Questions and Answers: Revised CO2 emission standards for Heavy-Duty Vehicles

This article is brought to you in association with the European Commission.

1. How will the new EU legislation increase the number of zero-emission heavy-duty vehicles in Europe?

Heavy-duty vehicles (HDVs) are responsible for more than 25% of greenhouse gas (GHG) emissions from road transport in the EU and account for over 6% of the total EU GHG emissions.

The revised CO2 emission standards for heavy-duty vehicles will be key to drive down emissions in the road transport sector and ensure the increasing supply of new zero-emission vehicles (ZEVs) to the market. This is vital for the EU to shift to zero-emissions mobility and reach its 2030 climate goals and become climate neutral by 2050.

By setting ambitious CO2 emissions reduction targets for HDVs, the EU is providing a clear and long-term signal to guide investments in innovative zero-emission technologies and boost the rollout of recharging and refuelling infrastructure.

Zero-emission vehicles will become cheaper over time. The clear signal that the standards give to the automotive industry will therefore accelerate the market uptake of ZEVs. The associated economies of scale will further bring down vehicles’ upfront costs, making them more affordable and attractive for potential buyers.

Together with the CO₂ emission standards for HDVs, enabling policies play a major role in the uptake of zero-emission vehicles: infrastructure will be boosted thanks to the Alternative Fuel Infrastructure Regulation, which ensures enough publicly accessible electric recharging and hydrogen refuelling stations, and the Renewable Energy Directive making sure that we have a clean electricity grid to power these vehicles.

2. What are the benefits for citizens and the industry?

Zero-emission and more energy-efficient vehicles will 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 and the wellbeing of citizens, since the scope of application of the CO2 emission standards for HDVs also covers smaller trucks and buses, which are mostly driven in urban areas.

Transport operators and users will see significant cost savings. The total cost of ownership for first users of a new heavy-duty vehicle will reduce significantly: with savings on average of around €9,000 for a vehicle purchased in 2030 and €41,000 for a vehicle purchased in 2040. In addition, industrial development is changing the heavy-duty vehicle sector rapidly. EU HDV manufacturers are currently world-leading. By putting in place this legislation, EU industry and investors will know where 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.

Moreover, with these new CO2 standards, the demand for fossil fuels is expected to decrease by around 2 billion barrels of oil over the period 2031 to 2050, contributing to the EU’s energy independence.

3. What is the scope of the new EU legislation?

The new legislation expands the current scope to cover almost all trucks (including vocational vehicles, such as garbage lorries, tippers or concrete mixers as of 2035), urban buses and long-distance buses (above 7.5 tonnes) as well as trailers (an unpowered vehicle towed by a motor vehicle). In 2027, the Commission will review the expansion of the scope also to small lorries.

Under the new regulation, ambitious targets are set to reduce CO2 emissions compared to 2019 levels by: 45% from 1 January 2030; 65% from 1 January 2035; 90% from 1 January 2040 onwards. In addition 90% of new urban buses in the EU will have to be zero-emissions as of 2030, and all of them by 2035.

As of 2030, specific emissions reduction targets will be in place for trailers (7.5%) and semi-trailers (10%) compared to 2025 levels.

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) as the new legislation is technology-neutral.

4. What role will renewable and low-carbon fuels play in the future for heavy-duty vehicles?

To reach climate neutrality, renewable transport fuels need to become more widely available in the EU,and this should be incentivised in an appropriate manner. As a priority, these fuels must be made available in sufficient amounts for those hard-to-abate sectors where alternative decarbonisation options are not currently available, such as aviation and maritime, as well as for the existing stock of vehicles, including heavy-duty vehicles, given their long lifespan.

In 2027, the Commission will review the effectiveness and impact of the regulation. The Commission will assess a possible methodology for registering heavy-duty vehicles running exclusively on CO₂ neutral fuels, in conformity with EU law and climate neutrality objectives, a methodology for the determination of full lifecycle CO2 emissions of new heavy-duty vehicles, the role of sustainable renewable fuels in the transition to climate neutrality, and the role of a carbon correction factor.

5. What will be the impact on employment of this transformation of the automotive sector?

Stronger CO₂ emission standards are projected to bring net positive impacts on economy-wide employment. The automotive value chain will expand and new quality jobs, for instance in battery production, electronics and in the energy sector, will be created. This will require future employees to have new and upgraded skills. At the same time, due to the reduced production of internal combustion engine vehicles and their specific components, some job losses will be experienced. Some sectors will shrink while others will expand.

Automotive suppliers and manufacturers may have to adapt their portfolio of products and services and reskill and upskill their employees accordingly to secure a workforce fit for the zero-emission mobility era. This is the third pillar of the Green Deal Industrial Plan, and supporting skills development, training and education is a shared challenge and opportunity. EU financing tools will support the transition. In addition to the Recovery and Resilience Facility (RRF), the European Social Fund + (ESF+), the European Regional Development Fund (ERDF), and the Just Transition Mechanism (JTM) will contribute.

This is coupled with initiatives like the Clean transition dialogues, whose core aim is to support industry in building a business model fit for a decarbonised economy, and give input for building blocks that can contribute to a reinforced industrial approach to deliver on the European Green Deal. A dedicated Clean Transition Dialogue on Transport and Mobility took place on 8 April 2024. The Commission will continue its engagement with industry and social partners, and it stands ready to engage in a thorough debate with EU leaders and co-legislators on the key factors that need to be addressed, and to work together on these with all stakeholders.

6. What are the exemptions introduced under the new EU legislation?

The introduction of new technologies is more expensive for small volume manufacturers than for larger ones, since they can take less advantage of economies of scale due to their lower production volumes. Therefore, small volume manufacturers registering up to 100 vehicles are exempt from meeting regulatory requirements. The environmental and climate impact of such an exemption will be very limited, so the core policy objectives are not harmed.

In addition, an exemption to the CO₂ reduction targets will apply to the following heavy-duty vehicles:

• vehicles used for mining, forestry and agricultural purposes
• vehicles designed, constructed or registered for the use by armed services 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
• vehicles registered for use by armed services
• vehicles which cannot have their CO₂ emissions certified for technical reasons, such as special purpose vehicles (for instance such as armoured vehicles, mobile cranes, and exceptional load transport vehicles), some heavy lorries with particular axle configurations, smaller lorries up to 5 tonnes and buses up to 7.5 tonnes
• vocational vehicles, such as garbage trucks, until 2034.