EU Deal on Lowering Heavy-Duty Vehicle CO2 Emissions
Wednesday, October 25, 2023
Council and Parliament reach a deal to lower CO2 emissions from heavy-duty vehicles
The European Council and Parliament have reached a pivotal provisional political agreement, aiming to significantly reduce CO2 emissions from heavy-duty vehicles (HDVs) such as trucks, buses, and trailers. This landmark decision aligns with the EU's ambitious goals for climate change mitigation and marks a major step towards achieving climate neutrality by 2050.
Expanded Regulation Scope
The agreement broadens the regulation's scope, making almost all new HDVs with certified CO2 emissions, including smaller trucks, urban buses, coaches, and trailers, subject to emission reduction targets. Certain exemptions apply, such as vehicles used in specific sectors like mining, forestry, agriculture, and those utilized by the armed forces and emergency services.
Introduction of New Emission Reduction Targets
The deal sets forth new CO2 emission reduction targets for 2030, 2035, and 2040, in line with the EU's climate objectives. These targets include a 45% reduction by 2030, 65% by 2035, and 90% by 2040 for heavy trucks over 7.5t and coaches. Additionally, specific targets are set for trailers and semi-trailers, with the introduction of 'e-trailers' to acknowledge advancements in trailer technology.
Read also about other efforts to combat climate change in article: BIS and Climate Change: Key Milestones Since the COVID-19 Pandemic
Focus on Zero-Emission Vehicles (ZEVs)
A significant part of the proposal aims to increase the share of zero-emission vehicles in the EU's HDV fleet. This includes setting a 100% zero-emission target for urban buses by 2035 and encouraging the adoption of ZEVs across the sector.
Addressing Retrofitted Vehicles
The agreement also considers retrofitted vehicles, allowing for the transfer of such vehicles between manufacturers. The Commission is tasked to assess the market uptake of retrofitted HDVs by 2025, potentially leading to harmonized approval rules.
Enhanced Due Diligence Measures
Specific measures are introduced for cross-border correspondent relationships, particularly concerning crypto-asset service providers. Financial institutions are required to undertake enhanced due diligence measures in dealings with high net-worth individuals involving large asset handling.
Cash Payment Limitations
An EU-wide maximum limit of €10,000 for cash payments is set, with member states having the option to impose lower limits. This aims to make it more challenging for criminals to launder money through cash transactions.
Beneficial Ownership and High-Risk Third Countries
The provisional agreement enhances rules on beneficial ownership, aiming for greater harmonization and transparency. Enhanced due diligence measures are mandated for transactions involving high-risk third countries.
Next Steps and Background
The provisional agreement now awaits formal adoption by the member states within the Council and the European Parliament's environment committee. Once adopted, it will be published in the EU’s Official Journal and enter into force.
This agreement is a critical component of the EU's broader strategy to combat climate change, contributing to the EU’s aim to reduce greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels and achieving climate neutrality by 2050. It underscores the EU's commitment to transitioning to a more sustainable and environmentally friendly transportation sector.
