In a major regulatory shift aimed at balancing climate goals with industrial feasibility, the European Council has adopted amendments to its CO₂ emissions standards for passenger cars and vans, granting automakers a three-year compliance window (2025–2027) to meet emissions targets. The move aligns with the EU’s broader ESG objectives and long-term carbon neutral strategy, while offering short-term relief to the struggling automotive sector. 

Originally enacted in 2023, the EU’s clean mobility regulations included stringent annual CO₂ reduction benchmarks for carmakers, with significant financial penalties for non-compliance starting this year. The ultimate goal remains a 100% reduction in emissions from new vehicles by 2035, in line with the EU’s climate neutrality commitments. 

However, slower-than-anticipated EV adoption and rising cost pressures prompted calls from industry leaders for greater flexibility. Responding to these concerns, Commission President Ursula von der Leyen incorporated this amendment into the Industrial Action Plan for the automotive sector, which aims to preserve European competitiveness while advancing decarbonization. 

Under the revised regulation, manufacturers can now average emissions performance over the three-year period (2025–2027), instead of meeting targets annually. This change provides the flexibility to balance underperformance in one year with overachievement in another, reducing the likelihood of costly penalties. 

With both the European Parliament and Council having approved the amendment, the new rule will enter into force 20 days after publication in the EU Official Journal. 

This legislative update reinforces the EU’s commitment to a sustainable transport transition, acknowledging operational realities while ensuring that ESG compliance and carbon neutral strategies continue to drive industrial transformation across Europe’s mobility sector. 

Source: 

https://www.esgtoday.com/eu-lawmakers-adopt-rules-giving-automakers-more-time-to-meet-emissions-targets/