Commission proposes flexible CO2 compliance period for automotive manufacturers

Article summary

The European Commission has proposed on 1 April 2025 an amendment to the Regulation on CO2 emission performance standards for new cars and vans. The amendment introduces flexibility in how manufacturers can meet their CO2 targets between 2025-2027, allowing compliance to be assessed as an average across the three-year period rather than annually. The change aims to help manufacturers balance emissions while maintaining investment capacity for clean transition, without altering the original 2025 emissions reduction targets. The European Commission has requested co-legislators to expedite agreement on the amendment to provide certainty for industry stakeholders.