On 3 October 2018, the European Parliament approved, with amendments, the proposal for a regulation setting emission performance standards for new passenger cars and for new light commercial vehicles as part of the Union’s integrated approach to reduce CO2 emissions from light-duty vehicles.

The new rules aim at accelerating the decarbonisation of the entire transport sector and at ensuring that greenhouse gas emissions will be firmly on the path towards zero-emission by mid-century, in order to meet the Union’s commitments made at the 21stConference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC), held in Paris in 2015.

The Parliament has proposed to reduce CO2 emissions from new cars of 20% by 2025 and of 40% by 2030. Manufacturers whose average CO2 emissions exceed these targets will pay an excess emissions premium that will be considered as revenue for the general budget of the Union and that will be used for up-skilling workers affected by changes in the automotive sector, in particular in the regions and the communities most affected by the transition. Manufacturers will also have to ensure that zero- and low- emission vehicles have a 35% market share of sales of new cars and vans by 2030, and 20% by 2025.

In order to assess the real world representativeness of vehicle CO2 emissions, the Parliament has suggested that the European Commission should develop a real-world CO2 emissions test, running from 2023. However, until that test becomes applicable, CO2 emissions should be measured based on data from the fuel consumption meters reported by manufacturers.

The text approved by the Parliament also provides that, by the end of 2019, the Commission will propose new rules providing consumers with accurate and comparable information on the fuel consumption, CO2 and pollutant emissions of new cars.

The Council of the European Union will adopt its position on the draft law on 9 October 2018. Negotiations between the Parliament and the Council for a first reading agreement will start the following day.