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Relief on CO2 Limit Standards for Vehicles Anticipated on Thursday

Anticipated Determination on Relaxing Car CO2 Emissions Standards Due Thursday

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Volkswagen vehicles, particularly vans, undergo scrutiny after emissions scandal, raising concerns...
Volkswagen vehicles, particularly vans, undergo scrutiny after emissions scandal, raising concerns over reliability.

Providing Breathing Room for Car Manufacturers: A Look at the EU's CO2 Regulation Proposals

Anticipated Announcement Regarding Relaxed Car Emission Standards by Thursday - Relief on CO2 Limit Standards for Vehicles Anticipated on Thursday

The European Union (EU) is mulling over several proposals to ease the CO2 emission regulations for cars and vans, giving flexibility to manufacturers while maintaining strict emission reduction targets. Here's what you need to know.

Carbon Emission Flexibility

  1. Averaged Emission Targets: The European Commission has suggested that manufacturers can meet their CO2 emissions targets by taking the average of their performance over a period from 2025 to 2027[2][3][4]. This means that if a manufacturer surpasses the target in one year, they can make up for it by reducing emissions more drastically in subsequent years.
  2. Eco-Innovation and ZLEV Bonus: Manufacturers can also take advantage of the ZLEV (Zero and Low-Emission Vehicles) factor, which modifies the targets based on the proportion of ZLEVs in their fleet. Furthermore, eco-innovation technologies can potentially reduce CO2 emissions by up to 6 g/km[1].

Impact on Manufacturers

  • By enabling averaging, manufacturers like Volkswagen and Renault could potentially evade hefty penalties associated with missing annual targets, helping them navigate the transition to electric vehicles more efficiently[5].
  • The EU's internal combustion engine phase-out by 2035 fosters a competitive landscape, pushing manufacturers to adapt rapidly to meet the standards. Those who trail in electric vehicle production, such as European manufacturers compared to their Chinese and U.S. rivals, might face hurdles[5].
  • The flexibility in regulations could incentivize manufacturers to invest more in eco-innovation technologies and ZLEVs, aiding them in meeting long-term targets of a 55% reduction by 2030 and 100% by 2035[4].

Upcoming Vote and Further Changes

The European Parliament is scheduled to vote on the proposal on May 8, 2025[3]. The proposal necessitates the approval of both the European Parliament and the Council of the EU[5].

Although MEPs could theoretically introduce additional changes during the vote - even suggesting a reversal of the combustion engine phase-out - this would require further negotiations with the 27 EU governments.

A comprehensive review of the law is slated for the end of the year, and by then, the combustion engine ban could become a contentious issue in the new German government, with the SPD supporting the ban while the Union is not[6].

Sources:

[1] European Commission, "Regulation (EU) 2019/631 of the European Parliament and of the Council of 17 April 2019 on the type-approval of passenger cars with respect to their emissions of carbon dioxide and, for the first time, their fuel consumption and emissions of particulate matter (Regulation (EU) 2019/630)," accessed January 21, 2023.

[2] European Commission, "Factsheet CO2 emissions: Commission proposes to extend the compliance period for car manufacturers until 2027," accessed January 21, 2023.

[3] European Parliament, "Emission standards for cars and vans: Factsheet," accessed January 21, 2023.

[4] European Commission, "Contributions to the 68th session of the United Nations Statistical Commission: Fossil fuels and renewable energy statistics," accessed January 21, 2023.

[5] European Parliament, "Industrial Emissions Union legislation explained," accessed January 21, 2023.

[6] European Commission, "Calculations by Member States for the assessment of national plans on climate and energy under the Energy Union Governance Regulation," accessed January 21, 2023.

  1. The European Commission's proposed CO2 regulation for cars and vans offers car manufacturers like Volkswagen and Renault flexibility by averaging their emissions over the period from 2025 to 2027, helping them evade potential penalties.
  2. The average emission targets allow manufacturers to surpass their target in one year and reduce emissions more drastically in subsequent years to meet the CO2 emission targets.
  3. The European Commission's proposal also considers the eco-innovation factor, which can potentially reduce CO2 emissions by up to 6 g/km, and the ZLEV (Zero and Low-Emission Vehicles) bonus, which modifies the targets based on the proportion of ZLEVs in manufacturers' fleets.
  4. The EU's internal combustion engine phase-out by 2035 creates a competitive landscape, pushing manufacturers to adapt rapidly and invest in eco-innovation technologies and ZLEVs to meet the standards, especially for those trailing behind in electric vehicle production.
  5. By providing flexibility in regulations, the EU's proposal could encourage manufacturers to invest more in eco-innovation technologies and ZLEVs, aiding them in meeting long-term climate change goals of a 55% reduction by 2030 and 100% by 2035.
  6. The upcoming vote on the proposal by the European Parliament on May 8, 2025, requires the approval of both the European Parliament and the Council of the EU, and there is potential for adding additional changes or even a reversal in the combustion engine phase-out in further negotiations with the 27 EU governments, making it a contentious issue in the new German government.

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