Cars, EU Gives Car Manufacturers Three Years to Reduce Emissions

The European Commission has decided to grant the car industry greater flexibility in meeting CO2 emission standards.

This is what emerged from the second meeting of the “Strategic Dialogue on the Future of the European Automotive Industry”, held in Brussels. The President of the European Commission, Ursula von der Leyen, announced that she will propose a targeted amendment to the regulation on CO2 emissions for cars, giving car manufacturers three years to adapt to compliance standards instead of an annual obligation.

The aim of the new measure is to balance the need to reduce emissions with the difficulties that the car sector is facing. Von der Leyen said: “There is a clear demand for more flexibility on CO2 targets. The key principle is balance: on the one hand we need predictability and fairness towards those who have already invested in clean technologies, on the other we need to listen to those who ask for more pragmatism in a difficult economic context”. While emissions targets will remain unchanged and companies will still face fines for non-compliance, the change will give car manufacturers a longer period to comply with the standards, without the imposition of immediate fines.

Another key point of the meeting was the concept of technology neutrality in the transition to sustainable mobility. Von der Leyen stressed that the revised 2035 targets will take full technology neutrality into account as a fundamental principle. This could pave the way for a greater diversification of technologies used to reduce emissions, including not only electric vehicles but also other low-emission solutions, such as hydrogen and biofuels. The European Commission’s announcement had an immediate impact on the automotive sector, causing major car manufacturers’ stocks to soar on the stock exchange. Fines for non-compliance with emissions standards could have amounted to more than €15 billion in 2024, posing a significant threat to the sector.

The Minister of Enterprise and Made in Italy, Adolfo Urso, welcomed the European Commission’s decision, saying it represents “a victory for the European automotive industry and for Italy”. According to Urso, granting greater flexibility will prevent the collapse of the sector, eliminating the risk of immediate fines and paving the way for a European incentive plan for the ecological transition of the car. Urso also stressed the importance of ensuring strategic autonomy in the production of batteries for electric vehicles, so that the European industry can compete with other major global powers, such as China and the United States, in the sustainable mobility market. The automotive industry is one of the most important sectors of the European economy and the ecological transition represents a crucial challenge. Granting three years to adapt to emissions standards will give car manufacturers the time they need to invest in new technologies and strengthen infrastructure for electric mobility. However, the question of how to balance environmental objectives with the need to safeguard the competitiveness of the European industry remains open. The revision of technology neutrality for 2035 could lead to a more inclusive approach, which considers all available solutions to reduce the environmental impact of the automotive sector. In the coming months, the European Parliament and the Council of the EU will be called upon to assess the amendment proposed by von der Leyen. If approved quickly, as hoped for by the Commission President, the new regulation will offer important support to companies in the sector and allow a more gradual transition towards sustainable mobility without compromising the competitiveness of the European automotive industry.

At the same time, the European Union will have to invest more in electric charging infrastructure and innovative technologies to ensure that the transition to zero-emission mobility is effective and sustainable. Incentives for the purchase of low-emission vehicles will also play a key role, which could accelerate the replacement of the car fleet and reduce CO2 emissions more quickly. Future strategies will therefore have to integrate industrial, fiscal and environmental policies to ensure a balance between sustainability and economic development.

Alessandro Fiorentino