Steel Markets

February 10, 2020
Europe Challenges Automakers with Emission Reduction Goals
Written by Sandy Williams
Automakers are being challenged to put their best vehicles forward in the fight against climate change. Europe’s new emissions regulations for passenger and light commercial vehicles went into effect as of Jan. 1 this year. Going forward, auto manufacturers selling cars in the EU will work toward a 15 percent reduction of CO2 emissions by 2025 and a 37.5 percent reduction by 2030. Miles per gallon (as converted from kilograms per mile) would translate to 77 mpg in 2025 and 105 mpg in 2030, starting from a baseline of 65 mpg. The targets for light commercial vehicles are reductions of 15 percent in 2025 and 31 percent in 2030.
Incentives in the form of relaxed CO2 targets will be given to automakers that increase their share of registered zero- and low-emission vehicles (ZLEV) in a given year to 15 percent beginning in 2025 and to 35 percent as of 2030. For every 1 percent over the ZLEV target, 1 percent will be reduced from the CO2 emissions requirement, up to a cap of 5 percent. The CO2 targets for individual manufacturers are adjusted for the average vehicle weight of their fleet, with heavier vehicles allowed a higher CO2 level.


