According to the Regulation, a new technology can be identified as "eco-innovation" if it is new to the market, contributes to significant CO₂ savings and if it has not been otherwise taken into account in determining the level of CO₂ emissions from vehicles. The technology should also aim to improve vehicle propulsion or the energy consumption of devices that are mandatory, without compromising vehicle safety. The minimum reduction achieved by the innovative technology must be 1 g CO₂ /km.

The credits will help the automotive industry meet the European target of CO₂ emission from new cars, which is an average of 130 grams/km by 2015.