Euro 7 emissions regulations essentially axed

EUROPEAN UNION ministers have this week agreed to water down a European Commission proposal on Euro 7 vehicle emissions after vehicle manufacturers and eight countries – including France and Italy – said the changes could divert investment from electric vehicles.

According to a Reuters report, the EU countries agreed not to change the existing Euro 6 test conditions and emissions limits for cars and vans, but supported lower limits for buses, trucks and heavy vehicles.

The same countries also accepted new particle emissions limits for friction materials (brakes) and tyres.

Spain, which currently holds the rotating presidency of the European Union, presented a compromise text earlier this week that was agreed upon by the Council of the European Union, which comprises government ministers from each European Union country.

The Council, the European Parliament and the European Commission must now negotiate a final agreement on the new regulations.

“We believe that, with this proposal, we achieved broad support, a balance in the investment costs of the manufacturing brands and we improve the environmental benefits derived from the regulation,” said Spain’s acting minister for industry, trade and tourism, Hector Gomez Hernandez.

The Czech Republic, France, Italy and five other states pushed for “weaker rules” based on concerns that the proposed limits on pollutants such as nitrous oxides in combustion engines would divert development work and investment away from electric vehicles.

“The new regulation, at Italian request, makes it possible to safeguard the automotive supply chain of small volume manufacturers, the high range typical of Italian production such as Ferrari, Lamborghini and Maserati, symbols of ‘Made in Italy’, that produce around 50,000 cars a year,” said Italian industry minister, Adolfo Urso.

Mr Urso’s statement was supported by Italian automotive industry lobby group ANFIA, whose president welcomed a more “pragmatic and rational approach” to stricter emissions standards.

According to Reuters report, European vehicle manufacturers had said that implementing Euro 7 emissions standards – which are set to come into force from 2025 – would be too costly and the environmental gains negligible.

In a recent address, Renault CEO, Luca de Meo, said Euro 7 emissions standards would distract the automotive industry from moving towards electrification and force manufacturers to invest in combustion engine technology that has “no future”.

“They want to introduce a new regulation which would distract us from our mission to transform the industry,” Mr de Meo said in May this year.

“This would require us to put a lot of money on things which have no future, so I wish the European Union could review its intentions (to approve the Euro 7 regulation in the way that is currently proposed).”

Mr de Meo said he believed Euro 7 emissions regulations would lead to even higher prices for smaller vehicles, limiting freedom of movement for poorer households.

The European Union has been progressively tightening road vehicle emission limits since the first set of regulations (Euro 1) were introduced in 1992. The latest (Euro 7) proposal would have far-reaching consequences for the automotive industry, particularly those without electrified models already on sale or in development.

As reported by Automotive News Europe late last year, the change to Euro 7 marks a “clear break” from Euro 6, notably unifying the standards for diesel and petrol engines on pollutants such as nitrogen oxides (NOx), tougher targets for buses and trucks, and setting limits on friction material dust and rubber particles (from tyres).

It was proposed that the changes would come into effect for passenger vehicles in 2025 and commercial vehicles from 2027.

Reports weighing the pros and cons of the switch to Euro 7 say the EU would greatly benefit from stricter emissions standards, saying as many as 70,000 premature deaths are attributed to fine particulate matter and NOx emissions annually – and up to 300,000 deaths from air pollution and poor air quality.

Road transport emissions account for some 39 per cent of harmful NOx emissions annually.

Proponents of the tightened regulations say urban residents are most particularly affected by NOx emissions, with higher average ratings (47 per cent) recorded in city centres. It is believed Euro 7 emissions standards could cut passenger car and van NOx emissions by 35 per cent and bus and truck emissions by up to 56 per cent.

The limits proposed for brake and tyre particulate emissions will likely drive up the costs of such components as manufactures increase research and development into ‘greener’ materials.

At this point in time, no specific rubber emission limits have been set, however brake dust limits for vehicles with a kerb mass of 3500kg or less will be set at 7mg per kilometre until 2035, and 3mg/km thereafter under Euro 7 regulations.

But it is vehicle manufacturers who perhaps stand to wear the brunt of the financial toll on Euro 7.

With many producers already reducing or eliminating research and development into ‘cleaner’ internal combustions engines (in anticipation of the 2035 ICE ban proposed for the EU), Euro 7 regulations would almost certainly impact the bottom line.

A 2022 report published by Morgan Stanley suggests Europe’s largest automotive manufacturer, the Volkswagen Group, could face €400 million ($A660m) in compliance costs on new car sales, and number-two manufacturer Stellantis Group €350 million ($A577).

It is thought the impact will be hardest on smaller vehicles which will be “disproportionately affected by any manufacturing increase”, the report said. Most European manufacturers have already abandoned the light and small car segments saying it is too expensive to produce lower emissions vehicles without passing that cost on to customers.

But it is perhaps heavy commercial vehicle producers that will be hardest hit by incoming Euro 7 regulations.

Diesel-powered heavy commercial vehicles will need to reduce their NOx emissions by 78 per cent to 90mg per kilometre, down from 400mg/km (under Euro 6). This will lead to estimated compliance costs of €2700 ($A4455) per vehicle, according to the European Commission, impacting transport and shipping costs for all goods.

For EU new cars buyers, the regulations are also expected to an average of €304 ($A501) to the cost of vehicle. According to the European Commission, regulatory cost increases will join already rising inflation costs and increased energy costs making new car purchases prohibitively expensive, forcing motorists into older vehicles.

Diesel-powered cars, still popular in Europe, are required to cut NOx emissions by 25 per cent to 60mg/km from the current 80mg/km under Euro 6. The European Commission says added costs here could “hasten the decline of diesel offerings”, impacting those who regularly travel longer distances.

With Reuters and Automotive News Europe.