EU Proposes Flexibility for Automakers on Emissions Targets

The European Commission proposes giving automakers three years, instead of one, to meet 2025 CO2 emissions targets. This change follows industry pleas for leniency and aims to balance climate goals with providing relief. Approval is required from the European Parliament and EU countries.

The European Commission has unveiled a proposal to extend the time automakers have to comply with the EU's 2025 CO2 emissions targets. The proposed adjustment, announced on Tuesday, grants car manufacturers three years instead of one to meet these environmental benchmarks.

This move comes in response to lobbying from European carmakers, who argued they were at a disadvantage compared to their Chinese and U.S. competitors in the electric vehicle market. By averaging emissions over the 2025-2027 period, the Commission aims to offer the industry 'breathing space' while maintaining climate commitments, as stated by Commission President Ursula von der Leyen.

While some manufacturers such as Volkswagen and Renault support the proposal, others like Volvo Cars, backed by China's Geely, have raised concerns. The proposal requires approval from the European Parliament and member states, and the Czech Republic is advocating for an even longer compliance period. The EU is also holding firm on its 2035 zero-emissions target despite pressures for reassessment.

(With inputs from agencies.)