Europe Sets CO2 Caps for Trucks in Challenge to Daimler, Volvo

(Bloomberg) --

The European Union agreed to impose caps on carbon dioxide from trucks for the first time, stepping up the fight against climate change with a challenge to manufacturers such as Daimler AG.

The European Parliament voted to fix a 30 percent CO2-reduction target for 2030 compared with 2019 levels. The legislation approved by the EU assembly on Thursday in Strasbourg, France, also sets an interim emissions cut of 15 percent for 2025.

Europe is showing greater resolve to clean up road transport amid heightened warnings about the catastrophic environmental impact of global warming and about the economic risks of losing out to the likes of China in the technological transition to low-emission vehicles.

The EU is tightening caps on CO2 from cars with new reduction targets for 2025 and 2030 while establishing the first such limits for trucks. The bloc’s national governments have already signaled their support for the truck-CO2 law after negotiating a deal with the EU Parliament in February, making their final endorsement due by end-June a formality.

After the negotiated accord two months ago, the main lobby group for European truckmakers called the emissions goals “highly demanding” and said EU governments must focus on developing the necessary infrastructure.

The new legislation also sets a 2 percent sales “benchmark” for zero and low-emission vehicles as of 2025 to encourage manufacturers to invest in alternatives to diesel trucks. In addition, the European Commission, the EU’s regulatory arm in Brussels, will be required by the end of 2022 to propose post-2030 reduction targets.

To contact the reporter on this story: Jonathan Stearns in Strasbourg, France at jstearns2@bloomberg.net

To contact the editors responsible for this story: Ben Sills at bsills@bloomberg.net, Nikos Chrysoloras, John Martens

©2019 Bloomberg L.P.