Members of the European Parliament, formed of directly elected representatives, voted on the policy in March for a 37.5 percent carbon reduction target for new cars – higher than the target of 30 percent put forward by the European Commission, the EU body responsible for proposing legislation – and a 31 percent carbon reduction target for vans by 2030, compared with 2021 levels. Despite reported opposition from the automobile industry and some member states, the legislation was adopted with 521 votes in favor, 63 against and 34 abstentions.

Lubricants play an essential role in reducing carbon emissions by improving fuel economy, and carmakers place ever-greater demands on engine oils to lubricate increasingly higher-tech engines in order to meet fleet average emissions targets.

The Council of Europes agreement finalizes the formal adoption of new rules which will contribute to decarbonizing and modernizing Europes mobility sector, said the European Commission in a statement.

These new standards are part of a clean mobility package that aims to pave the way for a climate-neutral economy in line with the EUs Paris Agreement commitments. Manufacturers whose average emissions surpass the set limits will pay an excess emissions premium.

Carmakers are likely to use various strategies to meet targets. Ford, for example, is counting on its coming range of hybrids to keep its fleet average low. Meanwhile, VW Group is heading toward a greater number of electric vehicle models in its lineup.

By 2023, the European Commission will have to evaluate whether or not to allocate these amounts to a specific fund in order to transition towards zero-emission mobility, and to support skills formation for workers in the automotive sector, a report from the European Parliament stated.

The European Commission will also have until 2023 to decide whether or not to have a common methodology for assessment and consistent data reporting.

The new targets and incentives will help EU industry embrace innovation towards zero-emission mobility and further strengthen its global leadership in clean vehicles. At the same time, the gradual transition will allow sufficient time for reskilling and upskilling of workers, so that no one is left behind in this transition, said Miguel Arias Canete, the commissioner for climate action and energy.

According to the commission, this legislation comes with a technology-neutral incentive mechanism for zero- and low-emission vehicles, giving the market a signal to invest in clean vehicles.

The incentive covers both zero-emission vehicles, such as battery electric or fuel cell vehicles, and low-emission vehicles having tailpipe emissions of less than 50 grams of CO₂ per kilometer – these are mainly plug-in hybrid vehicles equipped with both a conventional and an electric engine, the commission noted in a press release.