Source: European Parliament
The European automotive sector is of critical socioeconomic importance for the EU, accounting for EUR 1 trillion of gross domestic product (GDP), a third of private research and development investment in the EU and providing directly and indirect employment to 13 million Europeans.
The sector is undergoing a structural transformation and serious competitiveness challenges, which is why the President of the Commission launched a Strategic Dialogue on the Future of the European Automotive Industry on 30 January 2025. The Strategic Dialogue informed the Industrial Action Plan for the European automotive sector[1] which was adopted on 5 March 2025.
As announced in the action plan, the Commission proposed on 1 April 2025 a targeted amendment to the regulation setting CO2 standards for cars and vans, introducing additional flexibilities for reaching the CO2 targets in the period 2025-2027, while keeping the overall ambition of the targets untouched.
This will ensure that for the calendar years 2025, 2026 and 2027, instead of annual compliance, compliance will be assessed over the three years combined.
The action plan also indicates that the Commission will accelerate work on the preparation of the foreseen review of the regulation. This review will rely on a fact-based analysis, taking into account all relevant technological developments, and the importance of an economically viable and socially fair transition towards zero-emission mobility.
- [1] https://transport.ec.europa.eu/document/download/89b3143e-09b6-4ae6-a826-932b90ed0816_en?filename=Communication%20-%20Action%20Plan.pdf