“Automotive Package” delivers first important step to amending CO2 legislation for cars and vans

With the publication of the “automotive package”, the European Commission has made a first step to creating a more pragmatic and flexible pathway to align decarbonisation with competitiveness and resilience objectives.

“Today’s proposals rightly recognise the need for more flexibility and technology neutrality to make the green transition a success. This constitutes a major change compared to the current law,” stated Sigrid de Vries, Director General of ACEA, the European Automobile Manufacturers’ Association. “However, the devil can be very much in the detail. We will now study the package, and work with co-legislators to critically strengthen the proposals where needed.”

At first glance, the package needs more decisive measures to facilitate the transition in the next few years. Without urgent action on 2030 flexibilities for cars and vans – the milestone which is four years from now – action on 2035 may have a limited effect.

Moreover, attaching strict conditionalities to various elements of the package may have a counterproductive effect on technology openness and competitiveness. Notably, narrow “made in the EU” requirements and the proposed emission compensation system need further careful evaluation.

ACEA welcomes the dedicated attention for light commercial vehicles (LCVs), a vehicle segment that is in a dire situation, through compliance averaging and a 2030 target reduction, and a number of measures in the Automotive Omnibus.

Equally, the targeted amendment for heavy commercial vehicles is a positive, first step, which now needs speedy adoption. It must be followed by an accelerated review of HDV CO2 Regulation, which cannot wait until 2027. The sector needs an urgent assessment and regular monitoring of the state of the most critical enabling conditions for the segment’s transition.

ACEA notes the Commission has also made proposals to make manufacturing of small cars in Europe more competitive, as part of the Automotive Omnibus, which merit closer scrutiny. The announced measures to mandate the greening of corporate fleets risk running counter to the necessary market and incentive-based approach. The industry is supporting incentives and enabling conditions across vehicle segments. Heavy-duty vehicles also need appropriate demand-stimulus measures.

The EU automotive industry remains fully committed to the transformation. To date, they have introduced more than 300 electrified car models, 70 van types, and more than 45 truck versions, representing investments of several hundred billion euros into electrification.
ACEA had called for an urgent revision of the current CO2 standards for cars and vans because, with today’s market conditions, the 2030 and 2035 CO2 targets for cars and vans are no longer realistic. Market realities also warrant a more granular “three-lane” framework, with tailored measures for cars, vans and heavy-duty vehicles.
A technology-neutral approach to CO2-reduction rules for cars and vans brings the highly-challenging, systemic transformation closer to consumer, industrial and geopolitical realities. Electromobility will remain the dominant pathway, but other viable technologies can help cut emissions.
Flexibility in the compliance trajectory matters as it buys time for demand-side enablers, such as charging infrastructure to catch up and support electromobility reaching mass adoption across all EU member states.