(1a)

The deployment of zero-emission heavy-duty vehicles should contribute to the solution of major urban mobility problems. While being essential to reduce CO2 emissions from road transport, the promotion of such vehicles by manufacturers is also crucial for the effective reduction of air pollutants and excessive noise levels in cities and urban areas.

(2)

Following the Low-Emission Mobility Strategy, the Commission adopted two mobility packages in May (19) and November 2017 (20). These packages set out a positive agenda delivering on the Low-Emission Mobility Strategy and ensuring a smooth transition towards clean , competitive and connected mobility for all.

(2)

Following the Low-Emission Mobility Strategy, the Commission adopted two mobility packages in May (19) and November 2017 (20). These packages set out a positive agenda delivering on the Low-Emission Mobility Strategy and ensuring a smooth transition towards zero-emission , competitive and connected mobility for all.

(3)

This Regulation is part of the third ‘Europe on the Move’ Package, which delivers on the new industrial policy strategy of September 2017 (21), and is designed to complete the process of enabling the Union to reap the full benefits of the modernisation and decarbonisation of mobility. The aim of the Package is to make European mobility safer and more accessible, European industry more competitive, European jobs more secure, and the mobility system to be cleaner and better adapted to the imperative of tackling climate change . This will require the full commitment of the Union, Member States and stakeholders , not least in strengthening efforts to reduce CO2 emissions and air pollution .

(3)

This Regulation is part of the third ‘Europe on the Move’ Package, which delivers on the new industrial policy strategy of September 2017 (21), and is designed to complete the process of enabling the Union to reap the full benefits of the modernisation and decarbonisation of mobility. The aim of the Package is to make European mobility safer and more accessible, European industry more competitive, European jobs more secure, and the sector to be firmly on the path towards zero emission by mid-century and fully in line with the Paris Agreement . In order to find a good balance between strengthening efforts to reduce CO2 emissions and air pollution, boosting innovation in the Union's automotive industry and enhancing the Union's competitiveness, the full commitment of the Union, Member States and stakeholders is required .

(4)

This Regulation provides, together with the CO2 emission standards for passenger cars and light commercial vehicles (22), a clear pathway for CO2 emissions reductions from the road transport sector and contributes to the binding target of at least a  40 % domestic reduction in economy-wide greenhouse gas emissions by 2030 compared to 1990, as was endorsed in the Conclusions of the European Council of 23-24 October 2014, and approved as the Union Intended Nationally Determined Contribution under the Paris Agreement at the Environment Council meeting on 6 March 2015 .

(4)

This Regulation provides, together with Regulation (EU) …/…  (22) of the European Parliament and of the Council , a clear pathway for CO2 emissions reductions from the road transport sector and contributes to the binding target of at least a  55 % domestic reduction in economy-wide greenhouse gas emissions by 2030 compared to 1990, required to be in line with the Paris Agreement.

(4a)

CO2 emissions reduction targets for the Union-wide fleets of new heavy-duty vehicles should therefore be set for 2025 and for 2030, taking into account the vehicle fleet renewal time and the need for the road transport sector to contribute to the Union climate and energy targets for 2030 and beyond. Such a stepwise approach also provides a clear and early signal for the industry not to delay the market introduction of energy efficient technologies and zero- and low-emission vehicles

(5)

The European Council Conclusions of October 2014 endorsed a greenhouse gas emissions reduction of 30 % by 2030 compared to 2005 for the sectors that are not part of the Union’s emissions trading system. Road transport provides a major contribution to the emissions of those sectors and its emissions remain significantly above 1990 levels. If road transport emissions would increase further, it will off-set reductions made by other sectors to combat climate change.

(5)

The European Council Conclusions of October 2014 endorsed a greenhouse gas emissions reduction of 30 % by 2030 compared to 2005 for the sectors that are not part of the Union’s emissions trading system. Road transport was responsible for 25 % of the Union’s greenhouse gas emissions in 2016, and its emissions increased for the third year in a row and remain significantly above 1990 levels. If road transport emissions would increase further, it will off-set reductions made by other sectors to combat climate change.

(8a)

In view of the estimated increase to around 9 % as to the proportion of emissions from heavy-duty vehicles and the fact that there are currently no requirements for reducing CO2 emissions from heavy-duty vehicles, specific measures for this category of vehicles are needed.

(9)

In order to fully realise the energy efficiency potential and ensure that the road transport sector as a whole contributes to the greenhouse gas emission reductions agreed, it is appropriate to complement the already existing CO2 emission standards for new passenger cars and light commercial vehicles by setting CO2 emission performance standards for new heavy-duty vehicles. These standards will be a driver for innovation in fuel-efficient technologies, contributing to the strengthening of the technological leadership of the Union’s manufacturers and suppliers.

(9)

In order to fully realise the energy efficiency potential and ensure that the road transport sector as a whole contributes to the greenhouse gas emission reductions agreed, it is appropriate to complement the already existing CO2 emission standards for new passenger cars and light commercial vehicles by setting CO2 emission performance standards for new heavy-duty vehicles. These standards will be a driver for innovation in fuel-efficient technologies, contributing to the strengthening of the technological leadership of the Union’s manufacturers and suppliers and securing high-skilled jobs in the long term .

(10)

Taking into account that climate change is a trans-boundary problem and the need to safeguard a well-functioning single market both for road transport services as well as for heavy-duty vehicles, it is appropriate to set CO2 emission standards for heavy-duty vehicles at Union-level. Those standards should be designed so as to be without prejudice to competition law.

(10)

Taking into account that climate change is a trans-boundary problem and the need to safeguard a well-functioning single market both for road transport services as well as for heavy-duty vehicles and avoid any market fragmentation , it is appropriate to set CO2 emission standards for heavy-duty vehicles at Union-level. Those standards should be designed so as to be without prejudice to competition law.

(12a)

A socially acceptable and just transition towards zero-emission mobility by mid-century requires changes in the whole automotive value chain, taking into consideration citizens and regions in all Member States that could be adversely impacted. It is important to consider the social impact of the transition and to be proactive in addressing the implications on jobs. It is of paramount importance, therefore, that current measures are also accompanied by targeted programmes at Union, national and regional levels for re-skilling, up-skilling and redeployment of workers, as well as education and job-seeking initiatives in adversely impacted communities and regions conducted in close dialogue with the social partners and competent authorities

(12b)

Recharging and refuelling infrastructure needs to be put in place quickly in order to ensure consumer confidence in zero- and low-emission vehicles, while the various support instruments at both Union and Member State level need to effectively work together to mobilise significant public and private investment.

(12c)

The low-emission mobility strategy stressed the importance of ensuring that electric vehicles are powered by electricity from sustainable energy sources and that a long-term next-generation batteries initiative is launched at Union level as soon as possible. In order to meet those objectives, it will be necessary to step up funding for technological research into the production, management and disposal of electric motor batteries, making them increasingly environmentally sustainable;

(12d)

Most Union transport freight operators are small and medium-sized enterprises with limited access to finance. Therefore, future solutions have to be cost effective and balanced. It is essential that there is a strong incentive structure to support uptake of more fuel-efficient vehicles, as well as the provision of Union funding mechanisms.

(13)

In the light of innovation and to take account of the implementation of new technologies improving the fuel efficiency of heavy-duty vehicles, the VECTO simulation tool as well as Regulation (EU) 2017/2400 will be continuously and timely updated.

(13)

In the light of innovation and to take account of the implementation of new technologies improving the fuel efficiency of heavy-duty vehicles, as well as the evolution of the real-world representativeness of the CO2 emissions values determined under Regulation (EU) 2017/2400, the VECTO simulation tool as well as Regulation (EU) 2017/2400 will be continuously and in a timely manner updated , and sufficient budget is to be allocated accordingly . Taking into account the role that those new technologies can have on the CO2 emission reduction potential of the transport sector, the 2022 review should take fully into account the evolution of the VECTO simulation tool.

(14)

The CO2 emissions data determined pursuant to Regulation (EU) 2017/2400 are to be monitored under Regulation (EU) No …/2018 of the European Parliament and of the Council (25). Those data should form the basis for determining the reduction targets to be achieved by the four groups of the most emitting heavy-duty vehicles in the Union, as well as for determining a manufacturer’s average specific emissions in a given calendar year.

(14)

(15)

A reduction target should be set for 2025 as a relative reduction based on the average CO2 emissions of those heavy-duty vehicles in 2019, reflecting the deployment of readily available cost-effective technologies for conventional vehicles. The 2030 target should be considered aspirational and the final target should be determined pursuant to a review to be carried out in 2022 as there are more uncertainties on the uptake of more advanced technologies which are not yet readily available.

(15)

A reduction target should be set for 2025 as a relative reduction based on the average CO2 emissions of those heavy-duty vehicles in 2019, reflecting the deployment of readily available cost-effective technologies for conventional vehicles. A reduction target should also be set for 2030, pursuant to a review to be carried out in 2022 that should not lower the ambition of this Regulation, while taking into account that there are more uncertainties on the uptake of more advanced technologies which are not yet readily available.

(16)

Liquefied natural gas (LNG) is an available alternative fuel to diesel for heavy duty vehicles. The deployment of current and upcoming more innovative LNG-based technologies will contribute to meeting the CO2 emission targets in the short and medium term as the use of LNG technologies leads to lower CO2 emissions as compared to diesel vehicles. The CO2 emission reduction potential of LNG vehicles is already fully reflected in VECTO. In addition, current LNG technologies ensure a low level of air pollutant emissions such as NOx and particulate matters. A sufficient minimum refuelling infrastructure is also in place and being further deployed as part of national policy frameworks for alternative fuel infrastructure.

(16)

Efficient, technology neutral and sufficient refuelling and recharging infrastructure should, in line with the ambitions of this Regulation, be further deployed as part of national policy frameworks for alternative fuel infrastructure.

(17a)

Regarding vocational vehicles and vehicles in the M2 and M3 categories, the Commission should specify as soon as possible the technical criteria for the definition of the vocational purpose of a vehicle and for the definition of buses covered by this Regulation.

(17b)

A validation mechanism for the 2019 baseline should be developed in order to guarantee the accuracy and benefits of this Regulation.

(20a)

In order to bring flexibility in the incentive mechanism for the development of zero-emission heavy-duty vehicles, connected manufacturers should be able to form a pool on an open, transparent and non-discriminatory basis. An agreement to form a pool should not exceed five years but should be able to be renewed. The Commission should have the powers to establish detailed rules and conditions for connected manufacturers to form a pool on an open, transparent and non-discriminatory basis, in accordance with Union competition law.

(21)

Contrary to cars and vans, zero- and low-emission heavy-duty vehicles are not yet available on the market, except for buses. A dedicated mechanism, in the form of super credits, should therefore be introduced to facilitate a smooth transition towards zero-emission mobility . This will provide incentives for the development and deployment on the Union market of zero- and low-emission heavy-duty vehicles that would complement demand-side instruments, such as the Clean Vehicle Directive 2009/33/EC of the European Parliament and of the Council (26).

(21)

In order to ensure the smooth transition towards zero-emission mobility and to provide incentives for the development and deployment on the Union market of zero- and low-emission heavy-duty vehicles that would complement demand-side instruments, such as the Clean Vehicle Directive 2009/33/EC (26) of the European Parliament and of the Council , a benchmark for the share of zero- and low-emission heavy-duty vehicles in a manufacturer's fleet should be set for 2025 and 2030 .

(21a)

The minimum share of zero- and low-emission vehicles should be designed so as to ensure investment certainty for charging infrastructure providers and manufacturers in order to promote the rapid deployment on the Union market of zero- and low-emission vehicles, while allowing certain flexibility for the manufacturers to decide on their investment timeline. A mechanism should be introduced to incentivise manufacturers to put zero- and low-emission vehicles as soon as possible on the Union market.

(22)

For the purpose of calculating the average specific emissions of a manufacturer , all zero- and low-emission heavy-duty vehicles should therefore be counted multiple times. The level of incentives should vary according to the actual CO2 emissions of the vehicle. In order to avoid a weakening of the environmental objectives, the resulting savings should be subject to a cap.

(22)

For the purpose of calculating the specific CO2 emissions target of a manufacturer, its performance against the 2025 and 2030 benchmark of zero- and low-emission vehicles should be taken into account . In order to incentivise the development and deployment of such vehicles while avoiding a weakening of the environmental objectives and of the efficiency of conventional internal combustion engines , the resulting adjustments should be subject to a cap.

(24)

In designing the incentive mechanism for the deployment of zero-emission heavy-duty vehicles, also smaller lorries , buses and coaches that are not subject to the CO2 emission targets under this Regulation should be included. These vehicles also have significant benefits in terms of helping to address air pollution problems in cities. However, it should be noted that zero-emission buses are already on the market and are incentivised through demand-side measures such as public procurement. In order to ensure that the incentives are well balanced between the different types of vehicles, the savings resulting from the zero-emission smaller lorries, buses and coaches should therefore also be subject to a cap

(24)

In designing the incentive mechanism for the deployment of zero-emission heavy-duty vehicles, also smaller lorries, and other categories of heavy-duty vehicles that are not yet subject to the CO2 emission targets under this Regulation should be included. These vehicles also have significant benefits in terms of helping to address air pollution problems in cities.

(29)

The Commission should impose a financial penalty, in the form of an excess emissions premium, where a manufacturer is found to have excess emissions, taking into account the emission credits and debts. In order to provide manufacturers with a sufficient incentive to take measures to reduce the specific CO2 emissions from heavy-duty vehicles, the premium should exceed the average marginal costs of the technologies needed to meet the targets. The premium should be considered as revenue for the general budget of the Union. The methodology for collecting the premiums should be determined by means of an implementing act, taking into account the methodology adopted pursuant to Regulation (EC) No 443/2009.

(29)

The Commission should impose a financial penalty, in the form of an excess emissions premium, where a manufacturer is found to have excess emissions, taking into account the emission credits and debts. In order to provide manufacturers with a sufficient incentive to take measures to reduce the specific CO2 emissions from heavy-duty vehicles, it is important that the premium always exceeds the average marginal costs of the technologies needed to meet the targets. The amounts from the excess emissions premium should be considered as revenue for the general budget of the Union. Those amounts should be used to support, in close collaboration with social partners and competent authorities, the just transition of the automotive sector towards zero-emission mobility as well as innovative solutions that incentivise the rapid deployment of zero- and low-emission heavy-duty vehicles . The methodology for collecting the premiums should be determined by means of an implementing act, taking into account the methodology adopted pursuant to Regulation (EC) No 443/2009 (1a) of the European Parliament and of the Council .

(30)

A robust compliance mechanism is necessary in order to ensure that the targets under this Regulation are met. The obligations placed on manufacturers to deliver accurate data pursuant to Regulation (EU) No …/2018 [Monitoring & Reporting HDV] and the administrative fines that may be imposed in the case of non-compliance with that obligation, contributes to ensuring the robustness of the data used for target compliance purposes under this Regulation.

(30)

A robust compliance mechanism is necessary in order to ensure that the targets under this Regulation are met. The obligations placed on manufacturers to deliver accurate data pursuant to Regulation (EU) No 2018/956 and the administrative fines that may be imposed in the case of non-compliance with that obligation, contributes to ensuring the robustness of the data used for target compliance purposes under this Regulation. It is in the interest of consumers and the general public to know which manufacturers are and which are not complying with the new emission standards.

(31)

It is essential for achieving the CO2 reductions pursuant to this Regulation that the CO2 emissions of heavy-duty vehicles in use are in conformity with the values determined pursuant to Regulation (EC) No 595/2009 and its implementing measures. It should therefore be possible for the Commission to take into account, in the calculation of the average specific emissions of a manufacturer, any systematic non-conformity found by type approval authorities with regard to the CO2 emissions of heavy-duty vehicles in use.

(31)

It is essential for achieving the CO2 reductions pursuant to this Regulation that the CO2 emissions of heavy-duty vehicles in use and on road are in conformity with the values determined pursuant to Regulation (EC) No 595/2009 and its implementing measures. It should therefore be possible for the Commission to take into account, in the calculation of the average specific emissions of a manufacturer, any systematic non-conformity found by type approval authorities with regard to the CO2 emissions of heavy-duty vehicles in use and on the road. Third party independent testing of vehicles in use and on the road should also be introduced .

(33)

The effectiveness of the targets set out in this Regulation in reducing CO2 emissions is strongly dependent on the representativeness of the methodology used for determining the CO2 emissions. In line with the Opinion of the Scientific Advice Mechanism (SAM) (27) as regards light duty vehicles, it is appropriate also in the case of heavy-duty vehicles to put in place a mechanism to assess the real-world representativeness of the CO2 emissions and energy consumption values determined pursuant to Regulation (EU) 2017/2400. The Commission should have the powers to ensure the public availability of such data and, where necessary, develop the procedures needed for identifying and collecting the data required for such assessments.

(33)

The effectiveness of the targets set out in this Regulation in reducing CO2 emissions is strongly dependent on the representativeness of the methodology used for determining the CO2 emissions. In line with the Opinion of the Scientific Advice Mechanism (SAM) (27) as regards light duty vehicles, it is appropriate also in the case of heavy-duty vehicles to put in place a mechanism to assess the real-world representativeness of the CO2 emissions and energy consumption values determined pursuant to Regulation (EU) 2017/2400. The Commission should have the powers to ensure the public availability of such data and, where necessary, develop the procedures needed for identifying and collecting the data required for such assessments. Where a significant gap is identified between real-world emissions values and those determined pursuant to Regulation (EU) 2017/2400, the Commission should have the power to adapt accordingly the average specific CO2 emissions of a manufacturer and, where appropriate, the 2019 reference CO2 emissions used for the purpose of compliance with this Regulation.

(34a)

In its 2022 report, the Commission should also evaluate the possibility of developing a methodology for the assessment of the full life-cycle CO2 emissions of heavy-duty vehicles. On the basis of that evaluation, the Commission should propose, if appropriate, to establish reporting obligations on manufacturers and specify the necessary rules and procedures for that reporting.

(36)

The implementing powers relating to Articles 8(3), 9(3), 11(3) and 12(2), should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (28).

(36)

In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission in respect of determining the means for collecting excess emission premiums , adopting detailed rules on the procedures for reporting deviations found in the CO2 emissions of heavy-duty vehicles that are in service, publishing data, adopting detailed rules on the procedures for reporting data from fuel consumption meters as well as establishing a methodology for defining one or more representative vehicles of a vehicle sub-group. Those implementing powers should be exercised in accordance with Regulation (EU) No 182/2011 (28) of the European Parliament and of the Council .

(37)

In order to amend or supplement non-essential elements of the provisions of this Regulation, the power to adopt acts in accordance with Article 290 of the Treaty of the Functioning of the European Union should be delegated to the Commission in respect of adjusting the reference CO2 emissions pursuant to Article 12(2) and in respect of amending Annexes I and II as regards certain technical parameters, including the weightings of the mission profiles, the payloads, and the annual mileages as well as the payload adjustment factors. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making (29). In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council should receive all documents at the same time as Member States’ experts, and their experts should systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(37)

In order to amend and supplement non-essential elements of the provisions of this Regulation, the power to adopt acts in accordance with Article 290 of the Treaty of the Functioning of the European Union should be delegated to the Commission in respect of specifying the technical criteria for defining the vocational purpose of a vehicle and for the definition of urban buses, establishing detailed rules and conditions which allow connected manufacturers to form a pool, establishing an annual testing scheme for a representative sample of components, units and systems, adjusting the reference CO2 emissions , introducing an on-road in-service conformity test and in respect of amending Annexes I and II as regards certain technical parameters, including the weightings of the mission profiles, the payloads, and the annual mileages as well as the payload adjustment factors. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making (29). In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(a)

From 1 January 2025 to 31 December 2029 by 15 % ;

(a)

From 1 January 2025 to 31 December 2029 by 20 % ;

(b)

From 1 January 2030 onwards by at least 30 % subject to the review pursuant to Article 13.

(b)

From 1 January 2030 onwards by at least 35 % subject to the review pursuant to Article 13.

(h)

‘vocational vehicle’ means a heavy- duty vehicle not intended for the delivery of goods and for which the CO2 emissions and fuel consumption have been determined, in accordance with Regulation (EC) No 595/2009 and its implementing measures, only for other mission profiles than those defined in point 2.1 of Annex I to this Regulation;

(h)

‘vocational vehicle’ means a heavy- duty vehicle not intended for the delivery of goods , whose vocational purpose has been defined based on the technical criteria specified in accordance with Article 2(2a), and for which the CO2 emissions and fuel consumption have been determined, in accordance with Regulation (EC) No 595/2009 and its implementing measures, only for other mission profiles than those defined in point 2.1 of Annex I to this Regulation;

(k)

‘low-emission heavy-duty vehicle’ means a heavy-duty vehicle, which is not a zero emission heavy-duty vehicle, with specific CO2 emissions of less than 350 g CO2/km as determined pursuant to point 2.1 of Annex I;

(k)

‘low-emission heavy-duty vehicle’ means a heavy-duty vehicle, which is not a zero emission heavy-duty vehicle, with specific CO2 emissions, as determined pursuant to point 2.1 of Annex I, below 50 % of the reference CO2 emissions for each sub-group as determined pursuant to point 3 of Annex I;

(b)

the zero- and low-emission factor determined in accordance with Article 5.

(a)

a zero-emission heavy-duty vehicle shall be counted as 2 vehicles;

(b)

a low-emission heavy-duty vehicle shall be counted as up to 2 vehicles according to a function of its specific CO2 emissions and the threshold emission level of 350 g CO2/km.

(b)

from 2020, the zero- and low-emission factor , referred to in Article 5;

(b)

from 2020, for each manufacturer its specific share of zero- and low-emission heavy-duty vehicles in the preceding calendar year , referred to in Article 5(1);

2.3.