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Thought Leadership

The EU Rethinks Their Aggressive Passenger Car CO2 Rules

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Why BEV market share—not sales volume—matters most for EU CO₂ targets amid stricter rules, stalled growth, and industry-wide compliance challenges.

Pickering Energy Partners presents a new thought leadership piece by Dr. Graham Conway, analyzing the critical role of market share over sales volume in meeting the EU’s ambitious CO2 emissions targets for passenger cars. This report highlights the challenges automakers face as BEV market share stagnates and offers insights into the EU’s regulatory adjustments.

Key Takeaways:

  • Stagnating BEV Market Share: Despite rising BEV sales, EU market share dropped from 15.5% in 2023 to 14% in 2024, jeopardizing 2025 CO2 target compliance.
  • Regional Disparities: High-adoption countries like Norway (83%) lead, while Italy (4%) and Eastern Europe lag due to weak infrastructure and incentives.
  • Policy Adjustments: The EU’s 2025-2027 extended compliance period and ZLEV credits aim to ease fines, but demand-side barriers persist.
  • Technology-Agnostic Need: A focus on tailpipe emissions overlooks hybrids and life-cycle emissions, risking market distortion and innovation.
The EU Rethinks Their Aggressive Passenger Car CO2 Rules

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