EU to Ease Auto Emission Targets with Revised Calculation Method

The European Commission announced on Monday that it will adjust how automotive emissions targets are calculated, offering relief to the struggling car industry, Politico reports.
The proposed amendment will allow carmakers to meet emission reduction goals based on a three-year average, rather than a single year’s sales, making compliance more achievable and reducing the risk of significant fines.
Under the current regulations, automakers must cut emissions by 15% from 2021 levels by 2025 or face penalties of €95 per gram of carbon dioxide per kilometer exceeded per noncompliant vehicle. Industry representatives had warned that this could result in fines as high as €15 billion.
Commission President Ursula von der Leyen emphasized the need for balance.
“We need predictability and fairness for those who successfully met their targets,” she said after a meeting with major European automakers and suppliers. “While we remain committed to emissions reduction goals, we must also consider calls for pragmatism and technological neutrality.”
The proposal, originally put forward by the European People’s Party (EPP), will require approval from both the European Parliament and the European Council. Von der Leyen is set to submit the amendment for fast-track approval later this month.
Environmental groups were quick to criticize the move, arguing that it weakens climate regulations. William Todts, executive director of the green NGO Transport & Environment, warned that “weakening the EU clean car rules rewards laggards and does little for Europe’s car industry except to leave it further behind China on electric vehicles.”
Meanwhile, the Commission’s broader automotive strategy, which will be unveiled on Wednesday, aims to support the industry through initiatives such as boosting electric vehicle demand and strengthening the EU’s battery production sector.
The revised emissions target is part of the European Green Deal’s goal to phase out new combustion engine vehicle sales by 2035. A scheduled review of the law in 2026 will now be accelerated, incorporating the principle of technological neutrality. Some member states, including Italy and the Czech Republic, have advocated for the inclusion of biofuels and e-fuels in future regulations to allow continued use of existing combustion engines.
The European automotive sector also faces growing competition from China, where manufacturers are producing lower-cost electric vehicles with advanced technology. As Chinese automakers expand into new markets, the EU has responded with tariffs on Chinese-made battery-powered cars.
Von der Leyen reassured industry leaders that discussions would continue, with a third meeting planned before the summer.
“Today was not the end of the dialogue with the industry,” she said.
Thus Von der Leyen signaled that further adjustments to EU automotive policy could still be on the table.