The European Commission seeks to grant car manufacturers more time to meet EU CO2 emission standards, President Ursula von der Leyen announced on Monday.
However, the commission chief emphasised that the industry’s demands, notably for more flexibility around CO2 emission targets, must still be balanced.
"We need predictability and fairness for those who are already compliant. We must maintain the targets while listening to stakeholders asking for pragmatism during these challenging times," she stated, especially concerning the 2025 objectives and associated penalties.
Von der Leyen plans to propose a targeted amendment to the CO2 regulation this month. "Companies will have three years to meet the standards instead of being required to comply annually, providing the industry with more breathing space and clarity without altering the agreed targets," she explained.
She hopes the European Parliament and member states will quickly approve the amendment.
In late January, the start of the strategic dialogue on the future of the European automotive industry, Vice President of the Commission, Stéphane Séjourné, indicated his opposition to penalising manufacturers for not meeting this year’s CO2 targets. Countries like France and Italy have already expressed support for the industry in avoiding potential fines.
Von der Leyen also encouraged the development of autonomous driving technology. To facilitate this, an alliance will be established for companies to pool resources to develop software, chips, and technology. The Commission promises to simplify testing and application rules and launch large-scale pilot projects for autonomous driving.
European supply chains for cars, particularly batteries, must become more robust and resilient. The Commission will explore direct support for EU battery producers and gradually introduce European standards for battery cells and components. "Of course, we will continue to reduce bureaucracy," von der Leyen added.
Audi workers are seen in front of the now-closed down Audi car plant in Forest, Brussels, on Wednesday 13 November 2024. Credit: Belga / Benoit Doppagne
The strategic dialogue with representatives from the automotive sector, trade unions, and environmental organisations is set against the backdrop of intense competition from China.
The European Union aims to reconcile sector support with climate targets approved by member states and the European Parliament. An action plan for the sector will be presented on Wednesday, followed by a summer meeting with industry CEOs.
The NGO Transport & Environment described von der Leyen’s proposal as "an unprecedented gift" to the European industry.
"Easing clean car regulations rewards laggards and offers little to the European automotive industry, making it fall further behind China in electric vehicles," said director William Todts, who participated in the dialogue.
