EU Parliament Relaxes CO2 Emission Standards for Car Manufacturers
EU Lawmakers Approve Reduced Car Emission Standards for Automakers - Car manufacturers receive reduced CO2 emissions restrictions, as decided by the Parliamentary vote
The European Parliament has taken a step back in its crackdown on CO2 emissions by offering car manufacturers a bit of breathing room. Instead of rigorously enforcing annual limits from 2025, automakers can now average their CO2 emissions over a three-year span (2025 to 2027) to meet compliance. This change is aimed at softening the financial blow to manufacturers, who might have faced hefty fines of up to €95 per gram of CO2 exceeding limits per km per vehicle[1][2][3].
This lenient stance comes as car manufacturers like Volkswagen and Renault grapple with the tightened emission standards. Failing to meet EU targets would have meant potential penalties, which these companies fiercely lobbied against in Brussels[1]. The new rules still require the approval of EU member states but had already secured a majority vote on Wednesday[1]. In addition to this flexibility, manufacturers can also form alliances, or ‘pools’, with competitors, sharing an average limit to dodge fines[1].
While the far-right factions in the European Parliament submitted proposals to overturn the 2035 ban on internal combustion engines, they didn't secure a majority vote[1]. Even the European People's Party (EPP), consisting of the CDU and CSU, has voiced support for a future phase-out of the ban[1]. As the law is reviewed at the end of the year, there's speculation that this could spark debates within the new German government. The SPD, unlike the EU, is fervent about maintaining the ban[1].
[1] - Euractiv[2] - BBC[3] - Reuters[4] - BNEF[5] - Greenpeace
- The European Parliament's decision to allow car manufacturers to average their CO2 emissions over a three-year period (2025 to 2027) is aimed at reducing the financial burden on the manufacturers.
- The change in the CO2 emission standards does not abolish the annual limits, but it offers a degree of flexibility for automakers to meet compliance.
- The lenient stance on emissions is in response to the challenges faced by car manufacturers like Volkswagen and Renault in adhering to the stringent emission standards set by the EU.
- Under the new rules, car manufacturers can form alliances, or 'pools', with competitors, allowing them to share an average limit and avoid fines.
- While the far-right factions in the European Parliament proposed to overturn the 2035 ban on internal combustion engines, they did not secure a majority vote.
- As the legislation is under review at the end of the year, debates within the new German government about the future of the ban on internal combustion engines are expected to arise, with the SPD fervently maintaining the ban.
