On 12 November 2022, The European Commission (EC) presented its proposal for Euro 7 emission standards, covering both light and heavy vehicles in the European Union. While CO2 emission rules will drive the deployment of zero-emission vehicles, the EC made it clear that ensuring all vehicles on European roads are much cleaner is essential. Part of the reasoning behind this proposal is linked to the environmental and health risks. Transport across Europe is still a major contributor to air pollution and premature deaths. On average, the EC found it responsible for 39% of the harmful NOx emissions in 2018 (47% in urban areas) and 11% of total PM emissions in 2018.
As part of the proposal, all new cars and vans sold in the EU will not emit any CO2 from 2035. However, according to the EC, more than 20% of pre-existing cars and vans and over 50% of heavy-duty vehicles are expected to continue to emit pollutants from the tailpipe.
One aspect to consider regarding these incoming regulations is the supply chain. “The proposed regulations will almost certainly impact demand for certain vehicle components. The production for electric vehicle (EV) parts, such as batteries, will become more demanding as the need for electrification and zero-emission vehicles in OEM fleets increases in-line with the standards,” says Amanda Beggs, Senior Counsel at law firm Foley & Lardner.
But it’s not just the automakers that will be impacted: it will also impact tyre manufacturers and determine which of their products are available or compliant for use, as the regulation addresses emissions from these components.