Note: Our Commissioner’s Speech in the ENVI Committee of 18 May informing the European Parliament about ongoing trilogues is available below.
The European Commission’s Directorate-General for Climate Action (DG CLIMA) welcomes the productive opening of trilogue negotiations on the proposal amending Regulation (EU) 2019/631 on CO2 emission performance standards for new light duty vehicles and vehicle labelling.
During Monday’s session, the three institutions made tangible progress on several key provisions of the Regulation, demonstrating a shared commitment to reaching a balanced agreement that preserves climate ambition while supporting the competitiveness of the European automotive sector.
Article 1(5) : Super credits for small zero-emission vehicles
Negotiators reached a preliminary agreement on a new definition of small electric vehicles as proposed by the European Parliament, with the Council aligning on this point. The Commission welcomes this convergence.
On the multiplier level, discussions were constructive. The Commission recalls that its proposed level of 1.3 was carefully calibrated by the Impact Assessment, and notes that any increase must be justified so as not to water down the overall climate integrity of the Regulation. The Commission takes note of the emerging convergence around a multiplier of 1.4 and the willingness of both institutions to remove the separate SME multiplier of 2.0, provided that SME support is addressed through other provisions of the automotive package. This reflects a pragmatic and balanced approach.
On low-emission vehicles, the Commission welcomes the Parliament’s clarification that LEVs remain outside the scope of the Regulation, which is specifically designed for M1 passenger cars and N1 vans. In light of the requests for clarification raised during recent discussions, the Commission considers it important to further explain the rationale underpinning this approach. Including LEVs would require substantial changes to the Regulation’s technical framework and reporting architecture. The Commission recognises the importance of addressing affordability, particularly in lower-income Member States. However, expanding the mechanism to LEVs and increasing the multiplier to 1.5 would risk undermining the overall CO₂ reduction objectives and diverting investments away from the scale-up of affordable zero-emission vehicles. The proposed 1.3 multiplier for small ZEVs was carefully calibrated to incentivise investment in a new mass-market category of affordable electric vehicles, without causing excessive target dilution. The Commission also underlines that accelerating investment in small ZEVs is essential to reduce production costs through economies of scale and to expand the future second-hand electric vehicle market, which will be particularly important for lower-income households. In the long term, zero-emission vehicles also provide a lower total cost of ownership compared to low-emission vehicles. Including LEVs, which continue to emit CO₂, would not be consistent with the Union’s 2035 zero-emission trajectory and could create a rebound effect by offsetting high-emitting vehicles with technologies that are not fully decarbonised.
On foreign financial contributions, the Commission welcomes the Parliament’s agreement to remove the proposed provision, which would have created legal duplication with the existing Foreign Subsidies Regulation and generated unnecessary administrative burden for EU manufacturers. The Commission notes that the Industrial Accelerator Act remains the appropriate legal vehicle to address this concern, and will work with both co-legislators to reflect this in a recital ahead of Tuesday’s session.
The Commission will produce a compromise draft on Article 1(5), paragraph 3, and will propose moving the social sustainability criteria proposed by the Parliament to a recital, preserving the delegated act approach under Article 1(3) as the appropriate mechanism for defining “Made in the EU” criteria.
Article 1(6): Sustainable renewable fuels and low-carbon steel credits
Technical discussions on the definition of eligible fuels under Article 5a advanced, with both co-legislators agreeing on a correction to the reference structure of paragraphs 2(b) and 2(c). The Commission welcomes this alignment.
On lifecycle assessment, the Commission reiterates its position that LCA cannot at this stage function as a compliance tool. The absence of a harmonised EU-wide methodology – reflecting the reality of 27 distinct national electricity grids – means that identical vehicles would face unequal compliance outcomes depending solely on where they are sold. Furthermore, upstream emissions are already addressed through the Battery Regulation and RED III, creating a risk of double-counting. The Commission confirms it will bring forward a concrete proposal at Tuesday’s trilogue that acknowledges the value of LCA for labelling purposes while preserving the 2029 review clause as the appropriate moment for introducing LCA-based compliance mechanisms.
On credit caps, the Commission notes the convergence emerging around a 4% cap on fuel credits and a 6% cap on steel credits, fitting within the overall 10% flexibility ceiling. The Commission welcomes the Parliament’s flexibility on the fuel sub-cap and will engage constructively on the precise calibration of the biofuels and biogas sub-cap ahead of the next session. The Commission also supports the removal of the 1.3x steel credit multiplier proposed under Article 5b paragraph 3a, which would be inconsistent with the Regulation’s climate objectives.
The Commission flags a risk of unintended double-dipping if Article 1(5) super credits and lifecycle credits under Article 5c were to apply simultaneously to the same vehicle. This would inflate the compliance value of individual vehicles beyond what either mechanism was individually calibrated to deliver, and must be addressed in the final text.
Article 1(8) : Exceptional circumstances clause
The Commission welcomes the agreement by both the Parliament and Council to address the exceptional circumstances clause through a recital rather than an operative provision. The Commission will produce a draft recital with appropriately calibrated language, noting that overly broad definitions of “exceptional circumstances” risk politicising the compliance framework and creating legal uncertainty for manufacturers.
Looking ahead
Trilogue negotiations resume on Tuesday, 20 May. The Commission will bring forward compromise drafts on the “Made in the EU” provisions, the LCA article, and the exceptional circumstances recital. As has been the case for the past months, DG CLIMA invites any member of Council or Parliament to reach out to the Communication Officer if they wish for additional legal or technical clarification. The Commission remains fully committed to its role as honest broker and to a final agreement that keeps the EU firmly on track for climate neutrality by 2050.
Related Media
To see our Commissioner’s Speech in the ENVI Committee, please refer to the link below:
https://drive.google.com/file/d/1U5diTOfB5mEUjkn7he8cIwJZU3bc7NLi/view?usp=sharing
Related Information
In case you missed it, in Resources are useful documents regarding our Proposal for the revision of CO2 standards, including a Fact Sheet: https://ec.europa.eu/commission/presscorner/detail/en/fs_25_3055
As a reminder, you can also find more extensive information regarding the automotive package and its CO2 proposal here: https://transport.ec.europa.eu/transport-themes/action-plan-future-automotive-sector/automotive-package_en
Contact
Cléa Leclerc-Dupont : clea.leclercdupont@sciencespo.fr
Communication Officer of the Directorate General for Climate Action