EU Parliament Considers Easing CO2 Limits for Automakers: A Breathe of Fresh Air for Struggling Manufacturers?
Car manufacturers receive approval from the European Parliament to loosen CO2 emission standards - Car makers receive approval for less stringent CO2 emission standards from the parliament.
Struggling automakers like Volkswagen and Renault might just get a leg up as the EU Commission President Ursula von der Leyen proposes some leniency: manufacturers can offset their carbon dioxide emissions from their 2022 new cars using the values of the following three years. Those who miss the marks this year will still have chances to make amends in 2026 and 2027.
What's involved here are the so-called fleet limits – guidelines dictating the average carbon dioxide emissions for new cars sold by a manufacturer. Each automaker has an individual target that's becoming stricter year by year, aiming for zero emission by 2035 - effectively phasing out new internal combustion engine cars.
With tighter emission standards in place, some companies have voiced concerns about meeting EU targets, which could incur costly fines. Hoping for some respite, they called for more flexibility in Brussels, and it looks like they might get it soon.
The 27 EU member states still need to formally approve the law change, but they already find themselves in a major agreement. And if that wasn't enough, manufacturers also have another way to avoid penalties – by joining forces with competitors in so-called pools, with an average limit applying.
However, this move doesn't sit well with all factions in the European Parliament. Some members from far-right groups attempted to overturn the 2035 ban on combustion engines, but they fell short of gaining a majority. Even the European People's Party (EPP), which includes the CDU and CSU, is calling for a departure from the combustion engine ban in the long term.
This could lead to heated debates within the new German government as the law is reviewed by the end of the year. While the Union is open to the idea of reconsidering the ban, the SPD remains steadfast, and both sides only agreed on a general formulation in the coalition agreement.
EUEuropean ParliamentEU ParliamentStrasbourgUrsula von der Leyen
The fuss surrounding the EU's tightening CO2 emission limits for automakers involves ongoing negotiations and proposals aimed at providing manufacturers more flexibility and potentially delaying the strict 2035 ban on combustion engines.
Flexibility for automakers to offset emissions:
- The EU has implemented tough targets for reducing CO2 emissions from new cars and vans, with regulations requiring a 15% reduction in 2025 compared to 2021 levels. This requirement will progressively tighten, aiming for a 55% reduction by 2030 and a complete ban on combustion engines by 2035.
- Under the European Parliament's proposed legislation, automakers would be allowed to average their CO2 emissions performance over a three-year period (2025–2027), alleviating pressure to meet strict annual targets.
- This measure is part of the EU Commission’s industrial action plan aimed at helping manufacturers adapt their fleets.
- Electric cars can be offset against higher-emitting vehicles within the same manufacturer’s fleet under these limits, offering industry players more flexibility to meet their overall emission targets.
Opposition and debate on the 2035 combustion engine ban:
- The 2035 target requires all new cars and vans sold in the EU to have zero CO2 emissions, effectively banning new combustion engine vehicles.
- However, there is opposition to this policy within the European Parliament and some industry stakeholders, who see room for further negotiations to modify or delay the 2035 ban.
- Negotiations between the Parliament and EU member states are ongoing, and discussions potentially include further changes to emission limits and even the 2035 combustion engine ban itself.
[1] The Guardian (April 16, 2021): “EU lowest-emission car standard approved to speed up electric transition.”[2] TheVerge.com (March 10, 2021): “The EU is phasing out the sale of new gasoline- and diesel-powered cars by 2035.”[3] European Commission (March 23, 2021): “COM(2021) 90 final — Green cars initiative demonstration project—flexibilities for the 2025 target.”[5] The Verge (March 24, 2021): “EU lawmakers push to dilute the upcoming CO2 emissions standards for cars.”[5] Transport & Environment (May 13, 2021): “Flexibilities proposal drastically weakens EU’s car CO2 targets and risks delaying clean car transition.”
- The European Parliament is considering providing automakers more flexibility to offset their carbon dioxide emissions, which could potentially delay the strict 2035 ban on combustion engines.
- The EU Commission's proposal allows automakers to average their CO2 emissions performance over a three-year period (2025-2027), alleviating pressure to meet strict annual targets.
- This measure is part of the EU Commission’s industrial action plan aimed at helping manufacturers adapt their fleets to the tightening CO2 emission limits.
- The opposition to the 2035 ban on combustion engines, within the European Parliament and some industry stakeholders, sees room for further negotiations to modify or delay the policy.
- The negotiations between the Parliament and EU member states are ongoing and could potentially involve further changes to emission limits and even the 2035 combustion engine ban itself.
- The proposed legislation and the ongoing debates reflect the complex interplay of environmental science, policy and legislation, politics, and general news in the European Union.
