In a move supporting Europe’s carbon neutral strategy and broader ESG goals, the Council of the European Union has officially backed a proposal allowing carmakers to average CO₂ emissions over a three-year period, easing pressure on automakers amid the electric vehicle (EV) transition. 

The endorsed regulation—part of the EU’s Industrial Action Plan for the Automotive Sector—will let manufacturers comply with 2025 CO₂ targets based on average emissions for the years 2025, 2026, and 2027, rather than meeting annual thresholds. This approach offers carmakers regulatory clarity and operational flexibility, critical as the industry ramps up investments in sustainable mobility. 

The Council fully approved the European Commission’s original proposal without amendments, reinforcing its commitment to a stable and supportive regulatory framework for green innovation. “The amendment aims to provide car manufacturers with flexibility to meet their emissions targets for 2025,” the Council noted. 

By mitigating compliance volatility during the EV scale-up phase, the rule is designed to strengthen Europe’s automotive competitiveness while aligning with environmental priorities. The three-year averaging also recognizes the technological and financial challenges many automakers face in the short term as they shift from combustion engines to low-emission alternatives. 

The next step will take place on May 8, when the European Parliament is scheduled to vote on the draft regulation. If passed without changes and following a legal-linguistic review, the rule will be enacted without further negotiation. 

The regulatory change reflects the EU’s evolving strategy to harmonize economic resilience with its climate commitments. By integrating ESG principles and fostering a carbon neutral strategy within industrial policies, the EU aims to sustain its leadership in green mobility while ensuring a pragmatic transition for key industries like automotive. 

Sources: 

https://esgnews.com/eu-council-backs-3-year-averaging-rule-to-ease-2025-car-co%e2%82%82-targets-for-automakers/ 

https://www.consilium.europa.eu/en/press/press-releases/2025/05/07/co2-emissions-in-cars-council-adopts-position-on-commission-s-proposal-without-changes/ 

https://www.reuters.com/sustainability/climate-energy/eu-clears-final-hurdle-softer-car-co2-emission-targets-2025-05-08/