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2025/0420(COD)E1st reading – European Parliament

CO2 emission performance standards for new light duty vehicles and vehicle labelling

With the European Parliament, which is preparing its first-reading position.

Last active 05 Jun 2026

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What this bill does

In plain terms: what it changes and who it affects.

This bill loosens EU CO2 rules for new cars and vans while creating EU-wide vehicle labels for buyers.

Who it affects

It affects car and van manufacturers, vehicle dealers and distributors, online vehicle sellers, and people or businesses buying or leasing new or second-hand vehicles.

Core of the proposal
  • Lowers the 2030 van emissions reduction target from 50% to 40%.
  • Sets 2035 car and van fleet targets at 90% reductions, with capped fuel and low-carbon steel credits.
  • Introduces multi-year compliance periods for 2025-2027 and 2030-2032.
  • Requires harmonised labels for new and second-hand cars and vans, including online sales information.
Key provisions
Takes effect
It enters into force on the twentieth day after publication in the Official Journal.
Transitional law
Small electric vehicle super-credits apply from 1 January of the year after the automotive Omnibus application date; labelling rules and repeal apply 12 months after entry into force.
Articles changed · 17 across 2 laws
  • Regulation (EU) 2019/631 (32019R0631)
    • art. 1: amends paragraph 5(b), replaces paragraph 5a and adds paragraph 7 on vehicle labelling
    • art. 2: amends paragraph 1(b) and adds paragraph 5 extending scope to vehicle labelling
    • art. 3: replaces point (l) and adds points (n) to (r)
    • art. 4: amends paragraph 1(c) and replaces paragraph 1a on multiannual compliance
    • art. 5: replaces Article 5 on super credits for small zero-emission vehicles
    • art. 5a: inserts new Article 5a on role of sustainable renewable fuels
    • art. 5b: inserts new Article 5b on role of low-carbon steel
    • art. 6: replaces last sentence of paragraph 2 on pooling agreements
    • art. 7: inserts sentence in paragraph 5 and inserts paragraph 6b
    • art. 8: replaces second subparagraph of paragraph 1 and adds paragraph 5 on excess emissions premiums
    • art. 15: replaces paragraph 1 on future effectiveness assessments and review
    • art. 15a: inserts new Article 15a on manufacturer and distributor vehicle-labelling obligations
    • art. 15b: inserts new Article 15b on Member State vehicle-labelling obligations
    • art. 17: replaces paragraph 6 on delegated act objection procedure
    • art. Annex I: amends Annex I in accordance with Annex I to this proposal
    • art. Annex IIIa: inserts new Annex IIIa on vehicle labelling
  • Directive 1999/94/EC (31999L0094)
    • entire act: repeals the entire directive

Latest update

12 Jun 2026

The most recent development in this bill's progress.

1st reading – European Parliament → 1st reading – European Parliament

1st reading – European Parliament1st reading – European Parliament

Documents

1 recent

SourcesOEILEUR-LexEU Law Tracker