COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT Accompanying the document Proposal for a Regulation of the European Parliament and of the Council setting emission performance standards for new passenger cars and for the new light commercial vehicles as part of the Union's integrated approach to reduce CO2 emissions from light-duty vehicles and amending Regulation (EC) No 715/2007 (recast)
Date: 2017-11-08
Institutions: Directorate-General for Climate Action, European Commission
Subjects: air quality, commercial vehicle, energy consumption, environmental standard, greenhouse gas, motor car, motor vehicle, motor vehicle pollution, pollution control measures, reduction of gas emissions

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 8.11.2017  SWD(2017) 651 final  COMMISSION STAFF WORKING DOCUMENT  EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT  Accompanying the document Proposal for a Regulation of the European Parliament and of the Council setting emission performance standards for new passenger cars and for the new light commercial vehicles as part of the Union's integrated approach to reduce CO2 emissions from light-duty vehicles and amending Regulation (EC) No 715/2007 (recast) {COM(2017) 676 final}  - {SWD(2017) 650 final}  
 
 
Executive Summary Sheet 

Impact assessment on a recast Proposal for a Regulation setting CO2 emission performance standards for new 
passenger  cars  and  new  light  commercial  vehicles  and  repealing  Regulations  (EC)  No  443/2009  and  (EU)  No 
510/2011 

Why? What is the problem being addressed?  

A. Need for action 

The  current  Regulations  set  EU-wide  CO2  emissions  targets  for  new  cars  and  vans  until  2020/2021.  The 
standards  have  represented  a  fundamental  tool  to  push  for  innovation  and  investments  in  low  carbon 
technologies. They helped the EU automotive industry to maintain global technological leadership and to reduce 
CO2 emissions from new vehicles. Consumers have benefitted from lower fuel costs.  

However, the following key problems have been identified: 1) insufficient uptake of the most efficient vehicles, 
including  low-  and  zero-emission  vehicles,  to  meet  Paris  Agreement  commitments  and  to  improve  air  quality, 
notably in urban  areas; 2) consumers miss out on possible fuel savings; 3) risk of losing the EU's  competitive 
advantage due to insufficient innovation in low- emission automotive technologies over the long term. 

What is this initiative expected to achieve?  

The initiative expects to: 1) contribute to the achievement of the EU's commitments under the Paris Agreement 
by reducing CO2 emissions from cars and vans cost-effectively, 2) reduce fuel consumption costs for consumers, 
3) strengthen the competitiveness of EU automotive industry and stimulate employment. 

What is the value added of action at the EU level?  

Without further EU action it is likely there would be little additional substantial CO2 reduction from new cars and 
vans.  CO2  standards  beyond  2020  will  help  Member  States  to  meet  their  2030  binding  emission  reduction 
targets  proposed  under  the  Effort  Sharing  Regulation.  National  and  local  initiatives  alone  are  likely  to  be  less 
effective as they risk being incoherent, thus fragmenting the internal market.  

What  legislative  and  non-legislative  policy  options  have  been  considered?  Is  there  a  preferred 
choice or not? Why?  

B. Solutions 

Various policy options were considered for the following issues: 

1)  CO2 emission targets;  
2)  Distribution of effort amongst manufacturers;  
3) 
4)  Elements for cost-effective implementation 
5)  Strengthening of the governance  

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

Who supports which option?  

Concerning  target  levels,  manufacturers  in  general  support  less  ambitious  targets  for  2030  compared  to 
environmental  and  consumer  NGOs  that  are  in  favour  of  more  ambitious  targets  for  both  2025  and  2030.  As 
regards  the  distribution  of  effort,  manufacturers  support  a  limit  value  curve  based  on  mass,  whereas  NGOs 
prefer footprint as utility parameter. While the automotive industry is mostly against a LEV/ZEV mandate, battery 
and  electricity  producers,  infrastructure  investors,  European  cities  facing  air  quality  problems,  as  well  as  most 
environment and transport NGOs call for such an approach. Consumer organisations take a neutral position on 
this. 

2 

 
 
 
 
 
 
 
 
 
 
 
 
What are the benefits of the preferred option (if any, otherwise main ones)?  

C. Impacts of the preferred option 

The additional CO2 emission reductions for cars between 2005 and 2030, on top of the baseline, range from 4 to 
11.4 percentage points. Between 2020 and 2030, air pollutant emissions decrease by 2 to 8 percentage points 
for  NOx  and  up  to  10  percentage  points  for  PM2.5.  For  vans,  the  additional  CO2  emission  reductions  between 
2005 and 2030 range from 4.8 to 14.1 percentage points. Air pollutant emissions of vans reduce up to 9 (NOx) or 
10 (PM2.5) percentage points between 2020 and 2030.  

Consumer  benefits  in  terms  of  'total  cost  of  ownership'  for  a  2030  'average  new  car'  are  between  1,000  and 
2,000 EUR considering a lifetime of 15 years. For a 2030 'average new van', these savings are between 3,800 
EUR  and  4,400  EUR.  Net  savings  occur  both  for  the  first  and  the  second  user,  thus  benefiting  also  the  lower 
income groups of consumers.  

What are the costs of the preferred option (if any, otherwise main ones)?  
Manufacturing costs will increase and this will impact the vehicle price, and thus consumers/businesses will face 
higher  upfront  costs  for  a  new  vehicle.  These  costs  increase  with  stricter  fleet-wide  CO2  target  levels.  For  an 
average new car registered in 2030, they range from 400 EUR to 2,700 EUR. For an average 2030 van, they 
range from 400 EUR to 2,400 EUR.  

How will businesses, SMEs and micro-enterprises be affected?  

The  analysis  shows  positive  economic  impacts,  including  for  SMEs.  Small  car  manufacturers  with  less  than 
1,000 new vehicle registrations in the EU per year are exempted from the CO2 standards. SMEs as user of more 
efficient vans will largely benefit from fuel savings. In the automotive value chain, SMEs producing conventional 
technologies  may  need  to  adjust  but  will  also  benefit  from  the  additional  demand  for  new  and  more  efficient 
technologies.  

Will there be significant impacts on national budgets and administrations?  
The fuel duty revenue loss in 2030 is estimated at around 0.04% of the EU-28 GDP. In all scenarios assessed, 
this is assumed to be compensated by an increase in indirect taxation. 

Will there be other significant impacts?  
An ambitious but realistic and cost-effective regulatory framework for cars and vans will help the EU automotive 
industry to retain its global competitiveness and access to markets. Due to reduced fossil fuel needs, the EU's 
energy security situation will improve with the strongest gains in the medium term. 

D. Follow up 

When will the policy be reviewed?  
A review of the effectiveness of the new legislation could take place in 2024, aligned with the review of other 
legislation such as in the proposal for ETS and the Effort Sharing Regulation. 

3