- ACEA and European Aluminium seek inclusion of low-carbon aluminium in EU vehicle CO2 rules.
- Industry groups want the compensatory mechanism timeline accelerated before 2035.
European Automobile Manufacturers’ Association (ACEA) and European Aluminium have jointly called for the inclusion of low-carbon materials such as aluminium within the compensatory mechanism under the European Union CO2 Regulation for passenger cars and vans. The industry bodies stated that expanding the mechanism would help maintain consistency with several ongoing European regulatory frameworks, including the Industrial Action Agenda (IAA), Ecodesign for Sustainable Products Regulation (ESPR), Carbon Border Adjustment Mechanism (CBAM), and the End-of-Life Vehicles Regulation.
According to the associations, both steel and aluminium remain critical materials in modern automotive manufacturing and have traditionally been addressed together under European legislation. They argued that the CO2 Regulation for vehicles should continue following the same principle to ensure policy alignment across the broader industrial and sustainability ecosystem. The proposal aims to strengthen regulatory coherence while supporting the automotive sector’s transition toward reduced lifecycle emissions and increased adoption of low-carbon production practices.
The organisations also requested that the timeline for implementing the compensatory mechanism for low-carbon materials be accelerated significantly. Instead of delaying implementation until 2035, they recommended activating the mechanism immediately after the regulatory review is formally adopted. The groups believe an earlier implementation timeline would create stronger investment certainty for material suppliers and vehicle manufacturers while helping accelerate industrial decarbonisation efforts across Europe.
In addition, ACEA and European Aluminium urged policymakers to finalise the official definition of low-carbon aluminium under the ESPR framework before the end of 2027, which is the currently agreed timeline. They highlighted that establishing a clear and harmonised definition ahead of the regulation’s enforcement would support smoother compliance for industry stakeholders and improve regulatory clarity for manufacturers operating across the European automotive and materials value chain.
Frequently Asked Questions
Why are ACEA and European Aluminium requesting changes to the EU CO2 Regulation?
ACEA and European Aluminium want low-carbon aluminium to be included in the compensatory mechanism under the EU CO2 Regulation for cars and vans. They believe this inclusion will align the regulation with other European sustainability frameworks such as ESPR, CBAM, and End-of-Life Vehicle rules. The organisations also argue that aluminium and steel have historically been regulated together under EU law, making consistent treatment important for industrial and environmental policy coherence across the automotive sector.
What timeline changes are being proposed for low-carbon materials regulation?
The organisations are advocating for the compensatory mechanism covering low-carbon materials to begin immediately after the review process is adopted rather than waiting until 2035. They believe an earlier start would encourage faster industrial decarbonisation and provide clearer investment direction for automotive manufacturers and material suppliers. In parallel, they also want the definition of low-carbon aluminium under the ESPR framework to be completed by the end of 2027 before the regulation officially enters into force.
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