European Commission Yields to Pressure from European Carmakers
The European Commission has given in to the demands of European car manufacturers, approving their request for a three-year delay, instead of one, to meet the carbon dioxide emission reduction targets for cars and vans. The Commission is expected to present a proposal this month that takes into account the new deadlines.
Meeting the targets and avoiding fines depends on the increase in sales of electric vehicles, an area where European car manufacturers are lagging behind their Chinese and American counterparts. The new roadmap will ensure the same objectives while giving the industry more time. Industry leaders expect the obligations to be calculated based on average emissions between 2025 and 2027.
To recall, on September 16, the Commission opposed the same request from car manufacturers. According to the European Union's CO2 requirements for cars and vans, manufacturers have until 2025 to reduce the average CO2 emissions of their cars by 15% compared to 2021 levels. Manufacturers risked fines of up to €16 billion if they failed to meet this year's target. The Commission had always argued that these industries made over €130 billion in profits in 2022 and 2023 and had the means to prepare adequately for this target.
However, the situation has changed, and the pressure has worked. Ultimately, if the new American administration boosts its national production, the Europeans only have to protect a key industry for their economy.
