Today, the European Commission has proposed ambitious new CO2 emissions targets for new heavy-duty vehicles (HDVs) from 2030 onwards. These targets will help to reduce CO2 emissions in the transport sector – trucks, city buses, and long-distance buses are responsible for over 6% of total EU greenhouse gas (GHG) emissions and more than 25% of GHG emissions from road transport. These strengthened emissions standards would ensure that this segment of the road transport sector contributes to the shift to zero-emissions mobility and the EU’s climate and zero pollution objectives.
The Commission proposes phasing in stronger CO2 emissions standards for almost all new HDVs with certified CO2 emissions, compared to 2019 levels, specifically:
- 45% emissions reductions from 2030;
- 65% emission reductions from 2035;
- 90% emissions reduction from 2040.
To stimulate faster deployment of zero-emission buses in cities, the Commission also proposes to make all new city buses zero-emission as of 2030.
In line with the European Green Deal and REPowerEU objectives, this proposal will also have a positive impact on the energy transition, by lowering demand for imported fossil fuels and enhancing energy savings and efficiencies in the EU’s transport sector. It will provide benefits for European transport operators and users by reducing fuel costs and total cost of ownership, and ensure a wider deployment of more energy-efficient vehicles. It will also improve air quality, notably in cities, and the health of Europeans.
Moreover, this is a key sector to support the European clean tech industry and boost international competitiveness. The EU is a market leader in the production of trucks and buses and a common legal framework helps to secure that position for the future. In particular, the revised standards provide a clear and long-term signal to guide EU industry investments in innovative zero-emission technologies and boost the rollout of recharging and refuelling infrastructure.
Background
Emissions in the HDV sector have been increasing year-on-year since 2014 with the exception of 2020 due to the COVID-19 pandemic. Especially in the freight sector, emissions are increasing rapidly. This is mainly due to growing road transport demand, which is expected to keep rising in the future. In 2019, freight emissions were 44% higher than emissions from the aviation sector and 37% higher than maritime transport emissions.
The vast majority of heavy-duty vehicles in the EU fleet (99%) currently run on internal combustion engines, fuelled largely by imported fossil fuels such as diesel. This adds to the EU’s energy dependency and current volatility of the energy market.
The current HDV emissions standards date from 2019, but are no longer in line with the EU’s climate objectives. Existing legislation does not provide a sufficiently clear and long-term signal to investors and does not reflect the new reality in the energy sector and the rapid developments in the HDV industry globally. The proposed new CO2 standards are in line with the EU’s increased climate ambitions, the Fit for 55 package and the Paris Agreement.
To support this proposal, investments need to be channelled into zero-emission vehicles and into the recharging and refuelling infrastructure, and the Commission has already proposed the Alternative Fuels Infrastructure Regulation to develop the necessary charging infrastructure to support the green transition of the heavy duty vehicles sector. In particular, the Commission proposed to install charging and fuelling points at regular intervals on major highways: every 60 kilometres for electric charging and every 150 kilometres for hydrogen refuelling. The Commission is working intensively with the co-legislators to finalise the negotiations on these proposals.
For More Information
Quote
To reach our climate and zero pollution goals all parts of the transport sector have to actively contribute. In 2050, nearly all of the vehicles on our roads have to be zero-emission. Our Climate Law requires it, our cities demand it, and our manufacturers are gearing up for it. With today’s proposal, we are making sure that new trucks are becoming less polluting and that more buses with zero emissions will ride through our cities. Fighting the climate crisis, enhancing the quality of life of our citizens, and boosting Europe’s industrial competitiveness go hand-in-hand.
Q&A: Revision of the CO2 emission standards for Heavy-Duty Vehicles
Brussels, 14 February 2023
1. Why are stronger CO2 standards for heavy-duty vehicles necessary?
The road transport sector represents one fifth of the EU’s greenhouse gas (GHG) emissions and is a main cause of air pollution in cities. Citizens, cities, and consumers want to move to green mobility. Yet, transport is the only sector in the EU, where emissions have continued rising in recent years. Heavy-duty vehicles (HDVs), such as trucks, city buses and long-distance buses, are responsible for more than 25% of GHG emissions from road transport in the EU and account for over 6% of total EU GHG emissions. These emissions continue to increase, especially in freight transport. This upward curve is mainly driven by growing road transport demand, which is expected to keep increasing in the future.
Therefore, stronger CO2 emission standards for heavy-duty vehicles are key to drive down CO2 emissions in the sector and improve air quality. The Commission’s proposal will strengthen the CO2 standards from 2030 onwards and extend the scope to almost all vehicles with certified CO2 emissions, to help reach the EU’s commitment to reach climate neutrality by 2050.
2. On top of emission reductions, what are the other benefits of stronger CO2 standards for heavy-duty vehicles?
Road transport is responsible for one third of all final energy consumed in the EU. The current EU HDV fleet is run almost entirely on internal combustion engines which are predominantly fuelled by imported fossil fuels, in turn contributing to the EU’s energy dependency. With these new standards, the demand for fossil fuels, mostly oil products such as diesel is expected to decrease by around 2 billion barrels of oil over the period 2031 to 2050.
Moreover, stronger CO2 standards will provide benefits for transport operators and users in the form of lower fuel costs and cost of ownership of the vehicles. The total cost of ownership for first users of a new heavy-duty vehicle will reduce significantly: with savings on average around 9,000 € for a vehicle purchased in 2030 and 41,000€ for a vehicle purchased in 2040.
Zero-emission and more energy-efficient vehicles will also have clear benefits for air quality and the health of Europeans, and hence contribute to the Zero Pollution Action Plan. The reduction of air pollution directly translates into health benefits for citizens, since the expanded scope also covers smaller trucks and buses and these vehicles are mostly driven in urban areas.
In addition, industrial development is changing the HDV sector rapidly. EU heavy-duty vehicle manufacturers are currently world-leading. The new standards will send a clear signal to EU industry to invest in innovative zero-emission technologies and the roll-out of recharging and refuelling infrastructure. This clear and common legal framework will be key to maintaining the EU’s technological leadership in the future and supporting the employment of highly-skilled workers.
3. What is the scope of the proposal and the new target levels?
The proposal covers trucks (above 5 tonnes), city buses and long-distance buses (above 7.5 tonnes) as well as trailers (an unpowered vehicle towed by a motor vehicle). This is an important expansion of the scope of the regulation. The technology used in the engines of long-distance buses is the same as for heavy trucks and thus they can already benefit from technological developments in this market segment.
The Commission proposes new and more ambitious EU CO2 emission targets for new heavy-duty vehicles from 2030 onwards to deliver on the above objectives. Under the proposal, CO2 emissions would reduce on average compared to 2019 levels by:
- 45% from 1 January 2030
- 65% from 1 January 2035
- 90% from 1 January 2040 onwards
New city buses in the EU will all have to be zero emissions (100% share of zero-emission vehicles) as of 2030.
It will be for manufacturers to decide which technologies they use to achieve these targets, e.g. electrification, hydrogen fuel cells or hydrogen in internal combustion vehicles.
An exemption to the CO2 reduction targets will apply to the following heavy-duty vehicles:
- small volume manufacturers
- vehicles used for mining, forestry and agricultural purposes
- vehicles designed and constructed for the use by armed forces and track-laying vehicles
- vehicles designed and constructed or adapted for use by civil protection, fire services and forces responsible for maintaining public order, or urgent medical care
- vocational vehicles, such as garbage trucks
These vehicles are not counted towards the average specific CO2 emissions of manufacturers.
4. Will renewable and low-carbon fuels be allowed under the proposal?
The core objective of the EU policy on transport fuels is to reduce their greenhouse gas intensity in the most effective way possible across the transport sector.
A mechanism on renewable and low carbon fuels would create an incentive to redirect fuels needed to decarbonise sectors with fewer alternatives, like aviation and maritime, to road transport. Industry have already announced three technologies driving the shift to zero emission: battery electric, fuel cell and hydrogen combustion. These can increasingly cover most uses, from short distance and urban transport to long distance trucking. In addition, until 2040, the 90% emissions reduction target ensures that heavy-duty vehicles intended for driving in difficult conditions (e.g. very steep mountains) can still be non-zero emission vehicles.
In the Impact Assessment underpinning the proposal the Commission analysed possible mechanisms to account for renewable and low-carbon fuels, and concluded they are not the most effective tool. It would create an incoherent approach to the decarbonisation of fuels, while dedicated specific instruments are proposed for this purpose (Renewable Energy Directive, emission trading for road transport and buildings, Energy Taxation Directive, and specific initiatives on fuels in aviation and maritime – all part of the Fit for 55 package).
Furthermore, if fuel suppliers and vehicles manufacturers were to establish a fuel crediting system, the compliance costs for manufacturers would increase and impact the total cost of ownership for consumers. The mechanism would increase administrative burden and complexity, blurring the responsibilities between fuel suppliers and vehicle manufacturers.
5. What will be the impact on employment of this transformation of the automotive sector?
The transition to zero-emission mobility is already driving a transformation along the entire value chain of the heavy-duty vehicle sector. The strengthening of CO2 emission standards is projected to bring net positive impacts on economy-wide employment. The automotive value chain will expand and new jobs will be created, in sectors such as battery production, electronics and the energy sector. This will require new skills among the workforce. Automotive suppliers will have to adapt their portfolio of products and services, and reskill and upskill their employees to secure a workforce fit for the zero-emission mobility era.
Several EU funding opportunities are available to help secure a skilled workforce ready for the green and digital transition, and leave no one behind in this transformation. This includes the Just Transition Fund (JTF), the European Social Fund Plus (ESF+), and more funding through the Recovery and Resilience Facility and the social investments and skills window of InvestEU. The ‘Pact for Skills’ will also help mobilise the private sector and other stakeholders to upskill and reskill Europe’s workforce.
In addition, as announced in the 2020 Industrial Strategy, a transition pathway is being developed for the mobility ecosystem to accompany the transition of the automotive value chain. This is happening in partnership with industry, public authorities, social partners and other stakeholders, with a particular focus on SMEs in the automotive supply chain.
6. Why are you targeting zero-emission city buses already from 2030?
Electric buses already represent a considerable proportion of the new fleet in several Member States. These buses are being procured in significant volumes by local public authorities in the EU. City buses are especially suitable for a more rapid shift to zero-emission mobility due to the way they are used: they can recharge fully overnight and travel on well-defined and predictable short routes.
The demand from cities across Europe is high and growing. The EU Mission for climate-neutral and smart cities by 2030 was oversubscribed three times (377 applications for 100 spots) and local populations increasingly want clean public transport to help improve air quality. Several cities are planning to go to fully zero-emission public transport well before 2030 and some EU countries have already set an earlier target at national level. Finally, recent announcements from manufacturers are aligned with this ambition and it is important to ensure that European legislation supports this ongoing transition.
7. Why does the proposal introduce an exemption for small volume manufacturers and set specific targets for trailers?
The current CO2 emission standards, adopted in 2019, covered only heavy trucks, which are mostly produced by a small number of big manufacturers. However, the market of smaller trucks, city buses, long-distance buses and trailers is rather different. By expanding the scope, many more emissions will be covered.
The introduction of new technologies is more expensive for small volume manufacturers than for larger manufacturers, since they can take less advantage of economies of scale due to their production volumes. Therefore, exempting small volume manufacturers registering up to 100 vehicles from meeting regulatory requirements will help them to avoid negative impacts. The environmental and climate impact of such an exemption will be very limited, so the core policy objectives are not harmed.
Regarding trailers, improving their energy efficiency is a cost-efficient way to reduce CO2 emissions from the road transport sector as most of the improvement comes from relatively inexpensive technologies, such as aerodynamic improvements. Expanding the scope to trailers will therefore bring additional savings in terms of CO2 emissions and further reduces the total costs of ownership for transport operators. More efficient trailers will also help reduce the demand for fossil fuels, mostly diesel and other oil products, by about 23 Mtoe, or 170 million barrels of oil, over the period 2031 to 2050, as compared to the previous standards. When towed by a battery electric vehicle, a more efficient trailer will allow for a longer range or for a smaller battery, hence reducing the cost of an electric lorry.
Source – EU Commission
Opening remarks by EU Commission Executive VP Timmermans at the press conference on the revision of CO2 emission standards for Heavy-Duty Vehicles
Brussels, 14 February 2023
This morning, I already had a debate in Parliament on the CO2 emission standards for cars and vans, where we have recently reached an ambitious agreement in trilogue. It was already approved in Council and this morning, it was also voted in Parliament. And I think this is break-through legislation, one of the most important parts of our Fit for 55 package. I salute the Parliament for taking this historic decision.
In 2050, nearly all of the vehicles on our roads have to be zero-emission. Our Climate Law requires it, our cities demand it, and our manufacturers are gearing up for it.
Right now, trucks and buses are responsible for more than a quarter of greenhouse gas emissions from road transport, and about 6% of all greenhouse gases emitted in Europe. Moreover, 99% of trucks and buses currently on our roads have internal combustion engines, and they are all diesel engines. It makes them heavily dependent on imported fossil fuels, and it also importantly contributes to air pollution. Still, over 300.000 Europeans every year die prematurely because of air pollution.
Until now, our legislation for this sector only covered heavy trucks. Now, we propose to expand the scope: small and large trucks, city buses, long-distance buses, and trailers. Trailers as such do not have emissions obviously, but by setting stricter requirements for their energy efficiency (aerodynamics mainly), they will help reduce CO2 emissions from the main truck, and enable longer distances when driving battery-powered engines or hydrogen powered fuel cells.
And because of this more complete scope of the legislation, we will see broader benefits: reducing air pollution, and improving the quality of life and the health of our citizens.
As with the legislation on cars and vans, it only concerns new registrations, so trucks and buses coming to the market in the future. This means that fleets will gradually get cleaner, as the vehicles are renewed by their operators.
Our objective is pretty straightforward: all trucks and buses will have to head for a zero-emission future. It will be a gradual shift: by 2030, we require that they emit 45% less compared to 2019, in 2035 this will have to be 65% less, and in 2040 it will be 90% less than in 2019.
The targets are fleet-based, so manufacturers must meet them as an average over their entire fleet. So 90% by 2040 means that the vast majority of new trucks and long-distance buses coming on the market will be zero emissions, powered by batteries, fuel cells, or even hydrogen-powered internal combustion engines.
We will eventually have to move to a 100% target, but at this stage we cannot yet say when all uses of trucks and buses can be made zero-emissions with the technologies currently available – especially where it concerns challenging driving circumstances such as very steep mountains and icy conditions. As someone who uses an electric car very often, I know that lower temperatures means that the battery lasts less. You have to take these conditions into consideration in certain parts of Europe.
For city buses, however, the situation is quite different. By 2030, all new city buses will have to be zero emission.
This is ambitious but it is entirely possible. I’m really happy with this proposal, as these kinds of changes show citizens that the transition to a clean and healthy future can happen fast. You see in all of our cities across the European Union a huge push for zero-emission public transport because people want cleaner air. They got used to cleaner air, one of the very few positive effects of Covid, they got used to cleaner air and want that to remain the norm. That’s why they are pushing so much for zero-emission mobility.
And of course it is also technically feasible: the routes are always very clear, it is easy to arrange charging, and all of that makes it easier. Rides are shorter, predictable routes and overnight you can charge the buses in the depots.
In addition to this, cities can pool their economic weight to buy these buses together – I have been pushing for that for years now – through the Clean Bus Platform. This can bring the purchasing cost of these buses down even further. The total cost of ownership is already lower than with combustion-engine buses. But buying them still is a challenge sometimes, for cities where public finances have been squeezed. If you pool the resources, if you stimulate the production in Europe, you can bring the prices down.
I have heard many European manufacturers saying that they want to be part of this. Both the ones who build the engines and the batteries but also the ones who build the buses. So I think this is something that will really have huge results and everybody is really looking out for this.
Finally, when we look at the broader industrial transition, heavy-duty vehicles are a sector where many European manufacturers are already at the forefront. The EU is a market leader in the production of trucks and buses, and setting this legal framework already now will help it secure that position towards the future. This is a valuable part of the Green Deal Industrial Plan.
Let me be as clear as I can be. We do not want a repetition of what happened with solar panels, where we invented them and then all the production went to China. We want the production to be also European production. There is huge potential in Europe. Just take Poland as an example, where the production of electric buses is really expanding very rapidly. This is an opportunity for European industrial strength and we should certainly use it.
Demand for zero emission trucks and buses will only be increasing. The earlier we get there, the better for our planet, industry, citizens and the quality of life in the villages, towns and cities where they all live.
To be very clear, we took into account the more challenging conditions of rural areas, where we will not apply the same rules as in the cities. In rural areas, the buses for longer-range transport will be treated as trucks, not as city buses. That will give rural areas more space to go through this transition. Already now, public transport in many of our rural areas is a challenge and we want public transport to improve, not to decrease. That is why, we have given them special attention in our proposal.
Thank you.
Source – EU Commission