Automotive
On Thursday 8th May, 2025 the European Parliament adopted a targeted change to CO2 emissions performance standards for new cars and vans. The amendment was passed with 458 votes for, 101 against and 14 abstentions.
Why was a change necessary?
Following consultation and discussion (launched by European Commission President Ursula von der Leyen on 30th January 2025) with automotive manufacturers experiencing challenges in meeting mandated EV percentage of sales, the proposed change offers car and van manufacturers the possibility to comply with their obligations for the years 2025, 2026 and 2027 by averaging their performance over the three year period rather than each individual year.
The approach should allow manufacturers to balance any excess annual emissions by outperforming the target in subsequent years.
The current rules
The current rules set annual targets, covering five-year periods, for reducing average CO2 emissions from new cars and vans across the EU fleet.
From 2025, an annual CO2 emission reduction target of 15% compared to 2021 values will apply for the 2025-2029 period.
What’s next?
To speed up adoption of the targeted change, the European Parliament agreed to deal with the file under its urgent procedure.
To enter into force, the draft law requires formal approval by the European Council, which endorsed the same text on 7th May 2025.
Published by Steve Freeman, MHA Partner
