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European Parliament Approves Flexible CO2 Rules for Automakers

The amendment allows automakers to average emissions over three years and delays fines, pending final Council approval.

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Overview

  • The European Parliament voted 458–101–14 to approve an amendment to CO2 emission regulations on May 8, 2025.
  • The new rules permit automakers to calculate compliance based on a three-year average (2025–2027) instead of annually.
  • Fines for exceeding the fleet-wide CO2 limit of 93.6 g/km, previously set at €95 per gram exceeded per vehicle, are postponed under the amendment.
  • The measure aims to mitigate financial risks for automakers, with analysts estimating potential fines of €10 billion annually under the original rules.
  • The amendment now requires formal approval from the Council of the European Union to take effect.