The European Commission has published a new evaluation of the Car Labelling Directive (Directive 1999/94/EC), revealing that while the policy has helped consumers make more informed vehicle choices, there is room for improvement to help meet the EU’s climate and digital goals
Since its introduction, the Car Labelling Directive has played a crucial role in guiding consumers towards vehicles that are more fuel-efficient and emit lower levels of CO2.
The directive requires that clear and visible information on fuel efficiency and carbon emissions be provided to buyers and lessees of new passenger cars across EU member states.
This consistent labelling standard has made it easier for consumers to compare vehicles, promoting greater transparency and influencing buying behaviour in favour of lower-emission cars. The evaluation concludes that the directive’s benefits outweigh its modest administrative and compliance costs.
However, the report also identifies key areas where the directive could be modernised to serve consumers better and align with evolving EU policies, especially in the digital and environmental spheres.
Embracing digital tools and harmonised labels
One of the biggest opportunities for improvement lies in the shift from traditional printed labels to digital information tools. The Commission suggests that digital labelling could provide more dynamic, accessible, and up-to-date information to consumers, especially in an era where most car buyers conduct extensive online research.
The evaluation also shows the current lack of a harmonised car label across the EU. While minimum requirements exist, the design and presentation of labels differ among member states, potentially leading to confusion. A single, unified EU-wide label would enhance clarity and make cross-border car shopping easier and more transparent.
Supporting the shift to zero-emission vehicles
The directive was initially designed with combustion-engine vehicles in mind. As the EU pushes to decarbonise its transport sector, the evaluation recommends aligning the directive more closely to increase the uptake of zero-emission vehicles, such as battery-electric and hydrogen fuel-cell cars.
Currently, these vehicles are not featured adequately in existing labelling schemes. Including dedicated, tailored information for zero-emission options, such as range, charging time, or estimated electricity consumption, would help consumers better assess their viability and benefits, ultimately supporting the transition away from fossil fuels.
A greener auto industry
This evaluation contributes to the bigger vision outlined in the Industrial Action Plan for the European Automotive Sector, released on 5 March 2025. As part of this strategy, the Commission has committed to a full review of the Car Labelling Directive in 2026.
The planned revision aims to enhance the directive as a more effective tool for sustainable mobility, encouraging consumers to make greener choices and supporting the EU’s overall climate objectives. The revision will also contribute to the implementation of Regulation (EU) 2019/631, which sets mandatory CO2 emission targets for car manufacturers.
As the EU continues its push for a climate-neutral transport system, updating policies like the Car Labelling Directive is seen as essential. By modernising consumer information tools and focusing more clearly on zero-emission technologies, the EU aims to make it easier for citizens to participate in the green transition.
