EC relaxes CO2 emissions targets to offer VMs flexibility
The UK government is under further pressure to revise the ZEV Mandate after the European Commission announced it would relax CO2 emissions targets.
Facing a backlash from vehicle manufacturers, the EC has now announced that it will propose giving the industry an additional two years to meet compliance targets and avoid fines.
The automotive industry had been required to cut emissions by 15% this year compared to 2021 levels, with fines of nearly £80 for every gram of CO2 over the limit. However, if the revisions are accepted, manufacturers will instead be measured on average emissions between 2025 to 2027.
The move is intended to offer greater flexibility to European vehicle manufacturers, who are facing increasing challenges from Chinese brands.
‘Breathing space’
Ursula von der Leyen, the European Commission president, said:
“Instead of the annual compliance, companies will get three years on the principle of banking and borrowing. The targets will stay the same but it means more breathing space for industry and more clarity, without changing the agreed targets.”
Plans will be revealed in full in this week’s Future of the Automotive Industry Bill.
The UK’s ZEV Mandate targets will not be automatically impacted if the Bill is accepted, although it will leave the UK out of step with Europe.
A ‘meaningful first step’
In a statement, Stellantis said: “The flexibility introduced regarding CO2 targets, with an extended compliance period, is a meaningful first step in the right direction to preserve the competitiveness of our sector while remaining faithful to the targets and committed to electrification. It is now important that the proposed targeted amendment be turned into law quickly.”
Mercedes CEO and European Automobile Manufacturers’ Association president Ola Källenius said: “We appreciate the focus on the proposed CO2 relief measures for 2025 for passenger cars and vans, but let me be clear about our primary concern: how do we chart the course to 2035 with the necessary flexibility and pragmatism to make this transition work? This is the fundamental question.”
The UK government is currently holding a consultation around the ZEV Mandate, after vehicle manufacturers said the targets were unrealistic and risked both jobs and future investment in the sector.
