Emissions & Vehicle Regulations
California ACC II ZEV sales target for MY 2026
Per-vehicle civil penalty for ACC II non-compliance
EU CO₂ reduction target for new cars by 2035 (revised Dec 2025)
Regulation Overview
https://ww2.arb.ca.gov/our-work/programs/advanced-clean-cars-program/advanced-clean-cars-ii
Zero-emission vehicle requirements are manufacturer sales mandates that require an increasing percentage of new vehicles sold to be battery-electric, fuel-cell, or qualifying plug-in hybrid vehicles. For supply chain teams, the primary obligation is collecting and validating component-level evidence—battery certifications, range durability data, warranty documentation, and powertrain compliance records—across every supplier tier for vehicles claiming ZEV credit. California's ACC II requires 35% ZEV sales for MY 2026, escalating to 100% by 2035. The EU's revised CO₂ fleet standards now target a 90% reduction by 2035 (revised from 100% in December 2025). The UK ZEV Mandate requires 33% of new car sales to be zero-emission in 2026, reaching 100% by 2035. Canada requires 20% ZEV sales by MY 2026, reaching 100% by 2035. Regulatory uncertainty is high: California is developing ACC III after federal waiver revocation, while the EU has revised its 2035 target. ZEV compliance requires component-level evidence—battery certifications, range test data, and warranty records—from every supplier. Multi-jurisdiction compliance means tracking different credit systems, penalty structures, and reporting timelines simultaneously. When regulations change, your entire vehicle portfolio requires reassessment.
Key Components / Sub-Frameworks
Vehicle manufacturers selling light-duty vehicles in California and Section 177 states\nAutomotive OEMs placing new cars and vans on the EU market\nManufacturers registering new vehicles in the United Kingdom\nImporters and manufacturers selling light-duty vehicles in Canada\nComponent and battery suppliers providing certified powertrain systems to OEMs\nTier 1 and Tier 2 suppliers manufacturing ZEV-specific components (batteries, motors, chargers)
Key Thresholds
You sell vehicles in California, New York, the UK, and Canada. Each jurisdiction has different ZEV percentage targets, different credit calculations, different banking rules, and different penalty structures. California allows pooling across Section 177 states until 2030. The UK allows borrowing for three years. Canada permits early-action credits. Your compliance team tracks four separate credit ledgers in four separate spreadsheets with no unified view.
California's ACC II imposes a $20,000 civil penalty per unrecovered ZEV value. You have three model years to recover a deficit. But you need supplier documentation—battery certifications, range durability test data, warranty records, and charging compliance evidence—for every vehicle claiming ZEV credit. One missing supplier certificate means one uncredited vehicle means one $20,000 exposure.
ZEV assurance measures require battery durability proof—70% range retention for MY 2026–2029, increasing to 80% for MY 2030+. Battery state-of-health warranties require documentation from cell manufacturers, pack assemblers, and BMS providers. Your battery supplier provides a PDF certificate. Your compliance team needs validated test data at cell, module, and pack level. The evidence gap between supplier declarations and regulatory requirements is where compliance risk lives.
ACC II waivers revoked federally but state laws remain in force. The EU revised its 2035 target from 100% to 90%. Canada adopted then faces political pressure to soften targets. The UK is under review. Manufacturers must plan supply chains, component sourcing, and certification programs for regulations that may change. Without continuous regulatory intelligence and horizon scanning, you're building to the wrong target.
Certivo In Action
CERTIVO IN ACTION — ZEV REQUIREMENTS WORKFLOW
From Spreadsheet Credit Tracking to Automated Multi-Jurisdiction Management
CORA collects, parses, and validates supplier ZEV evidence automatically. Your team focuses on credit strategy and regulatory response—not manual data compilation across four jurisdictions.
ZEV Documentation Acceleration
Generate complete, audit-ready ZEV compliance packages with credit calculations, supplier evidence, and jurisdiction-specific formatting in hours—not the weeks of manual assembly.
Real-Time Regulatory Intelligence
When CARB publishes ACC III, the EU finalizes its CO₂ revision, or the UK adjusts its ZEV targets, Certivo reassesses your portfolio instantly. Know your credit position before reporting deadlines—not after.
Key Statistics
Frequently Asked Questions
Which companies must comply with zero-emission vehicle requirements?
ZEV mandates apply to vehicle manufacturers—not individual consumers or dealers. California's ACC II covers manufacturers selling more than 4,500 light-duty vehicles annually in California. The EU CO₂ standards apply to all OEMs placing cars and vans on the EU market. The UK ZEV Mandate applies to manufacturers registering more than 2,500 vehicles per year. Canada's ZEV regulation covers manufacturers and importers of light-duty vehicles.
What are the penalties for failing to meet ZEV sales targets?
Penalties vary by jurisdiction. California ACC II imposes a $20,000 civil penalty per unrecovered ZEV value after a three-year recovery period. The EU charges €95 per g/km of CO₂ exceeding the fleet target, multiplied by vehicles registered. The UK fines £12,000 per car (revised from £15,000) and £18,000 per van below ZEV targets. Canada allows deficit recovery within three model years before penalties apply.
How does Certivo support ZEV compliance across multiple jurisdictions?
Certivo collects one set of supplier evidence—battery certifications, range data, warranty documentation, and powertrain compliance records—and validates it against ACC II, EU CO₂ standards, UK VETS, and Canada ZEV requirements simultaneously. CORA extracts certification data from any format and maps it to each jurisdiction's specific credit calculation methodology. One supplier campaign satisfies multiple compliance obligations.
How does the regulatory uncertainty around ACC II affect compliance planning?
California's ACC II waivers were revoked by federal CRA resolutions in June 2025, but ACC II remains adopted as state law in 17 states. Litigation is ongoing. CARB is developing ACC III as an alternative pathway. Manufacturers must plan for multiple scenarios. Certivo's regulatory intelligence and horizon scanning capability tracks legislative and regulatory developments across all ZEV jurisdictions, alerting your team to changes that affect credit calculations, target timelines, or penalty structures.
How do ZEV requirements relate to the EU Battery Regulation and Digital Product Passport?
The EU Battery Regulation (2023/1542) requires carbon footprint declarations, due diligence, and digital battery passports for EV batteries placed on the EU market. ZEV compliance evidence—battery capacity, durability, warranty, and material sourcing—overlaps significantly with battery regulation documentation. Certivo validates supplier evidence against both ZEV and battery regulation requirements from a single submission, feeding shared data into digital product passport frameworks.