Reinforcement of European standards for CO2 emissions: Summary of the European Parliament and the Council of Europe positions
- The European Parliament adopted on 8 June 2022 several amendments (P9_TA(2022)0234) to the proposal from the Parliament and the Council for a regulation regarding the reinforcement of CO2 emission standards for new passenger cars (PCs) and light utility vehicles (LUVs) (EU regulation 2019/631). This series of amendments is part of the overall objective of reducing net emissions to zero from all industries at the latest by 2050, with an intermediate objective of reducing net greenhouse gas emissions by at least 55% by 2030 (compared to 1990). These amendments also follow the EU's commitment at the COP26 to accelerate the global transition to zero-emission vehicles. To achieve this objective, the European Parliament considers that it would be necessary to reduce emissions from the transport sector by around 90% and at the same time to rapidly develop renewable energies so that the EU car fleet can be supplied by additional electricity from renewable sources.
- At the same time, for internal combustion vehicles, the Parliament is advocating a reinforcement of the standards relating to CO2 emissions PCs and LUVs for the period 2025-2030, with the aim of accelerating the decarbonisation of the second-hand vehicle market, which will still be allowed to be driven until 2050. Also, the Parliament insists that these objectives must not hamper access to individual and affordable mobility for all, just as these objectives must be accompanied by ambitious binding objectives concerning the deployment of public and private charging infrastructure.
- This adopted regulation followed the ordinary legislative procedure (first reading), i.e. it then went to first reading at the Council of Europe, which was gathered on June 28 during an "Environment" Council, and where the ministers in charge of the environment adopted their positions on the proposals contained in the "Fit for 55” package.
- In the press release published on June 29, it is stated that the Council has agreed to raise the CO2 emission reduction targets for new passenger cars and new light utility vehicles by 2030, to 55% for PCs and 50% for LUVs. The Council also approved the introduction of a 100% CO2 emissions reduction target by 2035 for new passenger cars and LUVs.
- In addition, in 2026, the Commission will 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 economic transition towards zero emissions. Finally, the Council agreed to end the regulatory incentive mechanism for zero- and low-emission vehicles from 2030. Once the Council's position has been adopted, it must be examined again by Parliament for a second reading. This should happen sometime in September 2022.
- The final adoption of this regulation raises questions: What impact will this measure have on the automotive market in 10 years? Will the conditions be met in 2030-2035 to allow the real deployment of the zero-emission vehicles market? What will be the impact on carmakers and their supply chain?
- To provide elements of answers to these questions and other, Inovev conducted a very in-depth analysis on the subject of electrification and its impact on the supply chain, on behalf of the main global suppliers of the automotive industry. This is an independent and in-depth analysis, going beyond public announcements.
- We provide 4 comprehensive studies, covering the electrified vehicle (xEVs) market in terms of volumes up to 2030, the battery technologies and market, the electrification technologies and plastic materials for xEVs.
Two additional studies analysing the emissions and masses of all vehicles (including xEVs) produced and sold in Europe are also available to support your knowledge and decisions. For more information, please consult the dedicated site at the following address: https://www.inovev.com/index.php/en/electrification
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