European car manufacturers will be granted an additional two years to meet this year’s pollution target, European Commission President Ursula von der Leyen announced, marking another rollback of her Green Deal climate policies.
Under the proposal, companies that exceed emissions limits this year will be allowed to compensate by selling more low-emission vehicles over the following two years. This effectively extends the compliance window for the 2025 fleet emissions target to 2027.
Von der Leyen stated that the adjustment would provide the industry with more “breathing space” but emphasized that the overall targets would remain unchanged.
Environmental organizations criticized the move, arguing that it rewards manufacturers that failed to invest in cleaner technologies and would slow the transition to more affordable electric vehicles.
“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,” said William Todts, executive director of the campaign group Transport & Environment.
Agustín Reyna, director general of the consumer advocacy group BEUC, echoed these concerns, warning that the decision would make electric vehicles less accessible and affordable. “This is really the wrong signal to consumers. This is like putting the car in reverse while it’s already at full speed on the motorway,” he said.
According to the European Environment Agency, carbon emissions from new passenger cars dropped by 28% between 2019 and 2023, largely due to the surge in electric vehicle sales, which produce significantly fewer pollutants than fossil fuel-powered cars. However, EV sales slumped in 2024, raising concerns about potential hefty fines for automakers with high-emission fleets.
The European Automobile Manufacturers’ Association (ACEA), which had lobbied for more lenient targets, argued that demand for zero-emissions vehicles was not growing fast enough. The group called for additional support to stimulate consumer interest, expand charging infrastructure, and lower production costs.
“The transition to zero-emission mobility and a thriving EU automotive industry must progress together – this is non-negotiable,” said Ola Källenius, president of the ACEA and CEO of Mercedes-Benz.
The full proposal is set to be formally introduced later this month and will require approval from EU governments and the European Parliament. The announcement comes just a week after the Commission unveiled plans to weaken key green finance regulations established during its previous term.
Following the news, shares of European car manufacturers saw an uptick. Volkswagen rose by more than 2%, Renault gained 1.4%, Mercedes-Benz climbed 1.6%, and BMW increased by 1.2%.