EU Relaxes Emission Targets: A Breathing Space for Automakers

The European Parliament has taken significant steps to endorse more lenient EU CO2 emissions targets for cars and vans, effectively granting car manufacturers extended time to comply without facing hefty penalties.

Automakers across Europe had warned about the potential financial repercussions of existing targets, which depend heavily on the penetration of electric vehicles. Currently, the European industry is trailing its American and Chinese competitors in this segment. In response to intensive lobbying efforts, the European Commission proposed extending the evaluation period to 2025-2027 instead of ending this year.

The EU legislators voted to fast-track the approval process, opting to skip lengthy debates. Thursday will see another vote on the Commission's exact proposal, which still awaits endorsement from member nations. Despite the proposed easing, some industry players, including Volkswagen, anticipate burdens in 2025. Meanwhile, E-Mobility Europe has criticized the decision, expressing concern that it could hinder advancements in Europe's EV sector and infrastructure development.

(With inputs from agencies.)