Accelerate
emission reductions

by giving more options within the regulation on CO₂ emission standards for cars and vans

10 Million
new vehicle registrations in the EU each year
27%
of EU road transport CO₂ Emissions
76%
of all customers in the EU plan to buy their next vehicle with a combustion engine – 19 % never gonna switch

Moving towards a lifecycle approach

The current CO₂ emission standards for new vehicles do not consider renewable fuels. The EU legal framework for reducing CO₂ emissions in road transport splits the responsibility along the supply chain.

Compare the lifecycle emissions
of cars and vans

Go to our lifecycle tool

A Carbon Correction Factor (CCF) to account for CO₂ savings provided by renewable fuels

The current Tank-to-Wheel (TtW) approach fails to distinguish between the renewable and fossil origin of the fuels and represents an outdated way of comparing different vehicle technologies.
A CCF would take into consideration the share of renewable fuel in the fuel mix for different fuel types in a reference year. Such an option would reduce the CO₂ emission targets for cars and vans manufacturers by the amount of renewable fuels already included in the current fuel mix.
This would take into account that, in addition to technological and efficiency improvements by manufacturers, the fuel mix is decisive for how much CO₂ a car or van emits.

more information

A new vehicle category for the exclusive use of CO₂ -neutral fuels

In the latest revision of the EU CO₂ Emission Standards, legislators introduced a key provision on the future role of CO₂-neutral fuels (CNF). Recital 11 of Regulation (EU) 2023/851 establishes the basis for an agreement that, following consultation with stakeholders, the European Commission will put forward a proposal to allow the registration of vehicles running exclusively on CO₂-neutral fuels after 2035.
In response to the European Commission’s request for industry-led solutions to track and verify CO₂-neutral fuels in road transport, the Working Group on Monitoring Methodologies (WGMM), a coalition of 55 industry players, presented 11 solutions within their report.
The WGMM proposes to introduce a definition of CNF in line with the Renewable Energy Directive ((EU) 2023/2413) - including all sustainable fuels. Monitoring methodologies should not be limited to a physical supply. Digital and other solutions should not be excluded. For instance, Switzerland just introduced a Crediting System based on mass balancing (more information about such systems here). In addition, a pragmatic inducement system should be introduced to increase consumers acceptance.

more information

Why include renewable fuels
in the new CO₂ emission standards for cars and vans

Enabling climate friendly individual mobility.

16% and 3%

of all EU CO₂ Emissions come from cars and vans

According to the European Commission

More information

6.7%

SHARE OF CO₂ NEUTRAL FUELS IN EUROPE’S ROAD SECTOR IN 2022

according to Shares Database

More information

65–70%

CO₂ REDUCTION

minimum CO₂ reduction which eFuels (70%) and new biofuel production plants (65%) need to reach along the value chain – according to the Renewable Energy Directive (EU) 2018/2001

76%

OF ALL CUSTOMERS IN THE EU PLAN TO BUY THEIR NEXT VEHICLE WITH A COMBUSTION ENGINE – 19% NEVER GONNA SWITCH

according to McKinsey Mobility Consumer Pulse Report 2025

More information

What needs to be done now

Including CO₂ neutral fuels in the CO₂ emission standards can provide a greater choice of climate neutral and socially just mobility options that doesn’t overburden the European citizens and businesses, keeps the supply chain intact and leads to a more comprehensive climate policy along the lifecycle of vehicles.

Road Transport

Road transport is one of the biggest CO₂ emitters in the EU, accounting for one fifth of CO₂ emissions. Passenger cars and vans make up for almost 61 % of all road transport emissions. CO₂ emission standards play a significant role in meeting the 2040 climate targets and climate neutrality by 2050. The enormous potential of climate protection solutions, such as biofuels as well as hydrogen and its derivative products, which include eFuels, can strengthen defossilisation efforts in Europe.

Fuel Sector

The Fuel Industry is regulated by Renewable Energy Directive ((EU) 2023/2413) and European Emission Trading System 2 ((EU) 2023/959). Both regulations guarantee carving out fossil fuels in line with EU climate targets – already 29% of consumed energy in the transport sector as to come from renewable sources in 2030. These ambitions should be taken into account in the CO₂emission standards for new vehicles. Currently, the share of renewable energy is about 10.8% (2023).

More choices
fewer emissions

The current regulation on CO₂ emission standards for cars and vans does not take CO₂neutral fuels into account. Currently, only the electric drivetrain and hydrogen fuel cells are considered a climate-friendly option – customers have no choice since other available technologies are de-facto excluded.

The EU’s electricity mix is still dependent on fossil fuels, which contradicts the goal of reducing emissions in the transport sector. A combustion engine powered by renewable, sustainable fuels is as climate-friendly as an electric vehicle powered by green electricity. Legistors already agreed in the last revision to include CO₂neutral fuels – so far nothing has happened. A change of the European Energy Taxation (2003/96/EC) as proposed by the EU-Comission would increase the affordability of CNF solutions.

Technology Openness

Especially in light of the EU climate goals of reaching climate neutrality by 2050, a wide range of technologies should be allowed to contribute to emission reduction. A consideration of renewable fuels in the CO₂ emission standards would be a first step to a more holistic and socially acceptable climate approach in transport. This can be reached by implementing a Carbon Correction Factor and a new vehicle category for the exclusive use of CO₂ neutral fuels, which can also be combined.

Debunking: Why the negative impacts of
including CO2 neutral Fuels are negligible

The negative effects identified often mentioned by different stakeholders are the following:

CO2 neutral fuels in road transport will come at the expense of other sectors facing steeper challenges to decarbonise (e.g. aviation/maritime)

The statement is to a large extent questionable. On the contrary, considering those fuels in the road transport would foster further investments and volume production of such fuels, thus creating economies of scale, which would be eventually beneficial for hard to decarbonize transport sectors such as aviation and maritime. In addition, often by-products exist which can only be sold to the road sector.

A Carbon Correction Factor would introduce “double counting”

The carbon correction factor would not introduce double counting but simply pave the way to a level-playing field in a regulation which is based on tailpipe emissions and does not distinguish between the origin of the fuel. Electric vehicles are always considered with 0 g/km while renewable electricity is considered in many other regulations as well.

Vehicles with renewable CO2 Neutral Fuels are not an economically viable option

If this is the case, demand for battery-electric and hydrogen-fuelled trucks would automatically not decrease and customers would not decide for a conventional cars and vans. As long as all options are available, the market will decide which option is more suitable. Economic feasibility highly depends on the regulative framework e.g. tax incentives, penalties and subsidy programs.

Including renewableCO2 Neutral Fuels would delay the uptake of battery-electric and hydrogen-fuelled vehicles

Battery-electric vehicles are still being developed and produced by many truck manufacturers (OEMs). In 2024, 785 different electric car models were available to consumers. But many customers prefer hybrid solutions or stick with their internal combustion engine. Including renewable fuels does not limit their uptake, but simply gives customers and affected companies the flexibility to choose the vehicle which fits them best for their specific needs. To increase social acceptance all climate-friendly options should be made available.