European Parliament and EU Council negotiators reached a provisional political agreement on stricter CO2 emission performance standards for new cars and vans on the evening of Thursday 27 October (see EUROPE 12982/9). This text is the first part of the ‘Fit For 55’ package to be agreed by the co-legislators.
“Reaching a first agreement on a proposal in the ‘Fit for 55’ package is a strong signal that the EU is determined to make progress towards climate neutrality and the green transition”, commented Czech environment minister Anna Hubáčková, whose country holds the rotating Presidency of the EU Council.
In detail, the text validates the CO2 emission reduction targets of 55% for new cars by 2030 and 50% for vans compared to 2021 levels. By 2035, this reduction target will be increased to 100%, meaning that no new combustion engine vehicles will be sold by that date.
“It was imperative to take the necessary measures to reach our climate objectives, namely carbon neutrality by 2050”, said the Chair of the European Parliament Transport Committee, Karima Delli (Greens/EFA, French).
In addition, the text foresees that manufacturers who meet certain benchmarks for the sale of zero- and low-emission vehicles may be rewarded with less stringent CO2 targets, under the regulatory incentive mechanism for zero- and low-emission vehicles (ZLEV). This mechanism will continue until 2030 and the thresholds for cars have been set at 25% and at 17% for vans.
In addition, the agreement reached by the negotiators includes a clause to ensure that the European Commission will carry out a thorough assessment in 2026 of the progress made and will analyse the need to revise the targets in the light of technological developments, including plug-in hybrids. An evaluation report conducted by the Commission should then be carried out every two years.
‘Ferrari’ amendment and principle recital for neutral combustion engines
A methodology should be developed by the Commission by 2025 to assess the life-cycle CO2 emissions data of cars and vans sold in the EU. This methodology would allow manufacturers to report to the Commission on a voluntary basis on the life-cycle emissions of new vehicles they put on the market.
Wording on CO2-neutral fuels, according to which, after consultation with stakeholders, the Commission will be responsible for presenting a proposal for the registration of vehicles running exclusively on CO2-neutral fuels after 2035, was also included.
The text also includes an exemption until the end of 2035 for manufacturers of limited series of vehicles. This amendment, supported by Germany and Italy and better known as the ‘Ferrari amendment, is one of the points on which the European Parliament had to concede some ground during the negotiations.
“I regret that not all manufacturers, especially those targeting a wealthy audience, are treated in the same way. The ‘ecological transition’ must be synonymous with ‘social justice’”, said Ms Delli.
In addition, a recital of principle, requested by Germany, has been added and the Commission is expected to eventually present a proposal allowing manufacturers to continue to sell combustion engine vehicles after 2035 if they are carbon neutral.
“As in any negotiation to find a compromise, the European Parliament had to ‘move’ towards the Council and accept the inclusion of a recital on e-fuels. Although the recital is very vague and does not lead to anything concrete, it stabilised Germany’s support for this agreement”, commented Pascal Canfin (Renew Europe, French), Chair of the European Parliament’s Environment Committee, which is responsible for this matter.
EPP reaffirms its opposition
In the European Parliament, while several political groups showed their support for the interinstitutional agreement, the EPP was very critical and reaffirmed its opposition to a measure like the ban on the sale of new combustion engine cars from 2035.
“After 2035, our streets could become full of old cars, because new cars are not available or not affordable. Today’s agreement closes the door to new technological developments and puts all the eggs in one basket. This is a mistake”, said Jens Gieseke (EPP, German).
Industry NGOs and trade organisations like Transport & Environment (T&E) welcomed the agreement, which “will make the EU the largest economy to phase out sales of polluting vehicles”, while cars and vans account for 16% of all greenhouse gas emissions in Europe.
The European Automobile Manufacturers’ Association (ACEA) also welcomed the provisional agreement. “The European automotive industry is ready to take up the challenge of providing these zero-emission cars and vans”, said ACEA President and BMW CEO Oliver Zipse. “However, we now want to see the essential framework conditions for achieving this goal reflected in EU policies”, he added, referring to the deployment of alternative fuel infrastructure (see EUROPE 13047/10). (Original version in French by Thomas Mangin)