The European Commission has formally submitted an amendment to CO2 emission standards for passenger cars and light commercial vehicles, granting automakers additional flexibility to meet emissions reduction targets. Under the proposal, car manufacturers will have until 2027 to comply with the 2025 emission targets through a three-year averaging system.
The proposal, titled “Regulation of the European Parliament and of the Council,” was officially published following a draft report released earlier this month. The amendment allows automakers to balance CO2 emissions across the 2025–2027 period rather than meeting annual targets. “During the period 2025 to 2027, 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,” the document states.
The regulation also permits CO2 pooling agreements among manufacturers until the end of 2027, aligning with the extended compliance period. European Commission President Ursula von der Leyen defended the change, stating in March: “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.”
Environmental Concerns Over CO2 Averaging
The proposal has drawn criticism from environmental organizations, which argue that the extension could hinder the transition to electric vehicles (EVs) and lead to increased emissions. Transport and Environment (T&E), an environmental advocacy group, claims that the EU used outdated 2024 sales data to justify the regulatory flexibility. “The EV sales rebound shows that the existing EU target is working,” said Julia Poliscanova, senior director for vehicles and e-mobility supply chains at T&E. “Require carmakers to sell more electric cars and the buyers will come. It is a mistake to change the rules in the middle of the game. This must be the last flexibility carmakers are given.”
The International Council on Clean Transportation (ICCT) has also raised concerns, warning that automakers may exceed CO2 limits in 2025 and compensate in later years, delaying emission reductions. “In the case of three-year averaging, it is to be expected that manufacturers will exceed their 2025 CO2 targets and compensate in 2026 or even only in 2027,” the ICCT stated. The organization further noted that increased registrations of combustion engine vehicles could result in higher long-term emissions, as these cars remain in use for an average of 250,000 kilometers in Europe.
The proposal must be approved by both the European Parliament and the EU Council before it can take effect.
Source: europa.eu, transportenvironment.org, theicct.or