Policy update

CO2 emission standards for passenger cars and light-commercial vehicles in the European Union

On December 17, 2018, representatives of the European Commission, the European Parliament, and the European Council agreed on a compromise for the European Union (EU) regulation setting binding carbon dioxide (CO2) emission targets for new passenger cars and light-commercial vehicles for 2025 and 2030. The agreed-upon targets aim to reduce the average CO2 emissions from new cars by 15% in 2025 and by 37.5% in 2030, both relative to a 2021 baseline. For light-commercial vehicles, a 15% target for 2025 and a 31% target for 2030 were agreed upon.

This policy update concisely surveys the policy background, summarizes the key elements of the regulation and the expected effects, and puts the new rule in international context.

Note: This paper was updated on 23 January, 2019 to correct format issues with Figure 6. The original can be found here.