Europe relaxes CO2 emissions rules in win for carmakers
- The European Parliament approved a temporary relaxation of CO2 emissions compliance rules for carmakers on May 8, 2025, affecting vehicles sold in the EU.
- This adjustment follows intense lobbying by automakers facing challenges in meeting interim targets set for 2025 to 2034 and the final 2035 ban on non-zero emissions vehicles.
- The new rules allow manufacturers to average emissions over 2025-2027 and pool their emissions with other firms, potentially reducing fines and easing transition pressures.
- The European Parliament approved the amendments with a vote of 458 in favor, 101 against, and 14 abstentions, with Ursula von der Leyen describing the changes as providing a "breathing space" for car manufacturers facing intense rivalry from electric vehicle producers in China and the United States.
- While the 2035 ban remains, this reprieve could save billions in fines yet may slow emissions reductions and investment in electric vehicle technologies across the EU.
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