The European Commission is preparing a draft Implementing Regulation on considering the emission standards for cars and light-duty commercial vehicles running on carbon-neutral fuels. This initiative was informed to the Parliament by the Ministry of Transport and Communications on October 27, 2023.
The regulation is based on the decision to have zero emissions for new cars and vans by 2035. After 2035, only vehicles running on CO2 neutral fuels will be registered. The Commission will submit an Implementing Regulation for the type approvals of vehicles running on e-fuels.
The new regulation is expected to establish the Euro 6 type approvals for carbon-neutral vehicles and provide a definition of CO2-neutral fuels. The Commission’s Technical Committee on Motor Vehicles discussed the draft Regulation at its meeting on October 4, 2023.
The draft Implementing Regulation under consideration concerns a section of the Regulation setting the CO2 emission performance standards according to which the Commission, following consultation with stakeholders, will make a proposal for registering after 2035 vehicles running exclusively on CO2 neutral fuels.
Several experts have weighed in on this development. Dr. Claudia Kemfert, Professor of Energy Economics and Sustainability at Hertie School, Berlin, states, “Carbon-neutral vehicles have a significant role to play in achieving our climate goals. But a supportive framework is needed which incentivizes manufacturers and reassures consumers.“
From an environmental perspective, carbon-neutral vehicles could help substantially reduce greenhouse gas emissions. As transportation contributes significantly to the EU’s total emissions, this step could be vital in mitigating climate change. However, it’s important to consider the complete life-cycle emissions of these vehicles — from production to disposal — ensuring that carbon-neutral claims stand up to scrutiny.
Implications for the Automotive Industry
The EU’s directive has major consequences for the automobile industry. Given the market’s scale in Europe, manufacturers will have to revamp their strategies. While several vehicle makers have started transitioning to electric vehicles, this policy would accelerate the shift.
The need for an infrastructure to support these vehicles, such as widespread charging stations, also stands clear. Stakeholders must now anticipate a significant push for innovative, sustainable technologies and new business models.
Manufacturers will need to invest more in developing carbon-neutral vehicles, potentially leading to job creation and economic growth within the EU.
Challenges in Developing Carbon-Neutral Vehicles
Several challenges accompany the development and production of carbon-neutral vehicles:
- Cost: Producing carbon-neutral vehicles, such as EVs and HFVs, is currently more expensive due to the high cost of batteries and fuel cells.
- Infrastructure: The infrastructure for carbon-neutral vehicles, like charging and refueling stations, remains limited, which can impede their adoption.
- Range Anxiety: Some users experience range anxiety, fearing they might run out of battery or hydrogen fuel before reaching their destination, particularly on long journeys.
Costs and Benefits of Carbon-Neutral Vehicles
The costs and benefits of carbon-neutral vehicles vary depending on the vehicle type and circumstances. However, they generally offer several advantages over traditional gasoline vehicles, such as:
- Lower Emissions: Carbon-neutral vehicles produce fewer or zero tailpipe emissions, contributing to better air quality and reduced greenhouse gas emissions.
- Reduced Fuel Costs: These vehicles are more fuel-efficient, resulting in cost savings for owners.
- Lower Maintenance Costs: Fewer moving parts in carbon-neutral vehicles mean lower maintenance costs.
- Environmental Benefits: They reduce reliance on fossil fuels, benefiting the environment.
The European Commission (EC) is currently finalizing the type approval process for carbon-neutral vehicles. This process will involve rigorous safety and environmental tests to ensure compliance. If a vehicle meets all requirements, it will receive a type approval certificate, allowing it to be sold in the EU market.
