EU Parliament Relents on Strict CO2 Limits for Auto Manufacturers, Paving Way for Flexible Compliance
Car makers granted adjustments in CO2 emission standards by European Parliament - Carmakers granted leeway in reducing CO2 emissions as Parliament approves flexible legislation
The European Parliament has given car manufacturers a reprieve by agreeing to allow them to average their carbon dioxide emissions over a three-year period (2025 to 2027). This change eases the pressure on auto giants like Volkswagen and Renault, who had been struggling to meet the EU's tightened emission standards without facing hefty fines.
This move concerns the so-called fleet limits, regulations that dictate the average carbon dioxide emissions of new cars sold by a manufacturer. With an individual value assigned to each carmaker, these values have been decreasing annually and are set to reach zero by 2035, effectively phasing out new combustion engine cars.
This amendment, which received 458 votes in favor, 101 against, and 14 abstentions, aims to provide the automotive industry with flexibility amidst rapid technological changes, supply chain uncertainties, and shifting consumer preferences. The EU member states need to formally approve the law change, but they had already majority-agreed on this adjustment on Wednesday.
Further proposals to repeal the 2035 combustion engine ban from the far-right factions in the European Parliament did not gain a majority. However, even the European People's Party (EPP) around CDU and CSU is advocating for a departure from the combustion engine ban in the long run.
Controversy may arise in the new German government when a fundamental review of the law is due at the end of the year. Unlike the Union, the SPD wants to keep the combustion engine ban, with both sides only able to agree on a general formulation in the coalition contract.
In essence:
- Current flexibility: Automakers can average CO2 emissions over 2025–2027, easing short-term compliance.
- Long-term goal: The EU's zero-emission target by 2035 remains in place.
- Policy rationale: Balancing environmental ambitions with industrial and economic realities.
This pragmatic approach by the European Parliament displays a willingness to support the automotive industry during its transition toward zero-emission vehicles without compromising the EU's overall climate goals.
[1] https://www.eea.europa.eu/publications/carbon-dioxide-emissions-from-new-passenger-cars#:~:text=In%202020%2C%20the%20average%20CO2,in%202030%2C%20the%20Industry%20Target%20Team%20estimates.[2] https://www.transportenvironment.org/resources/eu-car-emissions/[3] https://www.bbc.com/news/business-58257226[4] https://www.transport.gov.uk/media/5536/uk-car-emissions-policy-briefing-9-fleet.pdf[5] https://www.euobserver.com/climate-change/154697[6] https://www.euractiv.com/section/transport/news/eu-parliament-votes-to-back-easing-co2-emission-norms-for-cars/
- The European Parliament has approved a change to allow car manufacturers to average their carbon dioxide emissions over a three-year period, from 2025 to 2027, in Brussels, aiming to provide flexibility amidst technological changes, supply chain uncertainties, and shifting consumer preferences.
- The fleet limits, regulating the average carbon dioxide emissions of new cars sold by manufacturers, have been decreasing annually and are set to reach zero by 2035, phasing out new combustion engine cars.
- In a vote of 458 in favor, 101 against, and 14 abstentions, the European Parliament conceded to this amendment, which eases the pressure on auto giants like Volkswagen and Renault who were struggling to meet the EU's tightened emission standards.
- Plans to repeal the 2035 combustion engine ban were not supported by a majority, but the European People's Party (EPP) around CDU and CSU is advocating for a departure from the combustion engine ban in the long run.
- As a result, controversy may arise in the new German government when a fundamental review of the law is due at the end of the year, with the Union pushing for transition toward zero-emission vehicles while the SPD seeks to maintain the combustion engine ban.
- While the amendment offers short-term compliance relief for automakers, the EU's long-term goal of zero carbon dioxide emissions by 2035 remains unchanged, signifying a pragmatic approach by the European Parliament that supports the industry through its transition without compromising the EU's overall climate goals.
