Euro 7 emission standards: What to expect from the updated regulations

Attention fleet managers: the new Euro 7 vehicle emission standard, the replacement for Euro 6, was announced on November 10. Although approval from the European Union is still pending, the new standard is expected to apply to all new passenger cars and light commercial vehicles (LCVs) from July 1, 2025 and to trucks and buses from July 1, 2027.

So, with the new standard coming into force in less than three years’ time, let’s explore what it all means – from the impact Euro 7 will have on vehicles to what you can do to prepare your fleet.

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  35–56% lower vehicle NOx emissions, which are toxic to humans.
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  Lower tailpipe particles by 13% for passenger cars and vans and by 39% for buses and trucks.
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  27% lower particles from brakes and tyres for all vehicles.
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  Better battery durability for plug-in hybrids (PHEVs) and battery EVs.
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  A reduced gap between theoretical and actual emissions, especially for PHEVs.

The introduction of the new standard should improve the environment and the health of European residents. It’s estimated that 70,000 early deaths can be avoided by 2035 if the new standard is implemented. Nevertheless, the reaction from car lobby groups like the European Automobile Manufacturers’ Association (ACEA) has been negative,1 and the European Federation for Transport and Environment has claimed not only that the standard doesn’t go far enough but also that it’s “greenwashing 100 million heavily polluting cars.”

This debate aside, Euro 7 will undoubtedly affect vehicle pricing. Estimates suggest that the upgrades needed to meet the new standard will make internal combustion engine (ICE) cars and vans around €300 more expensive on average – rising to €2,700 for trucks and buses. Fleet managers should keep in mind that the extra cost can, of course, be spread over the duration of a 36–54-month contract.

There’s another area to keep an eye on: the expected increase in fleet CO2 emissions. Battery EVs will, for the first time, receive an emissions value, indicating the levels of non-tailpipe emissions. Meanwhile, the WLTP will become more stringent. This will have a particularly significant impact on the results of PHEVs, quickly eroding any remaining business case for this type of powertrain. With the offer of ICE vehicles diminishing, opting for a solely battery EV policy will become increasingly normal.

Assuming Euro 7 meets with EU approval and comes into effect in 2025 as scheduled, fleet managers have limited time to prepare. Phasing out ICE vehicles and perhaps PHEVs and shifting to a battery-only policy looks like the best place to start.