The European Commission has proposed a regulatory revision aimed at easing carbon emission rules for automotive manufacturers. On April 1, 2025, the Commission introduced a plan that offers greater flexibility in meeting new carbon dioxide reduction targets for passenger cars and vans.
According to a press release from the Commission, the proposed flexibility measures will enable car manufacturers to assess their compliance with emission reduction goals based on the average carbon dioxide emissions over a three-year period, from 2025 to 2027, rather than on an annual basis. This approach allows manufacturers to offset higher emissions in individual years with greater reductions in others.
Under current regulations, companies that fail to meet annual carbon dioxide emission audits face substantial fines. The Commission stated that the revised measures would help ensure that the automotive sector can maintain its investment capability during the transition to cleaner technologies.
This proposal still requires approval from both the European Parliament and the Council of the European Union. The Commission has urged EU legislative bodies to reach an agreement on the revision promptly to provide predictability and certainty for automobile manufacturers and investors.
Earlier in March, European Commission President Ursula von der Leyen announced during a press conference that a revision of the carbon emission standards for European car manufacturers would be submitted soon, which would offer more leeway for the automotive industry.
