From Yahoo Finance: 2025-04-01 11:04:00

The European Commission proposed extending the deadline for automakers to comply with the EU’s 2025 CO2 emissions targets from one year to three years. This comes after European car manufacturers requested relief due to lagging behind Chinese and U.S. rivals in electric vehicle sales. The proposal would base compliance on average emissions from 2025-2027.

Commission President Ursula von der Leyen stated that the initiative provides flexibility to the auto sector while staying on track with climate goals. The original targets could have resulted in up to €15 billion in fines for the industry. The EU’s stricter CO2 emissions limits for carmakers, requiring one-fifth of sales to be electric vehicles, are already in effect.

The proposal must be approved by the European Parliament and member countries, who can suggest additional changes. Some countries, like the Czech Republic, have advocated for a five-year compliance period. While manufacturers like Volkswagen and Renault support the extension, Volvo Cars and E-Mobility Europe have expressed concerns about disadvantaging companies that have already invested in meeting the 2025 targets.

The EU also aims for all new cars sold from 2035 onwards to have zero emissions, effectively ending new sales of combustion engine vehicles. Some lawmakers and member governments plan to challenge this target in a policy review later this year, citing potential harm to struggling automakers. The European Commission defends the 2035 target as crucial for meeting green goals and providing a stable investment climate.



Read more at Yahoo Finance: EU proposes looser rules for automakers’ CO2 emissions targets