Jurisdiction: UK
Commencement: 1st September 2021
Amends:
- UK Retained: Regulation (EU) 2019/631 setting CO2 emission performance standards for new passenger cars and for new light commercial vehicles
The UK Retained: Regulation (EU) 2019/631 setting CO2 emission performance standards for new passenger cars and for new light commercial vehicles are set by the European Commission (EC) for new passenger cars* and new light commercial vehicles* in order to help achieve the European Union (EU) greenhouse gas emissions reduction target and the objectives of the Paris agreement (a global action plan to limit global warming to below 2°C above pre-industrial levels).
*New passenger cars are Category M1 vehicles which are registered in the EU for the first time and have not previously been registered outside of the EU. Category M1 means vehicles for the carriage of passengers with no more than 9 seats, including the driver’s seat, as defined in Annex II of Directive 2007/46/EC establishing a framework for the approval of motor vehicles and their trailers, and of systems, components and separate technical units intended for such vehicles.
*New light commercial vehicles are Category N1 vehicles with a mass not exceeding 2610kg and those type approved under Regulation (EC) 715/2007 which are registered in the EU for the first time and have not previously been registered outside of the EU. Category N1 means vehicles for the carriage of goods with a maximum mass of 3.5 tonnes. as defined in Annex II of Directive 2007/46/EC establishing a framework for the approval of motor vehicles and their trailers, and of systems, components and separate technical units intended for such vehicles.
Zero emissions category N vehicles with a mass exceeding 2480kg will be counted as light commercial vehicles from 1st January 2025, if the excess mass is due to the energy storage system.
If a vehicle has been registered outside of the EU for less than 3 months before it is registered in the EU, then it is will still be considered a ‘new’ vehicle.
The Regulation does not apply to special purpose vehicles, i.e. a vehicle intended to perform a function which requires special body arrangements and/or equipment. This category includes wheel-chair accessible vehicles, caravans, and ambulances, as defined by Part A of Annex II of Directive 2007/46/EC establishing a framework for the approval of motor vehicles and their trailers, and of systems, components and separate technical units intended for such vehicles.
Manufacturers responsible for fewer than 1000 new passenger cars or light commercial vehicles registered in the EU in the previous calendar year are not required to comply with certain requirements, including the requirement to meet specific emissions targets and pay excess emissions premium.
Annual targets
From 1st January 2020:
- the target for the average emissions of new passenger cars registered in the EU is 95g CO2/km; and
- the target for the average emissions of new light commercial vehicles registered in the EU is 147g CO2/km;
This target will be complemented by additional measures corresponding to a reduction of 10g CO2/km as part of the EU’s ‘integrated approach’.
From 1st January 2025:
- the CO2/km target will be reduced to 15% of the 2020 target for both new passenger cars and light commercial vehicles; and
- zero and low emission vehicles should make up a 15% share of the respective fleets of new passenger cars and light commercial vehicles.
From 1st January 2030:
- the CO2/km target will be further reduced to 37.5% of the 2020 for new passenger cars and 31% for new commercial vehicles; and
- zero and low emissions vehicles should make up 35% and 30% of new passenger cars and light commercial vehicles respectively.
Specific emissions targets
Manufacturers are required to ensure that their average specific emissions of CO2 don’t exceed their relevant targets.
Specified emissions targets are based on the annual targets detailed above and are determined in accordance with the relevant calculations in Annex I or their derogation:
- For the calendar year 2020, the specific emissions target is calculated in accordance with points 1 and 2 of Part A of Annex I for new passenger cars, and points 1 and 2 of Part B of Annex I for new light commercial vehicles.
- For calendar years between 2021- 2024, the specific emissions target is calculated in accordance with points 3 and 4 of Part A of Annex I for new passenger cars, and points 3 and 4 of Part B of Annex I for new light commercial vehicles.
- For calendar years from 2025, the specific emissions target is calculated in accordance with point 6.3 of Part A of Annex I for new passenger cars, and point 6.3 of Part B of Annex I for new light commercial vehicles.
Monitoring and reporting of average emissions
The competent authority for each EU country is required to record and make available to manufacturers (or their importers / representatives), and the EC, the information in Part A of Annex II and III for all new cars and commercial vehicles registered in their territory respectively.
They must also measure and report the specified emissions for cars that are not type approved (i.e. confirmation that they meet specified performance standards).
The EC is required to provisionally calculate the following information for each manufacturer for the last year, and notify the manufacturer:
- the average specified emissions of CO2;
- the specific emissions target;
- the difference between the 2 figures; and
- the number of new cars and commercial vehicles that have been registered in each EU country.
Manufacturers have 3 months to inform the EC regarding any errors in the data.
Publication of performance of manufacturers
The EC is required to publish, by the 31st October each year, the finalised list of data on specified emissions and targets for each manufacturer for the last year. This should also include the average mass and average test mass of all new vehicles, as well as information on whether each manufacturer has complied with their targets.
This list will be published as an implementing act.
Excess emissions premiums
Each year excess emissions premiums are payable by manufacturers or pool managers where their average specific emissions of CO2 exceed their specific emissions target.
This is calculated using the following formula:
(Excess emissions X €95) X No. of newly registered vehicles
Derogations for certain manufacturers
Manufacturers that register under 10,000 cars or 20,000 commercial vehicles in the EU in a year can apply for a derogation as long as they are not part of a group of manufacturers that produce over these limits. If they are part of a group which exceeds these limits but the manufacturer has their own production and design facilities, then they may also apply for a degroation.
Derogation allow manufacturers to set an alternative specified emissions target which is consistent with their emissions reduction potential. It should be noted that they are still required to meet this revised target and will be required to pay the excess emissions premium if they do not.
A derogation lasts 5 years and can be renewed. They must be submitted by 31st October in the year that the derogation starts.
If there is a change to a manufacturer’s eligibility, they must notify the EC immediately.
Eco-innovation
Manufacturers and suppliers can use innovative technologies to achieve CO2 savings and help meet their targets. Only those approved by the EC will be considered.
The total contribution of innovative technologies can make to reducing average specified emissions of CO2 is up to 7gCO2/km.
Verification of the CO2 emissions of vehicles in service
Manufacturers must ensure that the CO2 emissions and fuel consumption values that are reported in certificates of conformity correspond with the actual values from vehicles in service in line with Commission Regulation (EU) 2017/1151 supplementing Regulation (EC) 715/2007 on type-approval of motor vehicles with respect to emissions from light passenger and commercial vehicles (Euro 5 and Euro 6) and on access to vehicle repair and maintenance information
As Regulation 2019/631 was removed from the Northern Ireland Protocol shortly before the end of the transition period of the UK leaving the EU, a loophole was created for new newly registered cars and vans in Northern Ireland. This resulted in neither the EU nor the UK retained version of the Regulation applying to new passenger cars and vans in Northern Ireland and their CO2 emissions being unregulated.
This amendment extends the existing retained version of the Regulation to Northern Ireland, creating a UK -wide regime for the regulation of CO2 emissions from newly registered cars and vans from 1st September 2021.
The Regulation does not apply to vehicles registered in Northern Ireland between 1st January 2021 and 31st August 2021, unless they were also registered in GB.
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