Giving Car Manufacturers a Break: EU Parliament Eases CO2 Emission Limits
EU Parliament endorses relaxation of car makers' CO2 emission standards - Car producers experience relief as parliament approves reduction in CO2 emission standards.
Let's talk about the recent decision made by the EU Parliament to provide a bit of leeway for automobile manufacturers concerning CO2 emissions.
Ursula von der Leyen, the head honcho of the EU Commission, suggested a bit of a "break" - car manufacturers can offset their 2022 new car CO2 emissions by using the values from the years following. So, if they don't quite meet the emission standards in 2022, they can make up for it in 2023, 2024, 2026, or 2027.
These limits pertain to the so-called fleet limits, a fancy term for the maximum average CO2 emissions allowed for new cars sold by a manufacturer. Each manufacturer gets their own individual limit, which has been decreasing this year and will reach zero by 2035. That means no more new cars with internal combustion engines, baby!
It's not unexpected that some manufacturers, like Volkswagen and Renault, are finding it tough to keep up with the tightened emission standards. They asked for more flexibility in Brussels, as failing to meet EU targets could lead to some serious fines.
The 27 EU member states still need to formally sign off on this law change, but they already majority-approved it on Wednesday. The law also offers an alternative escape route for manufacturers: they can band together with their competitors (weird, right?) to form what's called a 'pool.' With the pool system, an average limit applies, which could help manufacturers avoid those pesky fines.
Now, some members of the far-right factions in the European Parliament had proposed wiping out the 2035 ban on new internal combustion engines completely, but those proposals didn't receive enough support. However, even the European People's Party, which includes the CDU and CSU, is starting to question the long-term viability of this ban.
This could cause a stir in the new German government once the law is up for review at the end of the year. The Union is in favor of keeping the ban, but the SPD wants to stick to the status quo. Both sides have agreed on a general statement in the coalition contract, so only time will tell how this unfolds.
For the nerds
This ease in CO2 emission limits means that, starting 2025, new cars and vans must emit:- Cars: 93.6 g CO2/km- Vans: 153.9 g CO2/km
However, by 2030, these emissions must decrease, with new cars emitting:- Cars: 49.5 g CO2/km- Vans: 90.6 g CO2/km
And by 2035, both new cars and vans must reach zero emissions.
- The EU Parliament has granted car manufacturers some flexibility in meeting CO2 emission standards, allowing them to offset 2022 emissions with values from subsequent years.
- The revised fleet limits, decreasing each year and reaching zero by 2035, apply to the maximum average CO2 emissions allowed for new cars sold by a manufacturer.
- Some manufacturers, such as Volkswagen and Renault, have expressed concerns about meeting the tightened emission standards, and have asked for more flexibility in Brussels.
- The law change, which majority-approved on Wednesday, also includes an option for manufacturers to form a 'pool' and share an average limit, helping them avoid penalties.
- Although far-right factions proposed eliminating the 2035 ban on new internal combustion engines, these proposals did not receive enough support.
- The European Parliament's decision to ease CO2 emission limits sets the stage for a potential debate within the new German government, with the Union favoring the ban and the SPD advocating for the status quo.
