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CO2 emission performance standards for new heavy-duty vehicles
Regulation (EU) 2019/1242 sets the first-ever EU-wide CO2 emission standards for heavy-duty vehicles. The regulation sets targets for reducing the average (fleet-wide) emissions from new trucks and other heavy goods vehicles for 2025 and 2030. In January 2024 the co-legislators agreed on a revised version to the Regulation, based on the Commission’s 2023 proposal, bringing it in line with the EU’s climate ambition and commitments. By the time of writing the legislative works are nearly concluded: the Parliament endorsed the trilogue agreement and the Council should soon follow suit.
Scope
The original Regulation applied to new heavy-duty vehicles of UNECE categories N2 and N3 (mass > 3.5t) that meet the following characteristics:
- rigid lorries with an axle configuration of 4×2 and a technically permissible maximum laden mass exceeding 16 tonnes;
- rigid lorries with an axle configuration of 6×2;
- tractors with an axle configuration of 4x2 and a technically permissible maximum laden mass exceeding 16 tonnes; and
- tractors with an axle configuration of 6x2.
In relation to zero- and low-emission heavy-duty vehicles it also applied to new heavy-duty vehicles of category N that do not fall within the scope of Regulation (EU) No 510/2011 and do not meet the characteristics set out in points (a) to (d) above.
The revised Regulation expanded this scope to make almost all HDV with certified CO2 emissions – including smaller trucks, urban buses, coaches and trailers – subject to emission reduction targets. The only exemptions from the scope are: small volume manufacturers and vehicles for mining, forestry and agriculture; vehicles for the armed forces; vehicles for civil protection, public order and medical care. The Commission will analyse the possible inclusion of lorries under 5t, and of retrofitted vehicles (converted to ZEV) under the scope.
Targets
The original Regulation targeted average emissions of trucks and heavy goods reductions of 15% by 2025 and 30% by 2030, both relative to the reference CO2 emissions, computed on the basis of the monitoring data reported pursuant to Regulation (EU) 2018/956 for the period from 1st July 2019 to 30th June 2020 (‘the reference period’), excluding vocational vehicles.
The new Regulation’s targets will mandate the reduction of average emissions from heavy-duty vehicles by 45% from 2030, 65% by 2035, 90% from 2040 onwards in addition to keeping the 15% target by 2025. The new Regulation also includes a 7.5% reduction target for trailers and 10% for semi-trailers, in addition to a 100% target for city buses by 2035 with a 90% intermediate target as of 2030. Interurban buses fall within the main target trajectory.
It is important to note that the new Regulation amends the threshold below which vehicles are defined “zero emission”, which is now set at 3gCO2/tkm. This means the range of eligible hydrogen technologies is expanded to include some types of hydrogen combustion engines
.Manufacturers will have to meet individual targets on their fleet-wide average CO2 emissions of their new lorries registered in a given calendar year. The specific targets for manufacturers will be calculated as a percentage reduction of emissions compared to the EU average in the reference period.
Financial penalties in case of non-compliance with the CO2 targets are planned. The level of the penalties is set to €4,250 per gCO2/tkm in 2025 and €6,800 per gCO2/tkm in 2030.
Incentive mechanism for the deployment of ZLEV
The 2019 Regulation includes an incentive mechanism for:
- zero-emission vehicles (ZEV), defined as HDV’s with no tailpipe CO2 emissions;
- low-emission vehicles (LEV), defined as HDV’s over 16t, with CO2 emissions of less than half of the average CO2 emissions of all vehicles in its group registered in the 2019 reporting period.
To incentivise the uptake of ZLEV and reward early action, a super-credits system applies from 2019 until 2024, and can be used to comply with the target in 2025. A multiplier of 2 applies for ZEV, and a multiplier between 1 and 2 applies for LEV, depending on their CO2 emissions and will be allowed to cover up to 3% of the specific target.
From 2025 onwards, the super-credits system is replaced by a benchmark-based crediting system. In this system, a zero- and low-emission factor (ZLEF) will potentially reduce a manufacturer’s specific CO2 emission level. A benchmark, set at 2%, will incentivise manufacturers to invest in alternatives to diesel trucks, in particular fuel cell electric and battery electric vehicles. The benchmark-based system will work by reducing the average specific CO2 emissions of a manufacturer (by means of computing the ZLEF) if the share of ZLEV in its entire new heavy-duty vehicles fleet exceeds the 2% benchmark. Concretely, each percentage point of exceedance of the benchmark will decrease the manufacturer’s average specific CO2 emission by one percent, so as to bring it closer to the manufacturer's emission reduction target.
The ZLEF shall reduce the average specific CO2 emissions of a manufacturer by a maximum of 3%. The contribution of the zero-emission heavy-duty vehicles referred to in the second subparagraph of Article 2(1) (i.e. “rigid lorries with an axle configuration of 6×2”) to that factor shall reduce the average specific CO2 emissions of a manufacturer by a maximum of 1.5%.
This allows flexibility for manufacturers to balance emissions between the different groups of vehicles within their portfolio.
Similar to the standards imposed on cars and vans, real-world fuel consumption data will have to be reported by manufacturers on the basis of mandatory standardized fuel consumption meters, in-service conformity tests and mandatory reporting of deviations. These will ensure effectiveness and enforcement of the targets (cf. subsection below on Monitoring and reporting of CO2 emissions from heavy-duty vehicles).
The 2023 proposal retains the existing scheme but proposes a phase out of the mechanism in 2029, as it is considered no longer necessary.
Monitoring and reporting of CO2 emissions from heavy-duty vehicles
The following measures enable the implementation of the emission standards:
- Certification Regulation on the determination of the CO2 emissions and fuel consumption of new lorries
- Regulation (EU) 2018/956 on monitoring and reporting
The monitoring and reporting Regulation requires that, as of 1st January 2019:
- Member States monitor and report to the Commission information on the heavy-duty vehicles registered for the first time in the Union; and
- lorry manufacturers monitor and report to the Commission CO2 emission and fuel consumption data as determined pursuant to the certification Regulation for each new vehicle produced for the EU market. This information will be calculated using the Vehicle Energy Consumption Calculation Tool (VECTO).
The collected data on CO2 emissions and fuel consumption together with other relevant technical information on the vehicles, including the aerodynamic drag, will be made publicly available by the European Environment Agency on behalf of the Commission, starting in 2021 to cover data monitored between 1 January 2019 and 30 June 2020.
The new system will complement the existing EU reporting system for cars and vans.
Vehicle Energy Consumption Calculation Tool (VECTO)
VECTO is a simulation software that has been developed by the European Commission and shall be used for measuring CO2 emissions and fuel consumption of heavy-duty vehicles (only) with a Gross Vehicle Weight above 3500kg. The tool also reflects mission profiles (e.g. long haul, regional delivery, urban delivery, etc.) of vehicles, based on input data from relevant vehicle components.
The tool has been developed by the Commission in close cooperation with stakeholders.
The proposal sets out new obligations for Member States to monitor and report certain data on the new heavy-duty vehicles. Manufacturers and other entities are obliged to monitor and report this data. New provisions have been included concerning the obligation for the Commission to keep and update a central register and for it to monitor the results of on-road verification tests.
What's in it for hydrogen?
The regulation will incentivise manufacturers to integrate an increasing share of low- and zero-emission vehicles in their fleet to meet their average CO2 emission reduction targets. The first due date, by which manufacturers will have to reach their individual emission reduction target, is set for 2025. This means that decarbonisation efforts will start as of now in order for manufacturers to be compliant in 2025.
Similarly to the rules of passenger cars and LDVs, the CO2 emission reduction targets for HDVs represent an opportunity for alternative fuel industries, amongst which, hydrogen. The technology offered by hydrogen fuel cell vehicles is particularly relevant to decarbonise heavy-duty transport, as it provides for faster charging time, longer driving range and reduced weight, relative to vehicles equipped with lithium-ion batteries (more information available in the Hydrogen Council 2020 report – see Links). While it can be low-carbon or even zero-carbon, hydrogen can help manufacturers to comply with their emission reduction target, while continuously meeting the specific needs of the sector. It is important to stress that the proposed revision amends the definition of “zero emission heavy-duty vehicle” to include not just fuel cells but also hydrogen combustion engines.
Due to the many incentives this regulation gives and the characteristics of hydrogen, it is expected that hydrogen fuel cell technology will benefit and expand in HDV fleet.
Links to the original document and additional information:
