Skip to content
Energy — Commission — Weather — Criticized — 2025 — Climate-change — Flexibility — Industry — Science — Emissions — Finance

Car manufacturers receive relaxed emission standards from the Parliament

Delayed builders are granted a reprieve via the new tool, enabling them to catch up with targets without facing penalties before December 31, 2025.

,   and  Administrator
3 min read
Delay-providing device lets late-progress builders dodge penalties, with the grace period ending on...
Delay-providing device lets late-progress builders dodge penalties, with the grace period ending on December 31, 2025.

Car manufacturers receive relaxed emission standards from the Parliament

It's no secret that the European Union aims to boost the ailing automotive sector. On the 8th of May, in a vote warmly welcomed by European manufacturers, the European Parliament eased up on car manufacturers' CO2 emission obligations, aiming to prevent penalties in 2025. This leniency, part of the broader support plan for the automotive industry unveiled by the European Commission in March, attempts to strike a delicate balance between the EU's climate aspirations and the need to prop up the industry.

The new rule permits automakers to average their emissions over a three-year span, from 2025 to 2027, instead of annually. This provides a valuable respite for laggard manufacturers, helping them dodge penalties by the end of December 2025. The rule covers new vehicle manufacturing and sales, including cars and light commercial vehicles.

A Move Cheered by Europe's Manufacturers

The comprehensive session held in Strasbourg endorsement was a joint effort by the right (EPP), the Socialists and Democrats, centrists, and liberals from Renew. The European Automobile Manufacturers' Association hailed the vote as a "step in the right direction."

Since the June 2024 European elections, which saw a surge of the extreme right and a decline in the Green party's influence, some climate-focused regulations are being reconsidered, all in the name of economic competitiveness.

A Balanced Approach to Climate and Economics

The three-year emissions averaging mechanism is just one piece of the puzzle. The EU is intent on maintaining its ambitious climate objectives while addressing the economic complications faced by the automotive sector in its fierce global competition, primarily from the US and China.

Industry groups such as the European Automobile Manufacturers' Association (ACEA) and the European Association of Automotive Suppliers (CLEPA) have expressed their approval for the change. They view it as essential short-term relief given the present market challenges such as overcapacity, high fixed costs, and the preservation of hybrid vehicles within emission regulations. However, they insist that these temporary accommodations should not derail the need for a more flexible, technology-neutral, and long-term revision of CO2 standards aligned with real-world conditions and innovative solutions, aiming for decarbonization by 2035.

In a broader context, the rise of the extreme right in the 2024 European elections has played a part in shaping the EU's stance on stringent CO2 rules. The EU has become more mindful of industrial competitiveness and economic stability, influencing decisions such as the introduction of flexibility mechanisms to minimize the strain on the automotive sector and potential job losses. This political shift undoubtedly reinforced support for the averaging mechanism as part of a compromise between environmental aims and economic concerns.

  1. The European Parliament's decision to ease car manufacturers' CO2 emission obligations in 2025, part of a broader support plan, aims to both prop up the automotive industry and align with the EU's climate aspirations.
  2. The new rule allows automakers to average their emissions over a three-year span from 2025 to 2027, providing respite for laggard manufacturers and enabling them to dodge penalties by the end of 2025.
  3. The European Automobile Manufacturers' Association applauded the vote, deeming it a "step in the right direction."
  4. Since the June 2024 European elections, some climate-focused regulations are being reconsidered, with economic competitiveness taking precedence.
  5. Industry groups like the ACEA and CLEPA welcome the change, viewing it as essential short-term relief given present market challenges, but they emphasize the need for long-term revisions of CO2 standards aligned with real-world conditions and innovative solutions for decarbonization by 2035.
  6. The rise of the extreme right in the 2024 European elections has influenced the EU's stance on stringent CO2 rules, resulting in a focus on industrial competitiveness, economic stability, and the implementation of flexibility mechanisms to alleviate strain on the automotive sector and prevent potential job losses.

Read also:

    Related

    Latest

    Traditional banks now have the approval from the Office of the Comptroller of the Currency (OCC) to...
    All about finance.

    Traditional banks, under the oversight of the Office of the Comptroller of the Currency (OCC), are now granted permission to engage in cryptocurrency transactions, including buying, selling, and custody services.

    Traditional banks now given green light by OCC to purchase, sell, and safeguard cryptocurrencies for their clients' accounts, expanding their crypto-related offerings. The regulatory body also approves banks' ability to offer cryptocurrency custody services.

    ,   and  Administrator