Instead of achieving annual targets, this new measure will provide greater flexibility for car and van manufacturers by allowing three years of CO2 emissions (2025-2027).
This strategic adjustment aims to ease the burden of compliance while maintaining the EU climate commitment as the industry undergoes a challenging transition towards zero emissions mobility.
Strategic shifts to support industry transition
This amendment is a central component of the European Commission’s Industrial Action Plan for the Automobile Sector, announced on March 5, 2025.
The initiative emerged from a high level of strategic dialogue launched by Commissioner Ursula von der Reyen on January 30, 2025.
The dialogue has brought together key stakeholders, generally from industry leaders, to bring together key stakeholders to address the evolving challenges of the sector, such as decarbonization and digitization.
458 votes were the advantage, with 101 votes abstaining, with Congress overwhelmingly supporting the new vehicle emissions approach.
The proposal reflects the growing awareness of operational pressures facing automakers, particularly amid rapid technological innovation and increased global competition.
Flexibility to promote compliance
Current EU regulations require vehicle manufacturers to strictly meet their annual CO2 emissions over five years.
Starting in 2025, automakers will need to reduce their overall fleet emissions by 15% compared to the 2021 level of the 2025-2029 compliance cycle.
However, the newly adopted measures will provide manufacturers with the option to average emissions performance in 2025, 2026 and 2027.
This change will offset the shortfall in one year, surpassing another target and beyond targets, providing much needed adaptability during a period of evolution of consumer demand and supply chain uncertainty.
Industry welcomes practical vehicle emission approaches
The European Association of Automobile Manufacturers (ACEA) praised the Parliamentary decision, highlighting the benefits of a more flexible emissions strategy.
According to ACEA, the three-year averaging framework provides key breathing chambers for manufacturers as they navigate the timelines of fluctuating market demand and production, which is why.
ACEA Director Sigrid de Vries added: “The introduction of a three-year averaging mechanism is a step in the right direction to acknowledge the complexity and continued difficulties of the automotive market, accompanied by slow market intake and lack of a domestic value chain for batteries.
“This will provide the flexibility needed for manufacturers in the short term, but long-term decarbonization strategies such as more charging stations, purchase and tax incentives, and fairer energy prices, while keeping the industry a competitive powerhouse and ensuring EU strategic autonomy on critical technologies.
“We look forward to discussing this in our next strategic dialogue with the European Commission.”
As Europe accelerates its push towards climate neutrality, modern vehicle emission adjustments demonstrate practical balancing acts. Protect your environmental goals while supporting your industry through complex, fast migrations.
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