In 2009, the EU set legally binding targets for new cars to emit on average 130 grams of CO2 per kilometer (g/km) by 2015 and 95g/km in 2020. The way the 2020 target will be met is presently being considered by the European Parliament and Council following a Commission proposal in 2012. The Commission proposed to reintroduce a system of “supercredits”, which proponents say will encourage supply of ultralow carbon vehicles (ULCVs), such as battery-electric and plug-in hybrid cars. Supercredits however also allow carmakers to supply less fuel-efficient conventional cars, weakening the emission target. This paper outlines the potential effects of different proposals for supercredits on the 95g target to help inform policymakers. It is based upon the results of an independent analysis of the options by Ricardo-AEA.