EU adopts zero CO₂ targets for cars and vans from 2035, exempts e-fueled vehicles

28 March 2023

The EU Council adopted a regulation setting a zero CO₂ emission performance standard for new cars and vans effective from 2035. The decision follows an agreement between the EU Commission and Germany and other member states to exempt combustion engine vehicles fueled exclusively by carbon-neutral e-fuels.

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The regulation, approved by the EU Parliament in February, was expected to be adopted by the member states on March 7^th, but was unexpectedly opposed by Germany, Italy, and several other member countries.

After weeks of discussions, the EU Commission agreed to Germany’s request to exempt from the regulation internal combustion engine vehicles fueled by carbon-neutral e-fuels. Italy’s request to also exempt vehicles fueled by biofuels has been denied, as the EU Commission does not consider biofuels to be carbon-neutral.

As agreed with Germany and the member states, the EU Commission will now make a proposal for a delegated regulation for registering vehicles running exclusively on CO₂-neutral fuels, after 2035, outside the scope of the fleet CO₂ emission standards and “in conformity with the EU’s climate neutrality objective”. It is envisioned that the vehicles will be equipped with a “fueling inducement” technology that would prevent driving the vehicle if it was fueled by non-carbon neutral fuels.

The new rules set the following targets:

• 55% CO₂ emission reductions for new cars and 50% for new vans from 2030 compared to 2021 levels
• 100% CO₂ emission reductions for both new cars and vans from 2035

The EU Council adoption is the last step of the decision-making procedure. The regulation will now be published in the EU’s Official Journal and enter into force on the twentieth day following that of its publication.

Source: EU Council