EU Council adopts relaxed CO₂ targets for HGV manufacturers

EU Council adopts relaxed CO₂ targets for HGV manufacturers

ELECTRIVE — 2026-03-30

Automotive Industry

Two and a half weeks ago, the European Parliament approved an amendment to EU regulation on calculating emission credits for heavy-duty vehicles. With the approval of the EU Council, which represents the EU member states, the amended regulation can now come into force following its publication in the Official Journal.

The fundamental regulations on CO₂ emission standards for heavy-duty vehicles are set to be revised in 2027. Under current EU law, manufacturers of heavy-duty vehicles must reduce the emissions of new trucks by 15 per cent by 2025, 45 per cent by 2030, 65 per cent by 2035, and 90 per cent by 2040, compared to 2019 levels. They aim to achieve this by introducing more battery-electric trucks to the market and, simultaneously, by improving fuel efficiency in internal combustion engines.

However, until now, a linear trajectory was applied between these target values, effectively setting annual interim targets. This meant that the CO₂ reduction target for trucks was already around 20 per cent in 2026, approximately 26 per cent in 2027, and so on. This linear emission reduction between 2025 and 2029 has now been removed. Instead, the 2025 target of a 15 per cent CO₂ reduction for new registrations will apply for the years 2026 to 2029. This is followed by a jump to the 2030 level of -45 per cent, which will then remain in place until 2034. This model is now referred to as ‘the staircase’.

“This amendment recognises the structural challenges currently faced by the sector, particularly the slow deployment of public charging infrastructure along motorways. It supports a smooth and steady transition towards zero-emission mobility without altering the EU’s ambitious long-term climate targets,” the EU Council stated regarding the decision.

EU aligns with industry demands

Specifically, manufacturers can now accumulate ‘credits’ if their emissions fall below their own specific annual CO₂ emission targets, instead of adhering to the stricter linear reduction curve. “This temporary and targeted flexibility would allow them to generate more emission credits in the years leading up to 2030 and therefore facilitate their compliance from 2030 onwards,” the EU Council explained. “The flexibility is intended to incentivise earlier deployment of zero-emission heavy-duty vehicles.”

In effect, EU policymakers have adopted a demand from the industry. The truck manufacturers Volvo Trucks, Daimler Truck, Scania, MAN, Iveco, and Ford had written to the EU in October calling for a relaxation of the CO₂ emission regulations for the sector. Even then, the six manufacturers demanded the abolition of the CO₂ emission reduction curve between the milestone years 2025, 2030, and 2040. This allows them to use any additional CO₂ savings achieved between 2025 and 2029 beyond the 15 per cent target as credits to ease compliance with the 45% reduction step in 2030 and subsequent years.

It is also important to note that the updated credit calculation mechanism primarily applies to heavy-duty truck classes weighing over 16 tonnes and certain bus categories over 7.5 tonnes. City buses are explicitly excluded, “as the deployment of zero-emission buses is already well-advanced and less dependent on long-distance motorway infrastructure.”

“Clean mobility is the future of the EU but the path towards it is not always linear. With this timely and pragmatic amendment, we give heavy-duty vehicles manufacturers and investors the flexibility and predictability they need to navigate this transition, while electric charging stations are being deployed across Europe,” said Maria Panayiotou, Minister for Agriculture, Rural Development and Environment of the Republic of Cyprus.