The euro standard is becoming stricter. What is the impact on your fleet and your drivers?

The Euro Standard has been in force in Europe since the 1990s. This standard establishes the environmental benchmarks that new vehicles must meet, aiming to make European mobility gradually more sustainable. The more recent the vehicle, the higher and stricter the standard, which is reflected in the increasing number after the Euro Standard (e.g. Euro 1, Euro 6c, etc.). Cities with low-emission zones (LEZ) use this standard to determine which vehicles are permitted to drive within the city limits. 

From 2025, the Euro 6e-bis Standard comes into force. It focuses specifically on Plug-In Hybrid vehicles (PHEV). From now on, new PHEV vehicles will undergo more stringent testing methods, resulting in more accurate - and therefore higher - CO2 emission figures for PHEV vehicles. Conclusion: Plug-In Hybrid Vehicles are becoming less fiscally attractive. 

 

To which vehicles does this stricter Euro Standard apply?  

The standard only applies to newly ordered Plug-In Hybrids, both to passenger cars as well as to light commercial vehicles*. The standard does not apply to fuel vehicles or all-electric vehicles.

If you already own a PHEV, its CO2 value will not be recalculated unless a re-homologation** occurs. The CO2 value on the vehicle’s certificate of conformity remains unchanged.

 

The standard takes effect in two steps during 2025

Step 1: newly launched PHEV models in 2025

From 1 January 2025, the Euro 6e-bis Standard will apply to all newly launched PHEV models and PHEV models that undergo homologation**.

 

Step 2: existing PHEV models that are purchased as new

Car manufacturers will decide when to make their existing PHEV models (which they already offered before 1 January 2025) comply with the stricter standard. Manufacturers have until 31 December 2025 to comply. 

 

Plug-In Hybrids are becoming less fiscally attractive due to the stricter Euro Standard

When the Euro 6e-bis Standard is in force, PHEV models with emissions higher than 50g/km will - at the federal level - be assessed as a “Fake” PHEV. In this case, the maximum CO2 emissions must be used for the tax calculation. Specifically, it will be comparable to the non-electric version of the vehicle, or otherwise a factor of 2.5. As a result, besides an increase in the Benefit In Kind and CO2 contribution, you can expect a decrease in tax deductibility. 

There is also an impact on road tax in Flanders. It is determined according to CO2 emissions. If your vehicle is registered in a different region, this has no impact on your road tax. If you would like to know how this works at Alphabet, please contact us. 

Finally, the current regulations of tax deductibility remain in force. 

• Fuel and PHEV vehicles ordered between 1 July 2023 and 31 December 2025 will still be deductible up to 75% in 2025. This tax deductibility decreases by 25% every year until these vehicles are no longer deductible in 2028. 
• Fuel vehicles and PHEV vehicles ordered after 1 January 2026 are no longer tax deductible.

 

Specifically, what does this mean for you and your drivers with a PHEV?  

The choice of model, and the actual production date of your PHEV are crucial. 
If you choose a PHEV model, newly launched in 2025, it will automatically meet the standard. This allows you to know in advance what the CO2 value is. 

For models already offered on the market before 1 January 2025, the car manufacturer determines when in 2025 the standard will be applied. If the manufacturer applies the standard shortly after your order, your vehicle can have a different CO2 value by the time of delivery. The production date (and not the order date) is binding for the CO2 value. Presumably, car manufacturers will delay implementation of the standard until the end of the year. If you wish to include additional PHEV vehicles in your fleet, it is recommended to order these vehicles either still this year or in the first quarter of 2025. 

 

Standards will continue to become ever stricter

After the Euro 6e-bis Standard, there will be the Euro 6e-bis “FCM” Standard and the Euro 7 Standard:

• The Euro 6e-bis FCM Standard includes a longer reference distance: Driving the vehicle 4,260 km instead of 2,200 km. This could have a further impact on the CO2 value and tax. This standard will start from 2027.
• In addition to reducing emissions, Euro 7 Standard aims to reduce particulates and plastic particles released through tyre and brake wear. In all likelihood, the application of this standard is expected from 2030 onwards.

 

Do you wish to order a Plug-In Hybrid vehicle in the near future? Follow these steps

Step 1: choose the Plug-In Hybrid vehicle that suits your needs.

Step 2: seek advice from the dealer regarding your specific Plug-In Hybrid model of choice, as well as when the standard will be applied to this vehicle. Then you can order your vehicle with peace of mind.

 

 

*PHEV vehicles in class M1 (passenger cars), N1 (delivery vans) and N2 (trucks).

**An approval that takes place when a new vehicle model enters the market, a vehicle is imported from abroad, or when the vehicle is rebuilt.