Posted By Global Banking and Finance Review
Posted on May 7, 2025
BRUSSELS (Reuters) -European Union government have agreed to softer EU CO2 emissions targets for cars and vans that will to allow automakers more time to comply and should reduce potential fines.
WHY IT’S IMPORTANT
European car manufacturers warned existing targets to be met this year could result in fines of up to 15 billion euros ($17.0 billion), given the goals rely on selling more electric vehicles, a segment where they lag Chinese and U.S. rivals.
Following heavy lobbying, the European Commission proposed allowing automakers to meet the targets based on their average emissions over the period 2025-2027, rather than just this year.
CONTEXT
The proposed change requires approval from the European Parliament and the Council, the grouping of EU members.
The parliament is expected to approve the adjustment in a vote on Thursday after agreeing to fast-track the process.
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(Reporting by Philip Blenkinsop, Editing by Charlotte Van Campenhout)