EN   EN 
 
 
 EUROPEAN  
COMMISSION   
Brussels, 14.7.2021  
SWD(2021) 614 final  
 
COMMISSION STAFF WORKING DOCUMENT  
 
EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT REPORT  
 
Accompanying the document  
PROPOSAL FOR A REGULATION OF THE EUROPEAN PARLIAMENT AND OF 
THE COUNCIL  
amending Regulation (EU) 2019/631 as regards strengthening the CO2 emission 
performance standards for new passenger cars and new light commercial vehicles in line 
with the Union’s increased climate ambition          
          
 
{COM(2021)  556 final}  - {SEC(2021)  556 final}  - {SWD(2021)  188 final}  -
 {SWD(2021)  613 final}   
 
 Executive Summary Sheet  
Impact assessment on the Revision of the CO 2 emission performance standards for new passenger cars and 
new light commercial vehicles   
A. Need for action  
What is the problem and why is it a problem at EU level?  
Three key problems have been identified at the EU level: (1) light -duty vehicles contribute insufficiently 
to the at least 55% GHG reductions in 2030 and climate neutrality in 2050; (2) consumers risk missing out 
on the benefits of zero -emission vehicles; and (3) the automotive value chain in the EU is at risk of losing 
its technological leadership. The impact assessment also outlines the drivers behind these problems, and 
the most affected stakeholders.  
What should be achieved?  
The initiative aims to achieve the following specific objectives: (1) contribute to the 2030 at least 55% 
GHG emission reduction target and to the 2050 climate neutrality objective, by reducing CO 2 emission 
from cars and vans cost -effectively; (2) provide benefits for consumers and citizens from wider 
deployment of zero -emission vehicles; (3) stimulate innovation in zero -emission technologies, thus 
strengthening the technological leadership of the EU automotive value chain and stimulating employment.  
What is the value added of a ction at the EU level (subsidiarity)?   
Climate change is a transboundary problem where coordinated EU action supplements and reinforces 
national and local action effectively. Without further EU action, national and local initiatives alone are 
likely to be  insufficient, and they risk fragmenting the internal market. EU action would provide the entire 
automotive value chain with the necessary long -term, stable market signal and regulatory certainty needed 
for large capital investments necessary to deploy zer o-emission vehicles.  
B. Solutions  
What are the various options to achieve the objectives?  Is there a preferred option or not? If not, 
why?  
Various policy options were explored, grouped in three main categories: (i) levels, timing and modalities 
for the CO 2 emission targets for cars and vans; (ii) specific incentive for zero - and low -emission vehicles 
(ZLEV); (iii) mechanism to take into account the potential contribution of renewable and low -carbon fuels 
for the purpose of target compliance assessment. U nder the preferred option, the CO 2 emission target 
levels for cars and vans (% reduction compared to 2021) are significantly strengthened as of 2030, 
decreasing in five -year steps. The possible excess emissions premium revenues remain part of the general 
EU budget. The current specific incentive mechanism for ZLEV is removed as of 2030. No mechanism to 
account for the potential contribution of renewable and low -carbon fuels is introduced.  
What are different stakeholders' views? Who supports which option?  
Based on the results of the OPC, as regards the CO 2 target levels, vehicle manufacturers called for no 
changes to the current targets set for 2025. For 2030 and beyond, the ambition level would need to depend 
on the enabling conditions. Public authoritie s and NGOs in general supported setting more ambitious 
targets for 2025 and 2030 and new targets for 2035 and 2040. Environmental NGOs called for a zero -
emission target at the latest by 2035. As regards the timing of the targets, vehicle manufacturers supp orted 
the continuation of a 5 -year steps approach. Environmental NGOs called for annually decreasing targets or 
an interim target to be set in 2027. Concerning the incentive mechanism for ZLEV, manufacturers 
expressed the view that it should be maintained in its current form. Environmental NGOs called for 
removing this incentive scheme as soon as the share of electric vehicles reaches a certain level. Fuel 
 
 producers and component suppliers expressed the view that compliance assessment should take into 
account emission reductions due to the use of renewable and low -carbon fuels . Environmental NGOs 
argued against this accounting.   
C. Impacts of the preferred  option  
What are the benefits  of the preferred option (if any, otherwise of main ones)?                                      
The preferred option contributes significantly to the CO 2 emission reductions for cars and vans. The 
projected emission reductions for this sector as compared to 2005 are in the range 32 -33% in 2030, 56 -
66% in 2035 and 83 -89% in 2040. It will also contribute to lower air pollutant emissions: the estimated 
cumulative cost of the avoided pollutants comp ared to the baseline in the period 2030 to 2040 amounts to 
49 to 59 billion euros. Consumer benefits in terms of average net savings in total cost of ownership, 
averaged over the EU -wide new vehicle fleet,  for a 2030 car are up to 330 -600 EUR and for a 203 0 van up 
to 340 -600, for the first user. They increase to around 2800 -3100 EUR for a 2040 car and around 5200 -
5500 EUR for a 2040 van. Net savings also occur for the second user. Societal benefits over the lifetime 
are in the range 860 -1600 EUR for a 2030 car, and 1000 -1200 EUR for a 2030 van. They increase to 
around 4600 -5100 EUR for a 2040 car and 5600 -6400 EUR for a 2040 van. Over the period 2030 to 2050, 
cumulative savings of diesel and gasoline in the range 913 -1100 Mtoe are achieved with respect to th e 
baseline, reducing the import dependency of the EU economy.  Economy -wide GDP and employment are 
impacted positively. In particular, the number of jobs increases in 2030, and even more in 2040. However, 
a loss in jobs related to the production of componen ts for conventional engines is projected, so the 
reskilling of workers in the sector will be needed to facilitate the transition.   
What are the costs of the preferred option (if any, otherwise of main ones)?                                     
Costs for automotive manufacturers increase, as additional technologies need to be deployed in the new 
vehicle fleet to meet the stricter CO 2 targets. For a 2030 new vehicle, additional costs, averaged over the 
EU-wide new vehicle fleet,  are in the range of 300 -550 EUR (cars) and 450 -940 EUR (vans). They 
increase to a range of 1400 -1700 EUR for a 2040 car and around 2300 -2700 EUR for a 2040 van.  
What are the impacts on SMEs and competitiveness?  
The analysis shows positive economic impacts, including for SMEs. SMEs using vans will largely benefit 
from fuel savings. While SMEs producing conventional automotive technologies may need to adjust, they 
will also benefit from new opportunities from the a dditional demand for new technologies.  
Will there be significant impacts  on national budgets and administrations?   
While the overall GDP impacts will be positive, the fuel duty revenue loss in 2030 is estimated at around 
0.01% of the EU -27 GDP. These lo sses can be balanced at the Member State level, for example through 
indirect taxation. There are no additional administrative impacts on national administrations.  
Will there be other significant impacts?   
An ambitious, cost -effective long -term regulatory  framework for CO 2 emissions from cars and vans will 
provide predictability and help the EU automotive industry to retain its technological leadership.  
Proportionality?   
The proposed action is proportionate to achieve the climate objectives that the EU has committed to.  
D. Follow up  
When will the policy be reviewed?  
A review of the effectiveness of the new legislation will be foreseen, aligned with the review of other 
legislation such as in the proposal for ETS and the Effort Sharing Regulation.