EU parliament extends CO2 deadline amid global competition
On Thursday, the European Parliament in Strasbourg backed changes to EU carbon dioxide emission standards, aiming to improve the situation for car manufacturers. This decision responds to competitive pressure in this sector from China and the USA.
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 extension would help manufacturers avoid penalties in 2025 for failing to meet these goals. Industry estimates suggest the penalties could reach as much as €15 billion.
The EU is gradually lowering CO2 emission limits for the automotive sector. Currently, at least 20% of sales for most automotive companies must be electric vehicles. If not, manufacturers face fines. The proposed change gives them until 2027 to meet the emission limits.
Foreign pressure
The European Commission's proposals respond to increasing pressure from Chinese and American electric car manufacturers. For these proposals to take effect, they must receive approval from the governments of EU member states within the EU Council and from the European Parliament.
On Thursday, the European Parliament supported the Commission's proposal, with 458 votes in favour, 101 against, and 14 abstentions.
