LEAK: Only zero-emission cars will win EU green investment label
(EurActiv, 12 Nov 2020) From January 2026, all cars sold in Europe will need to emit zero grams of CO2 per kilometre in order to be considered “sustainable” under the EU’s green finance taxonomy, according to a leaked draft seen by EURACTIV.
Cars will also have to emit less than 50gCO2/km to reach the ‘do no significant harm’ threshold until end 2025 and be considered green, according to the draft EU text, which the European Commission is expected to table in the coming weeks.
Cars are responsible for around 12% of total EU CO2 emissions, according to the bloc’s statistical office Eurostat. Transport is responsible for nearly 30% of the EU’s total CO2 emissions, 72% of which comes from road transportation.
By outlining what emissions threshold is considered green, the EU hopes that private funding will be driven towards electric vehicles and accelerate the transition towards clean mobility. The move also aims at preventing greenwashing by providing investors with clear guidance on what’s green and what’s not.