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2mo ago

EU Adjusts Emission Rules to Support Struggling Auto Industry

The European Commission grants carmakers a three-year compliance window and unveils measures to boost EV adoption and competitiveness.

The logo of Stellantis sits on the company's building in Poissy, near Paris, France, February 26, 2025. REUTERS/Stephanie Lecocq/File Photo
FILE PHOTO: European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium, April 20, 2016. REUTERS/Francois Lenoir/File Photo
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Overview

  • The European Commission will allow automakers to meet 2025 CO2 emission targets over a three-year period (2025-2027) instead of a single year, reducing immediate penalties.
  • New measures include plans to eliminate tax breaks for fossil fuel-powered corporate fleets and support EU battery producers to enhance local manufacturing capabilities.
  • The EU aims to address lagging electric vehicle (EV) adoption, with EV market share in Europe rising to 15% in January 2025 but remaining below global trends.
  • Automakers face challenges from high costs, limited charging infrastructure, and competition from cheaper, technologically advanced Chinese EVs.
  • Environmental groups criticize the relaxed rules, warning they may slow the green transition and leave European manufacturers further behind global competitors.