Reuters has reported that the European Commission (EC) has extended its timeframe for carmakers to reach its 2025 emissions targets.
While all new vehicles sold will still need to be Zero Emissions Vehicles (ZEV) by 2035, the EC has given until the end of 2027 to meet the targets originally set for the end of this year.
According to Reuters, the European Commission yielded to pressure from European automakers early next week by giving them three years, rather than only one, to meet new CO2 emission targets.
The EU significantly lowered its cap on automotive carbon dioxide emissions this year, meaning at least one-fifth of all sales by most car companies must be electric vehicles (EVs) to avoid heavy fines. The ultimate goal is still for zero emissions in 2035.
Reuters reported Commission President Ursula von der Leyen told a press conference that after meeting auto sector executives, unions and campaign groups last Monday that the EU executive would propose later this month allowing compliance over three years, rather than in 2025 alone.
Meeting the targets, and avoiding related fines, depends on selling more electric vehicles, a segment where European carmakers lag Chinese and US rivals.
"The targets stay the same. They have to fulfil the targets, but it means more breathing space for industry," von der Leyen said at the news conference, adding the proposal will still require approval from EU governments and the European Parliament.
Compliance would now be based on a carmaker's average emissions over the period 2025-2027.
Oliver Blume, CEO of Europe's biggest carmaker, Volkswagen , told Reuters he welcomed the Commission's "pragmatic approach" that did not impact CO2 reduction and gave carmakers flexibility to accelerate demand with affordable new models.
The EU executive intends to publish its automotive action plan on Wednesday to ensure EU car producers can electrify their fleets and compete with more advanced rivals.
Meanwhile, The Times UK has reported its government is discussing relaxing mandatory quotas for electric cars after Nissan warned that excessively high targets and punitive fines were a risk to the Japanese company’s manufacturing in Sunderland, Britain’s biggest automotive plant.
Jonathan Reynolds, the business secretary, told The Times after a meeting with Nissan that “a substantial change of policy” had been agreed and added: “We will do everything we can to make sure Nissan has that secure long-term future in the UK, making sure the business and regulatory environment reflects that.”