Automotive sector with greater flexibility to reduce polluting emissions

MEPs, meeting in a plenary session today in the French city of Strasbourg, gave their approval - by 458 votes in favor, 101 against and 14 abstentions - to changing the carbon dioxide (CO2) emission standards for new cars and vans.

After opting to use the emergency procedure provided for in EU legislation to speed up scrutiny, the European assembly then decided to "support the [European] Commission's proposal on the European automotive sector, which is suffering the impact of rapid technological change and increased competition", the institution said in a statement.

Current rules set annual targets, covering five-year periods, to reduce average CO2 emissions from the entire European car fleet, with an annual target of a 15% reduction below 2021 levels for the period 2025-2029 being set from 2025 onwards.

In March this year, the European Commission proposed an amendment to the regulation that sets CO2 emissions performance standards for new passenger cars and new light commercial vehicles, aiming for greater flexibility on the targets set between 2025 and 2027.

In practice, the proposed change will allow manufacturers to meet their obligations for the years 2025, 2026 and 2027 by averaging their performance over the three-year period, rather than each year separately.

This will allow them to balance out any excess annual emissions by going over the target in the following year or years, giving them more time (two or three years) to meet these environmental targets.

The measure comes in the context of a crisis in the EU's automotive sector, which is also threatened by recent announcements of heavy tariffs made by US President Donald Trump.

The EU automotive sector employs around 13.8 million people (approximately 6.1% of the total workforce) and accounts for around 7% of the EU's Gross Domestic Product (GDP).

In 2022, it generated gross added value of approximately €237 billion and exports worth €235.6 billion, with a trade surplus of €90.6 billion.

In terms of production, 12.1 million vehicles were manufactured in 2023.

The EU automotive sector is currently facing challenges such as the transition to electric vehicles, increased international competition (particularly from China) and rising production costs.

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