EUROPEAN COMMISSION

Brussels, 17.5.2018

COM(2018) 284 final

2018/0143(COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

setting COFMT:Subscript2/FMT emission performance standards for new heavy-duty vehicles

(Text with EEA relevance)

{SEC(2018) 233 final}
{SWD(2018) 185 final}
{SWD(2018) 186 final}

EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

•Reasons for and objectives of the proposal

First, without any further action, CO2 emissions from HDV are projected to grow by 9% over the period 2010– 2030 due to increasing transport activities. As shown in the Impact Assessment 2 accompanying the post-2020 CO2 emission standards for LDV, further measures are needed in the road transport sector to meet the 2030 national targets set under the Effort Sharing Regulation.

Second, transport operators and their clients currently miss out on possible fuel savings and reduced fuel bills. While cost-effective technologies for reducing emissions are readily available, they are not widely spread on the HDV market. This is to the detriment of transport operators, mainly SMEs or micro enterprises, which can experience fuel costs greater than a quarter of their total operational costs.

Third, EU HDV manufacturers face increasing global competitive pressures as the United States, Canada, Japan and China have already implemented regulatory measures to reduce HDV CO2 emissions. The EU automotive sector will need to keep up with the technological improvements in these markets to preserve its technological leadership in vehicle fuel efficiency.

There are a number of different pieces of EU legislation relevant for the decarbonisation of road transport, which address the abovementioned problems to some extent. This concerns supply, demand, economic and enabling instruments. However, these measures are not sufficient for tackling the key market barriers hampering the uptake of fuel-efficient technologies.

The proposal for CO2 emission performance standards for new HDV sets out a complementary supply-side measure at EU level to address these market barriers, with the following key objectives:

–Reduce CO2 emissions from the HDV sector in line with the requirements of EU climate policy and the Paris Agreement, while reducing air pollution notably in cities.

–Facilitate a reduction in operating costs for transport operators, most of which are SMEs, and more broadly of transportation costs for consumers depending on pass-through of fuel savings.

–Maintain the technological and innovative leadership position of EU HDV manufacturers and component suppliers.

•Consistency with existing policy provisions in the policy area

This proposal is part of the Third Mobility Package. It delivers on the commitment taken in the 2016 European Strategy for low-emission mobility, whose goals include, amongst others, reducing GHG emissions in road transport by at least 60 % in 2050 compared to 1990 levels and setting CO2 emission standards for HDV.

The proposal builds on and complements other existing EU mobility policy measures which affect the regulatory environment and incentivise low-emission mobility in the heavy duty vehicle sector, such as the Certification Regulation 3 , the Monitoring and Reporting Regulation 4 , the EU type-approval system, the Eurovignette Directive 5 , the Fuel Quality Directive 6 , the Clean Vehicles Directive 7 , the Directive on maximum authorized weights and dimensions 8 and the Directive on the deployment of alternative fuels infrastructure (AFID). 9

•Consistency with other Union policies

This proposal contributes to the transition towards a low-carbon, secure and competitive economy and it will help to meet the emission reduction target of at least 40% included in the Energy Union Strategy 10 . It will also help Member States achieving the national emission reduction targets set under the Effort Sharing Regulation. 11

2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

•Legal basis

•Subsidiarity (for non-exclusive competence)

Necessity of EU action

Climate change is a trans-boundary problem and at the same time is a competence shared between the EU and Member States. Road freight transport also has a trans-boundary dimension in view of the specific service it renders. Transportation of goods does not happen only within a country but also across Member States and the fact that HDVs can be traded across the EU.

Consequently, EU action is justified in view of both the cross-border impact of climate change and the need to safeguard single markets in road freight transport services as well as those in HDVs.

Without action at EU level, one would have to rely on Member State initiatives to reduce HDV emissions. However, currently many Member States apply a preferential tax treatment for the fuel used in the HDV transport sector, and there are few signals that this would change in the future. The current fuel tax levels have not triggered the necessary increase in fuel efficiency.

In addition, such a decision lies with Member States and it is unlikely that Member States will all together increase fuel tax levels to such a level that could trigger significant efficiency improvement. In addition, the EU taxation policy is subject to unanimity making it difficult to harmonize this policy field.

For these reasons, the possible increase in fuel tax levels could only be complementary but could not substitute the setting of CO2 emission standards.

Furthermore, in case action would be left to Member States, different national schemes could be established, e.g. depending on the targets set under the Effort Sharing Regulation. If this were to happen, it would result in differing ambition levels and design parameters which would require a range of technology options, diminishing economies of scale and fragmenting the single market.

Since manufacturers hold differing shares of the vehicle market in different Member States they would be differentially impacted by various national legislations potentially causing competitive distortions.

Coordinated and complementary action at European level is therefore necessary.

Added value of EU action

In view of the existing single market for new HDVs, it is most cost-effective to ensure harmonised action and set CO2 emission targets on new HDVs at EU level. Even if all Member States were to establish regulatory requirements for new vehicle CO2 emissions, poor coordination between countries, could raise compliance costs for manufacturers as well as weaken the incentive to design fuel efficient HDVs because of the fragmentation of the European market.

The additional costs, which would arise from the lack of common standards and common technical solutions or vehicle configurations would be incurred by both component suppliers and vehicle manufacturers. However, they ultimately would be passed on to consumers who would face higher vehicle costs.

The automotive industry requires as much regulatory certainty as possible if it is to make the large capital investments necessary to maximise the fuel economy of new vehicles, and even more so for shifting to alternative power-trains. Union-level harmonised standards provide this certainty over a long planning horizon and they could not be implemented with the same effectiveness and certainty at Member State level.

•Proportionality

•Choice of the instrument

3.RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

•Ex-post evaluations/fitness checks of existing legislation

No evaluation could be carried out in view of the absence of EU legislation setting CO2 emission performance standards for HDVs.

•Stakeholder consultations

The Commission sought feedback from stakeholders through the following elements:

(a)a public on-line consultation (20 November 2017 until 29 January 2018)

(b)a stakeholder workshop (16 January 2018);

(c)meetings with relevant industry associations representing vehicle manufacturers, components and materials suppliers, fuel suppliers.

(d)meetings with Member State authorities, vehicle manufacturers, suppliers, social partners and NGOs;

(e)position papers submitted by stakeholders and Member States.

A synopsis of the stakeholder consultation is provided in Annex 2 to the Impact Assessment accompanying this proposal.

The main outcomes of the stakeholder consultations can be summarised as follows.

When asked, by order of importance, which were their preferred options to reduce CO2 emission from new HDVs and to contribute to the 2030 energy and climate targets, the preferred option across all stakeholders was legislation setting HDV CO2 emission performance standards at EU level.

However, while all civil society organisations favour binding HDV CO2 emission reduction targets at EU level, some HDV manufacturers and their associations expressed a preference for other measures via a comprehensive approach including legislation defining a CO2 labelling scheme at EU level, inclusion of the transport sector in the EU Emissions Trading Scheme, other incentives such as fuel taxes at national level, or CO2 based road charging.

While the setting up of CO2 emission standards for HDVs is not the preferred option expressed by manufacturers, they have proposed setting both 2025 and 2030 CO2 emission targets at the lower range of the options considered in the Impact Assessment, and called for a review of the 2030 target in early 2020s.

Environmental non-governmental organisations (NGOs) supported a single CO2 target to apply from 2025 onwards, at a level corresponding to the higher range of the options considered, while suggesting to set the 2030 target at a later stage.

Regarding incentives for zero- and low-emission vehicles (ZEV/LEV), manufacturers expressed a preference for a super-credits scheme under which these vehicles would be counted multiple times for meeting the CO2 manufacturer specific target. Environmental NGOs were in favour of either a mandate which would require manufacturers to register a minimum share of ZEV/LEV, or a flexible mandate under which the CO2 target of a manufacturer would be relaxed if the share of ZEV/LEV would exceed a benchmark.

Cost-effective implementation was supported by all stakeholders, with manufacturers favouring the broadest possible flexibility and NGOs supporting only a trading scheme. Most stakeholders supported the setting up of a process for assessing the representativeness of the certified CO2 emissions against real-world emissions.

•Collection and use of expertise

Further information was gathered through support studies commissioned from external contractors and involving the JRC, in particular addressing the following issues:

·elements potentially impacting industrial competitiveness and employment;

·the impact of different regulatory approaches, regulatory metrics and possible design elements (modalities);

·impacts on GHG and pollutant emissions.

•Impact assessment

1) EU fleet-wide CO2 emission targets (scope, metric, metric unit, level, timing)

Such an approach will provide a clear and early signal for investments on medium-term expectations and it will help Member States meeting the targets set under the Effort Sharing Regulation.

2) Distribution of EU fleet-wide target across vehicle groups and manufacturers

3) Incentives for zero- and low-emission vehicles (ZEV/LEV)

4) Elements for cost-effective implementation

5) Governance related issues

(a)To mandate the collection, publication and monitoring of real-world fuel consumption data reported by manufacturers, based on mandatory standardised fuel consumption meters.

(b)To introduce in-service conformity tests and mandate the reporting of deviations and the introduction of a correction mechanism.

(c)To apply financial penalties in case of non-compliance with the CO2 targets.

•Regulatory fitness and simplification

The implementation of the proposed super-credit system for zero- and low-emission vehicles would not create additional administrative burden as it does not require additional reporting.

The impacts, in terms of administrative burden, of the options related to governance will depend on the concrete implementing measures.

4.BUDGETARY IMPLICATIONS

5.OTHER ELEMENTS

•Implementation plans and monitoring, evaluation and reporting arrangements

·the collection, publication, and monitoring of real-world fuel consumption data reported by manufacturers and based on mandatory fuel consumption meters;

·the introduction of in-service conformity tests and the obligation to report deviations from type approval values, combined with a correction mechanism.

•Detailed explanation of the specific provisions of the proposal

Article 1 – Subject matter

This Article sets out the objective of this Regulation which is to contribute to achieving the CO2 emission reductions required as part of the Effort Sharing Regulation through emission reductions in the road transport sector. It also specifies the relative reduction targets to be achieved by the Union’s fleet of new heavy-duty vehicles in the period 2025 to 2029. It sets out an aspirational 2030 target which should be determined subject to a review in 2022.

The targets are set as a relative reduction of the average specific emissions of the vehicles registered in the reference year 2019 which is the first year for which official monitored CO2 emissions data will be available. The targets are attributed to each vehicle sub-group as defined in Section 1 of Annex I. Vocational vehicles (e.g. garbage trucks and construction lorries) do not have the same CO2 reduction potential as heavy-duty vehicles used for the delivery of goods and they are therefore excluded from the calculation of the CO2 reference emissions.

The CO2 reference emissions are determined in accordance with Section 3 of Annex I.

Article 2 – Scope

This Article defines the vehicles that fall within the scope of this Regulation by reference to the relevant categories defined in type approval legislation and to the four vehicle groups for which certified CO2 emissions data will be available from 2019 onwards. Vehicles of the categories M2 (buses) and M3 (coaches) and vehicles of the category N (lorries) that fall outside the four abovementioned vehicle groups will not be subject to the CO2 reduction requirements but should be taken into account for the purpose of the incentives given to zero- and low-emission vehicles (see Article 5).

Moreover, the provision specifies when vehicles are considered as newly registered for the purpose of the Regulation.

Article 3 - Definitions

This Article sets out the definitions to be applied for the purpose of this Regulation.

Article 4 – Average specific emissions of a manufacturer

According to this Article, the Commission shall determine and publish annually the average specific CO2 emissions of each manufacturer starting from 2019. The data used as a basis for calculating the average emissions are reported by the manufacturers concerned pursuant to Regulation (EU) No …/2018. In order to reflect the utility and specificity of the vehicles, the individual heavy-duty vehicles shall be attributed to different vehicle sub-groups, where specific weightings are applied for the mission profiles (i.e. the vehicle usage patterns), the payloads and the annual mileages. Moreover, the manufacturer’s share of vehicles in each vehicle sub-group is taken into account. Vocational vehicles of the categories N2 and N3 (e.g. garbage trucks, construction lorries) do not have the same CO2 reduction potential as heavy-duty vehicles used for delivery of goods and therefore they shall not be included in the calculation of the average. The formulae for calculating the average specific emissions are set out in Section 2 of Annex I.

Article 5 – Zero- and low-emission heavy-duty vehicles

In order to incentivize the deployment of zero- and low-emission heavy-duty vehicles, those vehicles shall be counted multiple times for the purpose of determining a manufacturer’s average specific emissions starting from 2019. Manufacturers of zero- and low-emission vehicles shall benefit from such "super-credits" for each zero- and low-emission vehicle placed on the market with a different multiplying factor according to the vehicle's CO2 emissions.

A specific incentive is also provided for zero-emission heavy-duty vehicles of the categories M2 (buses) and M3 (coaches) as well as certain category N vehicles (small lorries), including zero-emission vocational vehicles. While those categories of vehicles are not subject to CO2 reduction requirements under this Regulation, they are nevertheless considered for the purpose of determining the zero- and low-emission factor.

Low-emission heavy-duty vehicles means heavy-duty vehicles with specific emissions below 350g CO2/km, i.e. about less than half of the average of the fleet emissions.

In order to preserve the environmental integrity of the targets, the lowering of the average specific emissions of the manufacturers through the incentive scheme for zero- and low-emission vehicles should be subject to a cap.

The formulae for calculating the zero- and low-emission factor is set out in point 2.3 of Annex I.

Article 6 – Manufacturer specific emission targets

This Article provides for the calculation of annual manufacturer specific emission targets for the preceding calendar year, starting in 2026. The first annual targets will therefore be determined for the calendar year 2025. The targets shall take into account the overall reduction targets for 2025 and 2030 respectively, as well as the utility and specificities of different heavy-duty vehicles in the same way as for the calculation of the average specific emissions. The annual specific emission targets of a manufacturer will therefore be calculated as a weighted average of the targets determined for each of the vehicle sub-groups.

The formulae for calculating the specific emission target are set out in Section 4 of Annex I.

Article 7 – Emission credits and debts

This Article sets out a ‘banking and borrowing’ mechanism, allowing a manufacturer to balance an underachievement of its specific emission target in one year by the overachievement in another year. For that purpose, the manufacturer may ‘bank’ emission credits, if its emissions are lower than a reduction trajectory determined as a linear trajectory from the 2019 reference CO2 emissions to the 2025 targets and from the 2025 targets to the 2030 targets. Two different trajectories are needed to take into account that the slopes may differ depending on the exact targets determined for 2025 and 2030. In order to incentivize early emission reductions emission credits can be acquired already from 2019 to 2024, and likewise for the period 2025 to 2029. The emission credits acquired in the period 2019 to 2024 are taken into account for assessing the manufacturer’s compliance with its specific emission target in 2025 only. No further carry-over of credits acquired during the period from 2019 to 2024 will be allowed. Emission credits may also be acquired and used for the following period from 2025 to 2029. In case a manufacturer exceeds its target in any of the years from 2025 to 2029, it may acquire a limited emissions debt that must be cleared at the latest in 2029. The total emission debt may not exceed 5% of the manufacturer’s specific emission target in 2025, otherwise an excess emission premium shall be imposed in accordance with Article 8.

The emission credits and debts are elements defined for the purpose of the calculations but they shall not be considered as assets that are transferrable or subject to fiscal measures.

Section 5 of Annex I sets out the formulae for calculating the CO2 reduction trajectory and the emission credits and debt.

Article 8 – Compliance with specific emission targets

Where a manufacturer is found to have excess emissions, taking account of the emission credits and debts acquired in accordance with Article 7, the Commission shall impose a financial penalty in the form of an excess emission premium. The level of the premium is set at 6 800 € per g/tkm, equivalent to 570 € per g/km based on an average payload of 12 tons, of excess emissions which reflect the marginal cost of CO2 reducing technologies.

Section 6 of Annex I sets out the formulae for calculating the excess emissions. The methods for collecting the premiums shall be determined by means of an implementing act.

Article 9 - Verification of the monitoring data

This Article sets out a mechanism to introduce a procedure for in-service conformity checks of the CO2 emission values from heavy-duty vehicles building on the type approval legislation. Type approval authorities shall report any deviations detected and the Commission shall take those into account when checking manufacturers' compliance with their targets. The provision includes an empowerment for the Commission to provide the details for such a procedure by way of an implementing act.

Article 10 - Publication of data and manufacturer performance

This Article lists the data that the Commission shall publish with regard to manufacturers' annual target compliance (i.e. the annual monitoring decision).

The Article also empowers the Commission to adjust the 2019 CO2 reference emissions in accordance with well-defined procedures (set out in Article 12 and Annex II), in order to reflect adjustments of the payload values or changes in the type-approval procedure that have a non-negligible impact on the CO2 emissions determined for a heavy-duty vehicle. The adjustment will affect the calculation of the manufacturers’ specific emission targets, as of the year following its adoption.

Article 11 – Real-world CO2 emissions and energy consumption

This Article provides an empowerment for the Commission to monitor and assess the real-world representativeness of the CO2 emission values simulated with the VECTO, tool pursuant to Commission Regulation (EU) 2017/2400. For that purpose, the Commission should have the power to request real-world data to be collected and reported by Member States and manufacturers. This approach follows that proposed for light-duty vehicles and, as a first step, requires the introduction of mandatory standardised fuel consumption meters on board of heavy-duty vehicles.

Article 12 - Adjustments to Annexes I and II

Technical progress and changes in the type approval procedures may affect the level of the official CO2 emission values determined for the heavy-duty vehicles falling within the scope of this Regulation. In order to consider these changes, this Article provides an empowerment for the Commission to adjust certain technical parameters set out in Annex I and II, including adoption of a methodology for determining a representative vehicle per each vehicle sub-group, on the basis of which those changes would be assessed. The adjustments proposed follow clearly defined steps set out in Sections 1 and 2 of Annex II.

Article 13 - Review and report

This Article requires the Commission to provide a report on the effectiveness of this Regulation, to be submitted in 2022. The report should address the emission reduction target for 2030 as well as the setting of reduction targets for other heavy-duty vehicles not yet subject to reduction requirements. The report should also cover the effectiveness of the modalities, i.e. the zero- and low-emission vehicles incentive system and the ‘banking and borrowing’ mechanism, and consider the need for continuing those modalities beyond 2030. Where appropriate the report should be accompanied by a proposal for amending the Regulation.

Articles 14 and 15 - Comitology and delegation of powers

These are standard provisions on the committee procedure and the delegation of powers.

Article 16 - Amendment to Regulation (EC) No 595/2009

This amendment aims to introduce a legal basis in Regulation (EC) No 595/2009 (Euro 6 emissions type approval regulation) for the Commission to set up an in-service conformity procedure for verifying CO2 emission from heavy-duty vehicles. This procedure is essential for an effective market surveillance of the type approval system and the CO2 emission values used for target compliance purposes.

Annex I

Annex I sets out the technical requirements and formulae for the following elements:

·Attribution to vehicle sub-groups

·Calculation of the average specific emissions of a manufacturer

·Calculation of the CO2 reference emissions

·Calculation of the specific emission target for a manufacturer

·Calculation of the CO2 reduction trajectory and the emission credits and debts

·Determination of a manufacturer’s excess emissions

Annex II

Annex II sets out the procedures for adjusting the CO2 reference emissions, i.e. the payload adjustment factors Section 1) and the methodology for taking into account changes to the type approval procedures (Section 2).

2018/0143 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

setting CO2 emission performance standards for new heavy-duty vehicles

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 192(1) thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Economic and Social Committee 17 ,

Having regard to the opinion of the Committee of the Regions 18 ,

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1)The European Strategy for Low-Emission Mobility sets a clear ambition: by mid-century, greenhouse gas emissions from transport will need to be at least 60% lower than in 1990 and be firmly on the path towards zero. Emissions of air pollutants from transport that harm our health need also to be drastically reduced without delay.

(2)Following the Low-Emission Mobility Strategy, the Commission adopted two mobility packages in May 19 and November 2017 20 . These packages set out a positive agenda delivering on the Low-Emission Mobility Strategy and ensuring a smooth transition towards clean, competitive and connected mobility for all.

(3)This Regulation is part of the third "Europe on the Move" Package, which delivers on the new industrial policy strategy of September 2017 21 , and is designed to complete the process of enabling the Union to reap the full benefits of the modernisation and decarbonisation of mobility. The aim of the Package is to make European mobility safer and more accessible, European industry more competitive, European jobs more secure, and the mobility system to be cleaner and better adapted to the imperative of tackling climate change. This will require the full commitment of the Union, Member States and stakeholders, not least in strengthening efforts to reduce CO2 emissions and air pollution.

(4)This Regulation provides, together with the CO2 emission standards for passenger cars and light commercial vehicles 22 , 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 as the Union Intended Nationally Determined Contribution under the Paris Agreement at the Environment Council meeting on 6 March 2015.

(5)The European Council Conclusions of 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. Road transport provides a major contribution to the emissions of those sectors and its emissions remain significantly above 1990 levels. If road transport emissions would increase further, it will off-set reductions made by other sectors to combat climate change.

(6)The European Council Conclusions of 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 reduction and energy efficiency in transport, for electric transportation and for renewable energy sources in transport also after 2020.

(7)Energy efficiency contributing to moderation of demand is one of the five mutually-reinforcing and closely interrelated dimensions of the Energy Union Strategy adopted on 25 February 2015, to give consumers in the Union secure, sustainable, competitive and affordable energy. The Energy Union Strategy states that, while all economic sectors must take steps to increase the efficiency of their energy consumption, transport has a huge energy efficiency potential.

(8)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 taken, the share of emissions from heavy-duty vehicles is expected to grow by around 9% between 2010 and 2030. Currently, Union law does not set any CO2 reduction requirements for heavy-duty vehicles.

(9)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 standards for new passenger cars and light commercial vehicles by setting CO2 emission performance standards for new heavy-duty vehicles. These 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.

(10)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, it is appropriate to set CO2 emission standards for heavy-duty vehicles at Union-level. Those standards should be designed so as to be without prejudice to competition law.

(11)In defining the reduction levels that should be achieved by the Union’s fleet of heavy-duty vehicles, account should be taken of the effectiveness of those reduction levels in delivering a cost-effective contribution to reducing emissions of the sectors covered by the Regulation [Effort Sharing (EU) No …/2018] 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.

(12)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 23 . Commission Regulation (EU) 2017/2400 24 provides a methodology, based on the VECTO tool, through which the CO2 emissions and fuel consumption of whole heavy-duty vehicles can be simulated. The methodology allows taking into account the diversity of the heavy-duty vehicle sector and the high degree of customisation of individual vehicles. In a first step, from 1 January 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’s fleet of heavy-duty vehicles.

(13)In the light of innovation and to take account of the implementation of new technologies improving the fuel efficiency of heavy-duty vehicles, the VECTO simulation tool as well as Regulation (EU) 2017/2400 will be continuously and timely updated.

(14)The CO2 emissions data determined pursuant to Regulation (EU) 2017/2400 are to be monitored under Regulation (EU) No …/2018 of the European Parliament and of the Council 25 . Those data should form the basis for determining the 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 emissions in a given calendar year.

(15)A reduction target should be set for 2025 as a relative reduction based on the average CO2 emissions of those heavy-duty vehicles in 2019, reflecting the deployment of readily available cost-effective technologies for conventional vehicles. The 2030 target should be considered aspirational and the final target should be determined pursuant to a review to be carried out in 2022 as there are more uncertainties on the uptake of more advanced technologies which are not yet readily available.

(16)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 emission targets in the short and medium term as the use of LNG technologies leads to lower CO2 emissions as compared to diesel vehicles. The CO2 emission 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 being further deployed as part of national policy frameworks for alternative fuel infrastructure.

(17)In calculating the 2019 reference emissions serving as basis for determining the 2025 and 2030 reduction targets, the expected reduction potential of the heavy-duty fleet in that period should be taken into account. It is therefore appropriate to exclude from that calculation, vocational vehicles such as vehicles used for garbage collection or construction works. 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 cost effective in the same way as for heavy-duty vehicles used for the delivery of goods.

(18)The CO2 reduction requirements should be expressed in grams of CO2 per tonne kilometre to reflect the utility of the heavy-duty vehicles.

(19)A fair distribution of the overall 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 targets as a weighted average of the targets defined for each such sub-group, manufacturers are also given the means to effectively balance a possible underperformance of vehicles in certain sub-groups with an overachievement in other vehicle sub-groups, taking into account the average lifetime CO2 emissions of vehicles in the different sub-groups.

(20)A manufacturer’s compliance with its annual specific targets should be assessed on the basis of its average CO2 emissions. In determining the average specific emissions, the specificities that are reflected in the different vehicle sub-group targets should also be considered. As a consequence, the average specific CO2 emissions of a manufacturer should be based on the average emissions determined for each sub-group including a weighting based on their assumed average annual mileage and average payload, which reflects the total lifetime CO2 emissions. Due to the limited reduction potential of vocational vehicles, those vehicles should not be taken into account for the calculation of the average specific emissions.

(21)Contrary to cars and vans, zero- and low-emission heavy-duty vehicles are not yet available on the market, except for buses. A dedicated mechanism, in the form of super credits, should therefore be introduced to facilitate a smooth transition towards zero-emission mobility. This will 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 the Clean Vehicle Directive 2009/33/EC of the European Parliament and of the Council 26 .

(22)For the purpose of calculating the average specific emissions of a manufacturer, all zero- and low-emission heavy-duty vehicles should therefore be counted multiple times. 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 savings should be subject to a cap.

(23)Low-emission heavy-duty vehicles should only be incentivised if their CO2 emissions are less than about half of the CO2 emissions of the Union fleet-wide average in 2025. This is consistent with the approach taken for light-duty vehicles and would incentivise innovation in this field

(24)In designing the incentive mechanism for the deployment of zero-emission heavy-duty vehicles, also smaller lorries, buses and coaches that are not subject to the CO2 emission targets under this Regulation should be included. These vehicles also have significant benefits in terms of helping to address air pollution problems in cities. However, it should be noted that zero-emission buses are already on the market and are incentivised through demand-side measures such as public procurement. In order to ensure that the incentives are well balanced between the different types of vehicles, the savings resulting from the zero-emission smaller lorries, buses and coaches should therefore also be subject to a cap.

(25)In order to promote a cost-effective implementation of the CO2 reduction requirements, while taking into account fluctuations in the fleet composition and emissions over the years, manufacturers should have the possibility to balance their overachievement in complying with their specific emission target in one year with an underperformance in another year.

(26)In order to incentivise early reduction achievements, a manufacturer, whose average specific emissions are below the emission reduction trajectory defined by the reference emissions in 2019 and the 2025 target, should be able to bank those emission credits for the purpose of target compliance in 2025. Similarly, a manufacturer, whose average specific emissions are below the emission reduction trajectory between the 2025 and the 2030 targets, should be able to bank those emission credits for the purpose of target compliance in the period 2025 to 2029.

(27)In case of non-compliance with its specific emission target in any of the years 2025 to 2029, a manufacturer should also have the possibility to acquire a limited emission debt. However, by 2029 manufacturers should clear any remaining emission debt.

(28)Emission credits and debts should be considered only for the purpose of determining a manufacturer’s compliance with its specific emission target and not as assets that are transferrable or subject to fiscal measures.

(29)The Commission should impose a financial penalty, in the form of an excess emissions premium, where a manufacturer is found to have excess emissions, taking into account the emission credits and debts. In order to provide manufacturers with a sufficient incentive to take measures to reduce the specific CO2 emissions from heavy-duty vehicles, the premium should exceed the average marginal costs of the technologies needed to meet the targets. The premium should be considered as revenue for the general budget of the Union. 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.

(30)A robust compliance mechanism is necessary in order to ensure that the targets under this Regulation are met. The obligations placed on manufacturers to deliver accurate data pursuant to Regulation (EU) No …/2018 [Monitoring & Reporting HDV] and the administrative fines that may be imposed in the case of non-compliance with that obligation, contributes to ensuring the robustness of the data used for target compliance purposes under this Regulation.

(31)It is essential for achieving the CO2 reductions pursuant to this Regulation that the CO2 emissions of heavy-duty vehicles in use are 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 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.

(32)In order to be in a position to take such measures the Commission should have the powers to prepare and implement a procedure for verifying the in-service conformity of the CO2 emissions of heavy-duty vehicles on the market. For that purpose Regulation (EC) No 595/2009 should be amended.

(33)The effectiveness of the targets set out in this Regulation in reducing CO2 emissions is strongly dependent on the representativeness of the methodology used for determining the CO2 emissions. In line with the Opinion of the Scientific Advice Mechanism (SAM) 27 as regards light duty vehicles, 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 emissions and energy consumption values determined pursuant to Regulation (EU) 2017/2400. The Commission should have the powers to ensure the public availability of such data and, where necessary, develop the procedures needed for identifying and collecting the data required for such assessments.

(34)In 2022, the Commission should assess the effectiveness of the CO2 emission standards laid down in this Regulation and in particular the level of the reductions to be achieved by 2030, the modalities that should be available for achieving that target and beyond, as well as the setting of CO2 reduction targets to other types of heavy-duty vehicles such as smaller lorries, buses, coaches and trailers. That assessment should also include, strictly for the purpose of this Regulation, considerations of heavy-duty vehicles and vehicle combinations beyond standard weights and dimensions applicable to national transport, for example Modular Concepts.

(35)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 legislation that affect those values need 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.

(36)The implementing powers relating to Articles 8(3), 9(3), 11(3) and 12(2), should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council 28 .

(37)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 of the Functioning of the European Union should be delegated to the Commission in respect of adjusting the reference CO2 emissions pursuant to Article 12(2) and in respect of amending Annexes I and II as regards certain technical parameters, including the weightings of the mission profiles, the payloads, and the annual mileages as well as 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 29 . 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.

(38)Since the objectives of this Regulation, namely the establishment of CO2 emissions performance standards for new heavy-duty vehicles, cannot be achieved by the Member States, and can therefore, 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 the 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,

HAVE ADOPTED THIS REGULATION:

Article 1
Subject matter and objective

In order to contribute to fulfilling the Union’s target of reducing its greenhouse gas emissions by 30% below 2005 levels in 2030 in the sectors covered by Article 2 of Regulation (EU) No 2018/…[Effort Sharing Regulation], and to achieving the objectives of the Paris Agreement and to ensure the proper functioning of the internal market, this Regulation sets CO2 emission performance standards for new heavy-duty vehicles whereby the specific CO2 emissions of the Union's fleet of new heavy-duty vehicles shall be reduced compared to the reference CO2 emissions as follows:

(a)From 1 January 2025 to 31 December 2029 by 15%;

(b)From 1 January 2030 onwards by at least 30% subject to the review pursuant to Article 13.

The reference CO2 emissions shall be based on the 2019 monitoring data reported pursuant to Regulation (EU) No …/2018 [HDV M&R], excluding vocational vehicles, and shall be calculated in accordance with Point 3 of Annex I.

Article 2
Scope

1.This Regulation shall apply to new vehicles of the categories N2 and N3 that meet the following characteristics:

(a)rigid lorries with an axle configuration of 4x2 and a technically permissible maximum laden mass exceeding 16 tons;

(b)rigid lorries with an axle configuration of 6x2;

(c)tractors with an axle configuration of 4x2 and a technically permissible maximum laden mass exceeding 16 tons;

(d)tractors with an axle configuration of 6x2.

It shall also apply, for the purposes of Article 5 and point 2.3 of Annex I, to vehicles of the categories M2 and M3, and to vehicles of the 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).

2.The vehicles referred to paragraph 1 shall, for the purposes of this Regulation, be considered as new heavy-duty vehicles in a given calendar year, if they are registered in the Union for the first time in that year and have not been previously registered outside the Union.

A previous registration outside the Union made less than three months before registration in the Union shall not be taken into account.

Article 3
Definitions

For the purposes of this Regulation, the following definitions shall apply:

(a)‘reference CO2 emissions’ means the average of the specific emissions in 2019 of all new heavy-duty vehicles in each of the vehicle sub-groups, excluding vocational vehicles, determined in accordance with point 3 of Annex I;

(b)‘specific emissions’ means the CO2 emissions of an individual heavy-duty vehicle determined in accordance with point 2.1 of Annex I;

(c)‘average specific emissions’ means the average of the specific emissions of a manufacturer’s new heavy-duty vehicles in a given calendar year determined in accordance with point 2.7 of Annex I;

(d)‘specific emission target’ means the target of an individual manufacturer, expressed in g/tkm and determined annually for the preceding calendar year in accordance with point 4 of Annex I;

(e)‘rigid lorry’ means a lorry that is not designed or constructed for the towing of a semi-trailer’;

(f)‘tractor’ means a tractor unit that is designed and constructed exclusively or principally to tow semi-trailers;

(g)‘vehicle sub-group’ means a grouping of vehicles as defined in Point 1 of Annex I, that are characterised by a common and distinctive set of technical criteria relevant for determining the CO2 emissions and fuel consumption of those vehicles;

(h)‘vocational vehicle’ means a heavy-duty vehicle not intended for the delivery of goods and for which the CO2 emissions and fuel consumption have been determined, in accordance with Regulation (EC) No 595/2009 and its implementing measures, only for other mission profiles than those defined in point 2.1 of Annex I to this Regulation;

(i)'manufacturer' means the person or body responsible for submitting the data relating to new heavy-duty vehicles pursuant to Article 5 of Regulation (EU) No …/2018 or, in the case of zero-emission heavy-duty vehicles, the person or body responsible to the approval authority for all aspects of the EC whole vehicle type-approval procedure or of the individual approval in accordance with Directive 2007/46/EC and for ensuring conformity of production;

(j)'zero emission heavy-duty vehicle’ means a heavy-duty vehicle without an internal combustion engine, or with an internal combustion engine that emits less than 1 g CO2/kWh as determined pursuant to Regulation (EC) No 595/2009 and its implementing measures, or which emits less than 1 g CO2/km as determined pursuant to Regulation (EC) No 715/2007 and its implementing measures;

(k)‘low-emission heavy-duty vehicle’ means a heavy-duty vehicle, which is not a zero emission heavy-duty vehicle, with specific CO2 emissions of less than 350 g CO2/km as determined pursuant to point 2.1 of Annex I;

(l)‘mission profile’ means a combination of a target speed cycle, a payload value, a body or trailer configuration and other parameters, if applicable, reflecting the specific use of a vehicle, on the basis of which official CO2 emissions and fuel consumption of a heavy-duty vehicle are determined;

(m)'target speed cycle" means the description of the vehicle velocity, which the driver wants to reach or to which he is limited by traffic conditions, as a function of the distance covered in a trip;

(n)‘payload’ means the weight of the goods or of persons that a vehicle is carrying under different conditions.

Article 4
Average specific emissions of a manufacturer

Starting from 2020 and in each subsequent calendar year, the Commission shall, by means of implementing acts referred to in Article 10(1), determine for each manufacturer the average specific CO2 emissions in g/tkm for the preceding calendar year, by taking into account the following:

(a)the data reported pursuant to Regulation (EU) No …/2018 [monitoring & reporting HDV] for the manufacturer’s new heavy-duty vehicles registered in the relevant year, excluding vocational vehicles;

(b)the zero- and low-emission factor determined in accordance with Article 5.

The average specific emissions shall be calculated in accordance with Point 2.7 of Annex I.

Article 5
Zero- and low-emission heavy-duty vehicles

1.Starting from 2020 and for each subsequent calendar year, the Commission shall, by means of implementing acts referred to in Article 10(1), determine for each manufacturer the zero- and low-emission factor referred to in Article 4(b) for the preceding calendar year.

The zero- and low-emission factor shall take into account the number and the CO2 emissions of zero- and low-emission heavy-duty vehicles in the manufacturer’s fleet in a calendar year, including zero- emission vehicles of the categories referred to in the second sub-paragraph of Article 2(1), as well as zero- and low-emission vocational vehicles.

The zero- and low-emission factor shall be calculated in accordance with point 2.3 of Annex I.

2.For the purpose of paragraph 1, the zero- and low-emission heavy-duty vehicles shall be counted as follows:

(a)a zero-emission heavy-duty vehicle shall be counted as 2 vehicles;

(b)a low-emission heavy-duty vehicle shall be counted as up to 2 vehicles according to a function of its specific CO2 emissions and the threshold emission level of 350 g CO2/km.

3.The zero- and low-emission factor shall reduce the average specific emissions of a manufacturer by a maximum of 3% . The contribution of zero-emission heavy-duty vehicles of the categories referred to in the second sub-paragraph of Article 2(1) to that factor shall reduce the average specific emissions of a manufacturer by a maximum of 1.5%.

Article 6
Manufacturer specific emission targets

Starting from 2026 and for each subsequent calendar year, the Commission shall, by means of implementing acts referred to in Article 10(1), determine for each manufacturer a specific emission target for the preceding calendar year. The specific emission target shall be the sum over all vehicle-subgroups of the products of the following values:

(a)the CO2 reduction target referred to in Article 1 (a) or (b), as applicable;

(b)the CO2 reference emissions;

(c)the manufacturer’s share of vehicles in each vehicle sub-group;

(d)the annual mileage and payload weighting factors applied to each sub-group.

The specific emission target shall be calculated in accordance with Point 4 of Annex I.

Article 7
Emission credits and debts

1.For the purpose of determining a manufacturer’s compliance with its specific emission targets in the period 2025 to 2029, account shall be taken of its emission credits or emission debts, which correspond to the number of new heavy-duty vehicles, excluding vocational vehicles, of the manufacturer in a calendar year, multiplied by the difference between:

(a)the CO2 reduction trajectory referred to in paragraph 2 and the average specific emissions of a manufacturer, if the difference is positive (’emission credits’);

(b)the average specific emissions and the specific emission target of a manufacturer, if that difference is positive (’emission debts’).

Emission credits shall be acquired over the period 2019 to 2029. However, the credits acquired over the period 2019 to 2024 shall be taken into account for the purpose of determining the manufacturer’s compliance with the 2025 specific emission target only.

Emission debts shall be acquired over the period 2025 to 2029, but the total debt shall not exceed 5% of the manufacturer’s specific emission target in 2025 multiplied by the number of heavy-duty vehicles of the manufacturer in that year (‘emission debt limit’).

Emission credits and debts acquired in 2025 and any of the subsequent calendar years until 2028 shall, where available, be carried-over from one calendar year to another until 2029 when any remaining emission debts shall be cleared.

2.The CO2 reduction trajectory referred to in paragraph 1(a) shall be set for each manufacturer in accordance with point 5.1 of Annex I, based on a linear trajectory between the reference CO2 emissions referred to in the second sub-paragraph of Article 1 and the 2025 target specified in point (a) of that Article, and between the 2025 target and the 2030 target specified in point (b) of that Article.

Article 8
Compliance with the specific emission targets

1.Where a manufacturer is found to have excess emissions pursuant to paragraph 2 in a given calendar year from 2025 onwards, the Commission shall impose an excess emission premium calculated in accordance with the following formula:

(Excess emission premium) = (Excess emissions x 6 800 €/gCO2/tkm)

2.A manufacturer shall be deemed to have excess emissions in any of the following cases:

(a)Where, in any of the calendar years from 2025 to 2028, the sum of the emission debts reduced by the sum of the emission credits exceeds the emission debt limit referred to in Article 7(1);

(b)In the calendar year 2029, where the sum of the emission debts reduced by the sum of the emission credits exceeds zero;

(c)In the calendar years from 2030 onwards, where the manufacturer's average specific emissions exceed its specific emission target.

The excess emissions in a given calendar year shall be calculated in accordance with Point 6 of Annex I.

3.The Commission shall determine the means for collecting excess emissions premiums under paragraph 1 by means of implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 14(2).

4.The amounts of the excess emissions premium shall be considered as revenue for the general budget of the Union.

Article 9
Verification of the monitoring data

1.Type approval authorities shall, without delay, report to the Commission deviations found in the CO2 emissions of heavy-duty vehicles in service as compared to those values that are indicated in certificates of conformity or in the customer file as a result of verifications performed in accordance with the procedure referred to in [Article 5(4)(l)] of Regulation (EC) No 595/2009.

2.The Commission shall take those deviations into account for the purpose of calculating the average specific emissions of a manufacturer.

3.The Commission shall adopt detailed rules on the procedures for reporting such deviations and for taking them into account in the calculation of the average specific emissions. Those procedures shall be adopted by way of implementing acts in accordance with the examination procedure referred to in Article 14(2).

Article 10
Publication of data and manufacturer performance

1.The Commission shall, by means of implementing acts to be adopted by 31 October each year, publish a list indicating:

(a)from 2020, for each manufacturer its average specific emission of CO2 in the preceding calendar year, referred to in Article 4;

(b)from 2020, the zero- and low-emission factor, referred to in Article 5;

(c)from 2026, for each manufacturer its specific emission target for the preceding calendar year, referred to in Article 6;

(d)from 2020 until 2030, for each manufacturer its CO2 reduction trajectory, its emission credits and, from 2026, its emission debts in the preceding year, referred to in Article 7;

(e)from 2026, for each manufacturer its excess emissions in the preceding calendar year, referred to in Article 8;

(f)from 2020, the average of the specific emissions of CO2 of all new heavy-duty vehicles registered in the Union in the preceding calendar year.

The list shall, for the publication by 31 October 2020, include the reference CO2 emissions referred to in Article 1.

2.The Commission shall adopt delegated acts in accordance with Article 15 to adjust the reference CO2 emissions referred to in paragraph 1 of this Article in accordance with the following:

(a)where the payload values have been adjusted pursuant to Article 12(1)(c), in accordance with the procedure set out in Point 1 of Annex II;

(b)where an adjustment factor has been determined pursuant to Article 12(2), by applying that adjustment factor to the reference CO2 emissions.

The Commission shall publish the adjusted reference CO2 emission values and shall apply those values for the calculation of the manufacturer specific emission targets applicable in the calendar years following the entry into force of the delegated acts adjusting the values.

Article 11
Real-world CO2 emissions and energy consumption

1.The Commission shall monitor and assess the real-world representativeness of the CO2 emissions and fuel consumption values determined in accordance with Regulation (EU) 2017/2400. It shall ensure that the public it informed of how that representativeness evolves over time.

2.For that purpose, the Commission shall ensure the availability, from manufacturers or national authorities, as the case may be, of robust non-personal data on real-world CO2 emissions and energy consumption of heavy-duty vehicles.

3.The Commission may adopt, by means of implementing acts, the measures referred to in paragraphs 1 and 2 of this Article. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 14(2).

Article 12
Adjustments to Annexes I and II

1.In order to ensure that the technical parameters used for the calculation of the average specific emissions of a manufacturer pursuant to Article 4 and the calculation of the specific emission targets pursuant to Article 6 take into account technical progress and the evolution of freight transport logistics, the Commission shall be empowered to adopt delegated acts in accordance with Article 15 to amend the following provisions set out in Annexes I and II

(a)The entries for cab type and engine power set out in Table 1 of Annex I and the definitions of ‘sleeper cab’ and ‘day cab’ referred to in that Table;

(b)The mission profile weights set out in Table 2 of Annex I;

(c)The payload values set out in Table 3 of Annex I, and the payload adjustment factors set out in Table 1 of Annex II;

(d)The annual mileage values set out in Table 4 of Annex I.

2.Where the type-approval procedures laid down in Regulation (EC) No 595/2009 and its implementing measures are modified so that the level of the CO2 emissions of the representative vehicles defined pursuant to this paragraph increase or decrease by more than 5 g CO2/km, the Commission shall, in accordance with Article 10(2)(b), apply an adjustment to the reference CO2 emissions referred to in Article 11(1) that shall be calculated in accordance with the formula set out in Point 2 of Annex II.

The Commission shall, by way of implementing acts adopted in accordance with the examination procedure set out in Article 14(2), establish a methodology for defining one or more representative vehicles of a vehicle sub-group, including their statistical weightings, on the basis of which that adjustment shall be determined, taking into account the monitoring data reported pursuant to Regulation (EU) No …/2018 and the technical characteristics of the vehicles listed in Article 12(1) of Regulation (EU) 2017/2400.

Article 13
Review and report

By 31 December 2022, the Commission shall submit a report to the European Parliament and the Council on the effectiveness of this Regulation, the CO2 reduction target to be determined for 2030 pursuant to Article 1 and the setting of CO2 reduction targets to other types of heavy-duty vehicles including trailers. That report shall also include an assessment of the effectiveness of the modalities addressing, in particular, zero- and low-emission vehicles, notably buses taking into account the targets set out in Directive 2009/33/EC 30 , and the CO2 credit system and the appropriateness of prolonging the application of those modalities in 2030 and beyond and, where appropriate, be accompanied by a proposal for amending this Regulation.

Article 14
Committee procedure

1.The Commission shall be assisted by the xxx Committee established by Regulation (EU) No …/2018 [Governance]. That Committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

2.Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

3.Where the Committee delivers no opinion, the Commission shall not adopt the draft implementing act and the third subparagraph of Article 5(4) of Regulation (EU) No 182/2011 shall apply.

Article 15
Exercise of the delegation

1.The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

2.The power to adopt delegated acts referred to Articles 10(2) and 12(1) shall be conferred on the Commission for an indeterminate period of time from [the date of entry into force of this Regulation].

3.The delegation of power referred to in Articles 10(2) and 12(1) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated act already in force.

4.Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016.

5.As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and the Council.

6.A delegated act adopted pursuant to Articles 10(2) and 12(1) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended to two months at the initiative of the European Parliament or of the Council.

Article 16
Amendment to Regulation (EC) No 595/2009

In Article 5(4) of Regulation (EC) No 595/2009 the following paragraph (l) is added:

‘(l)a procedure to verify, on the basis of appropriate and representative samples, whether vehicles that have been registered and entered into service are in conformity with the CO2 emissions and fuel consumption values determined pursuant to this Regulation and its implementing measures;’

Article 17
Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union 

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

LEGISLATIVE FINANCIAL STATEMENT

1.    FRAMEWORK OF THE PROPOSAL/INITIATIVE

   1.1.    Title of the proposal/initiative

   1.2.    Policy area(s) concerned in the ABM/ABB structure

   1.3.    Nature of the proposal/initiative

   1.4.    Objective(s)

   1.5.    Grounds for the proposal/initiative

   1.6.    Duration and financial impact

   1.7.    Management mode(s) planned

2.    MANAGEMENT MEASURES

   2.1.    Monitoring and reporting rules

   2.2.    Management and control system

   2.3.    Measures to prevent fraud and irregularities

3.    ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

   3.1.    Heading(s) of the multiannual financial framework and expenditure budget line(s) affected

   3.2.    Estimated impact on expenditure 

   3.2.1.    Summary of estimated impact on expenditure

   3.2.2.    Estimated impact on operational appropriations

   3.2.3.    Estimated impact on appropriations of an administrative nature

   3.2.4.    Compatibility with the current multiannual financial framework

   3.2.5.    Third-party contributions

   3.3.    Estimated impact on revenue

LEGISLATIVE FINANCIAL STATEMENT

1.FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.Title of the proposal/initiative

1.2.Policy area(s) concerned in the ABM/ABB structure 31  

1.3.Nature of the proposal/initiative

☑ The proposal/initiative relates to a new action 

◻ The proposal/initiative relates to a new action following a pilot project/preparatory action 32  

◻ The proposal/initiative relates to the extension of an existing action 

◻ The proposal/initiative relates to an action redirected towards a new action 

1.4.Objective(s)

1.4.1.The Commission's multiannual strategic objective(s) targeted by the proposal/initiative

1.4.2.Specific objective(s) and ABM/ABB activity(ies) concerned

1.4.3.Expected result(s) and impact

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted.

1.4.4.Indicators of results and impact

Specify the indicators for monitoring implementation of the proposal/initiative.

1.5.Grounds for the proposal/initiative

1.5.1.Requirement(s) to be met in the short or long term

1.5.2.Added value of EU involvement

1.5.3.Lessons learned from similar experiences in the past

1.5.4.Compatibility and possible synergy with other appropriate instruments

1.6.Duration and financial impact

◻ Proposal/initiative of limited duration

–◻    Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY

–◻    Financial impact from YYYY to YYYY

☑ Proposal/initiative of unlimited duration

–Implementation with a start-up period from 2019 for unlimited duration.

–followed by full-scale operation.

1.7.Management mode(s) planned 39  

☑ Direct management by the Commission

–☑ by its departments, including by its staff in the Union delegations;

–◻    by the executive agencies

◻ Shared management with the Member States

◻ Indirect management by entrusting budget implementation tasks to:

–◻ third countries or the bodies they have designated;

–◻ international organisations and their agencies (to be specified);

–◻the EIB and the European Investment Fund;

–◻ bodies referred to in Articles 208 and 209 of the Financial Regulation;

–◻ public law bodies;

–◻ bodies governed by private law with a public service mission to the extent that they provide adequate financial guarantees;

–◻ bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that provide adequate financial guarantees;

–◻ persons entrusted with the implementation of specific actions in the CFSP pursuant to Title V of the TEU, and identified in the relevant basic act.

–If more than one management mode is indicated, please provide details in the ‘Comments’ section.

Comments

2.MANAGEMENT MEASURES

2.1.Monitoring and reporting rules

Specify frequency and conditions.

2.2.Management and control system

2.2.1.Risk(s) identified

2.2.2.Information concerning the internal control system set up

2.2.3.Estimate of the costs and benefits of the controls and assessment of the expected level of risk of error

2.3.Measures to prevent fraud and irregularities

Specify existing or envisaged prevention and protection measures.

3.ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

3.1.Heading(s) of the multiannual financial framework and expenditure budget line(s) affected

·Existing budget lines

In order of multiannual financial framework headings and budget lines.

·New budget lines requested

In order of multiannual financial framework headings and budget lines.

3.2.Estimated impact on expenditure

[This section should be filled in using the spreadsheet on budget data of an administrative nature (second document in annex to this financial statement) and uploaded to CISNET for interservice consultation purposes.]

3.2.1.Summary of estimated impact on expenditure

EUR million (to three decimal places)

If more than one heading is affected by the proposal / initiative:

The requested operational appropriations under Heading 2 will be allocated from the available LIFE programme envelope (under the sub-programme for Climate Action).

EUR million (to three decimal places)

EUR million (to three decimal places)

3.2.2.Estimated impact on operational appropriations

–◻    The proposal/initiative does not require the use of operational appropriations

–☑    The proposal/initiative requires the use of operational appropriations, as explained below:

Commitment appropriations in EUR million (to three decimal places)

3.2.3.Estimated impact on appropriations of an administrative nature

3.2.3.1.Summary

–◻    The proposal/initiative does not require the use of appropriations of an administrative nature

–☑    The proposal/initiative requires the use of appropriations of an administrative nature, as explained below:

EUR million (to three decimal places)

The appropriations required for human resources and other expenditure of an administrative nature will be met by appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.

3.2.3.2.Estimated requirements of human resources

–◻    The proposal/initiative does not require the use of human resources.

–☑    The proposal/initiative requires the use of human resources, as explained below:

Estimate to be expressed in full time equivalent units

XX is the policy area or budget title concerned.

The human resources required will be met by staff from the DG who are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.

Description of tasks to be carried out:

3.2.4.Compatibility with the current multiannual financial framework

–☑    The proposal/initiative is compatible the current multiannual financial framework.

–◻    The proposal/initiative will entail reprogramming of the relevant heading in the multiannual financial framework.

–◻    The proposal/initiative requires application of the flexibility instrument or revision of the multiannual financial framework.

3.2.5.Third-party contributions

–The proposal/initiative does not provide for co-financing by third parties.

–The proposal/initiative provides for the co-financing estimated below:

Appropriations in EUR million (to three decimal places)

3.3.Estimated impact on revenu e

–☑    The proposal/initiative has no financial impact on revenue.

–◻    The proposal/initiative has the following financial impact:

on own resources

on miscellaneous revenue

EUR million (to three decimal places)

For miscellaneous ‘assigned’ revenue, specify the budget expenditure line(s) affected.

Specify the method for calculating the impact on revenue.

(1)    COM(2017) 676 final

(2)    SWD (2017) 650 final

(3)    Commission Regulation (EU) 2017/2400 on the determination of carbon dioxide emissions and fuel consumption of HDV

(4)    COM(2017) 0279 final

(5)    Directive 2011/76/EU

(6)    Directive 2009/30/EC

(7)    Directive 2009/33/EC

(8)    Directive 2015/719/EU

(9)    Directive 2014/94/EU

(10)    COM(2015) 080 final

(11)    COM(2016) 482 final

(12)    COM(2017) 479 final

(13)    “Heavy Duty Vehicles - support for preparation of impact assessment for CO2", study for the Commission by TNO, TUG, CE Delft and ICCT, report to be published;

(14)    "Heavy Duty Vehicles CO2 Emission Reduction Cost Curves and Cost Assessment – enhancement of the DIONE model", JRC, to be published

(15)    Commission Regulation (EU) 2017/2400 on the determination of carbon dioxide emissions and fuel consumption of HDV

(16)    COM(2017) 0279 final

(17)    OJ C , , p. .

(18)    OJ C , , p. .

(19)    Europe on the Move: An agenda for a socially fair transition towards clean, competitive and connected mobility for all, COM(2017) 283 final

(20)    Delivering on low-emission mobility A European Union that protects the planet, empowers its consumers and defends its industry and workers, COM(2017) 675 final

(21)    Investing in a smart, innovative and sustainable Industry A renewed EU Industrial Policy Strategy, COM(2017) 0479 final

(22)    Regulation (EU) No …/… of the European Parliament and of the Council setting emission performance standards for new passenger cars and for light commercial vehicles as part of the Union’s integrated approach to reduce CO2 emission from light duty vehicles and amending Regulation (EC) No 715/2007, (OJ L, …,…, p. ).

(23)    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

(24)    Commission Regulation (EU) 2017/2400 of 12 December 2017 implementing Regulation (EC) No 595/2009 of the European Parliament and of the Council as regards the determination of the CO2 emissions and fuel consumption of heavy-duty vehicles and amending Directive 2007/46/EC of the European Parliament and of the Council and Commission Regulation (EU) No 582/2011, OJ L 349, 29.12.2017, p. 1.

(25)    Regulation (EU) No …/2018 of the European Parliament and of the Council on the monitoring and reporting of CO2 emissions from and fuel consumption of new heavy-duty vehicles, OJ L..,…,…

(26)    Directive 2009/33/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of clean and energy-efficient road transport vehicles as amended by Directive …/…/EU [COM(2017) 653 final] (OJ L 120, 15.5.2009, p. 5).

(27)    High Level Group of Scientific Advisors, Scientific Opinion 1/2016 “Closing the gap between light-duty vehicle real-world CO2 emissions and laboratory testing”

(28)    Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L, 55, 28.2.2011, p. 13).

(29)    OJ L 123, 12.5.2016, p. 1.

(30)    Clean Vehicle Directive 2009/33/EC as amended by Directive …/…/EU

(31)    ABM: activity-based management; ABB: activity-based budgeting.

(32)    As referred to in Article 54(2)(a) or (b) of the Financial Regulation.

(33)    AirBase is the European air quality database maintained by the EEA through its European topic center on Air pollution and Climate Change mitigation. It contains air quality monitoring data and information submitted by participating countries throughout the Union. The air quality database consists of a multi-annual time series of air quality measurement data and statistics for a number of air pollutants.

(34)    Commission Regulation (EU) 2017/2400

(35)    COM(2017) 0279 final

(36)    Directive 2011/76/EU

(37)    Directive 2015/719/EU

(38)    Directive 2009/33/EC

(39)    Details of management modes and references to the Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html

(40)    Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations.

(41)    EFTA: European Free Trade Association.

(42)    Candidate countries and, where applicable, potential candidate countries from the Western Balkans.

(43)    Services concerned are as follows: DG CLIMA, DG GROW, JRC

(44)    Year N is the year in which implementation of the proposal/initiative starts.

(45)    Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research.

(46)    Year N is the year in which implementation of the proposal/initiative starts.

(47)    Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.).

(48)    As described in point 1.4.2. ‘Specific objective(s)…’

(49)    Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research.

(50)    AC= Contract Staff; AL = Local Staff; END= Seconded National Expert; INT = agency staff; JED= Junior Experts in Delegations.

(51)    Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines).

(52)    As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. gross amounts after deduction of 25 % for collection costs.

EUROPEAN COMMISSION

Brussels, 17.5.2018

COM(2018) 284 final

ANNEXES

to the

Proposal for a regulation of the European Parliament and of the Council

setting CO2 emission performance standards for new heavy-duty vehicles

{SEC(2018) 233 final}
{SWD(2018) 185 final}
{SWD(2018) 186 final}

ANNEX I
Calculation of the average specific emissions, the average specific emission target and excess emissions

1.vehicle sub-groups

Each new heavy-duty vehicle shall be attributed to one of the sub-groups defined in Table 1 in accordance with the conditions set out therein.

Table 1 – Vehicle sub-groups (sg)

"Sleeper cab" means a type of cab that has a compartment behind the driver's seat intended to be used for sleeping as reported in accordance with Regulation (EU) No …/2018 [HDV M&R].

"Day cab" means a type of cab that is not a sleeper cab.

If a new heavy-duty vehicle cannot be attributed to a vehicle sub-group because information on the cab type or engine power is not available, it shall be attributed to the long-haul (LH) sub-group corresponding to its chassis type (rigid lorry or tractor) and axle configuration (4x2 or 6x2).

Where a new heavy-duty vehicle is attributed to sub-group 4-UD, but data on the CO2 emissions in g/km are not available for the UDL or UDR mission profiles as defined in Table 2 of Section 2, the new heavy-duty vehicle shall be attributed to the sub-group 4-RD.

2.Calculation of the average specific emissions of a manufacturer

2.1.Calculation of the specific CO2 emissions of a new heavy-duty vehicle

The specific emissions in g/km (CO2v) of a new heavy-duty vehicle v, attributed to a sub-group sg shall be calculated in accordance with the following formula:

Where,

       is the sum is over all mission profiles mp listed in Table 2;

sg    is the sub-group to which the new heavy-duty vehicle v has been attributed according to Section 1 of this Annex;

Wsg,mp,     is the mission profile weight specified in Table 2;

CO2v,mp    is the CO2 emissions in g/km of a new heavy-duty vehicle v determined for a mission profile mp and reported in accordance with Regulation (EU) No …/2018 [HDV M&R]

The specific CO2 emissions of a zero-emission heavy-duty vehicle shall be set to 0 g CO2/km.

The specific CO2 emissions of a vocational vehicle shall be the average of the CO2 emissions in g/km reported in accordance with Regulation (EU) No …/2018 [HDV M&R].

Table 2 - Mission profile weights (Wsg,mp)

1Mission profile definitions

2.2.Average specific CO2 emissions of all new heavy-duty vehicles in a sub-group for a manufacturer

For each manufacturer and each calendar year, the average specific CO2 emissions in g/tkm () of all new heavy-duty vehicles in a sub-group sg shall be calculated as follows:

Where,

   is the sum over all new heavy-duty vehicles of the manufacturer in the sub-group sg excluding all vocational vehicles in accordance with Article 4(a).

CO2v    is the specific CO2 emissions of a new heavy-duty vehicle v determined in accordance with point 2.1;

Vsg    is the number of new heavy-duty vehicles of the manufacturer in subgroup sg excluding all vocational vehicles in accordance with Article 4(a);

PLsg    is the average payload of vehicles in the sub-group sg as determined in point 2.5.

2.3.Calculation of the zero- and low-emission factor as referred to in Article 5

For each manufacturer and calendar year, the zero- and low-emission factor (ZLEV) referred to in Article 5 shall be calculated as follows:

ZLEV = V / (Vconv + Vzlev)     with a minimum of 0,97

Where:

V    is the number of new heavy-duty vehicles of the manufacturer excluding all vocational vehicles in accordance with Article 4(a).

Vconv    is the number of new heavy-duty vehicles of the manufacturer excluding all vocational vehicles in accordance with Article 4(a) and excluding zero- and low-emission heavy-duty vehicles;

Vzlev        is the sum of Vin and Vout,

   Where,

with being the sum over all new zero- and low-emission heavy-duty vehicles with the characteristics set out in Article 2(1)(a) to (d);

CO2v    is the specific CO2 emissions in g/km of a zero- and low-emission heavy-duty vehicle v determined in accordance with point 2.1.

Vout     is the total number of zero-emission heavy-duty vehicles of the categories referred to in in the second sub-paragraph of Article 2(1), multiplied by 2 , and with a maximum of 1,5% of Vconv. 

2.4.Calculation of the manufacturer’s share of vehicles in a sub-group

For each manufacturer and each calendar year, the share of new heavy-duty vehicles in a sub-group sharesg shall be calculated as follows:

Where,

Vsg    is the number of new heavy-duty vehicles of the manufacturer in a subgroup sg excluding all vocational vehicles in accordance with Article 4(a);

V    is the number of new heavy-duty vehicles of the manufacturer excluding all vocational vehicles in accordance with Article 4(a).

2.5.Calculation of the average payload values of all vehicles in a sub-group

The average payload value PLsg of a vehicle in a sub-group sg shall be calculated as follows:

Where,

   is the sum over all mission profiles mp

Wsg,mp, is the mission profile weight specified in Table 2 under point 2.1

PLsg,mp    is the payload value attributed to the vehicles in the sub-group sg for the mission profile mp, as specified in Table 3.

Table 3 - Payload values PL sg, mp (in tons)

1 See mission profile definitions under Table 2 of point 1

2.6.Calculation of the mileage and payload weighting factor

The mileage and payload weighting factor (MPWsg) of a sub-group sg is defined as the product of the annual mileage specified in Table 4 and the payload value per sub-group specified in Table 3 of point 2.5, normalised to the respective value for sub-group 5-LH, and shall be calculated as follows:

Where,

AMsg    is the annual mileage specified in Table 4 for the vehicles in the respective sub-group

AM5-LH    is the annual mileage specified for the sub-group 5-LH in Table 4

PLsg    is as determined in point 2.5

PL5-LH    is the payload value specified for the sub-group 5-LH in Table 3 of point 2.5.

Table 4 - Annual mileages

2.7.Calculation of the average specific CO2 emissions in g/tkm of a manufacturer referred to in Article 4

For each manufacturer and each calendar year, the average specific CO2 emissions in g/tkm (CO2) shall be calculated as follows:

CO2 = ZLEV × ∑ sg share,sg × MPWsg × avgCO2sg 

       Where,

∑ sg        is the sum is over all sub-groups;

       ZLEV        is as determined in point 2.3

       share,sg        is as determined in point 2.4

       MPWsg        is as determined in point 2.6

       avgCO2sg    is as determined in point 2.2

3.Calculation of the reference CO2 emissions referred to in Article 1

The reference CO2 emissions (rCO2sg) shall be calculated for each sub-group sg on the basis of all new heavy-duty vehicles of all manufacturers of the year 2019 as follows:

Where,

   is the sum over all new heavy-duty vehicles registered in the year 2019 in the sub-group sg excluding all vocational vehicles in accordance with the second sub-paragraph of Article 1;    

CO2v    are the specific CO2 emissions of the vehicle v as determined in accordance with point 2.1, if applicable adjusted pursuant to Annex II;

rVsg    is the number of all new heavy-duty vehicles registered in the year 2019 in the sub-group sg excluding all vocational vehicles in accordance with the second sub-paragraph of Article 1;

PLsg    is the average payload of vehicles in the sub-group sg as determined in point 2.5.

4.Calculation of the specific emission target of a manufacturer referred to in Article 6

For each manufacturer and each calendar year, from 2025 on, the specific emission target T shall be calculated as follows:

T = ∑ sg sharesg × MPWsg × (1 - rf) × rCO2sg 

       Where,

       ∑ sg        is the sum over all sub-groups;

sharesg        is as determined in point 4 of Section 2;

MPWsg        is as determined point 6 of Section 2;

rf    is the CO2 reduction target (in %) as specified in Article 1(a) and (b) for the specific calendar year;

rCO2sg        is as determined in Section 3.

5.Emission credits and debts referred to in Article 7

5.1.Calculation of the CO2 reduction trajectory for emission credits

For each manufacturer and each calendar year Y in the period 2019 to 2029, a CO2 emission trajectory (ETY) is defined as follows:

ET,Y = ∑ sg sharesg × MPWsg × R-ETY × rCO2sg 

Where,

∑ sg (…)    is the sum over all sub-groups;

share,sg    is as determined in point 4 of Section 2;

MPWsg    is as determined point 6 of Section 2;

rCO2sg    is as determined in Section 3;

Where,

for the calendar years Y from 2019 to 2025:

R-ETY, = (1-rf2025)+ rf2025 × (2025 – Y)/6

and, for the calendar years Y from 2026 to 2030:

R-ETY = (1-rf2030 ) + (rf2030 - rf2025) × (2030 – Y)/5 

rf2025 and rf2030 are the CO2 reduction targets (in %) for 2025 and 2030 as specified in Article 1(a) and (b), respectively.

5.2.Calculation of the emission credits and debts in each calendar year

For each manufacturer and each calendar year Y in the period 2019 to 2029, the emission credits (cCO2Y) and emission debts (dCO2Y) shall be calculated as follows:

If CO2Y < ETY:

cCO2Y = (ETY – CO2Y) × Vy    and

dCO2Y = 0

If CO2Y > TY for the years 2025 to 2029:

   dCO2Y = (CO2Y - TY) × VY    and

cCO2Y = 0 

In all other cases dCO2Y and cCO2Y are set to 0.

Where,

ETY     is the manufacturer’s emission trajectory in the calendar year Y determined in accordance with point 5.1;

CO2Y    is the average specific emissions in the calendar year Y determined in accordance with point 2.7;

TY     is the manufacturer specific emission target in the calendar year Y determined in accordance with Section 4;

VY    is the number of new heavy-duty vehicles of the manufacturer in the calendar year Y excluding all vocational vehicles in accordance with Article 4(a).

5.3.Emission debt limit

For each manufacturer the emission debt limit (limCO2) is defined as follows:

limCO2 = T2025 × 0,05 × V2025

Where

T2025     is the manufacturer specific emission target for 2025 determined in accordance with Section 4;

V2025    is the number of new heavy-duty vehicles of the manufacturer in 2025 excluding all vocational vehicles in accordance with Article 4(a).

5.4.Emission credits acquired before the year 2025

Emission debts acquired in the year 2025 shall be reduced by an amount (redCO2) corresponding to the emission credits acquired prior to 2025, which is determined for each manufacturer as follows:

Where,

min    is the minimum of the two values mentioned between the brackets;

   is the sum over the calendar years 2019 to 2024;

dCO22025    is the emission debts for 2025 as determined in accordance with point 5.2;

cCO2Y        is the emission credits for the calendar year Y as determined in accordance with point 5.2.

6.Determination of a manufacturer’s excess emissions referred to in Article 8(2)

For each manufacturer and each calendar year from 2025 onwards the value of the excess emissions (exeCO2Y) shall be determined as follows, if the value is positive:

For the year 2025

For the years Y from 2026 to 2028

For the year 2029

For the years Y from 2030 onwards

exeCO2y = (CO2Y - TY) x VY        

Where,

   is the sum over the calendar years 2019 to 2025;

   is the sum over the calendar years 2025 to Y;

   is the sum over the calendar years 2025 to (Y-1);

   is the sum over the calendar years 2025 to 2028;

   is the sum over the calendar years 2025 to 2029;

dCO2Y    is the emission debts for the calendar year Y as determined in accordance with point 5.2;

cCO2Y    is the emission credits for the calendar year Y as determined in accordance with point 5.2;

limCO2        is the emission debt limit as determined in accordance with point 5.3;

redCO2    is the reduction of emission debts of the year 2025 as determined in accordance with 5.4.

In all other cases the value of the excess emissions exeCO2Y shall be set to 0.

ANNEX II

Adjustment procedures

1.Payload adjustment factors referred to in Article 12(1)(c)

Subject to the provisions laid down in Article 10(2)(a), for the purposes of calculating the reference CO2 emissions referred to in Article 1, the CO2 emissions in g/km of a heavy-duty vehicle v determined for a mission profile mp referred to in Table 2 in point 2.1 of Annex I shall be adjusted as follows:

CO2v,mp = CO2(2019)v,mp x (1+ PLasg,mp x (PLsg,mp – PL(2019)sg,mp))

Where

sg            is the sub-group to which the vehicle v belongs;    

CO2(2019)v,mp    is the specific CO2 emissions of vehicle v in g/km, as determined on mission profile mp and based on the 2019 monitoring data reported in accordance with Regulation (EU) No …/2018 [HDV M&R] ;

PL(2019)sg, mp    is the payload value, which was attributed to vehicles in the sub-group sg on the mission profile mp in the calendar year 2019, in accordance with Table 3 of point 2.5 of Annex I, for the purposes of establishing the 2019 monitoring data reported in accordance with Regulation (EU) No …/2018 [HDV M&R];

PLsg, mp    is the payload value attributed to vehicles in the sub-group sg on the mission profile mp  in the calendar year when the changes referred to in Article 12(1)(c) take effect for all new heavy-duty vehicles, in accordance with Table 3 of point 2.5 of Annex I;    

PLasg, mp    is the payload adjustment factor defined in Table 5.

Table 5 - Payload adjustment factors PLa sg, mp 

   1 see mission profile definitions in point 1 of Section 2 of Annex I.

2.Adjustment factors referred to in Article 10(2)(b)

Subject to the provisions laid down in Article 10(2)(b), for the purposes of calculating the reference CO2 emissions referred to in Article 1 the CO2 emissions in g/km of a heavy-duty vehicle v determined for a mission profile mp referred to in point 2.1 of Annex I shall be adjusted as follows:

CO2v,mp = CO2(2019)v,mp x (∑ r s r,sg x CO2(2019)r,mp )/ (∑ r s r,sg x CO2r,mp )

Where

∑ r    is the sum over all representative vehicles r for the sub-group sg;

sg            is the sub-group to which the vehicle v belongs;

s r,sg            is the statistical weight of the representative vehicle r 

           in the sub-group sg;

CO2(2019)v,mp    is the specific CO2 emissions of vehicle v in g/km, as determined on mission profile mp and based on the 2019 monitoring data reported in accordance with Regulation (EU) No …/2018 [HDV M&R] ;

CO2(2019)r,mp    is the specific CO2 emissions of the representative vehicle r in g/km, as determined on mission profile mp in accordance with this Regulation in its version applicable in 2019;

CO2r,mp    is the specific CO2 emissions of the representative vehicle r, as determined in accordance with this Regulation in the calendar year when the changes referred to in Article 12(2) take effect for all new heavy-duty vehicles.

The representative vehicle shall be defined in accordance with the methodology referred to in Article 12(2)