European Parliament Approves 95g CO2/km Limit for 2020–2022
From 2020, carmakers must cut average fleet emissions to 95g CO2/km, with a transitional phase and the end of supercredits by 2022.
The European Parliament has voted to enforce a new CO2 emissions limit for passenger cars, requiring manufacturers to reduce average fleet emissions to 95g CO2 per kilometre from 2020. The decision, confirmed in February 2014, introduces a two-year transitional period to 2022, after which all carmakers must comply without the help of supercredit allowances.
The 95g/km target marks a sharp drop from the previous 130g/km fleet average. According to the European Parliament’s decision, all vehicles sold by a manufacturer in the EU will be counted towards this average. The rules apply to the full range of models, regardless of segment or engine size, after the transitional phase ends in 2022.
Transitional phase and supercredits
Germany, home to premium brands such as BMW, Mercedes-Benz and Audi, objected to the immediate introduction of the 95g/km cap. The main concession granted was a transitional period from 2020 to 2022, allowing manufacturers to use so-called supercredits. These credits let carmakers count low-emission vehicles (under 50g CO2/km) as more than one car in their average calculations, softening the impact of the new limit while they adjust their model ranges.
- 2014: Each sub-50g/km car counts as 3.5 cars for fleet average
- 2020: Each counts as 2 cars
- 2021: Each counts as 1.67 cars
- 2022: Each counts as 1.33 cars
- After 2022: Each counts as one car only
After 2022, the supercredit system is abolished. From then, only actual vehicle sales will count, and every car, electric, hybrid or otherwise, will be counted equally in the fleet average. This removes the last statistical advantage for selling low-emission vehicles in small numbers to offset higher-emitting models.
Industry response and compliance strategies
The new target has drawn criticism from German manufacturers, who argue that the rules make it difficult to continue offering larger, more powerful engines without resorting to downsizing or hybridisation. At the time of the vote, premium brands were particularly concerned about the impact on their traditional product lines. Many carmakers had already introduced electric vehicles and hybrids, but these models remained a small fraction of sales and were often used to balance out the emissions of higher-performance cars.
For buyers, the new rules mean a shift in the types of cars available, with more emphasis on low-consumption engines and alternative powertrains. Some industry observers have pointed out that the official test cycle figures used to calculate compliance often differ significantly from real-world fuel consumption, raising questions about the practical impact of the regulation. For further detail on the gap between official and real-world emissions, seeEuropean study finds new cars emit 38% more CO2 than official figures
What happens after 2022?
Once the supercredit phase ends, all manufacturers face the same calculation method. The pressure to meet the 95g/km average is expected to accelerate the adoption of electrified powertrains and further technical optimisation of combustion engines. Some industry analysts have suggested that the focus may increasingly shift towards optimising vehicles for test cycles rather than real-world driving, as the regulation is based on laboratory figures.
The new regulation sets a clear direction for future vehicle development in Europe, but its real-world environmental impact will depend on how manufacturers and regulators address the gap between laboratory and actual emissions.
