Retail Round-up EU unveils measures to speed its ‘Fit for 55’ initiative.

The EU has announced updates to regulations to comply with the Fit for 55 package. The plan is to halve its emissions by at least 55% by 2030 compared to 1990 levels and reach climate neutrality in 2050. The latest updates cover transport, effort sharing, land use and forestry sector, market stability reserve and the future gas and hydrogen market.

Presented by the European Commission in July 2021, the Fit for 55 package will enable the EU to reduce its net greenhouse gas (GHG) emissions by at least 55% by 2030 compared to 1990 levels and achieve climate neutrality in 2050. The EU has announced updates on CO2 emissions for new cars and vans, charging and fuelling stations for alternative fuels, effort sharing, land use and forestry sector, market stability reserve and the Member States’ position on the future gas and hydrogen market.

CO2 emissions - new cars and vans

The European Council has adopted a regulation setting stricter CO2 emission performance standards for new cars and vans, revising rules last amended in 2019. The aim is to reduce emissions from road transport, which accounts for 71.7% of the transport sector’s footprint, which in turn is responsible for about a quarter of the bloc’s total CO2 emissions.

The proposal is also intended to push the automotive industry to shift towards zero-emission mobility while ensuring continued innovation in the industry.

The new targets are 55% CO2 emission reductions for new cars and 50% for new vans from 2030 to 2034 compared to 2021 levels; and 100% CO2 emission reductions for both new cars and vans from 2035. Progress will be reviewed in 2026, taking into account technological developments, including with regard to plug-in hybrid technologies and the importance of a viable and socially equitable transition towards zero emissions.

New Incentive

A regulatory incentive mechanism for zero- and low-emission vehicles will be in place from 2025 until the end of 2029. As part of this mechanism, if a manufacturer meets certain benchmarks for the sales of zero- and low-emission vehicles it can be rewarded with less strict CO2 targets. The benchmark is set at 25% for cars and 17% for vans.

The regulation contains a reference to e-fuels, whereby following a consultation with stakeholders, the Commission plans to make a proposal for registering vehicles running exclusively on CO2-neutral fuels after 2030.