The European Commission has introduced a draft regulation proposing temporary flexibility in CO2 compliance requirements for automakers, allowing them to meet emission targets over a three-year period instead of annually. The proposal, part of the Commission’s broader strategy for the automotive sector, follows an announcement by EU Commission President Ursula von der Leyen earlier this month.
The draft regulation, titled “Regulation of the European Parliament and of the Council amending Regulation (EU) 2019/631,” aims to adjust compliance calculations for new passenger cars and light commercial vehicles from 2025 to 2027. The document underscores that existing CO2 reduction targets will remain unchanged, ensuring long-term regulatory predictability for industry stakeholders.
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“In response to the request of stakeholders for an additional compliance flexibility on CO2 targets as regards the period 2025 to 2027, it is appropriate to urgently adopt an amendment to allow a one-off flexibility for those three years,” the draft states. “Manufacturers should ensure that the average specific emissions of CO2 of their vehicles do not exceed an emissions target, calculated as the average of their annual specific emissions targets over the period.”
Von der Leyen had previously emphasized the need for a balanced approach, saying, “Instead of annual compliance, companies will get three years – this is the principle of banking and borrowing; the targets stay the same; they have to fulfil the targets.” She also acknowledged industry concerns, adding, “There is a clear demand for more flexibility on CO2 targets. The key principle here is balance… we need predictability and fairness for first movers.”
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Under the proposed regulation, automakers will still be subject to excess emission premiums if their fleet emissions exceed the averaged target by the end of 2027. The ability to form CO2 pooling agreements with other manufacturers will also be extended until the end of the three-year period.
The draft regulation requires approval from both the European Parliament and the European Council before it can take effect. The move is part of a broader EU strategy to support the automotive sector amid economic and technological challenges, which includes measures on grid infrastructure, battery raw materials, and purchase incentives.
Source: Electrive