Posted By Global Banking and Finance Review
Posted on May 8, 2025
BRUSSELS (Reuters) -European automakers will have longer to comply with EU C02 emissions targets for cars and vans and could reduce potential fines after the European Parliament gave its backing on Thursday to a softening of the rules.
European manufacturers had warned that enforcing the targets this year could have resulted in fines of up to 15 billion euros ($17 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.
EU lawmakers voted by 458 votes to 101 in favour of the change. There were 14 abstentions.
European Commission President Ursula von der Leyen has said the change would give European automakers "breathing space". Volkswagen said last week the longer compliance period would still result in a burden in 2025.
Critics say the auto industry has had seven years to prepare for the 2025 targets and that the 15 billion euro estimate for fines is vastly inflated.
($1 = 0.8856 euros)
(Reporting by Philip Blenkinsop;Editing by Sudip Kar-Gupta)
