Consultation outcome

CO2 emission performance standards for new heavy-duty vehicles

Updated 13 October 2020

This was published under the 2019 to 2022 Johnson Conservative government

The UK approach to regulating CO₂ from new heavy-duty vehicles

This consultation relates to the regulation of CO₂ emissions from new heavy-duty vehicles (HDVs) (trucks, buses and coaches), through emission performance standards. Previously, these regulations have been set and monitored by the EU. Following the UK’s exit from the EU, the relevant regulation^{[footnote 1]} will transfer into UK law at the end of the transition period on 31 December 2020.

This document sets out the details for the implementation and operation of the resulting UK regulatory scheme at the end of the transition period. It is aimed at ensuring that the regulation of CO₂ emissions from new HDVs registered in the UK continues.

As set out in the government’s Road to Zero Strategy, the UK is intending to pursue “a future approach as we leave the European Union that is at least as ambitious as the current arrangements for vehicle emissions regulation”. This consultation is in line with that commitment.

The UK’s general approach in transferring the HDV CO₂ regulations is to:

• retain policy that supports the delivery of our wider ambitions to reduce CO₂ emissions from transport in support of net zero
• provide certainty to vehicle manufacturers on plans for regulation following the transition period and minimise additional reporting burdens
• ensure that UK regulation is at least as ambitious as the regulatory regime established in the EU
• enable the UK government to assume the obligations and functions, currently performed by the European Commission, to ensure the regime continues to function in a UK only context

The proposed legislation is being made under the European Union (Withdrawal) Act 2018 (EUWA), its provisions allow for secondary legislation to be made, for a time limited period, in order to correct for any inoperabilities within the newly retained EU legislation. The EUWA does not otherwise allow changes to be made to the retained law to take alternative policy objectives into account.

The general approach is therefore that if a provision:

• does not work without alteration, it has been amended – for example, the scope of the regulations apply in respect of HDVs registered in the UK and not across the EU
• does not work sensibly without alterations, it has been amended in a manner to maintain its intention – for example, given the transition period ends in the middle of the first full year’s reporting period, a requirement has been proposed so that the full year’s emissions data (July 2020 to June 2021) is reported to the Secretary of State

Similarly, where a provision continues to function in the UK after exit, it has not been amended, regardless of wider UK policy/commitments – for example, the headline emissions reduction targets for 2025 and 2030.

The main changes to the existing articles of regulation 2019/1242 are covered in the draft UK statutory instrument (SI) in Annex A and in the main changes section.

Noting the above constraints, this consultation document only seeks comments on the proposed new UK provisions set out in this document to ensure the operation of regulation 2019/1242 is practicable and continues to work within the UK only context.

How to respond

The consultation period begins on 10 July and will run until 21 August 2020. Please ensure that your response reaches us before the closing date. If you would like alternative formats of this consultation document you can contact [email protected].

When responding, send your response to [email protected] with the subject line ‘HDV CO2 emissions consultation response’ stating whether you are:

• an individual
• representing the views of an organisation

If responding on behalf of a larger organisation, make it clear who the organisation represents and, where applicable, how the views of the members were reached.

Background

The HDV CO₂ emission performance standards regulation is the final part of a package of three EU measures regulating CO₂ emissions from HDVs:

1) the Vehicle Energy Consumption Calculation Tool (VECTO) - The VECTO simulation software tool was developed to establish a consistent and robust way of measuring the CO₂ emissions and fuel consumption of HDVs for specific loads, fuels and mission profiles (for example long haul, regional delivery, urban delivery), based on input data from relevant vehicle components. The tool was developed by the European Commission in cooperation with stakeholders. It was introduced via EU regulation 2017/2400, ‘the certification regulations’, in December 2017 and came into effect from 1 January 2019. From this date a simulation of CO₂ emissions and fuel consumption using VECTO has to be carried out for each new HDV in scope and placed on the EU market as part of the type approval process. This requirement continues in a UK only context following the end of the transition period

2) the monitoring and reporting of CO₂ emissions from, and fuel consumption of, new heavy-duty vehicles regulation (EU 2018/956 as amended by 2019/888) – ‘the monitoring and reporting regulations’. EU member states and manufacturers are required to monitor certain data points and report to the European Commission as set out in part A (member states) and point 1, part B (manufacturers) of annex 1 of the regulation. This was transposed into UK law in March 2019, with effect from the end of transition period ^{[footnote 2]}

Article 19 of the HDV CO₂ regulation (the subject of this consultation document) amended the reporting dates for both sets of data from February 2020 to September 2020. The draft regulations therefore make further amendments to these provisions to reflect these changes.

3) the CO₂ emission performance standards for new HDVs regulation, EU 2019/1242 – ‘the HDV CO₂ regulation’. This legislation which sets CO₂ emission standards on new HDVs came into force in the UK on 14 August 2019. The regulation establishes CO₂ emission reduction targets for vehicle manufacturers who introduce new HDVs into the EU single market.

This consultation document covers the third part of this package of measures as well as subsequent amendments to the second part, as described above. It sets out the changes the government proposes to make as a result of EU Regulation 2019/1242 to ensure that the existing provisions and requirements continue to function in a UK only context at the end of the transition period.

The HDV CO₂ emission performance standards regulation (EU 2019/1242)

The regulation sets targets to reduce the average CO₂ emissions from new HDV vehicles by 15% in 2025 and by 30% in 2030, measured against a baseline determined from data reported to the European Commission. The baseline value will be defined based on the certified CO₂ emissions of new HDVs collected under the separate monitoring and reporting regulations mentioned.

The CO₂ emission performance standards regulation sets out CO₂ emission limits for four categories (4, 5, 9 and 10 as referred to in annex I of (EU) 2017/2400) of new rigid lorries and tractors, as defined in article 2 of the regulation, registered after 1 January 2019. The standards address only the tailpipe emissions from the vehicles. Vocational vehicles, not used for the delivery of goods, are excluded from the scope of the regulation.

The regulation contains provisions for CO₂ reductions against a fixed baseline (the ‘reference CO₂ emissions’) which is common to all manufacturers. These baseline emissions are defined for each vehicle category based on monitored data reported to the European Commission from 1 January 2019 to 30 June 2020. HDV manufacturers are due to report the required data to the European Commission by 30 September 2020.

For each manufacturer, the CO₂ emissions are regulated on a fleet-wide basis based on their ‘specific CO₂ emissions’, calculated using the formula in Annex I of the CO₂ emission performance standards regulation (article 3).

As an incentive to boost the sales of zero and low emission HDVs (ZLEVs), the regulation introduces a system of ‘super credits’ based on a manufacturer’s ZLEV factor as determined each year (article 5). For 2019 to 2024 zero emission HDVs (ZEVs) are counted as two vehicles and LEVs as up to two. From 2025 onwards, manufacturers must achieve a 2% sales benchmark before the super-credits can apply but there is no sanction for not achieving this benchmark. The ZLEV factor can reduce a manufacturer’s average specific CO₂ emissions by a maximum of 3% overall.

The regulation includes an emission credits and debits system (article 7) if a manufacturer over or under delivers against their target in a given year. Credits can be acquired from 2019 until 2029 but credits acquired up to 2024 can only be used to comply with the 2025 target and are not valid thereafter. There are no implications if a manufacturer’s CO₂ emissions are in debt during the period up to 2024.

Emission debits can be acquired from 2025 to 2029 but cannot exceed 5% of their overall target for a given year. From 2025 to 2028 credits and debts can be carried over from one year to the next but any remaining debts must be cleared by 2029.

If a manufacturer fails to meet their specific CO₂ emissions target in a given year an excess emissions premium of €4000 per gCO₂/tonne-km applies from 2025. Article 8 of the regulation sets out how these fines are calculated.

The regulation also contains requirements for the European Commission to verify monitoring data submitted by manufacturers in use to check they are consistent with values indicated on the vehicle’s certificate of conformity. The data collected must be reported publicly on an annual basis.

The regulation also makes amendments to (EC) 595/2009, (EU) 2018/956 and Directive 96/53/EC.

Main changes

Changes in the reporting arrangements arising from article 19

Baseline data reported by manufacturers to the European Commission in September 2020 under part B of annex 1 of 2018/956 as amended by 2019/888

Article 19 of EU 2019/1242 amends EU Regulation 2018/956 (as amended by 2019/888) on the monitoring and reporting of CO₂ emissions from new HDVs. This pushes the first reporting date by member states and vehicle manufacturers back from 28 February each year to 30 September each year commencing on 30 September 2020. This has implications for the operation of the existing monitoring and reporting regime in the UK.

Following the UK’s exit from the EU on 31 January 2020, and entering into the transition period to 31 December 2020, the main effect of this change is that all of the manufacturer’s data for the baseline reporting period 1 January 2019 to 30 June 2020 will now be submitted to the European Commission by 30 September 2020. The baseline (the ‘reference CO₂ emissions’ as defined in article 3) is essential to measure progress against the 2025 and 2030 CO₂ emission reduction targets.

Given the reporting date is now September 2020 each of the vehicle sub-categories baseline measurements will therefore be calculated and set by the European Commission and published in April 2021. This published data will include the UK reported data. We therefore propose to adopt the baselines published by the commission in April 2021 against which the 2025 and 2030 CO₂ emission reductions targets will then be measured going forward under the resulting UK only regime.

Baseline data reported by the UK to the European Commission in September 2020 under part A of annex 1 of 2018/956 as amended by 2019/888

The UK is required to report the six data fields set out in part A of annex 1 of 2018/956 (as amended by 2019/888) for the period 1 January 2019 to 30 June 2020 to the European Commission. All six data fields are recorded on the vehicle’s certificate of conformity but only the first three of these fields are currently held by the Department for Transport. The other three data fields are held by the vehicle manufacturers.

Regulation 8(4) of the previous Exit SI 2019/846 made in March 2019, sought to address this collection of the 3 missing data fields by including a provision to require HDV manufacturers to report all six data fields to the Secretary of State once the UK left the EU and the Exit SI came into effect. This was to enable to the UK to continue to meet its reporting requirements, and so that the data was still available to underpin the resulting new UK only regime. That SI does not now come into effect until the end of transition period.

With the change of the reporting date to the European Commission moving to September 2020, as a consequence of article 19 of the CO₂ emission performance standards regulation, we therefore propose to carry forward the same intent as set out in SI 2019/846. This will require manufacturers to report the six data fields for the period 1 January 2019 to 30 June 2020 to the Secretary of State by 31 January 2021 as set out in the amendment to regulation 7 in Part 3 of the proposed draft UK SI at Annex A. This reporting provision also requires HDV manufacturers to continue to report all six fields to the Secretary of State annually commencing from September 2021.

We recognise there are issues with the availability of some of this data on the certificate of conformity held by HDV manufacturers and propose to work closely with vehicle manufacturers to seek the best way of delivering this requirement. We welcome views of consultees on how this might be addressed, for example it may be possible for DfT Statistics team to review previously reported data to identify UK only data.

Reporting of data by manufacturers every year from September 2021

Article 19 of the EU CO₂ emission performance standards regulation amends the monitoring and reporting regulations (EU 2018/956 as amended by 2019/888). This sets the future data reporting periods for manufacturers to report the required data to the European Commission from 1 July to 30 June each year commencing from 1 July 2020. As the transition period ends on 31 December 2020 the first of these reporting periods is therefore divided in two. To resolve this inoperability there are three options:

1) shorten the first UK reporting year to instead cover 1 January to 30 June 2021 data – this would effectively delay the introduction of the Regulation’s requirements from 1 July 2020 by 6 months in the UK and mean manufacturers’ performance would be measured against only 6 months data

or

2) Extend the first reporting period to cover the period from 1 January 2021 to 30 June 2022 – again this would delay the first reporting period in the UK by 6 months and provide for an unrepresentative 18-month reporting period

or

3) retain the provisions as they stand but include an additional reporting provision amending regulation 2018/956 (as amended by regulation 2019/888) to require reporting of data for the full reporting period 1 July 2020 to 30 June 2021 by HDV manufacturers to the Secretary of State. This is the preferred option (see amendment to article 5 of regulation 2018/956 in part 3 of the draft UK SI at Annex A). This is because the data is being collected by manufacturers already, it is consistent with the existing provisions, and it means no change in the reporting period is required.

Question

Given the UK’s general approach in retaining the HDV regulations, do you have any comments on the proposed approaches set out in the 3 sections?

Minor changes to regulation EU 2019/1242

General

To enable regulation 2019/1242 to continue to function in a UK only context the following general changes, where appropriate, have been made in the draft SI:

• throughout the articles references to the ‘European Union’ or ‘Community’ ‘or the Union’ have been replaced with ‘United Kingdom’
• references to ‘the European Parliament’ and ‘the Council’ have been amended to reference ‘Parliament’
• references to ‘the Commission’ have been amended to reference ‘the Secretary of State’
• where dates have expired they have been removed
• subsequent cross references to regulations, directives and articles have been amended

Such changes are therefore not referenced in each individual case below.

Article 1 - Subject matter and objectives

This article establishes the CO₂ emission reduction targets for HDVs across the fleet. The targets will remain the same in the UK after the end of the transition period. The article also establishes the monitoring period for the reference baseline period against which the reduction targets are measured.

Article 1 has been amended to remove the EU’s 2030 climate target and instead reflect the UK’s 2050 net zero commitment.

Article 2 - Scope

The article defines which vehicles are to be captured by the provisions of the regulation. The only non-minor change proposed is to omit the final sentence of 2(3) which refers to article 16(2) as this refers to EU procedures that will no longer apply in a UK only context.

Article 3 – Definitions

Minor amendments only.

Article 4 - Average specific CO₂ emissions of a manufacturer

The article has been amended to reflect the fact that the European Commission will have responsibility for determining the average specific CO₂ emissions for manufacturers for the year commencing 1 July 2020. This duty switches to the Secretary of State from July 2021. An amendment has been made to this effect.

Article 5 - Zero- and low-emission heavy-duty vehicles

The intent of this article is to set out the criteria and process for calculating the zero and low emission factor (ZLEV factor) in the reporting periods between 2019 and 2024, and 2025 and 2029. Article 5(1) has been amended because the 2020 ZLEV factor will be set by the Commission in July 2020. This duty switches to the Secretary of State from July 2021. An amendment has been made to this effect.

Article 6 - Specific CO₂ emissions targets of a manufacturer

Minor amendments only.

Article 7 - Emission credits and emission debts

Minor amendments only.

Article 8 - Compliance with the specific CO₂ emissions targets

Article 8(1) has been amended to convert the excess CO₂ emission premiums figures from Euros to Sterling using an exchange rate of £1: €1.11003 as per June 2020

The final sentence of article 8(3) which refers to article 16(2) has been omitted as this refers to EU procedures that will no longer apply in a UK only context.

Article 8(4) has been amended to reflect the fact that at the end of the transition period under the new UK regime excess CO₂ emissions premiums will be payable to the UK Government via ‘the Consolidated Fund’.

Article 9 - Verification of the monitoring data

The final sentence of article 9(3), which refers to article 16(2) of 2019/1242, has been omitted as this refers to EU procedures that will no longer apply in a UK only context.

Article 10 - Assessment of reference CO₂ emissions

The final sentence of article 10(3), which refers to article 16(2), has been omitted as this refers to EU procedures that will no longer apply in a UK only context.

Article 11 - Publication of data and manufacturer performance

In article 11(1) references to 1 July 2020 have been amended to 1 July 2021 in sub paragraphs (a), (b), (d) and (f). As noted this is because the July 2020 information will be published by the European Commission in April 2021. This duty switches to the Secretary of State from April 2022. An amendment has been made to this effect.

Article 12 - Real-world CO₂ emissions and energy consumption

In article 12(3) the reference to ‘national authorities’ has been amended to ‘other agencies of the Secretary of State’ in recognition that the reporting is now to the Secretary of State in this article and not to the European Commission. This amended reference could include executive agencies of the Department for Transport, for example the Driver and Vehicle Licensing Agency and Vehicle Certification Agency.

The final sentence of article 12(4) which refers to article 16(2) has been omitted as this refers to EU procedures that will no longer apply in a UK only context.

Article 13 - Verification of the CO₂ emissions of heavy-duty vehicles in-service

The final sentence of article 13(4) which refers to article 16(2) has been omitted as this refers to EU procedures that will no longer apply in a UK only context.

The second subparagraph of Article 13(4) which refers to article 17 has also been omitted as this refers to EU comitology that will no longer apply in a UK only context.

Article 14 - Amendments to annexes I and II

The final sentence of article 14(3) which refers to article 16(2) has been omitted as this refers to EU procedures that will no longer apply in a UK only context.

Article 15 - Review and report

The last sentence of article 15(1) has been amended to remove the EU’s commitments under the Paris Agreement and replaced with a reference to the UK’s 2050 net zero commitment.

At the end of article 15(2)(e) the reference to ‘geographical situation of member states’ has been omitted as this is not pertinent in a UK only context.

Article 16 - Committee procedure

This article has been deleted as it refers to EU comitology and replaced with provisions that apply in a UK only context. It has been replaced with UK specific equivalent provisions which were included in the Exit SI (2019 No.846) in March 2019.

Article 17 - Exercise of the delegation

This article has been omitted as it refers to powers for the European Commission to adopt delegated acts which does not function in a UK only context. Any such powers in the UK in the future would be subject to the usual parliamentary procedure.

Article 18 - Amendments to regulation (EC) No 595/2009

(EC) No. 595/2009 deals with type-approval of motor vehicles and engines with respect to emissions from heavy duty vehicles (Euro VI) and on access to vehicle repair and maintenance information. This amendment will be the subject of separate Exit legislation in early 2021.

Article 19 - Amendments to regulation (EU) 2018/956

Mentioned in the ‘Main changes’ section.

Consequent amendments to SI 2019/846

Regulation 10 has been amended to reflect the change in the reporting year dates.

Regulation 14 has been amended to reflect the change in the reporting year dates and the fact that the responsibility for publishing the annual report in the future will fall to the DfT Secretary of State at the end of the transition period.

Article 20 – Amendments to directive 96/53/EC

Article 20 deals with amendments to directive 96/53/EC which allows for additional weight allowances for HDVs utilising alternatively fuelled power trains. Implementation of this article is being considered as part of a separate process. We are therefore not seeking views on this article as part of this consultation.

Article 21 – Entry into force

This article is omitted as 2019/1242 is already in force and the entry into force date is covered in the ‘Citation and commencement clause’ at the start of the draft UK Exit SI at Annex A.

Question

Do you have any comments on the proposed minor changes?

Annex A: draft SI

The draft SI is supplied with this consultation.

What will happen next?

A summary of the responses and the government’s response, including the next steps, will be published in due course

Consultation principles

The consultation is being conducted in line with the government’s consultation principles, which are available on the Better Regulation Executive website.

If you have any comments about the consultation process, please contact:

Consultation Co-ordinator
Department for Transport
Zone 1/29 Great Minster House
London SW1P 4DR

Do not send consultation responses to this address.

Footnotes

1. (EU) 2019/1242 which sets CO₂ emission performance standards for new HDVs following its publication in the Official Journal of the European Union on 25 July 2019. It came into force in the UK on 14 August 2019. ↩

2. Through ‘the Heavy Duty Vehicles (Emissions and Fuel Consumption) (Amendment) (EU Exit) Regulations 2019’ ↩