EU gives carmakers breathing space - 'Relaxes' pollution targets as electric vehicle sales fall
European carmakers will be given two extra years to meet this year's environmental target, European Commission President Ursula von der Leyen said.
Companies that sell too many polluting vehicles this year will be allowed to compensate by selling more clean vehicles in the following two years, under a proposal that would extend the compliance window for the 2025 fleet emissions target to 2027.
Von der Leyen said the change would give the industry more "breathing space," but the overall objectives would not change.
Environmental groups said the proposal rewarded companies that had failed to invest in meeting the targets and warned it would slow the shift to cleaner cars, especially cheap ones.
Carbon emissions from new passenger cars fell by 28% between 2019 and 2023, according to the European Environment Agency, driven by a surge in electric vehicles, which cause less pollution. But electric car sales fell in 2024, raising the prospect of large fines for manufacturers that build fossil-fuel vehicles.
The European Automobile Manufacturers Association, the industry group that lobbied for looser targets, said the market for zero-emission vehicles is not growing fast enough and called for greater support to boost demand, improve charging infrastructure and reduce production costs.
The announcement, which will be fully proposed later this month and will need to be approved by EU governments and the European Parliament, comes a week after the commission unveiled proposals to reduce key green finance rules agreed during its last mandate.
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