EU Introduces CO₂ Regulation Flexibility for Automakers Facing Compliance Challenges

The new mechanism allows emissions to be averaged over three years, giving automakers more time to meet targets without penalties.

The European Commission announced a plan to ease CO₂ emission regulations for automakers struggling to meet 2025 targets.
Under the new rules, emissions will be averaged over 2025-2027 instead of being assessed annually, providing more time for compliance.
The plan includes support for battery production, autonomous driving technology, and partnerships traditionally restricted by competition rules.
Environmental groups criticized the move, arguing it could delay the transition to affordable electric vehicles and weaken climate goals.
The proposal requires approval from the European Parliament and member states to take effect, with a formal amendment expected later this month.