EU: First ‘Fit for 55’ proposal agreed
Stricter CO2 emission performance standards for new automobiles and vans were the subject of a provisional political agreement between the Council and the European Parliament. The goal is to transition to zero-emission mobility. The co-legislators agreed on a target of 55% CO2 emission reduction for new vehicles and 50% for new vans by 2030 compared to 2021 levels and a target of 100% CO2 emission reduction for both new cars and vans by 2035.
Up to 2030, zero- and low-emission vehicles (ZLEV) will continue to be eligible for the regulatory incentive program. As part of this approach, a manufacturer may receive less stringent CO2 targets if it reaches specific benchmarks for selling zero- and low-emission vehicles. Co-legislators decided to raise the standard till 2030 to 25% for cars and 17% for vans.
The agreement contains language on CO2-neutral fuels that states that the Commission will, after consulting with stakeholders, propose registering vehicles that only use CO2-neutral fuel after 2035 per EU law, outside the purview of fleet standards, and following the EU's climate neutrality objective.
The agreement has a review clause that will make sure that in 2026, the Commission will carefully evaluate the progress made toward achieving the 100% emission reduction targets and the need to review these targets in light of technological developments, including those relating to plug-in hybrid technologies and the significance of a financially feasible and socially just transition toward zero emissions. Until the end of 2035, the agreement preserves a derogation for small-volume manufacturers. The provisional political agreement's text will be made public soon.
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