EU Plans to Relax Automobile Carbon Emission Rules, Granting the Industry a Three-Year Grace Period - Autohome

According to foreign media reports, recently, the European Commission, under pressure from European automakers, has decided to give car companies three years to meet the new carbon dioxide emission targets for cars and vans, instead of just one year.  

Ursula von der Leyen, President of the European Commission, stated after meeting with automotive industry executives, labor unions, and activist groups on March 3 that the European Commission will propose later this month to allow companies to meet the standards within three years, rather than requiring compliance as early as 2025. Now, compliance will be determined based on the average emissions of automakers between 2025 and 2027.  

“The (carbon emission) targets remain unchanged, and European car companies must meet these goals, but now they have a three-year breathing room,” von der Leyen said at a press conference. However, she added that the proposal still needs to be approved by EU member states' governments and the European Parliament.  

Following the news, the share prices of European automakers such as Volkswagen, Renault, BMW, and Mercedes-Benz rose by 1.5% to 4%.  

Regarding this move by the EU, Italy and the Czech Republic, which have long been pushing for the relaxation of emission penalties, expressed their welcome. Adolfo Urso, Italy's Minister of Industry, said this has saved the European automotive industry, while Martin Kupka, the Czech Minister of Transport, noted that the Czech Republic will push to extend the grace period to five years.  

Oliver Blume, CEO of Volkswagen, Europe's largest automaker, said he welcomes the European Commission's “pragmatic approach,” which does not compromise CO2 reduction efforts while providing automakers with the flexibility to launch affordable new vehicle models to stimulate demand.  

Renault stated that as the electric vehicle (EV) market grows, the European Commission's flexible approach will enable EU automakers to reduce emissions and maintain competitiveness.  

Sigrid de Vries, Secretary General of the European Automobile Manufacturers Association (ACEA), said the proposal is positive, but achieving the emission targets remains challenging. Matthias Zink, President of the European Association of Automotive Suppliers (CLEPA), commented that the proposal offers “limited relief.”  

The ACEA, which has been seeking a longer extension period, previously stated that the European automotive industry faces difficult choices, including significant price cuts, production cuts, or purchasing carbon credits from U.S. EV maker Tesla and Chinese EV manufacturers.  

However, some car companies and institutions have questioned the EU's proposal to relax carbon emission rules.  

Volvo Cars argued that companies already prepared to meet the 2025 carbon emission targets should not be put at a disadvantage due to last-minute changes. Transport & Environment (T&E), a European transport research and campaign group, described the proposal as an unprecedented “gift” to the automotive industry, which will cause Europe to fall further behind China.  

William Todts, Executive Director of T&E, argued: “The key to competitiveness lies in being able to produce electric vehicles at prices affordable to the general public. This is exactly what Chinese automakers have achieved. Delaying the carbon emission process in Europe will not enhance the competitiveness of European automakers.”  

The EU's original 2025 carbon emission targets would have required most car companies to have EVs account for at least one-fifth of their total sales to avoid heavy fines. The EU's ultimate goal is to achieve zero emissions by 2035.  

To meet these targets and avoid the associated fines, more electric vehicles need to be sold. In this area, European automakers lag behind their competitors from China and the United States.  

In recent years, EU automakers, hit by falling demand, have closed several factories and are currently preparing to deal with U.S. tariffs. They have urged the European Commission to waive the fines, claiming that the 2025 fines could be as high as 15 billion euros (equivalent to approximately 15.7 billion U.S. dollars).  

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