EU Parliament Gives Automakers a Break on CO2 Emissions
Car manufacturers now have more lenient carbon dioxide emission requirements to meet, following the EU Parliament's approval. - Car producers receive approval for less stringent CO2 emission standards from parliament.
The European Parliament has given car manufacturers a bit of a reprieve from strict CO2 emission standards. They can now offset the emissions of their 2022 models with those from the following three years, giving them until 2027 to meet the targets.
This relaxation refers to the so-called fleet limits, the guidelines for the average CO2 emissions of a manufacturer's new cars. Each company has its own limit, which will drop to zero by 2035, effectively banning the sale of new internal combustion engine cars.
Companies like Volkswagen and Renault are finding it tough to meet the tightened emission standards. They'd sought more flexibility in Brussels, as failing to meet EU targets could lead to hefty fines.
The 27 EU member states still need to vote on the law change formally, but they'd already agreed on it majority-wise on Wednesday. Additionally, the law already offers another option for manufacturers to escape fines: they can team up with competitors in what's known as pools, with an average limit applying.
Members of far-right factions in the Parliament had proposed to scrap the 2035 ban on internal combustion engines, but there wasn't enough support for this on Thursday. However, even the European People's Party (EPP) is advocating for a U-turn on the ban in the long run.
With a fundamental review of the law due at the end of the year, this decision is likely to stir controversy in the new German government. Unlike the Union, the SPD wants to stick to the plan, and both sides could only agree on a general formulation in the coalition contract.
- EU
- European Parliament
- EU Parliament
- Strasbourg
- Ursula von der Leyen
Insight:
The EU Parliament's decision to ease the CO2 emission limits until 2027 offers relief to car manufacturers, but the 2035 ban on new internal combustion engine cars remains in place. This move may be seen as a transitional approach to decarbonizing transportation, balancing environmental ambitions with industrial competitiveness and supply chain realities [1][3][4].
Critics argue that automakers had enough time to prepare, and this relaxation could delay much-needed climate action. Meanwhile, the industry argues that it needs more time to transition to electric vehicles, where it currently lags behind Chinese and U.S. competitors [3].
Implications:
- Automakers gain a breather, avoiding heavy fines in the short term as they shift towards electric vehicles.
- The EU maintains its long-term goal of phasing out petrol and diesel cars entirely by 2035, but recent moves suggest a more flexible approach during the transition period.
- Critics believe the industry should have prepared for the targets set years ago, and the relaxation may be delaying urgent climate action.
- The changes reflect political and economic balancing of environmental concerns with industrial competitiveness and supply chain realities [3][4].
- The European Parliament, located in Strasbourg, has granted car manufacturers additional time to meet strict CO2 emission standards, extending the deadline from 2022 to 2027.
- This extension is based on the fleet limits, European guidelines that dictate the average CO2 emissions of a manufacturer's new cars.
- Companies like Volkswagen and Renault have been struggling to comply with the tightened emission standards, leading them to request more flexibility in Brussels.
- The relaxation of these standards comes as the European Parliament aims to reduce CO2 emissions, a key factor in combating climate change.
- Despite proposals from far-right factions to scrap the 2035 ban on internal combustion engine cars, there was not enough support for this, and the ban remains in place.
- This decision by the European Parliament may cause controversy in the new German government, as it could be seen as a temporary solution to decarbonizing transportation while balancing environmental ambitions with industrial competitiveness.
