European Parliament backs stricter CO2 targets for trucks and buses

European Parliament members endorsed strengthened EU CO2 emission standards for new heavy-duty vehicles, proposing a 90% reduction from 2040 and zero-emission urban buses from 2030. The tightening of commercial-vehicle standards signals decarbonisation pressure on a sector relevant to Indian truck and bus manufacturers exporting to or operating in the EU.

Members of the European Parliament endorsed Environment Committee proposals to strengthen EU CO2 emission standards for new heavy-duty vehicles, including buses, trucks, and trailers. The report was adopted with 48 votes in favour, 36 against, and one abstention. On 14 February 2023 the Commission introduced a legislative proposal establishing CO2 standards for heavy-duty vehicles from 2030. Heavy-duty vehicles are responsible for over 25% of greenhouse gas emissions from road transport in the EU and contribute to more than 6% of the EU's total greenhouse gas emissions.

The proposals affect manufacturers of medium and heavy trucks, vocational vehicles such as waste collection trucks, tipper trucks, and concrete mixers, and bus producers. MEPs propose CO2 reduction targets of 45% for 2030-2034, 70% for 2035-2039 (above the Commission's proposed 65%), and 90% from 2040. All newly registered urban buses should be zero-emission from 2030, with a possible temporary exemption until 2035 for biomethane-powered urban buses under strict conditions related to refuelling infrastructure and fuel source.

Manufacturers should monitor the report's progression: MEPs are expected to adopt it in the second November 2023 plenary session, forming Parliament's negotiating position with EU governments on the final legislation. The proposals also establish an annual Zero-Emission HDVs Forum to support recharging and refuelling infrastructure deployment, and ask the Commission by the end of 2026 to explore a methodology for reporting full lifecycle CO2 emissions for new heavy-duty vehicles, which producers should track.

Key figure — Proposed CO2 reduction target: 90% for heavy-duty vehicles from 2040