Do the benefits of new emission standards outweigh the costs?
Euro 7: this is the name of the future set of requirements for the sustainability and emissions of new cars in the EU. The term has been in the news a lot lately. Not only because many car manufacturers are reluctant to comply with it, but also because even a number of EU Member States are against it. Why is there such a fuss about the plans, and what exactly should be changed according to the critical car brands and countries?
No less than eight EU countries drafted an open letter of protest to other member states asking them not to agree with the current Euro 7 plans. The European trade association ACEA called Euro 7 ‘disastrous for the European car industry’ and claims that complying with the plans would require exorbitant sums from car manufacturers. Big names such as Ford, Volkswagen and Toyota are just three of the many car manufacturers that want the plans to be postponed or even canceled.
In five months’ time – on 9 November – the plans for Euro 7 must become final, to replace the Euro 6d standard from 2025. But well before that, the strong criticisms come from all corners of the car industry. Why are so many parties against the plans? What are their objections? And what influence do they have on the eventual realization of Euro 7? By answering these questions, we create order in the state of affairs.
Euro 7 in brief
As of July 1, 2025, the next generation of rules for the sustainability and emissions of new cars must come into force in the EU: Euro 7. These rules set limits on the amount of (potentially) harmful substances that cars may emit. This is not about CO2, but about things like nitrogen oxides and carbon monoxide – and then you’re talking about emissions from internal combustion engines. However, standards will also be introduced for the particulate matter production of electric cars, for example, with Euro 7, specifically for the dust originating from brakes and tyres: a worldwide first.
Furthermore, cars must be able to continue to comply with the standards for longer (up to 10 years), if it comes to Euro 7 there will soon be standards for the lifespan of batteries and the test cycle in which the harmful emissions of cars are measured will be much more extensive. So the standards for emissions are not only getting stricter; the test cycle in which cars have to stay within those standards is also becoming a lot more versatile. For a full overview of the Euro 7 changes, click here. The goal of Euro 7 should be clear: to ensure that cars to be released from 2025 are reasonably clean.
Why is it criticized?
Humans, animals and planet benefit from it, but that does not mean that everyone agrees. In fact, quite a few fairly large and different parties think the current plans are a bad idea. And that is not due to novelties such as the particulate matter emission standards or lifespan requirements for EVs and EV batteries. It is purely and simply the slightly stricter exhaust emission requirements and the more extensive test cycle that goes with it, that the manufacturers – united by ACEA – are chastising.
In order to meet this requirement, the fuel engines sold in Europe must be further developed considerably. This costs the manufacturers a lot of money, while the positive effects for the environment would be marginal. Only the cars with a combustion engine that are sold new between 2025 and 2035 will become cleaner – but not much cleaner – which means only a marginal reduction for the total harmful emissions. Or at least; so the car manufacturers claim.
Not only the car industry is against it
Whether Euro 7 actually has a negligible effect in practice has yet to be confirmed or disproved. In any case, many car manufacturers are reluctant to further develop combustion engines, as they may no longer be sold in the EU after 2034. There is simply not enough opportunity to recoup the investments. But why do eight Member States oppose the Euro 7 standard? Well, they seem to simply align themselves with the auto industry, citing cutting development costs as the main reason for the protest.
The money could be better spent on the EV transition. Apart from France and Italy, the eight countries are purely Central and Eastern European countries; countries in which the automotive industry is a major employer. Not every party that opposes the plans is in favor of a strong line through Euro 7. Volkswagen and Mercedes-Benz, among others, do not consider it undesirable per se, but want more time for engine development and the refurbishment of their factories. If Euro 7 comes too soon, according to Mercedes, thousands of jobs would be at risk. Volkswagen advocates introduction in 2027 instead of 2025.
What now?
In summary, the introduction of the unchanged Euro 7 plans on 1 July 2025 would impose high development costs on the European car industry in the short term, while the benefits of those developments are called into question. The car industry in particular therefore wants the plans to be postponed or adjusted. This is not surprising: due to the electrification requirement, which is still somewhat further in the future (2035), the products already have considerable development budgets to reserve. At the same time, European industry is already struggling quite a bit. Not only because of recent socially disruptive events such as the corona pandemic and the war in Ukraine, but also because of the increased competition from large-scale industry in China and the United States with its industry-stimulating Inflation Reduction Act.
On top of that, she doesn’t like having to invest heavily in cleaner combustion engines. Logical, but not entirely justified. After all, many parties outside the industry do benefit from cleaner new cars. It is up to the European regulators to take stock and listen to the car lobby on the one hand and the environmental lobby on the other. Policymakers will not take any chances on this; the initial Euro 7 plans presented at the end of 2022 were preceded by almost five years of research.
Nevertheless, the EU shows that it is receptive to the reservations that other actors have about the plans: the plans become when we speak held to the light. In principle, any changes must be adopted before 9 November. On that date – if all goes well – the final plans will be revealed. We will be curious to what extent the European think tanks take the industry’s comments to heart for the creation of this – and what that means for the final life phase of the combustion engine between 2025 and 2035. As soon as it is known, you will of course read it here.
– Thanks for information from Autoweek.nl