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European Parliament approves zero CO2 for new cars and vans in 2035

The European Parliament approved the new CO2 emissions reduction targets for new passenger cars and light commercial vehicles, part of the “Fit for 55” package. With 340 votes in favor, 279 against and 21 abstentions, MEPs endorsed the deal reached with the Council on revised CO2 emission performance standards for new cars and vans in line with the EU’s increased climate ambition.

The new legislation sets the path towards zero CO2 emissions for new passenger cars and light commercial vehicles in 2035 (an EU fleet-wide target to reduce CO2 emissions produced by new cars and vans by 100% compared to 2021). Intermediate emissions reduction targets for 2030 are set at 55% for cars and 50% for vans.

Other key measures foreseen by the regulation:

  • The Commission will present by 2025 a methodology to assess and report data on CO2 emissions throughout the full life-cycle of cars and vans sold on the EU market, accompanied by legislative proposals where appropriate;

  • By December 2026, the Commission will monitor the gap between the emission limit values and the real-world fuel and energy consumption data, report on a methodology for adjusting the manufacturers’ specific CO2 emissions, and propose appropriate follow-up measures;

  • Manufacturers responsible for small production volumes in a calendar year (1000 to 10000 new cars or 1000 to 22000 new vans) may be granted a derogation until the end of 2035 (those registering fewer than 1000 new vehicles per year continue to be exempt);

  • The current zero- and low- emission vehicles (ZLEV) incentive mechanism, which rewards manufacturers that sell more such vehicles (with emissions from zero to 50g CO2/km, such as electric vehicles and well-performing plug-in hybrids) with lower CO2 emission reduction targets, will be adapted to meet expected sales trends. From 2025 to 2029, the ZLEV benchmark is set at 25% for the sales of new cars, and 17% for new vans, and as of 2030 the incentive will be removed; and

  • Every two years, starting from the end of 2025, the Commission will publish a report to evaluate the progress towards zero-emission road mobility.

This regulation encourages the production of zero- and low-emission vehicles. It contains an ambitious revision of the targets for 2030 and a zero-emission target for 2035, which is crucial to reach climate neutrality by 2050. These targets create clarity for the car industry and stimulate innovation and investments for car manufacturers. Purchasing and driving zero-emission cars will become cheaper for consumers and a second-hand market will emerge more quickly. It makes sustainable driving accessible to everyone.

—Rapporteur Jan Huitema (Renew, NL)

Following the final vote in plenary, the text will now have to be formally endorsed by the European Council, too, before being published in the EU Official Journal shortly after.

Background. On 14 July 2021, as part of the Fit for 55 package, the Commission presented a legislative proposal for a revision of the CO2 emission performance standards for new passenger cars and light commercial vehicles. The proposal aims to contribute to the EU 2030 and 2050 climate objectives, deliver benefits to citizens and stimulate innovation in zero-emission technologies.

There are three core institutions which make up the legislative and executive power of the EU: the European Parliament, the Council of the European Union and the European Commission. The European Commission proposes EU legislation while the Council and the Parliament jointly adopt it.

  • The European Parliament is made up of 705 Members, who are directly elected by voters in all Member States, represent the European people’s interests with regard to EU law making and make sure other EU institutions are working democratically.

  • The Council of the European Union is made up of the Member States’ government Ministers, depending on the legislation being discussed. Ministers defend their national interests in the Council.

  • The European Commision promotes the interests of the EU as a whole. Each Member State nominates one Commissionser to the European Commission.

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