EURO 7 - ONGOING
EC Proposal for a Regulation on type-approval of motor vehicles and engines and of systems, components and separate technical units intended for such vehicle, which respect to their emissions and battery durability (Euro 7) & ANNEXES setting out the emission limit standards.
The Commission’s proposal aims, amongst others, to tougher limits for pollutants including nitrogen oxides and carbon monoxide.
Since May, a coordinated resistance has emerged from eight Member States against the proposed Euro 7 emission standards. Czech Republic, Bulgaria, France, Hungary, Italy, Poland, Romania, and Slovakia have signed a joint paper stating that the suggested emission limits are too ambitious and unrealistic. They said the tougher limits could divert crucial investments needed to reach the EU's goal of effectively banning new combustion engine vehicles after 2035. Also vehicle manufacturers are apposed as implementing Euro 7 standards would be too costly and unnecessary because the industry is spending tens of billions of euros on zero-emission electric vehicles. According to a ACEA survey, the proposed Euro 7 Regulation would increase the vehicle cost up to €2.000 for cars and vans and up to €12.000 for diesel trucks and buses. These figures are 4 to 10 times higher than the Commission’s estimates in its Euro 7 impact assessment (€180-450 for cars and vans, and €2,800 for trucks and buses).
At the EU Council meeting, held on 25 September, Member States adopted the Council’s position (‘general approach’) watering down the Commission’s proposal. The EU countries agreed not to change the existing Euro 6 test conditions and emissions limits for cars and vans, although they will be lower for buses and heavy vehicles. They also accepted new particle emissions limits for brakes and tires. The Council, the European Parliament and the European Commission must now come to a final agreement.
CECRA welcomes the Euro 7 proposal setting more ambitious vehicle emission standards and urges co-legislators to continue working on robust Euro 7 standards as millions of ICE vehicles will continue to be sold, maintained and repaired in the next years and these should contribute to air quality improvements. CECRA issued a press release.
CO2 EMISSION STANDARDS FOR HEAVY-DUTY VEHICLES - ONGOING
EC Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) 2019/1242 as regards strengthening the CO₂ emission performance standards for new heavy-duty vehicles and integrating reporting obligations, and repealing Regulation (EU) 2018/956
The average CO2 emissions of the EU fleet of new heavy-duty motor vehicles, compared with 2019 levels, would have to fall by 15% from 2025; by 45% from 2030 (urban buses to be zero-emissions from 2030); by 65% from 2035 and by 90% from 2040. The Commission shall in 2028 access the progress made towards achieving the emission reduction targets.
It follows the ordinary legislative procedure, which consists in the joint adoption by the European Parliament and the Council. At Parliament’s level, the proposal was referred to the ENVI Committee (Rapporteur: Yannick Jadot). At Council level, the EC presented the proposal to environment ministers on 1 March 2023 and the Working Party on the Environment started examining the proposal and its impact assessment. The Environment Council discussed it on 16 March 2023. The Italian Senate and Chamber of Deputies sent opinions stating concerns about subsidiarity. On 12 July 2023, the European Economic and Social Committee adopted its opinion.
CECRA signed a Joint statement of the EU industry: CO2 Regulation for Heavy-Duty Vehicles should recognize decarbonization potential of sustainable and renewable fuels.
RENEWABLE ENERGY DIRECTIVE (RED) - ONGOING
EC Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Directive (EU) 2018/2001 of the European Parliament and of the Council, Regulation (EU) 2018/1999 of the European Parliament and of the Council and Directive 98/70/EC of the European Parliament and of the Council as regards the promotion of energy from renewable sources, and repealing Council Directive (EU) 2015/652 COM(2021) 557 final & ANNEX.
The EC proposal for a revised RED aims to raise target for the share of energy from renewable sources. In addition, specific targets are proposed for the use of renewable energy in transport, heating and cooling systems, buildings and industry. It opens up a gateway for renewable fuels in road mobility.
It follows the ordinary legislative procedure, which consists in the joint adoption by the European Parliament and the Council. End March, the Council and Parliament reached a provisional political agreement. This provisional political agreement needs to be endorsed by both institutions. Progress has been made but further work needs to be done to reach a well-balanced compromise. Once approved by both institutions, it will be published in the EU Official Journal and enter into force.
ENERGY TAXATION DIRECTIVE (ETD) - ONGOING
The revision of the Energy Taxation Directive (ETD) aims at aligning the taxation of energy products with EU energy and climate policies, promote clean technologies and remove outdated exemptions and reduced rates that currently encourage the use of fossil fuels.
The proposal requires unanimity in the Council for its adoption, following consultation of the Parliament and the European Economic and Social Committee. At Parliament level, the ECON Committee is responsible. The ECON Rapporteur delivered a draft report in February 2022 which was open to amendments. In July 2023, the ECON Committee sent a letter to the Commission to request an updated detailed assessment of the impact of the proposal. A Committee vote has not been scheduled yet. At Council level, a close examination of the proposal is taking place in the Working Party on tax questions. The majority of the Member States expressed a positive opinion on the suggested changes and the way forward. Further work is still needed. In June 2023, the Council noted it had made further progress and found a number of compromise solutions. Further work is still needed in order to reach a compromise.
CECRA, together with 17 associations, signed a joint letter calling the Member States to swiftly reach an agreement on the Revision of the ETD that incentivises the production and the use of Renewable and Low-Carbon Fuels; an Implementing Act to allow stakeholders to participate in the technical discussions leading to a pragmatic and practical implementation of the Article 2(6) and maintaining the ten-year minimum tax rate of zero for sustainable fuels in the maritime and aviation sector. In order to provide additional financial relief, they suggest using parts of the ETS revenues to financially support the aviation and maritime sector in their sustainable transition process.
CECRA signed joint industry statement calling ministers to take into account 5 key demands for a global scale-up of E-Fuels production.
CLIMATE ACTION SOCIAL FACILITY
The Fund should be established to provide funds to the Member States to support their policies to address the social impacts of the introduction of the emissions trading system for buildings and road transport on vulnerable households, vulnerable micro-enterprises and vulnerable transport users.
Each Member State should submit to the Commission a Social Climate Plan (the ‘Plan’). The Plans should be submitted by 30 June 2025. The Plans should have an investment component that promotes the long-term solution of reducing fossil fuels reliance and could envisage other measures, including temporary direct income support, to mitigate adverse effects on income in the shorter term. The Plans should pursue two objectives. First, they should provide vulnerable households, vulnerable microenterprises and vulnerable transport users with the necessary resources to finance and carry out investments in energy efficiency, decarbonisation of heating and cooling, in zero- and low-emission vehicles and mobility, including through vouchers, subsidies or zero-interest loans. Second, they should mitigate the impact of the increase in the cost of fossil fuels on the most vulnerable and thereby prevent energy poverty and transport poverty during the transitional period until such investments have been carried out. The Plans could support access to affordable energy-efficient housing, including social housing. When implementing measures in support of vulnerable transport users, it should be possible for Member States to prioritise support to zero-emission vehicles in their Plans, provided that it is an affordable and deployable solution.
The functioning of the Social Climate Fund will be assessed in 2028, particularly in light of the effects of the Effort Sharing Regulation and the extension of emissions trading to new sectors.
CO2 EMISSION STANDARDS FOR CARS AND VANS
NEW – Regulation (EU) 2023/851 of the European Parliament and of the Council of 19 April 2023 amending Regulation (EU) 2019/631 as regards strengthening the CO2 emission performance standards for new passenger cars and new light commercial vehicles in line with the Union’s increased climate ambition entered into force on 25 April 2023.
The new Regulation sets more ambitious standards for reducing the CO2 emissions of new cars and vans. Compared to the CO2 emission targets applicable in 2021, the emissions of new passenger cars registered in the EU shall by 2030 be reduced by 55% and the emissions of new vans by 50%. By 2035, the emissions shall be reduced by 100% for both new passenger cars and new light commercial vehicles.
The Regulation states that the Commission will make a proposal for registering after 2035 vehicles running exclusively on CO2 neutral fuels.
By 31 December 2025, and every two years thereafter, the Commission shall submit a report to the European Parliament and to the Council on the progress towards zero-emission road mobility. The report shall in particular monitor and assess the need for possible additional measures to facilitate a just transition, including through financial means.
The report shall analyse:
the progress in the deployment of zero- and low-emission vehicles;
the progress in the energy efficiency and affordability of zero- and low-emission vehicles;
the impacts on consumers & electricity prices;
an analysis of the market for second-hand vehicles;
the potential contribution in terms of CO2 savings of additional measures aimed to lower the average age and thus the emissions of the light-duty vehicles fleet,
the impacts on employment, especially on micro & SMEs enterprises and the effectiveness of measures to support retraining and upskilling of the workforce;
the effectiveness of existing financial measures and the need for further action;
the progress in social dialogue, as well as aspects to further facilitate an economically viable and socially fair transition towards zero-emission road mobility;
the deployment of alternative fuels infrastructure;
the potential contribution of innovation technologies and sustainable alternative fuels, including synthetic fuels, to reach climate neutral mobility;
the life-cycle emissions of new PC and new LCV placed on the market.
ALTERNATIVE FUELS INFRASTRUCTURE REGULATION (AFIR)
The Regulation sets concrete targets for mandatory national targets for the deployment of alternative fuels infrastructure in the European Union. It entered into force on 3 October 2023 and apply twenty months after its entry into force.
1) Recharging infrastructure for cars and vans - for each registered battery-electric car in a given Member State, a power output of 1.3 kW must be provided by publicly accessible recharging infrastructure. Every 60 km along the TEN-T network, fast recharging stations of at least 150 kW need to be installed from 2025 onwards.
2) Recharging stations dedicated to heavy-duty vehicles with a minimum output of 350 kW need to be deployed every 60 km along the TEN-T core network, and every 100 km on the larger TEN-T comprehensive network from 2025 onwards, with complete network coverage to be achieved by 2030.
3) Hydrogen refuelling infrastructure that can serve both cars and lorries must be deployed from 2030 onwards in all urban nodes and every 200 km along the TEN-T core network.
EFFORT-SHARING REGULATION (ESR)
NEW – Regulation (EU) 2023/857 of the European Parliament and of the Council of 19 April 2023 amending Regulation (EU) 2018/842 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet commitments under the Paris Agreement, and Regulation (EU) 2018/1999 entered into force on 16 May 2023.
The Regulation aims at reducing emissions from buildings, road and domestic maritime transport, agriculture, waste and small industries by at least 40% compared to 2005. GDP per capita remains the primary criterion for setting national targets, with adjustments made to take cost efficiency into account. Targets per country would be more ambitious, ranging from 10% to 50%. Annual emissions allocations (AEAs) would be set for each Member State and progressively reduced until 2030. In 2025, the Commission intends to adjust them for the 2026-2030 period.
BATTERIES AND WASTE BATTERIES REGULATION
NEW - Regulation (EU) 2023/1542 of the European Parliament and of the Council of 12 July 2023 concerning batteries and waste batteries, amending Directive 2008/98/EC and Regulation (EU) 2019/1020 and repealing Directive 2006/66/EC entered into force. It will apply as from 18 February next.
The new Batteries Regulation will ensure that, in the future, batteries have a low carbon footprint, use minimal harmful substances, need less raw materials from non-EU countries, and are collected, reused and recycled to a high degree in Europe.
Work will now focus on the application of the law in the Member States, and the redaction of secondary legislation (implementing and delegated acts) providing more detailed rules.
Articles of importance to our sector are:
(42) SLI batteries and electric vehicle batteries that are incorporated in motor vehicles should be removable and replaceable by independent professionals. It is appropriate to consider revising Directive 2000/53/EC to ensure that those batteries can be removed, replaced and disassembled, including as regards joining, fastening and sealing elements. For the purposes of the design, manufacturing and the repair of SLI batteries and electric vehicle batteries, manufacturers should provide the relevant vehicle on-board diagnostic information and vehicle repair and maintenance information on a non-discriminatory basis to any interested manufacturer, installer or repairer of equipment for vehicles of categories M, N and O, as provided for in Regulation (EU) 2018/858. Furthermore, the Commission should encourage the development of standards for design and assembly techniques that facilitate the maintenance, repair and repurposing of batteries and battery packs.
124) Certain information in the battery passport should not be public, such as sensitive commercial information to which only a limited number of persons with a legitimate interest would need to have access. This applies to information on dismantling, including safety, and detailed information regarding the composition of the battery, which is essential for repairers, remanufacturers, second-life operators and recyclers. It also applies to information concerning individual batteries, which is essential to those who have purchased the battery or parties acting on their behalf for the purpose of making the battery available to independent energy aggregators or energy market participants, evaluating its residual value or remaining lifetime for further use, and facilitating the preparation for re-use, preparation for repurposing, repurposing or remanufacturing of the battery. Results of test reports should only be accessible to notified bodies, market surveillance authorities and the Commission.
Article 77 Battery passport
2. The battery passport shall contain information relating to the battery model and information specific to the individual battery, including resulting from the use of that battery, as set out in Annex XIII. The information in the battery passport shall comprise:
(a) information accessible to the general public in accordance with point 1 of Annex XIII;
(b) information accessible only to notified bodies, market surveillance authorities and the Commission in accordance with points 2 and 3 of Annex XIII; and
(c) information accessible only to any natural or legal person with a legitimate interest in accessing and processing that information for the purposes referred to in points (a) and (b) of the third subparagraph in accordance with points 2 and 4 of Annex XIII.
The purposes for accessing and processing the information as referred to in point (c) of the second subparagraph, shall: (a) concern dismantling of the battery, including safety measures to be taken during the dismantling, and the detailed composition of the battery model and be essential to allow repairers, remanufacturers, second-life operators and recyclers to conduct their respective economic activities in accordance with this Regulation; or L 191/72 Official Journal of the European Union 28.7.2023 EN - (b) in the case of individual batteries, be essential to the purchaser of the battery or parties acting on the purchaser’s behalf, for the purpose of making the individual battery available to independent energy aggregators or energy market participants.
The information referred to in the second subparagraph shall be included in the battery passport to the extent applicable to the category or sub-category of battery concerned.
The Commission is empowered to adopt delegated acts in accordance with Article 89 to amend Annex XIII as regards the information to be included in the battery passport in view of technical and scientific progress.
ECO-DESIGN FOR SUSTAINABLE PRODUCTS - ONGOING
EC Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing a framework for setting ecodesign requirements for sustainable products and repealing Directive 2009/125/EC – ANNEX
The proposal addresses the design of every product placed on the EU market in order to make such products more durable, reliable, reusable, upgradable, reparable, easier to maintain, refurbish and recycle, and energy and resource-efficient. In addition, it would ensure that better environmental sustainability information for consumers and supply chain actors is provided by introducing a Digital Product passport that will make repairability and recyclability of products easier, while also ensuring better tracking of substances of concern along the supply chain.
The products which are in the scope are: iron, steel, cement, aluminium, textiles, furniture, tyres, detergents, paints, lubricants, chemicals, energy-related products whose implementing measures need to be revised or newly defined, and ICT products. Other products may follow, but this has not been announced yet.
It follows the ordinary legislative procedure, which consists in the joint adoption by the European Parliament and the Council. At EP level, the Parliament's negotiating position during a plenary session is expected to occur soon. If the vote is to be successful, the report would be submitted to the plenary for confirmation. If approved, the ENVI Committee will initiate informal negotiations (trilogue). At Council level, it adopted its general approach in May 2023. The Council position improves the framework set by the Commission and reinforces the ambition of this regulation through a direct ban on the destruction of unsold textiles. It excludes motor vehicles from the scope of the regulation.
NET-ZERO INDUSTRY ACT (NZIA) - ONGOING
EC Proposal for a Regulation of the European Parliament and of the Council on establishing a framework of measures for strengthening Europe’s net-zero technology products manufacturing ecosystem (Net Zero Industry Act) - ANNEX
On 16 March 2023, the Commission proposed the Net-Zero Industry Act aiming to scale-up clean tech manufacturing in the EU with the ambition that the EU’s strategic net-zero tech manufacturing capacity should reach at least 40% of the Union’s annual deployment needs by 2030. The proposal suggests simplifying the regulatory framework, improving the investment environment for the Union’s manufacturing capacity of technologies that are key to meet the Union’s climate neutrality goals, as well as ensuring that the European decarbonised energy system is resilient.
It follows the ordinary legislative procedure, which consists in the joint adoption by the European Parliament and the Council. The proposal is in the hands of the co-legislators. In the Parliament, the Committee on Industry, Research and Energy (ITRE) is responsible for the file. The vote in ITRE is planned for October 2023. The file could then go to plenary in November 2023. At Council’s level, the proposal is being examined in the Working Party on Competitiveness and Growth, where the Commission presented the proposal on 14 March 2023. The proposal was discussed by ministers during the Competitiveness Council of 22-23 May.