NewsEU eases car emissions deadlines amid US and China competition

EU eases car emissions deadlines amid US and China competition

The European Parliament in Strasbourg on Thursday supported changes to EU carbon dioxide emission standards aimed at improving the situation for car manufacturers. This initiative responds to competitive pressure in this sector from China and the USA.

President of the European Parliament Roberta Metsola
President of the European Parliament Roberta Metsola
Images source: © Getty Images | 2025 Pier Marco Tacca
Piotr Bera

In April, the European Commission proposed allowing car and van manufacturers three years instead of one to adapt to the EU's CO2 emissions reduction targets.

This adjustment would help manufacturers avoid penalties in 2025 for failing to meet the targets. Some estimates from the automotive industry suggest that the penalties could total as much as 15 billion euros (approximately 23.5 billion Canadian dollars).

The EU is gradually lowering CO2 emission limits for the automotive sector. Currently, at least one-fifth of sales for most automotive companies must be electric vehicles. Otherwise, manufacturers have to pay fines. With the proposed change, they will have until 2027 to meet the emission limits.

Foreign pressure

The EC's proposals are a response to increasing pressure from Chinese and American electric car manufacturers. For the proposals to take effect, they require approval by the governments of EU member states within the EU Council and the European Parliament.

On Thursday, the European Parliament supported the EC's proposal with 458 votes in favour, 101 against, and 14 abstentions.

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