European Commission eases emissions rules to support carmakers

The European Commission has proposed a temporary relaxation of emissions regulations for petrol and diesel vehicles, granting automakers additional time to meet stringent CO2 reduction targets. While the EU’s 2035 ban on new combustion engine cars remains in place, the Commission will provide flexibility over the next three years in how carmakers comply with the stricter CO2 emission targets that take effect this year.

Commission President Ursula von der Leyen emphasised that the emissions targets would remain unchanged but stressed that the adjustment offers “more breathing space for the industry and it also means more clarity.”

The move comes as European automakers face declining electric vehicle (EV) sales, supply chain disruptions, and increasing competition from non-European manufacturers.

At the second meeting of the Strategic Dialogue on the Future of the European Automotive Industry today, von der Leyen elaborated on the Commission’s approach, stating: “We will propose a focused amendment to the CO2 Standards Regulation this month. Instead of annual compliance, companies will get three years – this is the principle of banking and borrowing; the targets stay the same; they have to fulfil the targets.”

Under the proposed plan to be agreed by the European Parliament and Council, automakers will have until 2028 to meet the new CO2 emission standards, extending the original 2025 deadline by three years. This decision follows months of lobbying from car manufacturers concerned about the economic impact of transitioning too quickly to EVs.

Von der Leyen also confirmed that further measures would be presented in an Action Plan on March 5, outlining how the EU will ensure the long-term viability of Europe’s green transition while maintaining a robust automotive sector.