Flexible CO2 Limits for Car Manufacturers: A Breathing Space in the Race to Electrification
Car manufacturers granted leeway on CO2 emissions reduction targets by the European Parliament - Car manufacturers are granted less stringent CO2 emission standards by the Parliament's decision
The European Parliament has given car manufacturers some leeway in meeting their carbon dioxide emission targets. In a ruling that could shake up the auto industry, manufacturers are now allowed to average their CO2 emissions over a three-year period from 2025 to 2027 [1][2].
In a move that aims to aid the sector in its transition to zero-emission mobility, companies will be able to offset shortfalls in one year by exceeding targets in another [2]. This relief comes as firms like Volkswagen and Renault have been struggling to meet the tightened emission standards [1].
The new policy, proposed by EU Commission President Ursula von der Leyen, was approved with 458 votes in favor, 101 against, and 14 abstentions on May 9, 2025 [2]. It gives manufacturers the much-needed flexibility during a period of rapid technological innovation and supply chain challenges [2].
While the far-right factions in the European Parliament had proposed overturning the ban on combustion engines by 2035, these proposals did not receive a majority on Thursday [1]. Even the European People's Party (EPP), which includes the CDU and CSU, is calling for a long-term shift away from the combustion engine ban [1].
As the new German government prepares to review the law at the end of the year, this decision could cause controversy. Unlike the Union, the SPD wants to uphold the ban, and both sides have only agreed on a general formulation in the coalition agreement [1].
This temporary relaxation in emissions standards doesn't directly change the EU's goal to phase out new combustion engine cars by 2035 [2]. However, it may slow the pace of emissions reduction in the short term. The EU remains committed to its long-term climate goals, with a focus on electrification and sustainability [2].
In essence, the decision supports the auto industry's transition to more sustainable technologies while maintaining a commitment to reducing greenhouse gas emissions over the long term [2].
References:[1] [European Parliament website] (https://www.europarl.europa.eu/)[2] [EU Commission website] (https://ec.europa.eu/)[3] [EUOBSERVER - European Parliament Approves Easing of CO2 Limits for Car Manufacturers] (https://euobserver.com/climate-and-energy/146809)
- The European Parliament has provided a three-year window from 2025 to 2027 for car manufacturers to average their carbon dioxide emissions, as per guidelines issued by the European Parliament.
- The European Parliament's decision was an attempt to help the auto industry navigate its transition towards zero-emission mobility, offering manufacturers flexibility during a period of technological innovation and supply chain challenges.
- The new policy, which was approved by the European Parliament on May 9, 2025, allows manufacturers to offset shortfalls in one year by exceeding targets in another, providing relief particularly to companies like Volkswagen and Renault struggling with tightened emission standards.
- Despite proposals from far-right factions within the European Parliament to overturn the ban on combustion engines by 2035, these proposals did not gain majority support on Thursday.
- The EU remains committed to its long-term climate goals, with a focus on electrification and sustainability, and this temporary relaxation in emissions standards does not change the EU's goal to phase out new combustion engine cars by 2035.
- The science of climate-change and environmental-science, as well as policy-and-legislation related to climate-change and politics, have been key factors in the European Parliament's decision-making process with regard to emissions guidelines for car manufacturers.
