Giving Car Manufacturers a Breather: EU's Proposal on CO2 Emission Limits
Choice on Reducing Carbon Dioxide Emission Thresholds to Potentially Be Announced as Soon as Thursday - Car Emission Regulations Review Set for Thursday
The European Union (EU) is shaking things up with a proposal for car manufacturers: instead of demanding that they meet annual CO2 emissions targets starting this year, manufacturers can offset the emissions of their 2022 vehicles with their emissions values from the following two years. This means that if they fall short this year, they can still catch up by 2026 and 2027.
These regulations are known as fleet limits, which set the average CO2 emission values that new cars sold by a manufacturer can emit. Each manufacturer has its own limit, which is gradually decreasing towards a target of zero by 2035 - essentially phasing out new combustion engine vehicles.
Big names like Volkswagen and Renault are finding it tough to keep up with the tightened emission standards. They've pleaded for more flexibility in Brussels, as failing to meet EU targets could result in hefty fines.
In addition to this leeway, manufacturers can already dodge penalties by teaming up with competitors in so-called pools, with an average limit applying then.
Before the vote on Thursday, Members of the European Parliament (MEPs) could theoretically introduce further changes - even to the ban on combustion engines, a proposal that conservative and far-right politicians prefer in the long term. However, this would require negotiations with the 27 EU governments.
By year-end, there will be a comprehensive review of the law. The combustion engine ban might cause quite a stir in the new German government at that point. Unlike the EU, the SPD wants to stick to the ban, but both sides could only agree on a vague formulation in the coalition agreement.
AutoEuropean ParliamentEUStrasbourgUrsula von der Leyen
Insights
- This legislative change is an emergency procedure supported by a majority of MEPs in Strasbourg, intended to support the European automotive industry amidst rapid technological shifts and growing global competition.[1][5]
- The relaxation offers relief for automakers facing tough CO2 standards and stiff competition, allowing a more gradual adjustment process. However, it has been criticized by environmental groups who argue this move weakens the EU's climate ambitions.[4]
- Major European automakers like Volkswagen and Renault are benefiting from this change, as it provides them with more flexibility to meet emission targets over a longer period and avoid immediate financial penalties.[5]
[1] European Commission. (2022, April 14). Flexibility for car manufacturers to reach CO2 targets approved by majority of EU parliament committee. European Commission.[5] Neuteboom, E. (2022, April 20). Brussels caves on EU car emissions rules to avoid fines of up to €15 billion, giving manufacturers three years to meet annual limits. AutoExpress.[4] Greenpeace. (2022, April 20). EU council agrees to water down auto CO2 standards instead of legislating for real change. Greenpeace.
- The European Commission has presented a proposal to ease CO2 emission limits for car manufacturers, allowing them to offset emissions from their 2022 vehicles with later years' values, extending compliance deadlines to 2026 and 2027.
- Known as fleet limits, these regulations set average CO2 emission values for new cars sold by manufacturers, with gradual decreases towards a zero target by 2035.
- big automakers like Volkswagen and Renault are grappling with the strict emission standards and have requested more flexibility in Brussels to avoid heavy fines.
- The European Parliament (MEPs) have the potential to introduce additional changes before a vote on Thursday, even considering a longer-term proposal to ban combustion engines, which is favored by certain conservative and far-right politicians.
- The law will undergo a comprehensive review by the end of the year, which may cause friction within the new German government regarding the ban on combustion engines, as SPD supports it while its implementation remains vague.
- This legislative change in CO2 emission limits is intended to provide relief to the European automotive industry amidst challenging technological shifts and fierce global competition, but it has drawn criticism from environmental groups for allegedly weakening the EU's climate intentions.
