EU Parliament agrees stance on reducing truck CO2 emissions

The European Parliament finalised its position on CO2 emissions standards for heavy-duty vehicles on Tuesday (21 November), agreeing to slash the carbon footprint of new trucks whilst controversially backing a new class of vehicles that run exclusively on renewable fuels.

Under the Parliament’s position, heavy-duty vehicle manufacturers would need to reduce the carbon emissions of their new offerings by 45% from 2030, 65% from 2035, and 90% as of 2040 – reduction targets that are in line with the European Commission’s initial proposal.

Whilst the Parliament’s environment committee recommended a 70% cut by 2035, a 65% target was agreed following pushback from conservative lawmakers.

If passed into law, the targets would mean that zero-emission trucks and buses, such as those powered by electricity or hydrogen, would make up an increasing share of manufacturers’ offerings, with the proportion of combustion engine vehicles dwindling over time.

Lead MEP Bas Eickhout, a Dutch lawmaker with the Greens, will negotiate with member states to finalise the text of the law in so-called trilogue discussions, expected to take place in early 2024.

“The transition towards zero-emission trucks and buses is not only key to meeting our climate targets, but also a crucial driver for cleaner air in our cities,” he said in a statement. 

“We are providing clarity for one of the major manufacturing industries in Europe and a clear incentive to invest in electrification and hydrogen.”

In addition to setting targets for trucks and coaches, the Parliament also wants to see only zero-emission city buses sold from 2030. However, cities that have invested in alternative low-carbon fuels for buses, such as bio-methane, would receive an extension to 2035.

The Parliament also wants to expand the scope of vehicles covered by the targets to so-called “vocational vehicles”, such as concrete mixers, rubbish trucks, and street sweepers.

Christel Schaldemose, a shadow rapporteur with the centre-left S&D group, hailed the agreement as “a significant milestone in our efforts to address climate change”.

“This revision provides a clear signal to the European truck industry: Investments in fossil fuel technologies of the past are slated to become stranded assets,” she said. “Investing in decarbonisation, on the contrary, is the way forward both for our climate and our industrial competitiveness.”

Zero-emission fuels 

In the run-up to the vote, there was much speculation over the so-called carbon correction factor (CCF), a mechanism under which the quantity of renewable fuels in Europe’s fuel mix would be counted towards the final CO2 targets that must be met by vehicle manufacturers.

Proponents argued the CCF would better reflect the fuel mix in Europe, which is made up of a percentage of renewable fuels in addition to fossil fuels.

However, opponents countered that doing so would incentivise the use of scarce green fuels in the road transport sector, pulling supply from hard-to-abate sectors such as aviation and shipping.

Lawmakers ultimately voted to reject the CCF but did back a proposal for the European Commission to legislatively define a new class of heavy-duty vehicles that run exclusively on e-fuels, made from green hydrogen and carbon sucked from the atmosphere, and biofuels.

The proposal is similar to that agreed to during the debate over CO2 standards for cars, though it expands the definition of carbon neutral fuels to include biofuels.

Ralf Diemer, managing director of the eFuels Alliance, criticised the Parliament for rejecting the CCF, which he said would have helped “unlock the decarbonisation potential of CO2-neutral fuels in road freight transport”.

However, he praised the Parliament for voting in favour of permitting climate-friendly fuels.

“It is right to rethink the previous regulatory approach that only vehicles that emit net zero emissions at the tailpipe are climate-neutral,” he said. 

In contrast, green NGO Transport & Environment lambasted what they called “a biofuels and e-fuels loophole that weakens climate targets for trucks”.

“Biofuels and e-fuels won’t decarbonise heavy-duty vehicles, but they will allow as many diesel trucks as possible to be sold for decades to come,” said Fedor Unterlohner, freight manager at T&E.

“Oil companies have lobbied hard for this loophole to help keep up demand for its fuel. We call on the Council to block this lifeline to the fossil fuel industry.”

The European Association for Electromobility (AVERE) warned in a statement that the inclusion of a carbon neutral fuels definition could jeopardise the EU’s ambition to lead the zero-emissions vehicle market.

“These changes set a dangerous precedent and create great uncertainty for European truck manufacturers as to where Europe is heading and what investments need to be made in the near future,” said Philippe Vangeel, AVERE secretary general.

Reacting to the vote, ACEA, a trade association representing vehicle makers, said that manufacturers are already investing billions in zero-emission technologies, but more must be done to ensure that the conditions are in place for consumers to feel comfortable buying them.

This includes ramping up the number of charging and refuelling stations across the bloc, as well as enacting effective carbon pricing schemes.

[Edited by Zoran Radosavljevic]

Read more with EURACTIV