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 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.