Additional flexibility as regards the calculation of manufacturers’ compliance with CO2 emission performance standards for new passenger cars and new light commercial vehicles for the calendar years 2025 to 2027
PURPOSE: to provide additional flexibility to help manufacturers meet CO2 emissions targets for new cars and vans in the 2025-2027 period.
PROPOSED ACT: Regulation of the European Parliament and of the Council.
ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament acts in accordance with the ordinary legislative procedure and on an equal footing with the Council.
BACKGROUND: Regulation (EU) 2019/631 of the European Parliament and of the Council sets out the CO2 targets for new passenger cars and light commercial vehicles, that form a key part of the Union framework to reduce by 2030 net greenhouse gas emissions by at least 55 % below 1990 levels and reach economy-wide climate-neutrality by 2050.
In response to the request of stakeholders for an additional compliance flexibility on CO2 targets as regards the period 2025 to 2027, it is appropriate to urgently adopt an amendment to allow a one-off flexibility for those three years in the calculation of the compliance with the CO2 emission performance standards, while maintaining the targets for reducing CO2 emissions.
CONTENT: in the context of the Strategic Dialogue on the Future of the Automotive Industry that took place in the first quarter of 2025 and as announced in the Commission Automotive Action Plan of 5 March 2025, the proposal concerns a targeted change of the Regulation (EU) 2019/631 to provide manufacturers with an additional flexibility as regards their compliance obligations, by providing for a three-year compliance period for 2025, 2026 and 2027, instead of an annual period.
The current proposal does not change the reduction targets and does not lower the overall CO2 emission standards ambitions. By introducing a one-off three-year compliance period for 2025, 2026 and 2027 instead of annual assessment, it allows an additional flexibility for vehicles manufacturers, while keeping the certainty and predictability for investors along the value chain.
The proposal also amends Regulation (EU) 2019/631 to:
- specify that the pooling agreements for the period 2025-2027 should be communicated to the Commission by the end of 2027;
- specify the rules on imposing the excess emissions premiums for the three-year compliance period 2025-2027.
The Commission proposes to reach an agreement on this amendment without delay in order to ensure predictability and certainty for the automotive industry and investors.