarding the revision of CO₂ emission reduction targets for new passenger cars and new light commercial vehicles presented last December by the European Commission following the Strategic Dialogue held at the Berlaymont Building with the sector. Approved by 48 votes in favour, 30 against and two abstentions, the text is the result of a political compromise reached in recent weeks between the European People’s Party (EPP), the Socialists and Democrats (S&D), and the liberals of Renew Europe. It must now go before the December plenary session, which will be called upon to endorse it, thereby granting Parliament’s mandate for interinstitutional negotiations with the Council of the EU. The rapporteur, Forza Italia MEP (European People’s Party, EPP), Massimiliano Salini, highlighted that the agreement “marks a turning point for the European automotive industry” because “it will still be possible to register cars with internal combustion engines without any offsetting requirements, thereby safeguarding technological freedom and restoring prospects for the entire supply chain.”
The terms of the agreement
MEPs are proposing to reduce the target for cutting CO₂ emissions from the entire vehicle fleet by 2035, bringing it down from 100 per cent to 87.5 per cent, rather than the 90 per cent reduction proposed in December by the Berlaymont building. “Manufacturers could offset residual emissions – limited to 7.5 per cent (relative to the EU’s 2021 fleet-wide benchmark) – to reach an overall threshold of 95 per cent, using credits linked to the use of low-carbon steel produced in the EU,” explains the European Parliament in a statement. For light commercial vehicles, MEPs are proposing a 35 per cent reduction target by 2030, compared with the 40 per cent set out in the Commission’s text and the 50 per cent stipulated in the current regulation. “The target for 2035 would fall from 100 per cent to 80 per cent” and “in this case too, it would be possible to use credits for low-carbon steel, up to a maximum limit of 7.5 per cent,” the Parliament continues. “Low-carbon steel produced in Europe could be used immediately, rewarding European production and strengthening the Union’s strategic autonomy,” Salini specified.
MEPs are also calling for the definition of zero-emission vehicles to be broadened to include not only those with zero tailpipe emissions, but also “vehicles running exclusively on eligible fuels” (VEEF), i.e. those powered by renewable and low-emission fuels that meet the criteria set out in the European Renewable Energy Directive. The text also introduces a system of “super-credits” to incentivise the European production of electric vehicles. “Decarbonisation does not mean imposing a single technology: in fact, we also recognise vehicles powered exclusively by renewable fuels that comply with the Renewable Energy Directive as zero-emission vehicles, on a par with electric vehicles,” commented Salini.
Finally, compact electric cars manufactured in the EU and with a maximum length of 4.2 metres (small electric vehicles) would count as 1.4 vehicles when calculating average fleet emissions, while energy-efficient electric models (manufactured in the EU and meeting strict electricity consumption thresholds) would count as 1.2 vehicles. Where vehicles are registered under a “social leasing” scheme, the multipliers would be increased by 0.1, bringing them to 1.5 and 1.3, respectively. Purely electric vans manufactured in the EU would be counted as 1.2 vehicles from the entry into force of the legislation until the end of 2034, and as 1.4 vehicles from 2035 onwards.
Confindustria and the German BDI have welcomed the vote, stating that they “welcome the compromise reached by the ENVI Committee on CO₂ emission standards as a positive step forward, but are calling for greater ambition and flexibility to safeguard the competitiveness of the European automotive industry”. Both federations “urge EU policymakers to strengthen technology neutrality, with an unconditional reduction of the fleet-wide target to 90 per cent, and to reconsider the restrictions on eligible fuels to ensure a level playing field for battery electric vehicles (BEVs) and provide investment certainty.” Confindustria and BDI “call for a regulatory framework that supports decarbonisation while safeguarding industrial competitiveness and employment, rejecting mandatory quotas for company fleets, and supporting a tailored approach for small-volume manufacturers.”
English version by the Translation Service of Withub
