EU proposes amendment on 2025 CO2 compliance targets for cars & vans
1 April 2025
The European Commission released a formal proposal for a ‘targeted amendment’ to the CO2 emission standards for new cars and vans. The proposed compliance flexibility is part of the Industrial Action Plan for the EU automotive sector that was announced last month.
The proposed flexibility measure allows manufacturers’ compliance with the CO2 targets for 2025, 2026 and 2027 to be assessed over the entire three-year period averaging their performance, rather than annually. This approach allows manufacturers to balance any excessive annual emissions by outperforming the target in the remaining year(s).
Under the existing CO2 emission regulation, CO2 emissions from cars and vans would have to be reduced by 15% by 2025, relative to a 2021 baseline.
The European Automobile Manufacturers’ Association (ACEA) praised the proposal but called for more electric vehicle incentives. “The proposal for a three-year averaging (...) offers much-needed breathing room for car and van makers—but this must be complimented by meaningful demand incentives and widespread charging infrastructure,” ACEA said in a statement. “As the latest market data shows, the demand for zero-emission vehicles is still far from where it needs to be with the market share of BEVs at just 15%.”
The Commission has called on the EU Parliament and the Council to reach an agreement on this amendment without delay to ensure predictability and certainty for the automotive industry and investors.
Source: EU Commission