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According to Carscoops, the European Union (EU) is set to relax its CO2 emissions standards following intense lobbying from major automakers.
This is considered a significant victory for car manufacturers. The EU’s lenient move comes as European carmakers navigate the fallout from President Donald Trump’s new tariff policies and their impact on the global market and supply chains.
Initially, the EU proposed that automakers in Europe reduce their CO2 emissions by 15% by 2025 compared to 2021 levels. Carmakers strongly opposed this target, arguing that it was unfeasible and could result in fines of up to €15 billion ($16.8 billion).
Under the current regulations, automakers must pay a fine of €95 ($107) for every gram of CO2 exceeded, multiplied by the number of cars sold.
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Last month, the European Parliament’s executive presented a modification that was expected to please the continent’s automotive industry.
Instead of solely relying on 2025 emissions, European automakers will now be assessed on their average emissions over the 2025-2027 period.
According to Carscoops, this will give automakers more time to increase their electric vehicle production, thus offsetting emissions from internal combustion engine cars still being sold to European customers.
Politico reports that 458 members of the European Parliament voted in favor of this change, compared to just 101 against and 14 abstentions.
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The emissions regulation delay is expected to provide some relief to European car brands as they face a influx of Chinese automobiles into the continent.
However, Lucien Mathieu of the non-governmental organization Transport & Environment believes that European carmakers may slow down the launch of new electric models following the EU’s move.
“It’s ironic that the EU is delaying its emissions targets for the automotive industry just as electric car sales are taking off. This boom is thanks to the new, affordable models that European carmakers introduced to comply with the EU’s initial emissions goals. This delay will slow down the development of electric cars in Europe and hinder investments,” Lucien Mathieu remarked.
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