CO₂ Standards in Cars and Vans

The revision of the CO₂ standards in cars and vans, as well as the foreseen revision for heavy-duty vehicles, offered an opportunity to speed up and make more efficient the decarbonisation of road transport, by opening this regulation to technology inclusiveness by accounting for the CO₂ reduction from fuels with low and net-zero CO₂ emissions. This should include a technology-neutral definition of “CO₂-neutral fuels”, including all RED-compliant fuels, the introduction of a carbon correction factor to the CO₂ tailpipe emissions for compliance assessment, to reflect the GHG emission intensity and the share of CO₂-neutral fuels, and the introduction of a new vehicle category running exclusively on CO₂-neutral fuels.

Regrettably, the CO₂ standards for light-duty vehicles don't include any form of recognition of the role of liquid fuels for decarbonising road transport. The Regulation foresees an objective of 55% reduction of CO₂ emissions for cars and vans by 2030 compared to 2021 and a 2035 target of 100% reduction, which looks de facto as a ban on the sales of new internal combustion engine vehicles. To prevent this from happening, we need the Commission to honour its commitment with the Council to make a proposal for the registration of new vehicles fuelled exclusively and permanently with CO₂-neutral fuels to be labelled zero CO₂ emission. We call on them to make a workable proposal which includes all CO₂-neutral fuel options, synthetic fuels and biofuels, that will spur EU investments in good time.

On the other hand, the Commission proposal of revision of the CO₂ standards for heavy-duty vehicles disregarded the previous binding obligation to develop a methodology for the life-cycle assessment of GHG emissions, featuring also increased intermediate targets as well as a 2040 target of 90% reduction, and completely disregarding the role of CO₂ neutral fuels for decarbonising the heavy-duty segment.

Since the publication of the Commission’s proposals, international developments have changed dramatically with severe implications for energy and raw materials dependencies. Therefore, additional considerations must be made to avoid unnecessary risks.  Scaling up sustainable renewable fuels is complementary to the benefits of electrification. Such a regime would not just ensure that we follow the most efficient and cost-effective pathways towards climate neutrality, but it would also maintain a level of consumer choice, affordability and equal access to mobility for all European citizens, which is essential to our way of life.

The decarbonisation of transport is much more about the decarbonisation of the energy employed, rather than the power-train technology: an ICE fuelled with renewable, sustainable fuels has a carbon footprint comparable to that of an electric vehicle powered with green electricity. When powered by climate-neutral fuels, the ICE is a climate-neutral technology platform. Besides, renewable, sustainable fuels are fully compatible with existing vehicles, logistic infrastructure and refuelling facilities. Moreover, the contribution of fuels to the vehicle CO₂ regulation is an essential trigger to unlock the production at an industrial scale of climate-neutral fuels for the hard-to-abate sectors (heavy-duty road, aviation and maritime transport), at an affordable price.

We would like to stress that sustainable renewable fuels are meant to complement and not lessen the EU’s efforts on electrification of road transport during the transition to zero-emission mobility until favourable conditions for battery-electric and hydrogen mobility are not fully in place across all of the EU Member States (e.g. in terms of consumer acceptance, charging infrastructure, the GHG intensity of the electricity mix or reliable access to essential raw materials). In the case of both light-duty and heavy-duty CO₂ standards, the recognition of sustainable renewable fuels would ease the EU’s ability to reach its climate-neutral transport objectives timely manner while leaving no one behind. The technologies for sustainable and renewable fuels are capital-intensive, and road transport can play a critical role as a lead market, as a no-regret option to scale up these fuels for the benefit of aviation and maritime.

FuelsEurope, in close cooperation with other industrial associations of the automotive supply chain, of commercial transport and of various renewable, sustainable fuels suppliers, is ready to engage with the Commission, Members of the European Parliament and the Council ahead of the revision proposal and design the most effective regulation to achieve the EU’s climate objectives.