CO₂ compliance and investments for EU passenger car manufacturers
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Find out how much investment is needed to comply with European passenger car CO₂ emission targets.
The challenges of the 2025 and 2030 targets
The global movement to reduce greenhouse gas emissions (GHGs) continues to gain momentum. In 2020, passenger cars are required to meet the fleet-wide 95 g/km CO₂ target or pay monetary penalties for non-compliance in the EU market. The European Parliament and the Commission have adopted CO₂ emission performance standards for new passenger cars and vans for 2025 and 2030, which further reduce CO₂ target by 15% in 2025 and 37.5% in 2030 for passenger cars from 2021 target level. Meeting the compliance might appear to be a complex task; however, a synchronized approach towards reducing CO₂ will also create a huge business opportunity.
Following S&P Global's analysis of the short-term challenges posed
by the 2020 EU passenger car CO₂ target, this report provides
details on key measures to reduce CO₂ along with an emphasis on
resulting incremental powertrain cost. Measures taken to achieve
compliance is uniquely assessed for each car manufacturer based on
their technical and historical trends as well as their compliance
position. S&P Global Compliance Co$t explores enabling investments,
financial implications, and potential benefits for car
manufacturers to close their gaps to CO₂ targets. Cost-benefit
analysis for different propulsion technologies varies significantly
and does play a crucial role in car manufacturers' decision-making
process. This report draws on proprietary knowledge and analytical
research from S&P Global structured into three sections:
- EU market compliance status based on baseline sales forecast through 2030
- Baseline investments and cost forecast
- Incremental investments required for car manufacturers to comply in 2025 and 2030, with key car manufacturer prognosis