Changes from report parliamentary committee draft to plenary report

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

▸7 unchanged paragraphs

on the proposal for a regulation of the European Parliament and of the Council on type-approval of motor vehicles and engines and of systems, components and separate technical units intended for such vehicles, with respect to their emissions and battery durability (Euro 7) and repealing Regulations (EC) No 715/2007 and (EC) No 595/2009

(COM(2022)0586 – C90375/2022 – 2022/0365(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

– having regard to the Commission proposal to Parliament and the Council (COM(2022)0586),

– having regard to Article 294(2) and Article 114 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C90375/2022),

– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

Changed– having regard to the opinion of the European Economic and Social Committee of xxx[1],27 April 2023,

Changed– having regard to the opinion of the Committee of the Regions of xxx[2],xxx,

Change 1

Removed– having regard to Rules 59 of its Rules of Procedure,

Added–– having regard to the opinion of the Committee on Industry, Research and Energy, the Committee on the Internal Market and Consumer Protection and the Committee on Transport and Tourism,

Changed– having regard to the opinionreport of the Committee on Industry, Research and Energy, the Committee on the Internal Market andEnvironment, ConsumerPublic ProtectionHealth and the Committee on TransportFood andSafety Tourism,(A9-0298/2023),

Removed– having regard to the report of the Committee on the Environment, Public Health and Food Safety (A90000/2023)

Added– having regard to Rule 59 of its Rules of Procedure,

1. Adopts its position at first reading hereinafter set out;

2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments;

Change 2

RemovedRecital 4: (4) The technical requirements for the type-approval of motor vehicles, engines and replacement parts with regard to emissions (‘emission type-approval’) are currently set out in two Regulations that apply to emission type-approval for light-duty and heavy-duty vehicles respectively, i.e. Regulation (EC) No 715/2007 of the European Parliament and of the Council (‘Euro 6’)44 and Regulation (EC) No 595/2009 of the European Parliament and of the Council (‘Euro VI’)45 . The reason for having two Regulations was that the emissions of heavy-duty vehicles were checked based on engine and vehicle testing, while for light-duty vehicles the basis was whole vehicle testing. / 45 Regulation (EC) No 595/2009 of the European Parliament and of the Council of 18 June 2009 on type-approval of motor vehicles and engines with respect to emissions from heavy-duty vehicles (Euro VI) and on access to vehicle repair and maintenance information and amending Regulation (EC) No 715/2007 and Directive 2007/46/EC and repealing Directives 80/1269/EEC, 2005/55/EC and 2005/78/EC (OJ L 188, 18.7.2009, p. 1).

AddedRecital -1 (new): (-1) Decision (EU) 2022/591 of the European Parliament and of the Council1 on a General Union Environment Action Programme to 2030 lays down as one of the Union’s six thematic objectives for the period up to 31 December 2030 the pursuit of zero pollution, including in relation to harmful chemicals, in order to achieve a toxic-free environment, including for air, water and soil, as well as in relation to light and noise pollution, and protecting the health and well-being of people, animals and ecosystems from environment-related risks and negative impacts. / 1 Decision (EU) 2022/591 of the European Parliament and of the Council of 6 April 2022 on a General Union Environment Action Programme to 2030 (OJ L 114, 12.4.2022, p. 22).

RemovedCommercial vehicle manufacturers rely heavily on the engine-based approach as it is essential to their business model. That is because a diverse range of vehicles shares the same engines, but with varying cabs, frames, gearboxes, and bodies, each tailored to meet the specific needs of a customer. Moving from engine testing on rigs to testing on the road significantly alters the regulatory framework for heavy vehicles. All heavy-duty vehicle manufacturers follow the same fundamental principle: developing building blocks that can be combined in endless ways to provide the customer with a bespoke work tool. Therefore, clear and well-defined testing methods are essential for the industry to create, verify, and validate products.

AddedRecital -1 a (new): (-1a) The European Green Deal1a is the Union’s proposal to initiate a transition aiming to achieve, by 2050 at the latest, a climate-neutral, clean and circular economy, optimising resource management, minimising pollution while recognising the need for deeply transformative policies. The Union is also committed to the 2030 Agenda for Sustainable Development1b and its Sustainable Development Goals1c. The Sustainable and Smart Mobility Strategy adopted in December 20201d and the Zero Pollution Action Plan1e adopted in May 2021 specifically address transport pollution aspects of the European Green Deal. Other particularly relevant policies for this initiative include, for example, the Ambient Air Quality Directive (AAQD)1f, the New Industrial Strategy for Europe1g, CO2 emission standards for cars and vans1h and CO2 emissions targets for new heavy-duty vehicles1i. / 1a Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions The European Green Deal; COM(2019) 640 final / 1b https://www.un.org/ga/search/view_doc.asp?symbol=A/RES/70/1⟪=E / 1c https://sdgs.un.org/goals / 1d COM(2020) 789 final / 1e COM(2021) 400 final / 1f Directive 2008/50/EC / 1g COM(2020) 102 final and COM(2021) 350 final / 1h COM/2021/556 / 1i COM(2023) 88 final

RemovedRecital 4 a (new): (4a) The EU General Safety Regulation ((EU) 2019/2144) establishes the necessary type approval requirements for newly manufactured C1, C2, and C3 tyres. It outlines the technical requirements that serve as the basis for new tyre type approval, including additional requirements for tyre abrasion. Currently, the UN World Forum for Harmonization of Vehicle Regulations (WP29) is developing a test method to measure tyre abrasion, along with the corresponding definitions and limits. To adopt this test method, along with manufacturers' obligations and a relevant timeline for implementation, as well as a transitional period for tyres produced after a certain date, this Regulation needs to be supplemented by delegated acts.

AddedRecital 1: (1) The internal market is an area in which the free movement of goods, persons, services and capital must be ensured. To that end Regulation (EU) 2018/858 of the European Parliament and of the Council43 introduced a comprehensive type-approval and market surveillance system for motor vehicles, trailers, and for systems, components and separate technical units intended for such vehicles and tyres for all vehicles.

RemovedIt is important to establish a connection between the type approval requirements for newly manufactured C1, C2, and C3 tyres set by the General Safety Regulation ((EU) 2019/2144) and the provisions regarding tyre abrasion in this Regulation.

AddedThis Regulation should apply to all tyres and not only to those tyres in Euro 7 vehicles.

RemovedRecital 5: (5) Incorporating the requirements laid down in Regulation (EC) No 715/2007 and Regulation (EC) No 595/2009 into a single Regulation should ensure internal coherence of the system of emission type-approvals for both light and heavy-duty vehicles, while allowing for different emission limits and testing parameters for such vehicles.

AddedRecital 2 a (new): (2a) 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 this sector. This includes public and private investments in research and innovation, the increasing supply of zero- and low-emission vehicles, the roll-out of recharging and refuelling infrastructure, integration into the energy systems, as well as the sustainable materials supply and sustainable production, re-use and recycling of batteries in Europe. It requires coherent action at Union, national, regional and local levels.

RemovedRecital 7: (7) It is also necessary to reduce complexity, administrative and implementation costs for manufacturers and authorities and to ensure effective and efficient implementation of the Euro emission standards. The process of simplification involves removing various application dates for limits and tests found in Euro 6 and Euro VI, eliminating excessive and convoluted emission tests, referencing relevant standards from existing UN Regulations where applicable, and establishing a streamlined and standardized set of procedures and tests for all phases of emission type-approval. To this end, it is imperative that this regulatory act upholds the mobility rights of EU citizens, while ensuring freedom of choice in purchasing their preferred vehicle or engine. It is also essential to keep the prices of private and commercial vehicles affordable for citizens and businesses, to maintain industrial competitiveness and innovation, and to support job creation and skill development in the sector. To achieve these goals, the EU should offer dedicated financial resources and programs as the industry transitions towards carbon neutrality.

AddedRecital 2 b (new): (2b) In order to support the transition towards clean mobility while reindustrialising Europe and supporting citizens, it is essential to keep the prices of private and commercial vehicles affordable for citizens and businesses. This will help maintain quality of life, industrial competitiveness and innovation, support job creation and skill development in the sector.

RemovedRecital 7 a (new): (7a) While Euro 7 standards are focused on setting stricter emission standards for vehicles running on a conventional internal combustion engine, it is also necessary to underline the importance of prioritising industrial investment in the development and adoption of CO2 neutral and zero-emission vehicles. By focusing resources on these technologies, the EU can accelerate the transition towards a more sustainable transportation sector and improve air quality, particularly in urban areas, where traffic congestion and pollution can have adverse effects on public health. This approach involves directing financial support, research and development efforts, and regulatory incentives towards fostering advancements in CO2 neutral and zero-emission vehicle technology.

AddedRecital 2 c (new): (2c) A socially acceptable and just transition towards zero-emission mobility should be ensured. It is important, therefore, to take into account the social effects of such transition throughout the whole automotive value chain and to address proactively the implications on employment. Targeted programmes at Union, national and regional levels, such as the development of just transition plans for automotive dependent regions are to be developed in the framework of the Just Transition Mechanism 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, women's employment, as well as equal opportunities in this sector, should be strengthened.

RemovedRecital 7 b (new): (7b) The rising cost of living is the most pressing worry for 93% of European citizens according to the results of the European Parliament’s Autumn 2022 Eurobarometer1a. It is therefore vitally important to ensure affordable new vehicle prices for consumers and businesses as they provide essential mobility, and often represent the primary mode of transportation due to limited public transportation options, particularly in suburban and rural areas. In this context, the Commission's estimates of additional direct costs for vehicle categories appear incomplete, as they neglect to account for the indirect costs to consumers and the increased manufacturing expenditure associated with battery-electric vehicles, particularly battery durability. According to industry analysis, the actual average incremental direct costs of Euro 7, primarily driven by equipment and investment expenditures, significantly exceed the figures presented in the impact assessment. These higher estimates range from €2,000 per passenger car/light-duty vehicle to €12,000 per heavy-duty vehicle, representing a four to tenfold increase compared to the Commission's projections1b. / 1a https://europa.eu/eurobarometer/surveys/detail/2932 / 1b Frontier Economics, Regulatory costs of Euro 7 – findings from an industrial survey, 23 May 2023.

AddedRecital 4: (4) The technical requirements for the type-approval of motor vehicles, engines and replacement parts with regard to emissions (‘emission type-approval’) are currently set out in two Regulations that apply to emission type-approval for light-duty and heavy-duty vehicles respectively, i.e. Regulation (EC) No 715/2007 of the European Parliament and of the Council (‘Euro 6’)44 and Regulation (EC) No 595/2009 of the European Parliament and of the Council (‘Euro VI’)45.

RemovedRecital 7 c (new): (7c) The Commission's impact assessment also overlooks the high indirect costs to consumers resulting from increased fuel consumption, especially for heavy-duty vehicles. These unaccounted outgoings could exceed the total costs reported in the Commission evaluation. Experts in the industry note that meeting the proposed Euro 7 requirements may lead to higher fuel consumption, including additional fuel required to warm up the catalytic converter during cold starts. This results in substantial additional indirect costs for consumers and logistics companies. For example, a heavy-duty vehicle with a mileage of around 1 million kilometres and a fuel consumption rate of 25 litres per 100 kilometres, with diesel priced at €2 per litre, would incur an extra cost of €17,500 over its lifetime due to a 3.5%-point fuel increase. Similarly, the fuel cost increase for passenger cars and light commercial vehicles under Euro 7 would amount to approximately €700 per vehicle1a. Moreover, the impact assessment fails to account for other factors that could escalate costs for consumers, such as new requirements related to reducing tyre abrasion emissions, higher charges associated with battery-electric vehicles, and potential limitations in entry-level vehicle choices for consumers. / 1a Frontier Economics, Regulatory costs of Euro 7 – findings from an industrial survey, 23 May 2023.

AddedRecital 5: (5) Incorporating the requirements laid down in Regulation (EC) No 715/2007 and Regulation (EC) No 595/2009 into a single Regulation should ensure internal coherence of the system of emission type-approvals for both light and heavy-duty vehicles, while allowing for different emission limits and testing rules and conditions for such vehicles.

RemovedRecital 8: (8) In order to ensure that the exhaust emissions for both light and heavy-duty vehicles are limited in real life, testing vehicles across a statistically representative, non-biased set of restrictions, boundaries and other driving requirements is required.

AddedRecital 7: (7) It is also necessary to reduce complexity, administrative and implementation costs for manufacturers and authorities and to ensure effective and efficient implementation of the Euro emission standards. Simplification is achieved by eliminating different application dates for the limits and tests, by eliminating multiple and complex emission tests where such tests are not needed, by referring to standards under existing UN Regulations where applicable, and by ensuring a streamlined and consistent set of procedures and tests for the various phases of the emission type-approval.

RemovedMerely imposing a basic set of limitations would not guarantee uniformity, as considerable deviations may still arise, resulting in increased production costs and engineering complexity. It is crucial to establish conditions that are statistically significant and impartial in conducting on-road evaluations, so as to avoid any biases aimed at intentionally disqualifying vehicles.

AddedRecital 8: (8) In order to ensure that the emissions for both light and heavy duty vehicles are limited in real life, testing vehicles in real conditions of use which are statistically relevant, with a minimum set of restrictions, boundaries and other driving requirements is required. This on-road testing should be based on normal driving and exclude biased driving.

RemovedRecital 9: deleted

AddedRecital 10: (10) Regulations (EC) No 715/2007 and (EC) No 595/2009 require that vehicles respect the emission limits for a specified period of time, which does not correspond anymore to the average lifetime of vehicles. It is therefore appropriate to lay down durability requirements that reflect the expected lifetime of vehicles1a and their standard usage across the Union in light of differences between Member States. This is of particular importance to buyers of second hand vehicles who expect the vehicle to emit as much as it did when it was first placed on the market. / 1a European Automobile Manufacturers' Association (ACEA) “Vehicles in Use, Europe 2022.

RemovedThe impact assessment for this Regulation lacks evidence to support the elimination of conformity factors for heavy-duty vehicles. Instead, it relies on approximations and assumptions about potential progress. It is important to note that conformity factors in Euro VI have a context. During in-service conformity (ISC) testing with PEMS, the actual test cycle is not run, and the PEMS equipment used is simplified compared to what is used in a test cell. This is why a conformity factor was introduced, determined to be 1.5, that accounts for the difference between the semi-transient test cycle and the WNTE (World-Wide Not To Exceed) requirement.

AddedRecital 10 a (new): (10a) Member States are encouraged to develop and implement strategies for incentivising fleet renewal, with the aim of facilitating a progressive transition of the European fleet towards vehicles with reduced emissions, contributing to a cleaner and more sustainable transport ecosystem.

Change 3

ChangedRecital 11: (11) There are now technologies available and used widely worldwide that limit evaporative emissions of volatile organic compounds during the use, parking and refuelling of a vehicle with petrol fuel. ItAs isthese thereforetechnologies appropriateare toalready setproven theand emissioncost-effectively limitsimplemented forin suchother volatilemarkets organicand compoundsregions, atit ais lowertherefore levelappropriate for new vehicles andthe MemberUnion Statesto mayalign adoptwith other measures atmarkets theby nationalsetting levelthe toemission ensurelimits thatfor Stagesuch IIvolatile refuellingorganic controlscompounds at petrol stations, in accordancea withlower Commissionlevel Directiveand 2014/99/EU,to maintainintroduce theiremission efficacylimits infor controllingthe refuelling of all petrol-run vehicles.phase.

Change 4

RemovedWhile it may be feasible to establish more stringent evaporative emission limits for new gasoline-powered vehicles, it is crucial to carefully assess whether the associated costs outweigh the benefits of reducing volatile organic compound (VOC) emissions. This consideration becomes particularly relevant given the anticipated phasing out of vehicles with internal combustion engines in the near future. Moreover, certain Member States already enforce Stage II vapor recovery system requirements at petrol stations, which involve efficiency monitoring to achieve comparable efficiency levels as Onboard Refueling Vapor Recovery (ORVR), across the entire vehicle fleet in the EU.

AddedRecital 11 a (new): (11a) For the control of refuelling emissions, on-board refuelling vapour recovery has been implemented in other markets and regions for more than 15 years with a demonstrated vapour control efficiency. On-board refuelling vapour recovery requires no annual maintenance or inspections to maintain a higher level of refuelling vapour control efficiency while remaining compatible with the current Stage II petrol stations.

Change 5

ChangedRecital 12: (12) Non-exhaust emissions consist of particles emitted by tyres and brakes of vehicles. Emissions from tyres is estimated to be the largest source of microplastics to the environment. As shown in the Impact Assessment, it is expected that by 2050, non-exhaust emissions will constitute up to 90% of all particles emitted by road transport, because exhaust particles will diminish due to vehicle electrification. Those non-exhaust emissions should therefore be measured and limited. The Commission should prepareconduct a report on tyre abrasionreview bybefore the end of 2024 to2025 reviewfor the measurement methodsof tyre abrasion and define abrasion limits based on state-of-the-art developedmethods in the UNevent WP29that commonuniform GRBP/GRPEprovisions Taskhave Forcenot been established which refer to the work on Tyretyre Abrasionabrasion withdone at UN WP.29 by mid-2026. The Commission should ensure that the viewUN ofWP.29 ensuringachieves consistencyits objectives in thea definitiontimely manner, reflecting a high level of tyreambition abrasionbased limits.on Additionally,solid thescientific reportand technical grounds. The review should comprehensivelybe evaluateaccompanied theby impacta oflegislative theproposal for vehicles with traction batteries, including plugin hybrids and battery electric vehicles, to adopt tyre abrasion rate limits andcompatible requirements,with whichthe willUnion’s addressobjective deficienciesto identifiedreduce inmicroplastics released into the impactenvironment assessmentby of30% thisby Regulation.2030 and based on state-of-the-art abrasion rates.

Change 6

RemovedThe Commission acknowledges in the impact assessment that there are still technological limitations in setting regulatory limits and testing modalities for tyre abrasion. For that reason, it is recommended to conduct a further customized assessment, which should include an evaluation of the EU's capacity to test tyre abrasion.

AddedRecital 14: (14) Vehicles with traction batteries, including plugin hybrids and battery electric vehicles, contribute to the decarbonisation of the road transport sector. In order to gain and increase consumer trust in such vehicles, they should be performant and durable. It is therefore important to require that traction batteries retain a good part of their initial capacity after many years of use. That is of particular importance to buyers of second hand electric vehicles to ensure that the vehicle will continue to perform as expected. Monitors of the battery state-of-health should therefore be required for all vehicles that use traction batteries. In addition minimum performance requirements for battery durability of passenger cars and light commercial vehicles should be introduced, taking into account the UN Global Technical Regulation 2247.

RemovedRecital 14: (14) Vehicles with traction batteries, including plugin hybrids and battery electric vehicles, contribute to the decarbonisation of the road transport sector. In order to gain and increase consumer trust in such vehicles, they should be performant and durable. It is therefore important to require that traction batteries retain a good part of their initial capacity after many years of use. That is of particular importance to buyers of second hand electric vehicles to ensure that the vehicle will continue to perform as expected. Monitors of the battery state of range (SOCR) or state of energy (SOCE) should therefore be required for all vehicles that use traction batteries. In addition minimum performance requirements for battery durability of passenger cars should be introduced, taking into account the UN Global Technical Regulation 2247 .

AddedRecital 14 a (new): (14a) OBM, OBFCM or SOH devices use data generated by the vehicle to monitor its compliance with this Regulation. That same data should be shared according to the Data Act to the vehicle users and their service providers so that the vehicle users can benefit from advice and recommendations on how to limit the vehicle’s emissions, its energy consumption and extend its battery-life through improved use of the vehicle.

RemovedAn update is necessary for technical accuracy as the term "state-of-health" is not included in UN Global Technical Regulation No.22.

AddedEURO 7 represents the opportunity to guarantee access to data generated by the vehicle regarding its emissions, energy consumption, battery state of health to third parties for all vehicles equipped with OBM, OBFCM or SOH devices. Only access to the input data of these devices can guarantee innovative service offers to users and contribute to the development of more sustainable technologies.

Change 7

ChangedRecital 15: (15) Tampering of vehicles to remove or deactivate parts of the pollution control systems is a well-known problem. Such practice leads to uncontrolled emissions and should be preventedprevented, including through action to deter the advertising, sale and installation of tampering devices.devices, and sanctioned. Tampering of the odometer,odometer leads to false mileage and hampers the proper in-service control of a vehicle,vehicle. It is therefore allof Memberthe Statesutmost shouldimportance introduceto vehicleguarantee mileagethe recordinghighest whenpossible asecurity vehicleprotection isof servicedthose orsystems, duringcomplete awith periodicsecurity technicalcertificates inspection.and Accordingly,appropriate itanti-tampering isprotection importantto ensure that newneither vehiclespollution arecontrol designedsystems withnor appropriatethe securityvehicle protectionodometer ofcan thosebe systems.tampered with.

Change 8

RemovedEnforcing a high level of security protection throughout a vehicle's lifespan from production would prove to be a significant challenge due to the continued availability of tampering services across the EU. To address this issue, it is necessary to prohibit the advertising, sale, and installation of tampering devices or services at both the EU and Member State levels. In fact, some Member States have already implemented effective measures such as official vehicle mileage recording during service intervals or the Periodical Technical Inspection (PTI) process to prevent vehicle tampering and improve security. These measures have proven to be successful in reducing the incidence of vehicle tampering.

AddedRecital 15 a (new): (15a) To prevent anti-tampering measures from unduly hampering competition, this Regulation and its secondary Legislation should maintain the possibility of independent operators to develop, distribute, install and activate aftermarket replacement parts. Therefore, manufacturers should ensure access by independent operators to the strictly necessary information, tools and processes for development and installation of such replacement parts.

Change 9

ChangedRecital 16: (16) Sensors and other sophisticated strategies installed on vehicles are already used today to enhance their functionality in order to detect anomalies on exhaust emissions, store dataemissions and trigger the need for related repairs through the on-board diagnostic (OBD) system. The OBD system andcurrently in use, however, does not detect accurately or timely the dashboardmalfunctions Malfunctionand Indicatorneither (MI).does Itit sufficiently and timely urge repairs. As a result, it is possible that vehicles emit much more than they are allowed to dodo. dependingThe onsensors howused promptlyup driversto ornow operatorsfor addressOBD can also be used to monitor and control the warningexhaust signalledemission bybehaviour of the MI.vehicles Inon somea cases,continuous sensorsbasis thatvia havean beenon-board ordinarilymonitoring used(OBM) forsystem. OBDThe canOBM will also servewarn the purposeuser to perform repairs of monitoringthe engine or the exhaustpollution emissioncontrol behavioursystems ofwhen vehicles,these therebyare enhancingneeded. theIt efficiencyis therefore appropriate to require that such a system is installed and functionalityto regulate its technical requirements. The inducement of OBD.measures implied by those systems should not lead to endangering of road safety or limiting mobility.

Change 10

RemovedThe Commission proposal portrays the on-board diagnostic (OBD) system in an unfavourable light, implying that it has inherent drawbacks. However, this characterization is unwarranted, as some sensors, while not controlling emissions behaviour, can still monitor emissions behaviour to a certain extent.

AddedIn order to prevent issues related to road safety, it must be explicitly ensured that mechanisms causing abrupt halting of the vehicle are not possible.