EU Adjusts Emission Rules to Ease Pressure on Carmakers

The European Commission will allow automakers three years to meet CO2 reduction targets, responding to industry concerns over fines and competition.

The European Commission has proposed a three-year compliance period (2025-2027) for automakers to meet CO2 emission reduction targets, replacing the previous annual requirement.
This adjustment aims to provide car manufacturers with greater flexibility as they face declining electric vehicle (EV) demand and intense competition from Chinese EV makers.
The amendment still requires automakers to meet the same reduction targets but spreads compliance over a longer timeframe, reducing the immediate risk of fines.
Green groups criticized the move, arguing it weakens Europe's clean car rules and risks falling behind China in EV innovation and competitiveness.
The proposal is part of a broader EU automotive action plan, which also includes measures to boost EV demand, support battery production, and enhance technological innovation within the bloc.