The president of the European Commission, Ursula von der Leyen, announced on Monday March 3 a flexibility mechanism to avoid car manufacturers, behind the objectives of reduction of CO2 emissions, to pay fines in 2025.
This mechanism will consist in taking into account the emissions over three years, from 2025 to 2027, instead of a single year, which will give a delay to latecomers to make up for themselves, without penalizing the good students who will have an emission credit, says the European executive. “The objectives remain the same, but that means more flexibility for industry,” said Ursula von der Leyen, after a second meeting of consultations with managers of the sector, including representatives of BMW, Renault, Stellantis (Peugeot, Citroën) and Volkswagen. A first meeting had taken place at the end of January.
Brussels is due to present an action plan on Wednesday to help the automotive sector in the midst of a crisis. But the president of the commission unveiled the main contours on Monday on Monday. In addition to softening on emissions, she mentioned the implementation of an alliance for automotive innovation. Clearly, the EU will authorize and support the pooling of resources for the development of autonomous software and technologies, areas where economies of scale are crucial. Such partnerships are traditionally limited by competition rules.
Ursula von der Leyen also offered “direct support” to battery producers and the introduction of European content requirements for battery cells and certain components. Finally, she promised new regulatory reductions. But the relaxation of CO2 regulations to avoid fines was one of the main claims of European manufacturers in the context of a automotive market at half mast which sees the arrival of fierce competition from Chinese groups.
“Unprecedented gift to industry”
The Environmental NGO Transport & Environment denounced this Monday “an unprecedented gift to the European automotive industry”. “If this measure is implemented, it will delay the increase in the production of electric vehicles in Europe and will reduce pressure on the industry to deploy cheaper electric models in 2025,” she said in a press release.
All car manufacturers must comply with an annual average of car emissions sold in Europe. This so -called CAFE (Corporate Average Fuel Economy) standard forces them to gradually sell less and less polluting vehicles, with the end of thermal vehicles in 2035. The standard has been generally respected by manufacturers, but the coffee has crossed a new level in January 2025, 93.6 grams of CO2/km on average.
To give manufacturers more time, the president of the European executive promised an amendment to the CO2 standards regulations before the end of the month, to spread the obligations over three years. “I am sure that such a targeted amendment could be quickly approved by the European Parliament and the Council because, of course, it only makes sense if it is approved quickly,” she said. “On the one hand, we need predictability and equity for pioneers, those who have done their duties. This means that we must respect the agreed objectives. On the other hand, we must listen to the voices that require more pragmatism in these difficult times,” said Ursula von der Leyen.
To the chagrin of environmental NGOs, several states had spoken out in recent months against fines, including Germany, France, Italy. Within the commission, French Stéphane Séjourné had pushed for this pragmatic approach. “We will not penalize the industry that we must help. Indeed, good students will be able to capitalize on their efforts, those who are late will have more time,” said the French official on Monday.
Car manufacturers are currently hampered by the weakness of electricity sales. The market share of vehicles powered by a battery, still too expensive, fell for the first time in 2024, to 13.6 % over the year. The manufacturers hope to revive sales thanks to the launch of new more affordable models.