A last-minute agreement from within the German political landscape has cleared the path for the EU Parliament’s approval of the 2040 heavy-duty vehicle emissions reduction law. Despite initial concerns raised by political parties, such as Germany's liberal junior government party FDP, the agreement includes a provision for vehicles using e-fuels. The new law has recently been approved by the European Parliament’s environment committee, intended to significantly reduce the number of newly sold diesel trucks within the European Union. This will introduce stronger emission standards for heavy-duty vehicles, smaller trucks, city buses, long-distance buses and trailers. The decision follows a pivotal deal with Germany, among EU ambassadors on February 9th. Initiated by lawmaker Isabel Garcia Munoz, the legislation is the start of a shift in transportation policies, aiming to reduce sector emissions and promote sustainable initiatives. 

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The legislation establishes strict measures for reducing CO2 emissions from newly sold trucks and coaches. It mandates a 90% reduction in average emissions of new trucks by 2040, compared to 2019’s emission levels. This means that most new trucks must achieve zero emissions from the tailpipe by 2040. To meet these targets, such vehicles will be required to operate on either electricity or hydrogen.

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The proposal by the EU Commission includes a revision of CO2 emission standards for heavy-duty vehicles, introducing higher standards from 2030 onwards and expanding coverage to smaller trucks, city buses, long-distance buses, and trailers. Additionally, new targets for 2030, 2035, and 2040 are introduced. These aim to decrease CO2 emissions per kilometre from new heavy-duty vehicles, with all new city buses expected to emit zero emissions by 2030. These revised targets aim for a 45% reduction by 2030, 65% by 2035, and a significant 90% by 2040.

EU Parliament and sector professionals' commentary

Following the regulatory announcement, several members of the European Parliament and business professionals have commented on the developments for the transport sector. In support of the directive, EU lawmaker Isabel García Muñoz emphasises cooperation and the need to maintain loading capacity for zero-emission vehicles, essential for a smooth transition to cleaner transportation. Markus Ferber, a German MEP,  backs market incentives over quotas, while Michael Strauss of the ECR group endorses heavier zero-emission vehicles in regions with robust infrastructure, pointing out their potential to effectively reduce emissions. 

However, Green MEP Ciarán Cuffe addresses concerns such as increased emissions, road maintenance costs, and safety risks. Renew Europe shows general support, but is critical about road transport competitiveness and environmental impacts. The main concerns for activist groups lie in certain aspects of the directive, such as allowing 44-tonne trucks driven by 17-year-olds to cross borders within the European Union. There are safety concerns, highlighting the need for careful evaluation and continuous risk mitigation during the implementation phase of the regulation at both a national and EU level. . 

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The European regulation environment is subject to quick changes, impacting Member States’ national laws.  Whether you are active in the transport sector or other commodity markets, staying up-to-date with technological and regulatory developments makes market dynamics easier to navigate. With our Sustainability Advisors, you are always in the know-how of new opportunities. Any questions? Don’t hesitate to reach out today.