Brussels,

Clean and energy-efficient vehicles

MOBILITY & TRANSPORT

​​In public procurement for the acquisition of road transport vehicles, considering the energy impact and environmental impact attributable to their operation over their entire life cycle, the EU Directive 2019/1161 aims to stimulate the market for clean and energy-efficient vehicles, to contribute to reducing CO2 emissions and air pollutants, and to increase energy efficiency.

Clean and energy-efficient vehicles have an important role in the EU's policy strategy, which include reducing energy consumption, CO2 emissions, and pollutant emissions. Key points include:
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1. Role of Clean and Energy-Efficient Vehicles: These vehicles are crucial for achieving EU objectives related to energy and environmental concerns.
2. Directive on Promotion of Clean and Energy-Efficient Road Transport Vehicles: This directive focuses on the widespread introduction of environmentally-friendly vehicles, particularly targeting the procurement of vehicles for public transport services.
3. Clean Transport Systems: These systems have the potential to satisfy the entire energy demand of the transport sector.
4. Shift to Alternative Low-Carbon Fuels: In the long term, there is an emphasis on gradually replacing fossil fuels with alternative low-carbon fuels for transport propulsion, aligning with the EU's broader environmental and energy goals.

Clean Vehicles Directive

The Clean Vehicles Directive is designed to encourage clean mobility solutions in public procurement tenders. Key aspects of this directive include:
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1. Promotion of Clean Mobility Solutions: The directive aims to increase demand and further deployment of low- and zero-emission vehicles through public procurement tenders.
2. Definition and National Targets for "Clean Vehicles": The new Directive not only defines what constitutes "clean vehicles" but also sets national targets for their procurement by public authorities.
3. Applicability Across Various Public Procurement Methods: It is applicable to different forms of public procurement, including purchasing, leasing, renting, and related service contracts.
4. Legislative Adoption and Implementation Timeline: The Directive was adopted by the European Parliament and Council in June 2019, and it is required to be transposed into national law by member states by August 2, 2021.

Vehicles concerned

The Directive applies to cars, vans, trucks and buses (excluding coaches), when they are procured through:

• Purchase, lease, rent or hire-purchase contracts under obligations by EU public procurement rules (Dir. 2014/24/EU and 2014/25/EU)
• Public service contracts for the provision of passenger road transport services (Reg. 1370/2007)
• Services contracts forpublic road transport services, special-purpose road passenger-transport services, non-scheduled passenger transport, refuse collection services, mail and parcel transport and delivery. (Annex I of the Directive)

​The Directive will only apply to contracts whose awarding procedure starts after 2 August 2021 (the end date for transposition).

Definition of clean vehicle

The Directive provides specific definitions for "clean vehicles," distinguishing between light-duty and heavy-duty vehicles:

Clean Light-Duty Vehicles (Cars and Vans):

• Until December 31, 2025: Vehicles that emit no more than 50g/km of CO2 and meet up to 80% of the applicable Real Driving Emission (RDE) limits for Nitrogen Oxides (NOx) and Particulate Number (PN).
• From January 1, 2026: Only zero-emission vehicles will be classified as clean.

Clean Heavy-Duty Vehicles (Trucks and Buses):

• Includes trucks and buses that use alternative fuels such as hydrogen, battery electric (including plug-in hybrids), natural gas (CNG and LNG, including biomethane), liquid biofuels, synthetic and paraffinic fuels, LPG.

Separate Definition for Zero-Emission Heavy-Duty Vehicles:

• A sub-category of clean heavy-duty vehicles, focusing specifically on those with zero emissions.

For light-duty vehicles, the definition aligns with the CO2 emission performance standards set under Regulation 2019/631. The focus is on low-emission vehicles until 2025, shifting to exclusively zero-emission vehicles from 2026.

For heavy-duty vehicles, the definition encompasses all vehicles operating on alternative fuels listed in the Alternative Fuels Infrastructure Directive (Directive 2014/95). Zero-emission heavy-duty vehicles are given a separate definition to reflect their performance in terms of air quality improvement and decarbonization.

Green propulsion in transport

EU asks to shift from fossil fuels to alternative fuels and new vehicle propulsion systems, driven by concerns over energy security, climate change, and health.

The main points of EU strategy include:

1. Shift to Alternative Fuels and New Propulsion Systems: Concerns over energy security, climate change, and health are pushing a transition from fossil fuels to alternative fuels and innovative vehicle propulsion systems for long-term sustainability.
   
2. Impact of Road Transport on Greenhouse Emissions: Road transport accounts for three-quarters of transport greenhouse emissions. It is particularly sensitive to oil supply disruptions and price volatility.
   
3. Emission Reductions and Remaining Challenges: Despite significant reductions in harmful pollutants, concerns persist over air quality and noise, especially in urban areas.
   
4. Transport in EU Energy-Climate Policy: Transport is a critical component of the EU's energy-climate policy, which includes targets for energy efficiency, renewable energy, and greenhouse gas emission reduction by 2020. Achieving these targets requires significant contributions from the transport sector.
   
5. Green Cars Initiative: Part of the European Economic Recovery Plan, this initiative supports the development of new and sustainable forms of road transport.
   
6. Commission's Support for Alternative Fuels and Technologies: The Commission supports three main types of alternative fuels and propulsion technologies with a 2020 development horizon:
   
   • Biofuels, both liquid and gaseous.
   • Hydrogen and fuel cells.
   • Battery electric and hybrid electric vehicles with plug-in capability.
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7. Demonstration Projects: Demonstrations aim to prove the performance and safety of vehicles and infrastructure, with the goal of overcoming market entry barriers.
   

EU Legislation

• Directive 2009/33/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of clean and energy-efficient road transport vehicles  aims at a broad market introduction of green propulsion vehicles. It requires that energy and environmental impacts linked to the operation of vehicles over their whole lifetime are taken into account in all purchases of road transport vehicles, as covered by the public procurement Directives and the public service Regulation.
• Regulation (EU) 2019/631 of the European Parliament and of the Council of 17 April 2019 setting CO2 emission performance standards for new passenger cars and for new light commercial vehicles . Compared to 2021, the Regulation requires that the annual EU fleet-wide average CO2 emissions from new cars and new vans be reduced:
  • by 15% for the 2025–2029 period;
  • by 55% for new cars and 50% for new vans for the 2030–2034 period;
  • by 100% from 1 January 2035 onwards.
• Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources seeks to promote the use of clean and energy-efficient vehicles in public procurement, by requiring national, regional, and local authorities to include minimum targets for clean vehicles when purchasing, leasing, or contracting transport services.
• Directive 2009/30/EC of the European Parliament and of the Council of 23 April 2009 amending Directive 98/70/EC as regards the specification of petrol, diesel and gas-oil and introducing a mechanism to monitor and reduce greenhouse gas emissions and amending Council Directive 1999/32/EC as regards the specification of fuel used by inland waterway vessels and repealing Directive 93/12/EEC (COM(2007) 18)  on environmental quality standards for fuel aims, among other objectives, to allow the phasing in of 10% ethanol in petrol (E10). However; to avoid potential damage to old cars, continued marketing of petrol containing maximum 5% ethanol is to be guaranteed until 2013, with the possibility of an extension to that date if needed. This Directive also aims to introduce a mechanism for reporting and reducing life cycle greenhouse gas emissions from fuel.
• Council Regulation (EU) 2021/2085 of 19 November 2021 establishing the Joint Undertakings under Horizon Europe and repealing Regulations (EC) No 219/2007, (EU) No 557/2014, (EU) No 558/2014, (EU) No 559/2014, (EU) No 560/2014, (EU) No 561/2014 and (EU) No 642/2014 seeks to establish new Joint Undertakings under Horizon Europe, bringing together the European Commission and industry/public partners to co-invest in large-scale research and innovation programmes. These partnerships aim to accelerate the development of cutting-edge technologies in key strategic sectors—such as health, clean energy, mobility, and digital—by pooling resources and aligning public-private efforts.
• Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (recast) (Text with EEA relevance.) aims at to promote the use of energy from renewable sources across the EU and set a binding target of at least 32% renewable energy in gross final consumption by 2030. It provides a common framework for the development of renewables in electricity, heating and cooling, and transport, while encouraging self-consumption, citizen participation, and cross-border cooperation.​
• Council Directive 2003/96/EC of 27 October 2003 restructuring the Community framework for the taxation of energy products and electricity  allows Member States favourable tax treatment of alternative motor fuels.
• The Communication from the Commission to the European Parliament, the Council, the Economic and Social​ Committee and the Committee of the Regions on alternative fuels for road transportation and on a set of measures to promote the use of biofuels (COM(2001) 547)  of 7 November 2001 identifies alternative motor fuels candidates to substitute fossil oil.

Biofuels for Transport

Biofuels, which include liquid forms like biodiesel and bioethanol or gaseous types, are derived from biomass. In the European Union's transport sector, they offer a renewable substitute for fossil fuels, aiding in the reduction of greenhouse gas emissions and enhancing the EU's energy security.

In June 2023, the Commission introduced new regulations to determine the proportion of biofuels and biogas in mixed fuels. These fuels, created by co-processing bio-based and fossil-based raw materials, will contribute to the Renewable Energy Directive's targets for renewable energy in transport.

The Commission Delegated Regulation EU/2023/1640 was officially published in the EU's Official Journal on 18 August 2023. Prior to its publication, it underwent a process of public feedback, multiple consultations, and careful examination by both the European Parliament and the Council.

​Under the revised Renewable Energy Directive (EU/2023/2413, the European Union mandates its member countries to achieve specific targets for renewable energy use in transport by 2030. The key points are:

1. Renewable Energy Target in Transport: EU countries must ensure that renewable energy constitutes at least 14% of the final energy consumption in the transport sector by 2030.
2. Advanced Biofuels Share: Within this 14% target, there is a stipulation for a minimum of 3.5% to come from advanced biofuels.
3. Obligation on Fuel Suppliers: Member states are required to impose an obligation on fuel suppliers to ensure the achievement of these targets.
4. Verification Method: The primary method for verifying compliance with these rules is radiocarbon (14C) testing. However, there is some flexibility permitted, allowing for the use of this method in conjunction with other company- or process-based testing methods.

The revised Renewable Energy Directive (EU/2023/2413 aims to balance the promotion of renewable energy sources, particularly biofuels, with the need to protect the environment and prevent detrimental land use changes.. Key changes and additions include:

1. Reinforced Sustainability Criteria for Bioenergy:
   • The directive strengthens the sustainability requirements for bioenergy, particularly addressing the negative impacts of biofuel production, such as indirect land use change (ILUC).
2. Addressing Indirect Land Use Change (ILUC):
   • Recognizes the problem of ILUC, where the production of biofuels on agricultural land leads to the displacement of food or feed production, potentially causing the conversion of high carbon stock areas like forests into agricultural land.
   • ILUC is a concern as it can release CO2 stored in trees and soil, undermining the greenhouse gas savings from increased biofuel production.
3. Limits on High ILUC-Risk Biofuels:
   • The directive sets limits on biofuels, bioliquids, and biomass fuels that are considered high ILUC-risk due to significant land expansion into areas with high carbon stock.
   • These limits determine how much of these fuels can count towards EU countries' renewable energy targets, particularly in transport.
   • There's a gradual reduction in these limits from 2021-2023, leading to zero by 2030.
4. Exemption for Low ILUC-Risk Biofuels:
   • The directive introduces exemptions for biofuels, bioliquids, and biomass fuels certified as low ILUC-risk.
5. Delegated Regulation on ILUC:
   • The Commission adopted the Delegated Regulation (EU) 2019/807, detailing criteria for determining high ILUC-risk feedstocks and certifying low ILUC-risk fuels.
6. Report on Global Crop Production Expansion:
   • An accompanying report (COM/2019/142) provides data on the expansion of food and feed crop production worldwide, aiding in identifying high ILUC-risk fuels.
7. Implementing Regulation for Sustainability Certification:
   • Specific rules and guidance for the certification of low ILUC-risk biofuels are outlined in the Implementing Regulation, which was positively voted on and published in the Official Journal on 27 June 2022.

Key aspects of the biofuels and EU's activity:

1. Benefits of Biofuels:
   • Energy Security: Biofuels enhance the security of energy supply.
   • Climate Change Mitigation: They contribute to reducing greenhouse gas emissions.
   • Urban Pollution Reduction: Biofuels can help decrease urban pollution levels.
   • Rural Development: Their production and use support rural economic growth.
2. Compatibility with Current Vehicles: Biofuels can be blended with existing fossil fuels and are compatible with today's vehicles.
3. Political Priority in EU Policy: The promotion of biofuels is aligned with the EU's energy-climate policy.
4. Legislative Framework:
   • Directive (2018)/2001: Sets a binding target for a 10% share of renewable energy in transport by 2020, where biofuels play a significant role.
   • Directive 2009/30/EC: Allows for up to 10% ethanol blending in petrol and a 7% FAME content in diesel.
5. Focus on Second Generation Biofuels: Current EU policy emphasizes the development of second-generation biofuels, addressing market barriers and improving distribution and storage systems. Biofuel production should avoid significant environmental harm, competition with food production, or biodiversity loss.
6. Development of Fuel Standards: The European Commission supports the creation of biofuel standards through the European Committee of Normalization (CEN).
7. Research and Demonstration Projects:
   • Horizon Europe is financing several projects on Biofuels. Go to the Climate, Energy and Mobility programs under Horizon Europe.

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Quality standards for biofuels

Working together with the European Committee for Standardisation (CEN), the EU aims to develop and improve the technical quality standards of biofuels and biofuel blends for vehicle engines. The practical work is carried out by CEN Technical Committee 19, consisting of experts from the automotive and fuel industries, biofuels producers, and other stakeholders.