Europe gives carmakers ‘more flexibility’ with CO2 targets

The European Commission has announced plans to give carmakers three years, rather than one, to meet new CO2 fleet averages for cars and vans and avoid incurring fines. 

Car manufacturers are required to meet the average of 93.6g/km of CO2 for all new car deliveries in 2025 and 49.5g/km by 2030, before reaching zero emissions by 2035.

Vans must achieve a fleet average of 153.9g/km by 2025 and 90.6 g/km by 2030.

The European Commission has decided to add a three-year flexibility for manufacturers to comply with the 2025 CO2 limit. 

This will allow them to not meet targets this year or next (2026), as long as they overperform in 2027 to ensure a complaint average.

Commission president Ursula von der Leyen said the commission would stick to agreed CO2 emission reduction targets for fleets but will show “more pragmatism in these difficult times” and technology neutrality. 

She specifically promised an amendment to the CO2 standards regulation this month, to introduce “pragmatism” in terms of penalties for not complying with 2025 targets.

“Instead of annual compliance, companies will get three years,” von der Leyen said, noting the principle of “banking and borrowing”. 

“The targets stay the same; they have to fulfil the targets. It means more breathing space for industry and more clarity, and without changing the agreed targets,” she added.

The UK Government is currently assessing feedback from a survey on its electric vehicle (EV) targets through its zero emission vehicle (ZEV) mandate.  

Dominic Phinn, head of transport at Climate Group, said: “Pumping the brakes on legislation that was already agreed puts thousands of companies on the back foot. 

“They’ve made huge investments to decarbonise their fleet, and now they’re told: what’s the hurry? It’s bad government, it’s bad business, and it’s bad for business confidence. 

“It also casts profound doubts on how serious the EU is in reducing its emissions from road transport and its climate goals. 

“Hundreds of thousands of EVs are rolling of the conveyor belt in China, but the EU decides to slow down. It's wilfully conceding competitiveness here.” 

He added: “Targets are set to boost the production of EVs and infrastructure across the EU.

“We urge the Commission to keep the 2025 CO2 targets for cars and vans and focus on putting in place conditions that will speed up the EV transition, including a big boost to EV infrastructure, driving growth, competitiveness and innovation, not slow it down.”

Industry association E-Mobility Europe secretary-general, Chris Heron, was also critical, saying that the proposal for flexibility on CO2 standards will “significantly delay” Europe’s roll-out of EVs over the next two years. 

He estimated that half a million fewer electric cars could enter the EU market in 2025.

“That uncertainty is bad news for investors in EU charging infrastructure, battery production, and e-mobility overall,” he added. 

“Changing the rules midway through 2025 is unfair for the automakers that worked to comply with the law in good faith.”