European Parliament relaxes CO2 emission targets for automakers

The European Parliament has approved a relaxation of CO2 emissions rules for car manufacturers, allowing them to average their emissions over three years (2025-2027) instead of annually, thereby easing compliance and reducing the risk of hefty fines. This change, backed by 458 votes to 101, follows lobbying efforts by automakers who warned that strict enforcement in 2025 could result in fines up to 15 billion euros due to their lag in electric vehicle sales compared to Chinese and U.S. competitors. European Commission President Ursula von der Leyen described the adjustment as providing "breathing space" for manufacturers amid economic challenges. Critics argue the industry had ample time to prepare for the 2025 targets and dispute the high fine estimates. Additionally, EU member states have supported allowing manufacturers who miss 2025 targets to accelerate emissions reductions over the subsequent two years to compensate. This legislative shift is seen as a response to industry concerns and aims to balance environmental goals with economic realities.