Euro 7 and EU CO2 rules tighten vehicle emissions across Europe and North America

The European Union’s Euro 7 regulation, effective 29 November, expands vehicle‑emission testing to include brake, tyre and battery wear and requires on‑road measurements with portable emission measurement systems (PEMS). It contrasts with the United States approach, where manufacturers self‑certify average fleet emissions to the EPA, allowing high‑emission models to be offset by low‑emission ones. Because of a long‑standing trade agreement, Canada must align with the U.S. system, while Mexico has introduced a dual‑compliance regime that lets automakers choose between U.S. and EU standards.

At the same time, the EU is tightening CO₂ fleet‑average limits. By 2025 manufacturers must keep the average emissions of new cars below 81 g km⁻¹, dropping to 50 g km⁻¹ by 2030 and aiming for zero‑emission new vehicles by 2035. Exceeding the limits triggers a penalty of €95 per gram per vehicle, and the ecological malus can reach up to €80 000 for the most polluting cars. These measures are expected to raise new‑car prices, push the market toward hybrids and electric models, and affect access to low‑emission zones.