Changes from plenary report to adopted text

RemovedEXPLANATORY STATEMENT

RemovedFrom 1992 onwards, the EU has introduced progressively stringent exhaust emission limits for each new vehicle sold on the European market ('Euro' standards). In November 2022, the Commission came forward with a sixth update of these standards in its proposal for Euro 7 standards, bringing together previously separate emission requirements for cars and vans (Euro 6) and trucks and buses (Euro VI) under a single set of rules. The Euro 7 standards include new limits on exhaust pollutants, revised testing parameters, as well as addressing non-exhaust particle emissions from brakes and tyres. Since EU law already requires all new cars to produce zero CO2 emissions from 2035, the standards will serve as a transitional measure to regulate emissions until the full phase-out of new vehicles that are neither CO2-neutral nor zero-emission compliant.

RemovedThe Commission's work in preparing this proposal has been fraught with challenges, incurring a publication delay of almost eighteen months. This hold-up was a consequence, in part, of the Commission’s own Regulatory Scrutiny Board (RSB) issuing an initial negative opinion of the impact assessment amid concerns over the coherency of technical details on the problems facing different vehicle types and the choice of the preferred policy option. There are several reservations about the feasibility and effectiveness of the Commission proposal. The co-legislators face a significant task ahead if they are to ensure that the adopted Euro 7 rules are proportionate and ultimately fit for purpose.

RemovedThese reservations can be summarised as follows:

Removed Cost implications: Introducing stringent emission standards requires significant investment by manufacturers to develop and produce new technologies that meet the requirements. Such costs could force higher prices on manufacturers and consumers, as the proposal targets a diminishing technology that is in competition with vehicle solutions from the CO2 regulation, potentially leading to a 'Havana effect' whereby people postpone new purchases or only buy second-hand cars. The Commission estimates additional direct costs for vehicles to be approximately €180-€450 for cars/vans and €2,800 for buses/lorries. However, the findings of a recent assessment of the regulatory costs of Euro 7 report average incremental direct costs of Euro 7 (compared to Euro 6 or Euro VI) of €2,000 per internal combustion engine car/van and €12,000 per diesel bus/lorry. These estimates are between four to ten times higher than the figures reported in the Commission impact assessment. Furthermore, these amounts could escalate even further because of indirect costs (e.g., an increase in fuel consumption to achieve some of the proposal’s testing requirements), an upward pressure on prices not considered by the Commission. Given the substantial discrepancy between the two estimates, it is clear that further assessment will be necessary to validate the exact costs of introducing these new standards.

Removed Technological feasibility: Questions remain about the technological feasibility of meeting the new standards, which depend on unreliable PEMS measuring devices as well as emerging and unproven testing, surveillance and emission control equipment. In particular, the Commission’s decision to overhaul heavy-duty vehicle testing exacerbates these worries, replacing in-service conformity assessments using portable emission measuring equipment. Instead, it seeks to extend the Real Driving Emissions (RDE) regime in place for cars and vans to heavy-duty vehicles, disregarding their broader range of emissions and pushing the engineering target—in combination with the proposal’s limit values—close to zero. Indeed, as currently drafted, these requirements will require a different development pathway for manufacturers and original equipment manufacturers (OEMs) to those used in North America, China and South America undermining the EU’s role in setting automotive standards that many global markets follow.

Removed Diverting resources from decarbonisation: To meet existing EU CO2 targets, the transition towards low-carbon transport is already well underway, with manufacturers of commercial vehicles progressively expanding their range of battery-electric and hydrogen-powered vehicles. Investments aimed at decarbonizing road transport must therefore be supported by a comprehensive regulatory framework that strikes a fair balance between enhancing air quality and facilitating the adoption of CO2-neutral and zero-emission vehicles. However, the Commission proposal raises fears over its potential negative impact on manufacturers' investment strategies. While acknowledging concerns specific to heavy-duty vehicles, the Euro 7 proposal must not direct attention away from the broader objective of achieving carbon neutrality. This legislation has to be realistic in setting achievable targets as well as being consistent and proportional with the investments required for compliance with existing and future CO2 standards.

RemovedIn this context, the Committee looks to address the following fundamental and interconnected issues in his draft committee report:

Removed Insufficient lead times for the automotive sector: The proposal's entry into force dates (2025 for cars and vans; 2027 for trucks and buses) do not provide the necessary time for industrial development and adaptation of production, and fail to reflect the fact that the legal framework will only be complete following the adoption of the relevant implementing and delegated acts. The ENVI Committee, therefore, recommends linking the dates of entry into force to the dates of adoption of the applicable secondary legislation. With the exception of requirements for brakes and tyres, which are contingent on agreements within the UNECE, the Commission will have deadlines to adopt the required delegated and implementing acts before triggering a lead in time of 24months for new type cars and vans, and 48 months for new type trucks and buses. Moreover, the Committee adds an extra time between the new type and all registration dates to limit the administrative burden on type approval authorities and account for the lengthier product cycle of vans over cars.

Removed Undue reliance on secondary legislation: The cumulative changes to Euro 7’s modalities via secondary legislation are wide-ranging and vaguely defined in the Commission proposal. This lack of clarity is a significant concern, as the methodologies for measuring emissions during specified test conditions and verifying the application of test requirements/declarations are still to be finalised and risk amounting to "an empty box" in the basic act. Hence, understanding the implications and legal responsibilities arising from the many implementing and delegated acts on manufacturers and Member States is currently a futile task. The ENVI Committee proposes to address this by setting conditional time limits for the Commission to prepare and finalise the secondary legislation, giving stakeholders and Member States much-needed legal certainty.

Removed Statistically-relevant RDE test conditions: The existing Euro 6 standard already delivers on-road testing with low exhaust emissions covering the vast majority (95 percent) of statistically possible driving events and situations. The Commission proposal aims to cover the last five percent, adding substantial complexities for compliance and additional hardware requirements with only nominal environmental benefits. Moreover, biased driving/worst-case conditions will oblige further supplementary technology in all Euro 7 vehicles. As a result, smaller low-budget cars that are indispensable for working people and rural communities could see a noticeable cost increase, resulting in the market withdrawal of certain models. The ENVI Committee believes these driving scenarios go far beyond the parameters necessary to achieve the objectives of this legislation and reinstates existing testing requirements in this proposal.

Removed On-Board Monitoring (OBM) requirements: The Commission requires OBM of emissions at all times throughout a vehicle’s lifetime. This will require new exhaust sensors, which are either unavailable or have limited capability and lifespan, and their precise cost is still unknown. With the automotive sector already obliged to achieve new CO2 standards, adding onerous new technological expenses seems unreasonable and will deter investments in C02-neutral and zero-emission vehicles. Responding to this, it is important to get greater legal clarity on the scope and detail of the OBM requirements, the development time for these technologies, and evaluating the overall need for OBM in achieving the new standards.

Removed Regulatory discrimination against heavier vans: The new standards require that heavier vans meet the same exhaust pollutant limits as cars despite their higher weights and rolling resistance. Although the Commission proposal attempts to offset the more stringent requirements with less rigorous pollutant rules for vans with a power-to-weight ratio less than 35kW/t, there are currently no vans on the EU market that can reportedly qualify for these reduced limit values. For that reason, almost all vans must meet the same exhaust pollutant limits as cars. These vans are an indispensable working tool for individuals and small businesses and this imbalance is addressed in the report .

Removed Viability of emission limits/testing for Heavy-Duty Vehicles: The Commission's proposal for Euro 7 emission limits for heavy-duty vehicles would place an unrealistic burden on industry and deviate from global standards. As a result, EU manufacturers would face additional costs to develop vehicles specifically for EU requirements while still having to comply with other regulations around the world, and this would disrupt technical harmonization for heavy-duty vehicle regulations. Therefore, it is necessary to bring the Euro VI formulation for heavy-duty emission limits and testing into Euro 7 with some necessary adjustments to reduce the levels of main pollutants by 50 percent and account for the new PN10 test procedure.

Removed Addition of brake wear emissions: The Euro 7 proposal sets out additional limits for particulate emissions generated by brakes. These rules will apply to all vehicle types, including electric. Although the inclusion of brakes within the scope is supported, the entry into force dates (2025 for cars and vans; 2027 for trucks and buses)seem technically unfeasible, as work on the test procedure still needs to be finalised in the UNECE. Once agreed, the procedure will then require a monitoring phase to evaluate the methodology and allow for the setting of technically achievable limits. With this in mind, a lead in time following the adoption of relevant secondary legislation for brakes should be introduced.

Removed Abrasion limits for tyres: Reiterating concerns about the volume of, and reliance on, secondary legislation in this proposal, both Member States and manufacturers can only plan and assess this requirement with the relevant implementing and delegated acts. Indeed, the Commission acknowledges that the UNECE World Forum for Harmonization of Vehicle Regulations (WP29) must first adopt the test method, market assessment, and limits, expected in late 2024/early 2025, before incorporating these requirements in Euro 7. As with brake emissions the inclusion of tyres, is welcomed, however tyres shedding fewer micro-plastics must not compromise vehicle safety. It should also be made clear that the scope for tyres should be expanded to progressively include newly manufactured tyres of Classes C1, C2 and C3 fitted to all vehicles, and not only those tyres fitted on Euro 7 type approved vehicles.