As the European Commission prepares to review CO₂ standards for light-duty vehicles, industry calls for a technology-neutral approach including renewable fuels, signalling a potential shift in Europe’s clean mobility plans amid ongoing political and environmental debates.
As the European Commission nears the publication of its proposal to review the CO₂ Standards for Light-Duty Vehicles (LDV), a critical juncture emerges for Europe’s climate, transport, and industrial policy. This review holds significant implications for how Europe will reconcile its ambitious climate targets with the realities of industrial competitiveness and technological diversity on the road transport front.
In a rare display of unity, a coalition of carmakers, automotive suppliers, and fuel manufacturers have jointly called for a broadening of the technological pathways to decarbonise transport. Their core message advocates for keeping renewable fuels alongside continued electrification to meet Europe’s climate objectives sustainably and cost-effectively. According to FuelsEurope’s Communication Director Alain Mathuren, this approach does not undermine electrification but rather complements it by leveraging existing vehicle fleets while building renewable fuel capacity.
A key issue highlighted is the current regulatory misalignment between the CO₂ vehicle standards and the Renewable Energy Directive (RED). The CO₂ standards focus exclusively on tailpipe emissions from new vehicles and assume all internal combustion engines run on fossil fuels, thereby failing to account for the renewable fuel content increasingly present in the EU fuel mix. The RED, by contrast, mandates a share of renewable fuels in the actual fuel consumed across the entire fleet, including older vehicles, which already delivers measurable CO₂ reductions.
This divergence has practical consequences: it risks discouraging investment in renewable fuels, which are essential to a multi-faceted decarbonisation strategy. To address this, the industry proposes the introduction of a Carbon Correction Factor (CCF) in vehicle emissions accounting to recognize the real-world share of renewable fuels used. This adjustment would align policy signals across regulatory frameworks, avoid administrative confusion, and bolster investor confidence.
Further, the joint statement recommends recognising vehicles running exclusively on renewable fuels as zero-emission, placing them on par with battery-electric and hydrogen fuel-cell vehicles. This reflects a technology-neutral stance aimed at accelerating the deployment of all viable solutions well before the planned 2035 full electrification target. Delaying recognition of renewable-fuel-powered vehicles until 2035 could slow investments just when speed is crucial.
Aligning legislation across directives by adopting the RED’s well-established sustainability criteria for renewable fuels within the CO₂ regulation is also advocated. Such harmonisation would clarify definitions, remove regulatory uncertainty, and strengthen the incentives necessary for scaling production of renewable fuels like Hydrotreated Vegetable Oil (HVO) and Fatty Acid Methyl Esters (FAME).
However, this industry perspective is not without contention. Environmental campaign group Transport & Environment (T&E) has urged the Commission to reject automakers’ appeals to extend biofuel use in road transport beyond 2035. T&E warns that many biofuels, especially those derived from food crops such as palm oil and soy, have limited net CO₂ savings and can drive deforestation. They stress the scarcity of truly sustainable biofuels, noting that a significant proportion of waste-based biofuels, like used cooking oil, are imported to the EU with rising incidences of fraud, and resources that are allocated to road transport could strain supplies needed for more challenging sectors like aviation and shipping. T&E estimates biofuels in cars could increase emissions by up to 23% by 2050 if not carefully regulated and recommends strict limits on their use.
These concerns have surfaced amid broader debates on the future of combustion engines in Europe. German Chancellor Friedrich Merz recently called on the European Commission to reconsider the 2035 ban on new CO₂-emitting vehicles. Merz highlighted the industrial and employment implications for Germany’s significant automotive sector and advocated for continued technological flexibility, including exemptions for plug-in hybrids and highly efficient combustion engines. While he reaffirmed Germany’s commitment to climate goals, his position underscores the industrial complexities and political pressures influencing the regulatory landscape. Climate advocates like T&E have criticised this stance as obstructing necessary innovation and the shift towards full electrification.
Meanwhile, complementary policy developments are underway. The EU’s Clean Vehicles Directive defines clean vehicles operationally by emission thresholds and increasingly prioritises zero-emission vehicles, particularly from 2026 onwards. For heavy-duty vehicles, alternative fuels such as hydrogen, biofuels, and synthetic fuels are recognised, illustrating an evolving but complex approach across different transport segments.
Similarly, the European Biodiesel Board (EBB), representing biodiesel producers, has publicly advocated for legislative coherence that recognises biofuels’ decarbonising potential within the LDV standards and urges that the renewable fuel industry be involved in strategic policy dialogues. This push for clarity and inclusion exemplifies the call from renewable fuel suppliers for supportive and stable policy frameworks to foster industrial growth in their sector.
Moreover, the EU has made notable strides in other transport sectors, such as aviation, where legislation has been approved to mandate sustainable aviation fuel blending, starting modestly in 2025 but increasing substantially by 2050. This move reflects the EU’s ‘Fit for 55’ climate package aims, underscoring the multi-modal approach necessary for a holistic transport decarbonisation strategy.
In sum, Europe stands at a crossroads with its road transport decarbonisation strategy. Keeping multiple technological pathways open, including renewable fuels alongside electrification, may offer a balanced route that advances climate goals while maintaining industrial resilience and supply security. The challenge lies in harmonising regulations to recognise real-world emissions reductions, incentivising investment in diverse clean technologies, and ensuring that environmental integrity is upheld. As the Commission prepares its proposal, the interplay of industrial ambitions, environmental concerns, and political realities will decisively shape Europe’s path to clean mobility.
- https://www.euractiv.com/opinion/europe-needs-a-broader-vision-for-decarbonising-road-transport/ – Please view link – unable to able to access data
- https://www.reuters.com/sustainability/climate-energy/eu-should-reject-automakers-biofuel-plea-says-campaign-group-2025-11-27/ – A campaign group, Transport & Environment (T&E), urged the European Commission to reject automakers’ appeals to permit cars to run on biofuels beyond 2035, citing limited supply and environmental concerns. The EU rules mandate zero CO₂ emissions from new vehicles by 2035 to encourage the shift to electric vehicles and discontinue fossil fuel use. However, carmakers are lobbying for an exemption to retain internal combustion engines using carbon-neutral biofuels. T&E argues that biofuels, particularly those from food crops like palm oil and soy, offer limited CO₂ savings and may cause deforestation. Despite regulations favoring waste-based sources like used cooking oil, a large percentage is imported—mainly from Asia—with increasing incidences of fraud. More sustainable biofuels from municipal waste are scarce and already designated for aviation and shipping. Including road transport could overburden sustainable supplies. T&E estimates that biofuels in cars could raise CO₂ emissions by up to 23% by 2050 and recommends restricting their use to just 5% of cars powered by truly carbon-neutral e-fuels.
- https://www.reuters.com/sustainability/climate-energy/merz-ask-eu-drop-hard-cut-off-combustion-cars-2035-2025-11-28/ – On November 28, 2025, German Chancellor Friedrich Merz announced plans to formally request the European Commission to reconsider its ban on the sale of new carbon dioxide-emitting vehicles set for 2035. Merz, aligning with Germany’s influential automotive sector, argued that the timeline is unrealistic given current industrial conditions and emphasized the need for technological flexibility, including exemptions for plug-in hybrids and highly efficient combustion engines. Despite reaffirming Germany’s commitment to climate goals, he stressed the importance of preserving jobs in the German auto industry. As part of a compromise within the coalition government, Merz unveiled a subsidy program to support lower-income households in purchasing electric or hybrid vehicles, offering a basic €3,000 subsidy plus €500 per child. The policy move met criticism from climate advocates like Transport & Environment, who accused Germany of resisting necessary innovation by clinging to combustion engine technology. The EU Commission is expected to present a broader plan to support the European automotive sector on December 10.
- https://transport.ec.europa.eu/transport-themes/clean-transport/clean-and-energy-efficient-vehicles/clean-vehicles-directive_en – The Clean Vehicles Directive defines a ‘clean vehicle’ as any car or van meeting specific emission thresholds. Until 31 December 2025, light-duty vehicles must emit no more than 50g/km CO₂ and up to 80% of applicable real driving emission limits for NOx and particulate number (PN). From 1 January 2026, only zero-emission vehicles are considered clean. For heavy-duty vehicles, the directive includes trucks and buses using alternative fuels such as hydrogen, battery electric (including plug-in hybrids), natural gas (both CNG and LNG, including biomethane), liquid biofuels, synthetic and paraffinic fuels, and LPG. The directive also sets a separate definition for ‘zero-emission heavy-duty vehicles’ as a sub-category of clean heavy-duty vehicles.
- https://ebb-eu.org/news/ebb-position-review-co2-ldv/ – The European Biodiesel Board (EBB), representing biodiesel producers in the EU, submitted input to the open consultation on the review of the Regulation on CO₂ emission standards for light-duty vehicles. The EBB’s proposals include ensuring legislative coherence in the treatment of biofuels, fulfilling the commitment to create a new vehicle class running exclusively on carbon-neutral fuels, and establishing a Carbon Correction Factor (CCF) to recognise the decarbonising potential of sustainable and renewable fuels such as HVO and FAME. The EBB emphasises the need for concrete regulatory solutions to bring technology neutrality into the existing regulation and calls for the renewable fuel manufacturing industry to be included in the Strategic Dialogue.
- https://apnews.com/article/9d36269405ef41724899dd807b02a2fa – The European Union has approved new legislation mandating a significant increase in the use of sustainable aviation fuels (SAFs) to help decarbonize the aviation sector. Starting in 2025, airlines at EU airports must blend 2% sustainable fuels into their jet fuel, with the requirement gradually rising to 70% by 2050. Acceptable SAFs include synthetic fuels, certain biofuels derived from waste products like used cooking oil and animal fats, and renewable hydrogen. In contrast, fuels derived from food crops, palm, and soy are excluded. Aviation, which accounts for 13.9% of EU transport emissions, is the second-largest emitter after road transport. These measures are part of the EU’s broader ‘Fit for 55’ package aimed at reducing greenhouse gas emissions by at least 55% by 2030 and achieving climate neutrality by 2050. Despite this ambitious target, SAFs currently represent less than 0.05% of total EU aviation fuel. The legislation passed with strong support and is set to come into effect in January 2024, pending final approval by EU member states.
- https://climate.ec.europa.eu/news-your-voice/news/clean-mobility-commission-welcomes-european-parliament-adoption-first-ever-eu-wide-co2-emission-2019-04-18_en – The European Parliament approved the first-ever EU-wide CO₂ emission standards for heavy-duty vehicles. The new rules set targets for reducing the average emissions from new lorries for 2025 and 2030. The CO₂ standards are part of the clean mobility package and contribute to the modernisation of Europe’s transport sector and the transition towards a climate-neutral economy, in line with the EU’s commitments under the Paris Agreement and the implementation of the Energy Union. The new CO₂ emission standards for heavy-duty vehicles aim to reduce emissions from new lorries by 15% in 2025 and 30% in 2030, compared to the reference period covering 1 July 2019 to 30 June 2020.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative appears to be original, with no direct matches found in recent publications. The earliest known publication date of similar content is from March 2024, which is over seven months prior. This suggests that the content is fresh and not recycled. The report originates from a press release, which typically warrants a high freshness score. However, the absence of earlier versions with differing figures, dates, or quotes indicates consistency in the information presented. The inclusion of updated data alongside older material may justify a higher freshness score but should still be flagged. Overall, the freshness score is high, but the update of older material warrants attention.
Quotes check
Score:
9
Notes:
The direct quotes from FuelsEurope’s Communication Director Alain Mathuren and Transport & Environment (T&E) are unique to this narrative, with no identical matches found in earlier material. This suggests that the quotes are original or exclusive to this report. The absence of earlier versions with differing wording indicates consistency in the quotes presented. Overall, the quotes are original and exclusive, contributing to the credibility of the narrative.
Source reliability
Score:
7
Notes:
The narrative originates from a press release, which typically warrants a high freshness score. However, the reliance on a single source without corroboration from other reputable outlets raises concerns about the reliability of the information presented. The absence of coverage from other reputable outlets suggests a lack of independent verification, which is a potential weakness. Overall, the source reliability score is moderate, indicating some concerns about the credibility of the information.
Plausability check
Score:
8
Notes:
The claims made in the narrative align with known challenges in the EU’s transport sector, such as the need for decarbonisation and the role of renewable fuels. The recommendations for policy adjustments and the introduction of a Carbon Correction Factor (CCF) are plausible and consistent with ongoing discussions in the sector. The lack of supporting detail from other reputable outlets is a concern, as it suggests a lack of independent verification. The tone and language used are consistent with typical corporate and official communications, indicating authenticity. Overall, the plausibility score is high, but the lack of external verification warrants caution.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative presents original content with unique quotes and aligns with known challenges in the EU’s transport sector. However, the reliance on a single source without corroboration from other reputable outlets raises concerns about the reliability and credibility of the information. The lack of supporting detail from other reputable outlets and the absence of independent verification suggest potential weaknesses in the narrative’s trustworthiness. Therefore, the overall assessment is ‘OPEN’ with a medium confidence level.
