Making Cars Greener: New Rules for Emissions and Labels

What the problem is

• Road transport is a big source of climate‑change gases: in 2023 it made up about 30 % of the EU’s net CO₂ emissions (and 24 % of all greenhouse‑gas emissions).
• The EU wants to cut total emissions by at least 55 % by 2030 and reach net‑zero by 2050.
• The current rule that sets CO₂ limits for new cars and vans (Regulation (EU) 2019/631) is becoming too strict and inflexible.
• It forces manufacturers to meet very tight targets mainly with zero‑emission vehicles, leaving little room for other technologies.
• Light commercial vehicles (vans) face extra hurdles that slow the uptake of electric vans.
• Consumers do not yet get clear, harmonised information about a vehicle’s environmental performance, especially for electric and hybrid cars.

How the problem is being solved

• The Commission proposes a new regulation that amends the CO₂‑standard rule and replaces Directive 1999/94/EC with a modern vehicle‑labelling rule.
• Key technical changes:
• Targets – vans must cut CO₂ by 40 % (vs. 2021 baseline) by 2030 and cars and vans by 90 % by 2035.
• Flexibility – manufacturers can use a 3‑year “multi‑annual compliance” period, receive super‑credits for small electric cars made in the EU (counted as 1.3 vehicles), and use credits for sustainable renewable fuels and low‑carbon steel.
• Technology neutrality – the rule now allows off‑vehicle‑charging hybrid electric vehicles (OVC‑HEV) and other non‑zero‑emission powertrains to help meet targets.
• Vehicle labelling – a new, harmonised label will show the CO₂ class (A–G), combined fuel and electric consumption, range, and a QR code that links to a public product database.
• Digital database – the Commission will set up a database that holds all the data needed for the labels and is available to the public within 12 months of the regulation taking effect.

What changes as a result of this document

• Regulation (EU) 2019/631 is amended to include the new targets, flexibilities, and labelling provisions.
• Directive 1999/94/EC is repealed and replaced by the new vehicle‑labelling regulation.
• New annexes (Annex I, Annex IIIa) add detailed rules for CO₂ credits, low‑carbon steel, fuel credits, and the label format.
• The regulation will be binding in all Member States from the 20th day after it is published in the Official Journal.
• No new budget is required; the proposal uses existing EU resources.
• Stakeholder consultation results (963 responses on CO₂ standards, 39 on labelling, 1,115 public comments) were taken into account, and the preferred option gives manufacturers more flexibility while keeping the overall climate ambition.
• The new rule will help the EU automotive sector (worth €1 trillion of GDP and employing 3 million people) stay competitive while moving toward zero‑emission mobility.