Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

EU proposes 90% CO2 emissions cut by 2040 for trucks

Published 14/02/2023, 11:10
© Reuters. FILE PHOTO: Trucks are stuck in a traffic jam after snowfall on the Autobahn A2 highway in Kamen, Germany, February 9, 2021. REUTERS/Leon Kuegeler
CO2
-

By Kate Abnett

BRUSSELS (Reuters) -The European Commission on Tuesday proposed tougher CO2 limits for heavy goods vehicles, requiring new trucks by 2040 to cut emissions by 90% and all new city buses to have zero emissions from 2030.

The aim is to align the transport sector with the European Union's goal to achieve zero net greenhouse gas emissions by 2050, as well as to reduce demand for imported fossil fuels.

Already last year, the 27-nation bloc agreed a 2035 deadline for new cars to be CO2-free.

The Commission proposed on Tuesday that from 2040, manufacturers would need to reduce the average CO2 emissions of the new trucks they sell by 90% compared with 2019 levels.

They would also face a 65% CO2 cut from 2035 and a 45% cut from 2030.

The 90% target falls short of the zero emissions goal that countries including the Netherlands sought, although some EU countries - which must negotiate the final law with the European Parliament - have said zero emissions by 2040 is too soon for manufacturers.

EU climate policy chief Frans Timmermans said the bloc had not proposed a 100% emissions cut because of uncertainty about when zero-emission technologies will be available for all trucks, including those in challenging driving conditions such as mountainous terrain.

"We will eventually have to move to a 100% target," he added.

The proposal disappointed campaigners, who said new CO2-emitting trucks registered in 2040 would still be on the road in 2050 - thwarting the bloc's net zero deadline.

"Polluting trucks will continue to be sold for years longer than necessary, making the EU's net zero goal impossible," said Fedor Unterlohner, freight manager at campaign group Transport & Environment.

Trucks in the EU were, on average, 14 years old in 2020, according to data published last year by the European Automobile Manufacturers' Association.

© Reuters. FILE PHOTO: Trucks are stuck in a traffic jam after snowfall on the Autobahn A2 highway in Kamen, Germany, February 9, 2021. REUTERS/Leon Kuegeler

Swedish truck maker AB Volvo started series production of heavy electric trucks last year, and aims for half of its global truck deliveries to be electric by 2030.

Other routes to decarbonise trucks include hydrogen fuel cells, although their availability is currently limited.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.