(1)

The Paris Agreement, adopted in December 2015 under the United Nations Framework Convention on Climate Change (UNFCCC) entered into force in November 2016 (‘the Paris Agreement’). Its Parties have agreed to hold the increase in the global average temperature well below 2 oC above pre-industrial levels and to pursue efforts to limit the temperature increase to 1,5  oC above pre-industrial levels.

(1)

The Paris Agreement, adopted in December 2015 under the United Nations Framework Convention on Climate Change (UNFCCC) entered into force in November 2016 (‘the Paris Agreement’). Its Parties have agreed to hold the increase in the global average temperature well below 2 oC above pre-industrial levels and to pursue efforts to limit the temperature increase to 1,5  oC above pre-industrial levels. By adopting the Glasgow Climate Pact in November 2021, its Parties recognised that keeping the increase in the global average temperature to 1,5  oC above pre-industrial levels would significantly reduce the risks and impacts of climate change, and committed to strengthen their 2030 targets by the end of 2022 in order to accelerate climate action in this critical decade and to close the ambition gap with the 1,5  oC target.

(2)

Tackling climate and environmental-related challenges and reaching the objectives of the Paris Agreement are at the core of the Communication on the ‘European Green Deal’, adopted by the Commission on 11 December 2019 (23). The necessity and value of the European Green Deal have only grown in light of the very severe effects of the COVID-19 pandemic on the health and economic well-being of the Union’s citizens.

(2)

Tackling climate and environmental-related challenges and reaching the objectives of the Paris Agreement are at the core of the Communication on the ‘European Green Deal’, adopted by the Commission on 11 December 2019 (23). The European Parliament called, in its resolution of 15 January 2020 on the European Green Deal, for the necessary transition to a climate-neutral society by 2050 at the latest and, in its resolution of 28 November 2019 on the climate and environment emergency, declared a climate and environment emergency. The necessity and value of the European Green Deal have only grown in light of the very severe effects of the COVID-19 pandemic on the health and economic well-being of the Union’s citizens.

(3)

The European Green Deal combines a comprehensive set of mutually reinforcing measures and initiatives aimed at achieving climate neutrality in the EU by 2050, and sets out a new growth strategy that aims to transform the Union into a fair and prosperous society, with a modern, resource-efficient and competitive economy where economic growth is decoupled from resource use. It also aims to protect, conserve and enhance the Union's natural capital, and protect the health and well-being of citizens from environment-related risks and impacts. At the same time, this transition affects women and men differently and has a particular impact on some disadvantaged groups, such as older people, persons with disabilities and persons with a minority racial or ethnic background. It must therefore be ensured that the transition is just and inclusive, leaving no one behind.

(3)

The EU aims to set out by 2050 a new growth strategy focused on transforming the Union into a fair and prosperous society, with a modern, resource-efficient and competitive economy, with vibrant industries, that remain world-leaders in their respective segments, and global innovation drivers, while securing high-paid quality jobs in the Union. It also aims to protect, conserve and enhance the Union's natural capital, and protect the health and well-being of citizens from environment-related risks and impacts. In that sense, the 8th Environmental Action Programme running until 2030 sets out the objective of accelerating the green transition to a climate-neutral, sustainable, nontoxic, resource-efficient, renewable energy-based, resilient and competitive circular economy in a just, equitable and inclusive way and of protecting, restoring and improving the state of the environment, supporting and building upon the set of measures and initiatives announced under the European Green Deal . At the same time, this transition affects women and men differently and has a particular impact on some disadvantaged and vulnerable groups, such as older people, persons with disabilities and persons with a minority racial or ethnic background , and individuals and households with a low or lower than average income. In addition, the transition will affect regions of the Union differently, especially structurally disadvantaged, peripheral and outermost regions. It must therefore be ensured that the transition is just and inclusive, leaving no one behind.

(5)

In Regulation (EU) [--] of the European Parliament and of the Council (24) the Union has enshrined the target of economy-wide climate neutrality by 2050 in legislation. That Regulation also establishes a binding Union domestic reduction commitment of net greenhouse gas emissions (emissions after deduction of removals) of at least 55 % below 1990 levels by 2030.

(5)

In Regulation (EU) 2021/1119 of the European Parliament and of the Council (24) the Union has enshrined the target of reducing emissions to net zero at the latest by 2050 and the aim to achieve negative emissions thereafter in legislation. That Regulation also establishes a binding domestic Union intermediate climate target of at least a 55 % net greenhouse gas emissions reduction ( i.e. emissions after deduction of removals) below 1990 levels by 2030.

(6)

All sectors of the economy are expected to contribute to achieving those emission reductions, including the road transport sector.

(6)

All sectors of the economy are expected to contribute to achieving those emission reductions, including the road transport sector. The transport sector is the only sector where emissions have been on the rise since 1990. This includes road transport with light-duty and heavy-duty vehicles, which together account for over 70 % of total transport emissions.

(6a)

It is vital that individual mobility remain accessible and affordable for all, especially for commuters without access to quality public transport or other mobility solutions.

(6b)

At the 2021 UN Climate Change Conference in Glasgow, UK, known as COP26, a commitment was adopted to accelerate the global transition to zero emission vehicles. They also committed to the transition to be just and sustainable, so that no region or community is left behind and highlighted the importance of ensuring a just transition of the workforce and the creation of decent work and quality jobs.

(7)

The measures set out in this Regulation are necessary as part of a coherent and consistent framework that is indispensable for achieving the overall objective of the Union to reduce net greenhouse gas emissions.

(7)

The measures set out in this Regulation are necessary as part of a coherent and consistent framework that is indispensable for achieving the overall objective of the Union to reduce net greenhouse gas emissions , as well as the Union’s dependence on imported fossil fuels, including oil imports that were worth EUR 227,5 billion in 2018 alone, which remains the predominant energy consumed by cars and vans (94 %) . While phasing out oil consumption, it is crucial not to shift from one dependency to another. In order to ensure the future viability of the European manufacturing industry and to strengthen the Union's strategic autonomy, it is essential that the Commission works together with Member States and industrial stakeholders to secure the supply chain in the strategic materials and rare earths needed for zero- and low-carbon technologies.

(7a)

While the review of this Regulation forms part of efforts to meet the environmental objectives of decarbonising road transport in order to combat climate change, it should also take into account the significant industrial and social consequences of that process to ensure employment and accessible mobility for all.

(8)

In order to achieve a reduction in net greenhouse gas emissions of at least 55 % by 2030 compared to 1990, it is necessary to strengthen the reduction requirements set out in Regulation (EU) 2019/631 of the European Parliament and of the Council (25) for both passenger cars and light commercial vehicles. A clear pathway also needs to be set for further reductions beyond 2030 to contribute to achieving the climate neutrality objective by 2050. Without ambitious action on greenhouse gas emission reductions in road transport, higher emission reductions would be needed in other sectors, including sectors where decarbonisation is more challenging.

(8)

In order to achieve a reduction in net greenhouse gas emissions of at least 55 % by 2030 compared to 1990 , and to provide a clear pathway towards that target and contribute to the necessary emission reductions before 2030 , it is necessary to strengthen the reduction requirements set out in Regulation (EU) 2019/631 of the European Parliament and of the Council (25) for both passenger cars and light commercial vehicles. A clear pathway also needs to be set for further reductions beyond 2030 to contribute to achieving the climate neutrality objective by 2050. If that objective is to be met, it will be necessary to reduce emissions in the transport sector by about 90 %, according to the most cost-efficient scenario, whereas, greenhouse gas emissions are currently growing only in the transport sector. In parallel, it is of utmost importance that complementary Union legislative acts, such as Directive (EU) 2018/2001  (25a) , ensure a swift deployment of renewable energy so that the Union car fleet can be powered by additional renewable electricity. Without ambitious action on greenhouse gas emission reductions in road transport, higher emission reductions would be needed in other sectors, including sectors where decarbonisation is more challenging. The digital and green transitions should also address the importance of the social dimension to ensure a mobility accessible for all, including the impact of energy taxation on affordability, the direct and indirect effect of higher energy prices on transport in different Union regions, as well as the industrial consequences to ensure employment and industry’s competitiveness.

(8a)

Recent studies suggest that battery electric vehicles are already competitive with conventional cars in several car segments when considering the total cost of ownership. Increased CO2 standards for passenger cars and light-commercial vehicles will accelerate the reduction of the total cost of ownership of battery electric vehicles, making them more attractive for all consumer groups across the Union than vehicles equipped with combustion engines. More ambitious CO2 standards for passenger cars and light-commercial vehicles for the period from 2025 to 2030 will also accelerate the decarbonisation of the second-hand market in all car segments, with greater benefits for lower- and middle-income consumers.

(9)

The strengthened CO2 emission reduction requirements should incentivise an increasing share of zero-emission vehicles being deployed on the Union market whilst providing benefits to consumers and citizens in terms of air quality and energy savings, as well as ensuring that innovation in the automotive value chain can be maintained. Within the global context, also the EU automotive chain must be a leading actor in the on-going transition towards zero-emission mobility. The strengthened CO2 emission reduction standards are technology neutral in reaching the fleet-wide targets that they set. Different technologies are and remain available to reach the zero-emission fleet wide target. Zero-emission vehicles currently include battery electric vehicles, fuel-cell and other hydrogen powered vehicles, and technological innovations are continuing. Zero and low-emission vehicles, which also include well performing plug-in hybrid electric vehicles, can continue to play a role in the transition pathway.

(9)

The strengthened CO2 emission reduction requirements should incentivise an increasing share of zero-emission vehicles being deployed on the Union market whilst providing benefits to consumers and citizens in terms of air quality , strengthening energy security and efficiency, and the associated energy savings, as well as ensuring that innovation in the automotive value chain can be maintained. Within the global context, also the EU automotive chain must be a leading actor in the on-going transition towards zero-emission mobility. The strengthened CO2 emission reduction standards are technology neutral in reaching the fleet-wide targets that they set. Different technologies are and remain available to reach the zero-emission fleet wide target. Zero-emission vehicles currently include battery electric vehicles, fuel-cell and other hydrogen powered vehicles, while technological innovations are continuing. Zero and low-emission vehicles, which also include well performing plug-in hybrid electric vehicles, as long as accurate and complete data on the emission performance of those types of vehicles is guaranteed, can continue to play a role in the transition pathway.

(10a)

Technological innovation is a pre-requisite for decarbonising mobility in the Union, and should therefore be supported. In the face of increased international competition, the Union and Member States should continue their efforts to explore and develop initiatives that promote the synergies in the sector, such as the European Battery Alliance, and support public and private investment in European automotive research and innovation. This should aim to maintain European technological leadership in that sector, to develop industrial excellence in the technologies of the future in the Union and to ensure the long-term sustainability and competitiveness of its industrial base.

(10b)

Certain Member States have declared plans to accelerate the introduction of zero-emission vehicles by setting a phase-out date for CO2-emitting new passenger cars and light commercial vehicles placed on the market in their territories prior to the date laid down at Union level. The Commission should identify options in order to facilitate Member States’ transition to zero-emission light-duty vehicles in line with such plans.

(10c)

Clear regulatory signals should allow manufacturers to deliver their investment decisions. The absence of such signals could create a risk that the automotive industry in the Union lose both competitiveness and technological leadership by not investing rapidly as well as market share in the global and home markets.

(10d)

Strengthening the social dialogue in the automotive sector is crucial to the process of negotiating and adopting the territorial just transition plans and national social climate plans at manufacturer, regional and sectoral levels. It is crucial to ensure the transformation of the labour force in a particular geographical area and in a way that reflects the region's possibilities.

(11)

The targets in the revised CO2 performance standards should be accompanied by a European strategy to address the challenges posed by the scale-up of the manufacturing of zero-emission vehicles and associated technologies, as well as the need for up- and re-skilling of workers in the sector and the economic diversification and reconversion of activities. Where appropriate, financial support should be considered at the level of the EU and Member States to crowd in private investment, including via the European Social Fund Plus, the Just Transition Fund, the Innovation Fund, the Recovery and Resilience Facility and other instruments of the Multiannual Financial Framework and the Next Generation EU, in line with State aid rules. The revised environmental and energy state aid rules will enable Member States to support business to decarbonize their production processes and adopt greener technologies in the context of the New Industrial Strategy.

(11)

The targets in the revised CO2 performance standards should be accompanied by a European strategy to address the challenges posed by the scale-up of the manufacturing of zero-emission vehicles and associated technologies while considering the specificities of each Member State , as well as the need for up- and re-skilling of workers in the sector and the economic diversification and reconversion of activities while maintaining automotive employment levels in the Union . Particular attention should be given to the impact that this transition will have on micro-enterprises and SMEs along the supply chain. Where appropriate, financial support should be allocated at the level of the EU and Member States to crowd in private investment, including via the European Social Fund Plus, the Just Transition Fund, the Innovation Fund, the European Regional Development Fund, the Cohesion Fund, the Recovery and Resilience Facility and other instruments of the Multiannual Financial Framework and the Next Generation EU, in line with State aid rules. Furthermore, a dedicated funding stream at Union level for the transition in the automotive sector would also be needed in order to address in particular any negative employment impacts. The revised environmental and energy state aid rules will enable Member States to support business to decarbonize their production processes and adopt greener technologies in the context of the New Industrial Strategy.

(12)

The updated New Industrial Strategy (26) foresees the co-creation of green and digital transition pathways in partnership with industry, public authorities, social partners and other stakeholders. In this context, a transition pathway should be developed for the mobility ecosystem to accompany the transition of the automotive value chain. The pathway should take particular heed of SMEs in the automotive supply chain, of the consultation of social partners including by Member States, and also build on the European Skills Agenda with initiatives like the Pact for Skills to mobilise the private sector and other stakeholders to up-skill and re-skill Europe’s workforce in view of the green and digital transitions. The appropriate actions and incentives at European and national level to boost the affordability of zero emission vehicles should also be addressed in the pathway. The progress made on this comprehensive transition pathway for the mobility ecosystem should be monitored every two years as part of a progress report to be submitted by the Commission, looking inter alia at the progress in the deployment of zero-emission vehicles, their price developments, deployment of alternative fuels development and infrastructure roll-out as required under the Alternative Fuels Infrastructure Regulation, the potential of innovative technologies to reach climate neutral mobility, international competitiveness, investments in the automotive value chain, up-skilling and re-skilling of workers and reconversion of activities. The progress report will also build on the two-year progress reports that Member States submit under the Alternative Fuels Infrastructure Regulation. The Commission should consult social partners in the preparation of the progress report, including the results in the social dialogue. Innovations in the automotive supply chain are continuing. Innovative technologies such as the production of electro-fuels with air capture, if further developed, could offer prospects for affordable climate neutral mobility. The Commission should therefore keep track of progress in the state of innovation in the sector as part of its progress report.

(12)

The updated New Industrial Strategy (26) foresees the co-creation of green and digital transition pathways in partnership with industry, public authorities, social partners and other stakeholders. In this context, a transition pathway should be developed for the mobility ecosystem to accompany the transition of the automotive value chain, in full transparency and in consultation with all stakeholders, including by considering the establishment of a specific forum for social dialogue in the automotive sector. The pathway should take particular heed of SMEs , including micro-enterprises, in the automotive supply chain, of the consultation of social partners including by Member States, and also build on the Council recommendation on ensuring a fair transition towards climate neutrality and on the European Skills Agenda with initiatives like the Pact for Skills to mobilise the private sector and other stakeholders to up-skill and re-skill Europe’s workforce in view of the green and digital transitions. The appropriate actions and incentives at European and national level to boost the affordability and sustainability of zero emission vehicles should also be addressed in the pathway. The role that public procurement can play in the pathway should also be addressed, and in that regard the Commission should consider a revision of Directive (EU) 2019/1161 of the European Parliament and of the Council  (26a) to ensure its alignment with the objectives of Regulation (EU) 2019/631. The progress made on this comprehensive transition pathway for the mobility ecosystem should be monitored every year as part of a progress report to be submitted by the Commission, looking inter alia at the progress in the deployment of zero-emission vehicles, their price developments and their energy consumption, impacts on consumers, deployment of alternative fuels development and infrastructure roll-out as required under the Alternative Fuels Infrastructure Regulation, development of the share of renewable energy as required under the Directive (EU) 2018/2001 of the European Parliament and of the Council  (26b) , the potential of innovative technologies to reach climate neutral mobility, international competitiveness, investments in the automotive value chain, up-skilling and re-skilling of workers and reconversion of activities especially in regions with a high percentage of jobs related to the automotive value chain, and emissions linked to the age of light-duty vehicles while considering actions aimed at a synchronous, socially-just and environmentally sound phase-out of older vehicles . The progress report will also build on the progress reports that Member States submit under the Alternative Fuels Infrastructure Regulation. The Commission should consult social partners in the preparation of the progress report, including the results in the social dialogue. The Commission should also consult with a wide range of independent experts, stakeholders and national and regional administrations in order to ensure a comprehensive knowledge base. Innovations in the automotive supply chain are continuing. Innovative technologies such as the production of electro-fuels with air capture and hydrogen cars with onboard hydrogen storage system technology , if further developed, could offer prospects for affordable climate neutral mobility. The Commission should therefore keep track of progress in the state of innovation in the sector as part of its progress report.

(12a)

Although this Regulation only applies to new passenger cars and new light commercial vehicles, it is important to include it in a more comprehensive Union-wide action plan to decarbonise the existing fleet in order to protect the environment and health of citizens in all Member States. The current fleet will remain a factor that contributes to environmental underperformance for an extended period into the future owing to the slow pace of fleet renewal. Moreover, the existing market of second hand polluting vehicles in Central and Eastern Europe creates the risk of shifting the pollution to less economically developed regions in the Union. Reaching the ambitious climate targets in 2050 should go hand in hand with the right of all Union citizens to cleaner air. To speed up the reduction of emissions from the existing fleet, it is of the utmost importance that the Commission put forward legislative measures without delay to establish a framework that is favourable to retrofitting and to promote use of currently available lowering CO2 emission technologies, such as low-carbon fuels or lights which consume less energy, to accelerate the modal shift for freight and passengers, to encourage more environmentally friendly transport habits, such as carpooling, soft mobility and public transport in cities, and to address the possible risk of automotive carbon leakage within the Union.

(12b)

To ensure alignment with the new Union's climate target for 2030, as well as with the strengthened CO2 standards, an update of Directive 2009/33/EC of the European Parliament and of the Council  (26a) should be put forward, including the possibility of extending its scope to include vehicles owned or leased by a private company of a certain fleet size, with the purpose of promoting to increase demand for zero-emission vehicles. Considering that vehicles from corporate fleets enter the private market faster, it would allow for a faster establishment of a second-hand market for zero-emission vehicles, which will be especially important for regions where the transition will prove more difficult, as well as it would contribute for faster price parity with conventional vehicles across the Union.

(13)

Those EU fleet-wide targets are to be complemented by the necessary roll-out of recharging and refuelling infrastructure as set out in Directive 2014/94/EU of the European Parliament and of the Council (27).

(13)

Those EU fleet-wide targets should be complemented by the necessary roll-out of recharging and refuelling infrastructure, which is crucial to meet the strengthened targets . For that reason, considering the weak and slow implementation of Directive 2014/94/EU of the European Parliament and of the Council (27) , the strengthened CO2 emission reduction targets should be accompanied by an ambitious Regulation on Alternative Fuels Infrastructure, providing for ambitious mandatory targets for the deployment of alternative fuels infrastructure throughout the 27 Member States . Those targets should be complemented by ambitious targets for the deployment of private charging points in buildings in Directive 2010/31/EU of the European Parliament and of the Council.  (27a) In that context, it is vital that investment in the necessary infrastructure deployment is continued and increased.

(13a)

Whereas there are more than one billion fossil fuel vehicles globally, responsible for more than 30 % of global CO2 emissions, the conversion of thermal vehicles to electric is a complementary solution to the offering of traditional manufacturers, making it possible to accelerate the ecological transition while relying on the circular economy;

(14)

Manufacturers should be provided with sufficient flexibility in adapting their fleets over time in order to manage the transition towards zero-emission vehicles in a cost-efficient manner, and it is therefore appropriate to maintain the approach of decreasing target levels in five-year steps .

(14)

Manufacturers should be provided with sufficient flexibility in adapting their fleets over time in order to manage the transition towards zero-emission vehicles in a cost-efficient manner, which supports their competitiveness and prepares the ground for further innovations, while considering the need to provide a clear trajectory for the roll-out of those vehicles, ensuring the contribution of the road transport sector to the Union's 2030 climate target.

(15)

With the stricter EU fleet-wide targets from 2030 onwards , manufacturers will have to deploy significantly more zero-emission vehicles on the Union market. In that context, the incentive mechanism for zero- and low-emission vehicles (‘ZLEV’) would no longer serve its original purpose and would risk undermining the effectiveness of Regulation (EU) 2019/631. The ZLEV incentive mechanism should therefore be removed as of 2030 . Before that date and therefore throughout this decade, the incentive mechanism for ZLEV will continue to support the deployment of vehicles with emissions from zero up to 50 g CO2/km, including battery electric vehicles, fuel-cell electric vehicles using hydrogen and well performing plug-in hybrid electric vehicles. After that date, plug-in hybrid electric vehicles continue to count against the fleet-wide targets that vehicle manufacturers must meet.

(15)

With the stricter EU fleet-wide targets, manufacturers will have to deploy significantly more zero-emission vehicles on the Union market. In that context, the incentive mechanism for zero- and low-emission vehicles (‘ZLEV’) would no longer serve its original purpose and would risk undermining the effectiveness of Regulation (EU) 2019/631. The ZLEV incentive mechanism should therefore be removed. Plug-in hybrid electric vehicles continue to count against the fleet-wide targets that vehicle manufacturers must meet.

(15a)

Under Regulation (EU) 2019/631, emission reductions achieved through innovations that are not accounted for in the type approval test are currently accounted for through eco-innovation credits, which can be counted towards the manufacturer’s reduction target. The emission reduction that can be claimed is currently capped at 7 g/km per manufacturer. That cap should be adjusted downwards in line with the stricter targets, to ensure that this system remains limited to true innovations and is not incentivising reduced ambitions regarding the sale of zero-emission vehicles.

(15b)

Supporting both technological and social innovation is an important element of encouraging a faster transition towards zero-emission mobility. Important funding is already available for innovation in the mobility ecosystem through different Union funding instruments, in particular Horizon Europe, InvestEU, the Regional Development Fund, the Cohesion Fund, the Innovation Fund, and the Recovery and Resilience Facility. While ambitious annual CO2 emission reduction targets are expected to spur innovation in the automotive supply chain, the primary objective of this Regulation is to deliver real, effective and verifiable CO2 emission reduction.

(16a)

The targets set under Regulation (EU) 2019/631 are partially achieved by the sales of Off-Vehicle Charging Hybrid Electric Vehicles (OVC-HEVs). The emissions of those vehicles are currently accounted through the use of a utility factor established by Commission Regulation (EU) 2017/1151  (1a) , which represents the share of distance travelled using the battery compared to the distance travelled using the combustion engine. However, that utility factor is not based on representative real-world data, but on an estimate. The Commission has been collecting real-world fuel consumption data through on-board fuel consumption meters in passenger cars since 1 January 2021, in accordance with Article 12(2) of Regulation (EU) 2019/631. The utility factor for OVC-HEVs should be revised without delay using that data in order to ensure that it reflects real driving emissions. The updated utility factor should apply from 2025 at the latest and should be kept under review to ensure that it remains representative of real emissions.

(18)

In order to ensure a fair distribution of the reduction effort, the two limit value curves for lighter and heavier light commercial vehicles should be adjusted to reflect the strengthened CO2 reduction targets.

(21)

In view of the increased overall greenhouse gas emissions reduction objectives and to avoid potential market distorting effects, the reduction requirements for all manufacturers present in the Union market should be aligned, except for those responsible for less than 1 000 new vehicles registered in a calendar year. Consequently, the possibility for manufacturers responsible for between 1 000 and 10 000 passenger cars or between 1 000 and 22 000 light commercial vehicles newly registered in a calendar year to apply for a derogation from their specific emission targets should cease from 2030 onwards.

(21)

In view of the increased overall greenhouse gas emissions reduction objectives and to avoid potential market distorting effects, the reduction requirements for all manufacturers present in the Union market should be aligned, except for those responsible for less than 1 000 new vehicles registered in a calendar year. Consequently, the possibility for manufacturers responsible for between 1 000 and 10 000 passenger cars or between 1 000 and 22 000 light commercial vehicles newly registered in a calendar year to apply for a derogation from their specific emission targets should cease from 2036 onwards.

(23)

The progress made under Regulation (EU) 2019/631 towards achieving the reduction objectives set for 2030 and beyond should be reviewed in 2026 . For this review, all aspects considered in the two yearly reporting should be considered.

(23)

The progress made under Regulation (EU) 2019/631 towards achieving the reduction objectives set for 2030 and beyond should be reviewed in 2027 . For this review, all aspects considered in the yearly reporting should be considered.

(23a)

It is important to assess the full life-cycle emissions of light-duty vehicles at Union level. To that end, the Commission should no later than 31 December 2023 develop a common Union methodology for the assessment and the consistent data reporting of the full life-cycle CO2 emissions of light duty vehicles that are placed on the Union market in order to obtain an overall view of their environmental impact. The Commission should adopt follow-up measures, including, where appropriate, legislative proposals to support Union progress towards its climate ambitions. It is furthermore important to develop a methodology to assess the overall environmental performance of vehicles, calculated not only in terms of CO2 emissions but also taking into account overall environmental footprints.

(24)

The possibility to assign the revenue from the excess emission premiums to a specific fund or relevant programme has been evaluated as required pursuant to Article 15(5) of Regulation (EU) 2019/631 , with the conclusion that this would significantly increase the administrative burden, while not directly benefit the automotive sector in its transition . Revenue from the excess emission premiums is therefore to continue to be considered as revenue for the general budget of the Union in accordance with Article 8(4) of Regulation (EU) 2019/631 .

(24)

The allocation of revenue from the excess emission premiums should be assigned to supporting the just transition towards a climate-neutral economy and, specifically, to mitigate any negative employment impacts of the transition in the automotive sector . The Commission should submit, where appropriate, a proposal to establish such a funding instrument. In doing so, consideration should be given in particular to affected regions and communities which might be more vulnerable due to the presence of an intensive automotive industry or because of their specific characteristics that make the transition to zero-emissions road transport more difficult, such as outermost regions .

(- a)

(a)

for the average emissions of the new passenger car fleet, an EU fleet-wide target equal to a 15 % reduction of the target in2021determined in accordance with point 6.1.1 of Part A of Annex I;

‘(a)

for the average emissions of the new passenger car fleet, an EU fleet-wide target equal to a 15 % reduction of the target in2021determined in accordance with point 6.1.1 of Part A of Annex I  as set in Regulation (EU) 2019/631 to respect production cycles ;’

(-aa)

(b)

for the average emissions of the new light commercial vehicles fleet, an EU fleet-wide target equal to a 15 % reduction of the target in 2021 determined in accordance with point 6.1.1 of Part B of Annex I.

‘(b)

for the average emissions of the new light commercial vehicles fleet, an EU fleet-wide target equal to a 15 % reduction of the target in 2021 determined in accordance with point 6.1.1 of Part B of Annex I  as set in Regulation (EU) 2019/631 .’

(c)

in paragraph 6, the words ‘From 1 January 2025,’ are replaced by ‘From 1 January 2025 to 31 December 2029,’,

(c)

paragraph 6 is deleted

(aa)

‘(aa)

“plug-in hybrid electric vehicle” or “PHEV” means a vehicle powered by a combination of an electric motor with a rechargeable battery and an internal combustion engine, which may operate together or separately.’

(ba)

‘(ba)

corporate vehicle’ means a vehicle owned or leased by a private company, as defined under Council Regulation (EC) No 2157/2001  (1a) and used for business purposes

(aa)

(ab)

(5a)

(6a)

(6 b)

—

5 g CO2/km from 2025;

—

4 g CO2/km from 2027;

—

2 g CO2/km from 2030 until and including 2034 .

(6c)

(6d)

(6e)

(a)

progress in the deployment of zero- and low-emission vehicles and in their affordability and energy efficiency;

(b)

the impacts on consumers, particularly those with low and medium incomes, and the pace of uptake of zero- and low-emission vehicles in those consumer segments, as well as the availability and scope of measures at Union, Member State and local levels to support this uptake;

(c)

the market for second-hand vehicles;

(d)

progress in achieving a sufficient roll-out of public and private recharging and refuelling infrastructure , including but not limited to progress in achieving the targets as required under the Alternative Fuels Infrastructure Regulation and the Directive 2010/31/EU of the European Parliament and of the Council  (1a) ;

(e)

progress in increasing the amount of renewable energy in the Union in line with Directive (EU) 2018/2001;

(f)

the potential contribution of innovation technologies and sustainable alternative fuels , including synthetic fuels, to reach climate neutrality in the transport sector ;

(g)

life-cycle emissions of new passenger cars and new light commercial vehicles placed on the market, using the methodology adopted in accordance with Article 7(10)

(h )

progress in social dialogue as well as aspects to further facilitate an economically viable and socially fair transition , taking into account employment and competitiveness, towards zero emission road mobility;

(i)

the impacts on employment, to be assessed through granular mapping of the development of jobs in the automotive industry and the effect on the regions where these industries are located, as well as measures, including financial measures, at Union, Member State or local level to mitigate socioeconomic impacts in those regions, including upskilling and reskilling programmes;

(k)

the potential contribution of additional national and Union measures aimed to lower the average age and thus the emissions of the light-duty vehicles fleet, such as measures to support the phase out of older vehicles in a socially just and environmentally sound manner;

(9 a)

(9a)

(9b)

(aa)

In Article 15, the following paragraph is inserted:

(ba)

paragraph 6 is replaced by the following:

(d)

point 6.2.2 is replaced by the following:

‘6.2.2

Specific emissions reference targets for 2030 to 2034 Specific emissions reference target = EU fleet-wide target2030 + α· (TM-TM0) Where, EU fleet-wide target2030 is as determined in accordance with point 6.1. 3 ; α is a2030 ,L where the average test mass of a manufacturer’s new light commercial vehicles is equal to or lower than TM0, and a2030,H where the average test mass of a manufacturer’s new light commercial vehicles is higher than TM0; where: a2030,L is C4932022EN15010120220608EN0019.000115021501P9_TC1-COD(2020)0350Position of the European Parliament adopted at first reading on 8 June 2022 with a view to the adoption of Regulation (EU) 2022/… of the European Parliament and of the Council amending Regulation (EU) 2018/1862 as regards the entry of information alerts into the Schengen Information System (SIS) on third-country nationals in the interest of the Union(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2022/1190.)C4932022EN33210120220609EN0027.000133313331P9_TC1-COD(2012)0060Position of the European Parliament adopted at first reading on 9 June 2022 with a view to the adoption of Regulation (EU) 2022/… of the European Parliament and of the Council on the access of third-country economic operators, goods and services to the Union’s public procurement and concession markets and procedures supporting negotiations on access of Union economic operators, goods and services to the public procurement and concession markets of third countries (International Procurement Instrument — IPI)(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2022/1031.) a2030,H is C4932022EN15010120220608EN0019.000115021501P9_TC1-COD(2020)0350Position of the European Parliament adopted at first reading on 8 June 2022 with a view to the adoption of Regulation (EU) 2022/… of the European Parliament and of the Council amending Regulation (EU) 2018/1862 as regards the entry of information alerts into the Schengen Information System (SIS) on third-country nationals in the interest of the Union(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2022/1190.)C4932022EN33210120220609EN0027.000133313331P9_TC1-COD(2012)0060Position of the European Parliament adopted at first reading on 9 June 2022 with a view to the adoption of Regulation (EU) 2022/… of the European Parliament and of the Council on the access of third-country economic operators, goods and services to the Union’s public procurement and concession markets and procedures supporting negotiations on access of Union economic operators, goods and services to the public procurement and concession markets of third countries (International Procurement Instrument — IPI)(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2022/1031.) average emissions2021 is as defined in point 6.2.1 TM is as defined in point 6.2.1 TM0 is as defined in point 6.2.1’

(d)

point 6.2.2 is replaced by the following:

‘6.2.2

Specific emissions reference targets for 2030 to 2034 Specific emissions reference target = EU fleet-wide target2030 + α· (TM-TM0) Where, EU fleet-wide target2030 is as determined in accordance with point 6.1. 2 ; α is a2030 where the average test mass of a manufacturer’s new light commercial vehicles is equal to or lower than TM0, and a 2021 where the average test mass of a manufacturer’s new light commercial vehicles is higher than TM0; where: a2030 is C4932022EN15010120220608EN0019.000115021501P9_TC1-COD(2020)0350Position of the European Parliament adopted at first reading on 8 June 2022 with a view to the adoption of Regulation (EU) 2022/… of the European Parliament and of the Council amending Regulation (EU) 2018/1862 as regards the entry of information alerts into the Schengen Information System (SIS) on third-country nationals in the interest of the Union(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2022/1190.)C4932022EN33210120220609EN0027.000133313331P9_TC1-COD(2012)0060Position of the European Parliament adopted at first reading on 9 June 2022 with a view to the adoption of Regulation (EU) 2022/… of the European Parliament and of the Council on the access of third-country economic operators, goods and services to the Union’s public procurement and concession markets and procedures supporting negotiations on access of Union economic operators, goods and services to the public procurement and concession markets of third countries (International Procurement Instrument — IPI)(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2022/1031.) a2021 is as defined in point 6.2.1 average emissions2021 is as defined in point 6.2.1 TM is as defined in point 6.2.1 TM0 is as defined in point 6.2.1’

(e)

point 6.2.3 is added:

‘6.2.3

Specific emissions reference targets for 2035 onwards Specific emissions reference target = EU fleet-wide target2035 + α· (TM-TM0) Where, EU fleet-wide target2035 is as determined in accordance with point 6.1.3; α is a2035 ,L where the average test mass of a manufacturer’s new light commercial vehicles is equal to or lower than TM0, and a2035 ,H where the average test mass of a manufacturer’s new light commercial vehicles is higher than TM0; where: a2035,L is C4932022EN15010120220608EN0019.000115021501P9_TC1-COD(2020)0350Position of the European Parliament adopted at first reading on 8 June 2022 with a view to the adoption of Regulation (EU) 2022/… of the European Parliament and of the Council amending Regulation (EU) 2018/1862 as regards the entry of information alerts into the Schengen Information System (SIS) on third-country nationals in the interest of the Union(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2022/1190.)C4932022EN33210120220609EN0027.000133313331P9_TC1-COD(2012)0060Position of the European Parliament adopted at first reading on 9 June 2022 with a view to the adoption of Regulation (EU) 2022/… of the European Parliament and of the Council on the access of third-country economic operators, goods and services to the Union’s public procurement and concession markets and procedures supporting negotiations on access of Union economic operators, goods and services to the public procurement and concession markets of third countries (International Procurement Instrument — IPI)(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2022/1031.) a2035,H is C4932022EN15010120220608EN0019.000115021501P9_TC1-COD(2020)0350Position of the European Parliament adopted at first reading on 8 June 2022 with a view to the adoption of Regulation (EU) 2022/… of the European Parliament and of the Council amending Regulation (EU) 2018/1862 as regards the entry of information alerts into the Schengen Information System (SIS) on third-country nationals in the interest of the Union(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2022/1190.)C4932022EN33210120220609EN0027.000133313331P9_TC1-COD(2012)0060Position of the European Parliament adopted at first reading on 9 June 2022 with a view to the adoption of Regulation (EU) 2022/… of the European Parliament and of the Council on the access of third-country economic operators, goods and services to the Union’s public procurement and concession markets and procedures supporting negotiations on access of Union economic operators, goods and services to the public procurement and concession markets of third countries (International Procurement Instrument — IPI)(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2022/1031.) average emissions2021 is as defined in point 6.2.1 TM is as defined in point 6.2.1 TM0 is as defined in point 6.2.1’

(e)

point 6.2.3 is added:

‘6.2.3

Specific emissions reference targets for 2035 onwards Specific emissions reference target = EU fleet-wide target2035 + α· (TM-TM0) Where, EU fleet-wide target2035 is as determined in accordance with point 6.1.3; α is a2035 where the average test mass of a manufacturer’s new light commercial vehicles is equal to or lower than TM0, and a 2021 where the average test mass of a manufacturer’s new light commercial vehicles is higher than TM0; where: a2035 is C4932022EN15010120220608EN0019.000115021501P9_TC1-COD(2020)0350Position of the European Parliament adopted at first reading on 8 June 2022 with a view to the adoption of Regulation (EU) 2022/… of the European Parliament and of the Council amending Regulation (EU) 2018/1862 as regards the entry of information alerts into the Schengen Information System (SIS) on third-country nationals in the interest of the Union(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2022/1190.)C4932022EN33210120220609EN0027.000133313331P9_TC1-COD(2012)0060Position of the European Parliament adopted at first reading on 9 June 2022 with a view to the adoption of Regulation (EU) 2022/… of the European Parliament and of the Council on the access of third-country economic operators, goods and services to the Union’s public procurement and concession markets and procedures supporting negotiations on access of Union economic operators, goods and services to the public procurement and concession markets of third countries (International Procurement Instrument — IPI)(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU) 2022/1031.) a2021 is as defined in point 6.2.1 average emissions2021 is as defined in point 6.2.1 TM is as defined in point 6.2.1 TM0 is as defined in point 6.2.1’

(ea)

In point 6.3.1 subparagraphs 1 and 2 are replaced by the following: