EU Relaxes CO2 Targets for Car Makers
- EU proposes relaxing CO2 targets for car makers
- New targets will be met by 2027 instead of 2025 and 2026
- Car manufacturers will report average emissions over 2025-2027
- Environmental lobby opposes the proposal
- Car makers argue limited EV demand and competition from Chinese EVs are damaging their prospects
Background
The European Commission has formally published proposals to relax CO2 targets for car makers. This means car manufacturers will not have to meet the initially set standards for this year and 2026 until the end of 2027.
Instead of reporting annual figures, the proposal states that manufacturers should ensure their vehicles' average specific emissions of CO2 do not exceed an emissions target. This target will be calculated as the average of their annual specific emissions targets over the period from 2025 to 2027.
Implications
The proposals, first announced in March, still need to be voted on by the European Parliament and the European Council before they become law. Opposition from the environmental lobby is already building, with some arguing that the EC used unrepresentative 2024 EV sales data to argue for the new flexibility.
Car makers, on the other hand, say limited EV demand and intense competition from lower-priced Chinese EVs are damaging their prospects. The UK car industry is waiting to hear the government's response to its consultation on revising the Zero Emissions Vehicle Mandate.