Overview

• The European Parliament voted overwhelmingly to adopt a three-year averaging system for automakers' CO₂ emissions compliance from 2025 to 2027.
• The measure, proposed by the European Commission and substantively approved by the Council, aims to ease financial pressure on the auto industry struggling with slow EV sales.
• Automakers can now avoid immediate fines by compensating for excess emissions in one year with reductions in subsequent years within the three-year window.
• Critics, including environmental groups, warn the rule change could lead to an additional 30 million tonnes of CO₂ emissions by 2030, undermining climate goals.
• The 2035 ban on new combustion-engine vehicles remains unchanged, but debates over its future enforcement are expected to intensify later this year.