The Paris Agreement sets out, inter alia, a long-term goal in line with the objective to keep the global average temperature increase well below 2 °C above pre-industrial levels and to pursue efforts to keep it to 1,5 °C above pre-industrial levels. The latest scientific findings reported by the Intergovernmental Panel on Climate Change (IPCC) in its special report on the impacts of global warming of 1,5 °C above pre-industrial levels and related global greenhouse gas emission pathways unequivocally confirm the negative impacts of climate change. That special report concludes that emissions reductions in all sectors are crucial to limit global warming.
(2)
In order to contribute to the objectives of the Paris Agreement, the transformation of the entire transport sector towards zero emissions needs to be accelerated, considering the Commission’s communication of 28 November 2018 entitled ‘A Clean Planet for all — a European strategic long-term vision for a prosperous, modern, competitive and climate neutral economy’, which outlines a vision of the economic and societal transformations required, engaging all sectors of the economy and society, to achieve the transition to net-zero greenhouse gas emissions by 2050. Emissions of air pollutants from transport that significantly harm our health, and the environment, need also to be drastically reduced without delay.
(3)
The Commission adopted mobility packages on 31 May 2017 (‘Europe on the Move: An agenda for a socially fair transition towards clean, competitive and connected mobility for all’) and 8 November 2017 (‘Delivering on low-emission mobility — A European Union that protects the planet, empowers its consumers and defends its industry and workers’). Those packages set out a positive agenda which also aimed at ensuring a smooth transition towards clean, competitive and connected mobility for all.
(4)
This Regulation is part of the Commission’s third mobility package, of 17 May 2018, entitled ‘Europe on the Move — Sustainable Mobility for Europe: safe, connected and clean’, which is a follow-up to the Commission’s communication of 13 September 2017 entitled ‘Investing in a smart, innovative and sustainable Industry: A renewed EU Industrial Policy Strategy’. This Regulation is also designed to complete the process of enabling the Union to reap the full benefits of the modernisation and decarbonisation of mobility. The aim of that third mobility package is to make European mobility safer and more accessible, European industry more competitive, European jobs more secure, and the mobility system cleaner and better adapted to the imperative of tackling climate change. That will require the full commitment of the Union, Member States and stakeholders, not least in strengthening efforts to reduce carbon dioxide (CO2) emissions and air pollution.
(5)
This Regulation, together with Regulation (EU) 2019/631 of the European Parliament and of the Council (3), provides a clear pathway for CO2 emissions reductions from the road transport sector and contributes to the binding target of at least a 40 % domestic reduction in economy-wide greenhouse gas emissions by 2030 compared to 1990, as was endorsed in the conclusions of the European Council of 23-24 October 2014, and approved by the Council on 6 March 2015 as the ‘Union Intended Nationally Determined Contribution under the Paris Agreement’.
(6)
The European Council conclusions of 23-24 October 2014 endorsed a greenhouse gas emissions reduction of 30 % by 2030 compared to 2005 for the sectors that are not part of the Union’s emissions trading system. Greenhouse gas emissions from the road transport sector constitute a major contribution to the emissions of those sectors. The road transport sector was responsible for around a quarter of the total Union’s emissions in 2016. Its emissions show an increasing trend and remain significantly above 1990 levels. If road transport emissions increase further, they will offset emissions reductions made by other sectors to combat climate change.
(7)
The European Council conclusions of 23-24 October 2014 highlighted the importance of reducing greenhouse gas emissions and risks related to fossil fuel dependency in the transport sector through a comprehensive and technology neutral approach for the promotion of emissions reductions and energy efficiency in transport, for electric transportation and for renewable energy sources in the transport sector also after 2020.
(8)
In order to give consumers in the Union secure, sustainable, competitive and affordable energy, the contribution of energy efficiency to moderation of demand is one of the five mutually-reinforcing and closely interrelated dimensions set out in the Commission’s communication of 25 February 2015 entitled ‘A Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy’. That communication states that, while all economic sectors must take steps to increase the efficiency of their energy consumption, the transport sector has huge energy efficiency potential.
(9)
CO2 emissions from heavy-duty vehicles, including lorries, buses and coaches, represent around 6 % of total CO2 emissions in the Union and about 25 % of total road transport CO2 emissions. Without further action, the share of CO2 emissions from heavy-duty vehicles is expected to grow by around 9 % between 2010 and 2030. Currently, Union law does not set any CO2 emissions reduction requirements for heavy-duty vehicles, and therefore specific measures for such vehicles are needed without delay.
(10)
CO2 emissions reduction targets for the Union-wide fleets of new heavy-duty vehicles should therefore be set for 2025 and for 2030, taking into account the vehicle fleet renewal time and the need for the road transport sector to contribute to the Union climate and energy targets for 2030 and beyond. Such a stepwise approach also provides a clear and early signal for the industry to accelerate the market introduction of energy efficient technologies and zero- and low-emission heavy-duty vehicles. The deployment of zero-emission heavy-duty vehicles should also contribute to addressing urban mobility problems. While it is essential to reduce CO2 emissions from road transport, the promotion of such heavy-duty vehicles by manufacturers is also important for the effective reduction of air pollutants and excessive noise levels in cities and urban areas.
(11)
In order to fully realise the energy efficiency potential and ensure that the road transport sector as a whole contributes to the greenhouse gas emission reductions agreed, it is appropriate to complement the already existing CO2 emission performance standards for new passenger cars and for light commercial vehicles by setting CO2 emission performance standards for new heavy-duty vehicles. Those performance standards will be a driver for innovation in fuel-efficient technologies, contributing to the strengthening of the technological leadership of the Union’s manufacturers and suppliers, and securing high-skilled jobs in the long term.
(12)
Taking into account that climate change is a trans-boundary problem and the need to safeguard a well-functioning single market both for road transport services as well as for heavy-duty vehicles while avoiding market fragmentation, it is appropriate to set CO2 emission performance standards for heavy-duty vehicles at Union level. Those performance standards should be without prejudice to Union competition law.
(13)
In defining the CO2 emissions reduction levels that should be achieved by the Union fleet of heavy-duty vehicles, account should be taken of the effectiveness of those reduction levels in delivering a cost-effective contribution to reducing the CO2 emissions of the sectors covered by Regulation (EU) 2018/842 of the European Parliament and of the Council (4) by 2030, of the resulting costs and savings for society, manufacturers, transport operators, consumers, as well as of their direct and indirect implications for employment, innovation and co-benefits generated in terms of reduced air pollution and improved energy security.
(14)
A socially acceptable and just transition towards zero-emission mobility should be ensured. It is therefore important to take into account the social effects of the transition throughout the whole automotive value chain and to address proactively the implications on employment. Targeted programmes at Union, national and regional levels are therefore to be considered for the re-skilling, up-skilling and redeployment of workers, as well as education and job-seeking initiatives in adversely affected communities and regions, in close dialogue with the social partners and competent authorities. As part of that transition, the employment of women as well as equal opportunities in that sector should be strengthened.
(15)
A successful transition to zero-emission mobility requires an integrated approach and the right enabling environment to stimulate innovation and maintain the Union’s technological leadership in the road transport sector. This includes public and private investments in research and innovation, the increasing supply of zero-and low-emission heavy-duty vehicles, the roll-out of recharging and refuelling infrastructure, integration into the energy systems, as well as the sustainable materials supply for, and sustainable production, re-use and recycling of, batteries in Europe. This requires coherent action at Union, national, regional and local levels, including through incentives to support the uptake of zero- and low-emission heavy-duty vehicles.
(16)
A new procedure for determining the CO2 emissions and fuel consumption of individual heavy-duty vehicles has been introduced as part of the implementation of Regulation (EC) No 595/2009 of the European Parliament and of the Council (5). Commission Regulation (EU) 2017/2400 (6) provides a methodology, based on the VECTO tool, through which the CO2 emissions and fuel consumption of whole heavy-duty vehicles can be simulated. That methodology allows the diversity of the heavy-duty vehicle sector and the high degree of customisation of individual heavy-duty vehicles to be taken into account. As a first step, from 1 July 2019, the CO2 emissions are determined for four groups of heavy-duty vehicles that account for around 65 % to 70 % of all CO2 emissions from the Union fleet of heavy-duty vehicles.
(17)
In light of innovation and to take into account the implementation of new technologies that improve the fuel efficiency of heavy-duty vehicles, the VECTO simulation tool as well as Regulation (EU) 2017/2400 will be continually updated in a timely manner.
(18)
The CO2 emissions data determined pursuant to Regulation (EU) 2017/2400 are to be monitored under Regulation (EU) 2018/956 of the European Parliament and of the Council (7). Those data should form the basis for determining the CO2 emissions reduction targets to be achieved by the four groups of the most emitting heavy-duty vehicles in the Union, as well as for determining a manufacturer’s average specific CO2 emissions in a given reporting period.
(19)
A CO2 emissions reduction target should be set for 2025 as a relative reduction based on the average CO2 emissions of those heavy-duty vehicles that were newly registered in the period from 1 July 2019 to 30 June 2020, reflecting the deployment of readily available cost-effective technologies for conventional vehicles. For 2030 onwards, a CO2 emissions reduction target should also be set. That target should apply unless decided otherwise pursuant to the review to be carried out in 2022. The 2030 target should be assessed in accordance with the European Union commitments under the Paris Agreement.
(20)
To ensure the robustness of the reference CO2 emissions against increasing CO2 emissions of heavy-duty vehicles by undue procedural means, which would not be representative for a situation where CO2 emissions are already regulated, it is appropriate to provide a methodology for correcting the reference CO2 emissions where necessary.
(21)
Liquefied natural gas (LNG) is an available alternative fuel to diesel for heavy-duty vehicles. The deployment of current and upcoming more innovative LNG-based technologies will contribute to meeting the CO2 emissions reduction targets in the short and medium term as the use of LNG technologies leads to lower CO2 emissions when compared to diesel vehicles. The CO2 emissions reduction potential of LNG vehicles is already fully reflected in VECTO. In addition, current LNG technologies ensure a low level of air pollutant emissions, such as NOx and particulate matters. A sufficient minimum refuelling infrastructure is also in place and is being further deployed as part of national policy frameworks for alternative fuel infrastructure.
(22)
In calculating the reference CO2 emissions serving as the basis for determining the 2025 and 2030 specific CO2 emissions targets, the expected CO2 emissions reduction potential of the heavy-duty fleet should be taken into account. It is therefore appropriate to exclude vocational vehicles, such as vehicles used for garbage collection or construction works, from that calculation. Those vehicles have a comparatively low mileage, and due to their specific driving pattern, technical measures for reducing CO2 emissions and fuel consumption do not appear to be as cost effective in the same way as they are for heavy-duty vehicles used for the delivery of goods.
(23)
The CO2 emissions reduction requirements should be expressed in grams of CO2 per tonne kilometre to reflect the utility of the heavy-duty vehicles.
(24)
A fair distribution of the overall CO2 emissions reduction requirements among the manufacturers needs to be ensured, taking into account the diversity of heavy-duty vehicles in terms of their design and driving pattern, annual mileage, payload and trailer configuration. It is therefore appropriate to distinguish the heavy-duty vehicles according to different and separate vehicle sub-groups that reflect the vehicles’ typical usage pattern and specific technical characteristics. By setting annual manufacturer specific CO2 emissions targets as a weighted average of the targets defined for each such vehicle sub-group, manufacturers are also given the means to effectively balance a possible underperformance of vehicles in certain vehicle sub-groups with an overachievement in other vehicle sub-groups, taking into account the average lifetime CO2 emissions of vehicles in the different vehicle sub-groups.
(25)
A manufacturer’s compliance with its annual specific CO2 emissions targets should be assessed on the basis of its average CO2 emissions. In determining the average specific CO2 emissions, the specificities that are reflected in the different vehicle sub-groups should also be considered. As a consequence, the average specific CO2 emissions of a manufacturer should be based on the average CO2 emissions determined for each vehicle sub-group, including a weighting based on its assumed average annual mileage and average payload, which reflects the total lifetime CO2 emissions. Due to the limited CO2 emissions reduction potential of vocational vehicles, those vehicles should not be taken into account for the calculation of the average specific CO2 emissions.
(26)
In order to ensure the smooth transition towards zero-emission mobility and to provide incentives for the development and deployment on the Union market of zero- and low-emission heavy-duty vehicles that would complement demand-side instruments, such as Directive 2009/33/EC of the European Parliament and of the Council (8), a dedicated mechanism in the form of super credits should be introduced for the reporting periods before 2025 and a benchmark for the share of zero- and low-emission heavy-duty vehicles in a manufacturer’s fleet should be set for the reporting periods as from 2025.
(27)
The incentive system should be designed so as to ensure investment certainty for charging infrastructure providers and manufacturers in order to promote the rapid deployment on the Union market of zero- and low-emission heavy-duty vehicles, while allowing certain flexibility for the manufacturers to decide on their investment timeline.
(28)
For the purpose of calculating the average specific CO2 emissions of a manufacturer, in the reporting periods prior to 2025, all zero- and low-emission heavy-duty vehicles should be counted multiple times. For the reporting periods as from 2025, the average specific CO2 emissions of a manufacturer should be calculated taking into account its performance against the benchmark of zero- and low-emission heavy-duty vehicles. The level of incentives should vary according to the actual CO2 emissions of the vehicle. In order to avoid a weakening of the environmental objectives, the resulting CO2 emissions reduction should be subject to a cap.
(29)
Low-emission heavy-duty vehicles should only be incentivised if their CO2 emissions are less than half of the reference CO2 emissions of all vehicles in the vehicle sub-group to which the heavy-duty vehicle belongs. That would incentivise innovation in this field.
(30)
In designing the incentive mechanism for the deployment of zero-emission heavy-duty vehicles, smaller lorries that are not subject to the CO2 emissions reduction targets under this Regulation should also be included. Those vehicles also have significant benefits in terms of helping to address air pollution problems in cities. In order to ensure that the incentives are well balanced between the different types of vehicles, the reduction in the average specific CO2 emissions of a manufacturer resulting from zero-emission smaller lorries should therefore also be subject to a cap.
(31)
In order to promote a cost-effective implementation of the CO2 emissions reduction requirements, while taking into account fluctuations in the heavy-duty vehicles fleet composition and CO2 emissions over the years, manufacturers should have the possibility of balancing their overachievement in complying with their specific CO2 emissions target in one year with an underperformance in another year.
(32)
In order to incentivise early CO2 emissions reductions, a manufacturer whose average specific CO2 emissions are below the CO2 emissions reduction trajectory defined by the reference CO2 emissions and the 2025 CO2 emissions target, should be able to bank those emission credits for the purpose of compliance with the 2025 target. Similarly, a manufacturer whose average specific CO2 emissions are below the CO2 emissions reduction trajectory between the 2025 target and the target applicable from 2030 onwards, should be able to bank those emission credits for the purpose of compliance with the CO2 emissions targets from 1 July 2025 to 30 June 2030.
(33)
In the case of non-compliance with its specific CO2 emissions target in any of the 12-month reporting periods starting from 1 July 2025 to 30 June 2030, a manufacturer should also have the possibility to acquire a limited emission debt. However, manufacturers should clear any remaining emission debt in the reporting period of the year 2029 ending on 30 June 2030.
(34)
Emission credits and emission debts should be considered only for the purpose of determining a manufacturer’s compliance with its specific CO2 emissions target and not as assets that are transferrable or subject to fiscal measures.
(35)
The Commission should impose a financial penalty, in the form of an excess CO2 emissions premium, where a manufacturer is found to have excess CO2 emissions, taking into account the emission credits and emission debts. Information about excess CO2 emissions of manufacturers should be made publicly available. In order to provide manufacturers with sufficient incentive to take measures to reduce the specific CO2 emissions from heavy-duty vehicles, it is important that the premium exceed the average marginal costs of the technologies needed to meet the CO2 emissions targets. The methodology for collecting the premiums should be determined by means of an implementing act, taking into account the methodology adopted pursuant to Regulation (EC) No 443/2009 of the European Parliament and of the Council (9). The premium should be considered as revenue for the general budget of the European Union. As part of the evaluation to be performed pursuant to Regulation (EU) 2019/631, the Commission should evaluate the possibility of allocating those amounts to a specific fund or a relevant programme that aims to ensure a just transition towards zero-emission mobility and to support re-skilling, up-skilling and other skills training of workers in the automotive sector.
(36)
A robust compliance mechanism is necessary in order to ensure that the CO2 emissions targets under this Regulation are met. The obligations on manufacturers to deliver accurate data pursuant to Regulation (EU) 2018/956 and the administrative fines that may be imposed in the case of non-compliance with that obligation contribute to ensuring the robustness of the data used for target compliance purposes under this Regulation.
(37)
In order to achieve the CO2 emissions reductions pursuant to this Regulation, the CO2 emissions of heavy-duty vehicles in use should be in conformity with the values determined pursuant to Regulation (EC) No 595/2009 and its implementing measures. It should therefore be possible for the Commission to take into account, in the calculation of the average specific CO2 emissions of a manufacturer, any systematic non-conformity found by type-approval authorities with regard to the CO2 emissions of heavy-duty vehicles in use.
(38)
In order to be in a position to take such measures, the Commission should have the powers to establish and implement a procedure for verifying the correspondence between the CO2 emissions of heavy-duty vehicles in-service as determined in accordance with Regulation (EC) No 595/2009 and its implementing measures, and the CO2 emission values recorded in the certificates of conformity, individual approval certificates or customer information files. In developing that procedure, particular consideration should be given to identifying methods, including the use of data from on-board fuel and/or energy consumption monitoring devices, for detecting strategies through which a vehicle’s CO2 performance is artificially improved in the certification procedure. Where deviations or strategies that artificially improve a vehicle’s CO2 performance are found in the course of such verifications, those findings are to be considered as sufficient reason to suspect that there is a serious risk of non-compliance with the requirements laid down in Regulation (EC) No 595/2009 and in Regulation (EU) 2018/858 of the European Parliament and of the Council (10), and Member States should, on that basis, take the necessary measures pursuant to Chapter XI of Regulation (EU) 2018/858.
(39)
The effectiveness of the CO2 emissions targets set out in this Regulation is strongly dependent on the real-world representativeness of the methodology used for determining the CO2 emissions. In line with the 2016 Opinion of the Scientific Advice Mechanism (SAM) as regards light-duty vehicles, and the recommendation of the European Parliament following its inquiry into emission measurements in the automotive sector, it is appropriate also in the case of heavy-duty vehicles to put in place a mechanism to assess the real-world representativeness of the CO2 emission and energy consumption values determined pursuant to Regulation (EU) 2017/2400. The most reliable way to ensure the real-world representativeness of those values is by using data from the on-board fuel and/or energy consumption monitoring devices. The Commission should therefore have the powers to develop the procedures needed for collecting and processing fuel and energy consumption data required for making such assessments and to ensure the public availability of such data, whilst providing for the protection of any personal data.
(40)
The Commission should assess how fuel and energy consumption data may help to ensure that the vehicle CO2 emissions determined with the VECTO tool in accordance with Regulation (EC) No 595/2009 and its implementing measures remain representative of real-world CO2 emissions over time for all manufacturers, and, more precisely, how such data can be used to monitor the gap between the CO2 emission values determined by the VECTO tool and real-world CO2 emissions and, where necessary, to prevent this gap increasing.
(41)
In 2022, the Commission should assess the effectiveness of the CO2 emission performance standards laid down in this Regulation and in particular the level of the CO2 emissions reduction target to be achieved by 2030, the modalities that should be available for achieving that target and beyond, as well as the setting of CO2 emissions reduction targets for other types of heavy-duty vehicles, such as smaller lorries, vocational vehicles, buses, coaches and trailers. That assessment should also include, strictly for the purpose of this Regulation, considerations of heavy-duty vehicles and vehicle combinations, taking into account weights and dimensions applicable to national transport, for example modular and intermodal concepts, while also assessing possible transport safety and efficiency aspects, intermodal, environmental, infrastructural and rebound effects as well as the geographical situation of Member States.
(42)
It is important to assess the full life-cycle CO2 emissions from heavy-duty vehicles at Union level. To that end, the Commission should evaluate not later than 2023 the possibility of developing a common Union methodology for the assessment and the consistent data reporting of the full life-cycle CO2 emissions of heavy-duty vehicles that are placed on the Union market. The Commission should adopt follow-up measures, including, where appropriate, legislative proposals.
(43)
In order to ensure that the specific CO2 emissions of heavy-duty vehicles remain representative and fully up-to-date, amendments to Regulation (EC) No 595/2009 and its implementing measures that affect those specific CO2 emissions, need to be reflected in this Regulation. For that purpose, the Commission should have the powers to determine a methodology for defining a representative heavy-duty vehicle for each vehicle sub-group, on the basis of which changes of the specific CO2 emissions should be assessed.
(44)
In order to ensure uniform conditions for the implementation of this Regulation, implementing powers in relation to the publication of a list of certain data and manufacturer performance should be conferred on the Commission.
(45)
In order to ensure uniform conditions for the implementation of this Regulation, implementing powers in relation to identifying vehicles that are certified as vocational vehicles and applying corrections to the annual average specific CO2 emissions of a manufacturer, collecting excess CO2 emissions premiums, reporting deviations in CO2 emissions values and taking them into account in the calculation of the average specific CO2 emissions, assessing the application of the conditions under which the reference CO2 emissions have been determined and the criteria to determine whether those emissions have been unduly increased and, if so, how they are to be corrected, ensuring that certain parameters relating to real world CO2 emissions and energy consumption of heavy-duty vehicles are made available to the Commission, performing verifications that the CO2 emission and fuel consumption values in the customer information files correspond to the CO2 emission from and fuel consumption of heavy-duty vehicles in-service and on the presence of strategies to artificially improve the vehicle’s performance in the tests performed or in calculations made, and defining one or more representative vehicles of a vehicle sub-group on the basis of which a payload adjustment is to be determined, should be conferred on the Commission. In order to ensure uniform conditions for the implementation of Regulation (EC) No 595/2009, implementing powers in relation to determining certain aspects of the environmental performance of vehicles of categories M2, M3, N2, N3, O3 and O4 should be conferred on the Commission. The implementing powers referred to in this recital should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (11).
(46)
In order to amend or supplement non-essential elements of the provisions of this Regulation, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of adjusting the reference CO2 emissions, in respect of setting out the guiding principles and criteria to define the procedures to verify CO2 emissions of heavy-duty vehicles in-service and in respect of amending the Annexes to this Regulation as regards certain technical parameters, including the mission profile weights, the payload values, the annual mileage values and the payload adjustment factors. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making (12). In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council should receive all documents at the same time as Member States’ experts, and their experts should systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.
(47)
Since the objective of this Regulation, namely the establishment of CO2 emissions performance standards for new heavy-duty vehicles, cannot be sufficiently achieved by the Member States, but can rather, by reason of its scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.
(48)
Regulations (EC) No 595/2009 and (EU) 2018/956 and Council Directive 96/53/EC (13) should therefore also be amended accordingly,
