Source: European Parliament
Delivering on the EU’s climate targets[1] requires a swift decrease in greenhouse gas emissions from all sectors, including transport. It is also urgent to reduce Europe’s reliance on imported fossil fuels, which makes the EU more vulnerable to external pressure and global market uncertainty — in 2022, the EU’s fossil-fuel energy import bill reached EUR 604 billion.
The CO2 standards Regulation[2] sets targets for new cars and vans, which get more stringent over time, up to a 100% emission reduction as of 2035.
This creates long-term predictability for manufacturers and investors, while giving industry the necessary lead-time to adapt. This also supports competitiveness — EU manufacturers are strongly investing in zero-emission technologies and a strong home market is a crucial enabler for them to regain leadership in this area.
The 2025 CO2 targets, which require a 15% reduction of emissions from baseline, can be met through a mix of technological options, including electric and hybrid vehicles.
For manufacturers that may not be able to comply on their own , the regulation, as strongly requested by the industry, provides the option to pool with other manufacturers. Pooling is not required under the regulation — it is one option in manufacturers’ compliance strategy.
As announced in the Industrial Action Plan for the European automotive sector[3], on 1 April 2025 the Commission proposed a targeted amendment of the CO2 standards, whereby compliance would be assessed over the years 2025, 2026 and 2027 combined instead of annually[4].
This will contribute to safeguarding the EU industry’s capacity to invest, keeping the overall ambition of the 2025 targets. The Commission will also accelerate work on the preparation of the review of the regulation .