A Breathe of Relief for Automakers: EU's Adjusted CO2 Emission Limits
Car manufacturers receive more leniency in CO2 emission standards from the European Parliament - Car manufacturers granted greater leeway in CO2 emission regulations by Parliament's decision
In an unexpected move, the European Union (EU) has presented some leniency in its fleet CO2 emission standards. Car manufacturers can now average the emissions of their 2022 vehicles with those of the 2023 and 2024 models, allowing those who lagged behind in 2022 to make up for it over the following years (2026 and 2027).
This rule applies to the so-called fleet limits – the maximum average CO2 emissions allowed for new vehicles sold by a manufacturer. Each manufacturer has an individual limit, which has been decreasing this year and is set to reach zero by 2035, effectively phasing out new internal combustion engine cars.
Automakers like Volkswagen and Renault have been grappling with the tightened emission standards. They had pleaded for more flexibility in Brussels, as failing to meet EU targets might lead to fines.
The 27 EU member states need to officially endorse this law change, but they had already given their approval in the majority on Wednesday. Additionally, the law already provides another way to avoid penalties: manufacturers can form 'pools' with competitors, with an average limit applying.
Initially, some far-right factions in the European Parliament had proposed overturning the 2035 ban on new internal combustion engines. However, there was no majority for this motion. The European People's Party (EPP), around the CDU and CSU, is long-term calling for a departure from the combustion engine ban.
In the long run, this issue could stir controversy in the new German government. Unlike the Union, the SPD wants to stick to the ban. Both parties could only agree on a vague formulation in the coalition agreement.
Heralded as a breath of fresh air for the beleaguered automotive industry, these adjustments could prove crucial in enabling companies to transition smoothly to a low-emission future while maintaining competitiveness in the global market.
N Stark, ResP
- EU
- European Parliament
- EU Parliament
- Strasbourg
- Ursula von der Leyen
Additional Insights:
- The new rules, which allow automakers to average their emissions over a three-year period, are part of the European Commission's broader strategy to support the European automotive industry's transition towards electric vehicles.
- The relaxation in the CO2 targets is expected to alleviate significant pressure on automakers like Volkswagen and Renault, enabling them to transition their fleets to lower-emission vehicles more effectively.
- Under the new rules, companies still need to meet overall emissions targets and pay fines for any exceedance on an annual basis. The penalty for each vehicle registered above the limit remains at €95 per gram of CO2 per km.
- The EU's commitment to reducing emissions and environmental impact underpins the new rules, with the vehicle industry playing a key role in this transition towards a greener future.
- The COVID-19 pandemic, the global energy crisis, and the ongoing semiconductor shortage have exacerbated challenges for the automotive industry, making the new rules all the more timely and relevant.
- The European Commission reveals a more lenient approach to fleet CO2 emission standards, allowing manufacturers to average emissions from 2022 vehicles with those from 2023 and 2024, alleviating pressure on automakers like Volkswagen and Renault.
- The European Parliament, located in Strasbourg, had previously voiced concerns over tightened emission standards, with the potential for fines looming if EU targets were not met.
- The European Commission's strategy, which includes these relaxed emission targets, aims to support the transition of the European automotive industry towards electric vehicles.
- Under these new rules, companies like Renault can now maintain competitiveness in the global market while transitioning their fleets to lower-emission vehicles efficiently.
- The 27 EU member states have given preliminary approval to this law change, with the European People's Party (EPP) supporting the adjustments that provide breathing room for the automotive industry.
- Some factions within the European Parliament had initially advocated for reconsidering the 2035 ban on new internal combustion engine cars but failed to secure a majority for this motion.
- The new government in Germany may face controversy regarding this issue, with the SPD advocating for adhering to the ban, while the Union has called for a departure from it.
