The European Commission has introduced important amendments to the Vehicle CO2 Emissions Regulations.
New performance standards for new cars and vans allow manufacturers to have more flexibility in meeting vehicle emissions targets between 2025 and 2027.
The proposal, part of the European Automobile Sector Industrial Action Plan, released on March 5, 2025, aims to balance sustainability goals with industry reality.
Commenting on the proposal of Ursula von der Leyen, the President of the European Commission, he said, “Our highly innovative automotive industry is decarbonising to not only contribute to the fight against climate change, but to remain competitive in the global market.
With today’s initiative, we will be more flexible in this important sector, while at the same time maintaining the course of our climate targets. Together, we would like to prove that decarbonization and competitiveness are closely related. ”
Average over three years to facilitate compliance burden
Under the new framework, car manufacturers are evaluated for their vehicle’s CO2 emission performance over three years rather than annually.
This means that the excess emissions over the year can be offset by exceeding the target in the following years.
The goal is to provide stability to the industry while adhering to 2025 emissions targets and maintaining a steady transition to zero emissions mobility.
Strategic steps towards zero emissions targets for 2050
The amendment stems from large-scale industry talks after President Von der Reyen launched a strategic dialogue on January 30, 2025 on the future of the automotive industry.
This dialogue has helped shape policies that take into account both environmental mandates and economic realities.
By maintaining long-term reductions in vehicle CO2 emissions, the EU aims to strengthen its position as a global leader in sustainable transportation.
Climate Commissioner Wopke Hoekstra is zero-zero and continues to grow cleanly.
“This additional compliance flexibility indicates that we are hearing concerns, understanding concerns, and taking action to address them while maintaining zero emissions targets. Sector predictability is important for long-term investments.”
Industry Response: Flexibility welcomed, but need more support
The automotive sector largely welcomes the three-year averaging approach and views it as a practical solution to ongoing market and geopolitical challenges.
However, industry leaders emphasize that regulatory flexibility should be combined with stronger incentives for adopting electric vehicles and strengthening charging infrastructure.
With battery-electric vehicles (BEVs) currently accounting for just 15% of the market, additional measures are important to accelerate the shift to zero-emission transport.
Sigrid de Vries, director of the European Automobile Manufacturers Association (ACEA), explained:
“The next important step is to thoroughly assess the overall progress of the transformation, focusing on improving the approach, not the end goal, if necessary.
“This is equally important for the commercial vehicle sector. With zero-emission trucks, which account for just 2% of all new registrations, this vehicle segment is also urgently needed to accelerate the review of the 2025 CO2 standard based on an assessment of the sector’s activation conditions.”
The committee urges lawmakers to quickly finalise the amendments and ensure regulatory certainty for manufacturers and investors as the EU moves towards its ambitious 2050 climate targets.
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