Because of impending punishment: carmakers get more time for EU climate specifications

In view of the impending CO2 penalties, Europe’s carmaker are more time to comply with EU climate specifications. The European Parliament voted in Strasbourg for a corresponding relaxation.

Formally, the EU countries still have to approve the decision, but they had already spoken out for a shift on Wednesday. The two institutions follow a proposal from the EU Commission that limit values ​​no longer have to be observed annually, but that companies have three years.

If VW, Mercedes, BMW or other companies exceed the requirements this year, they are not automatically asked to checkout. You can completely avoid punishments if you overfill the EU rules in the two following years.

Car industry sees a decision as an important step

The German Association of the Automotive Industry (VDA) sees a first important step in the postponement. “Political action means not only to set goals, but also to enable them to achieve them,” said association president Hildegard Müller of the German Press Agency. The framework conditions in many areas are inadequate, targets should generally be made more flexible.

In view of global challenges and the currently slow demand for electric cars, there is further need for action and discussion. Müller cited Müller, among other things, the expansion of the charging infrastructure, electricity prices, semiconductor supply and battery production. The international competitiveness of the location should not be neglected.

The background to the impending penalties for the already battered industry are fleet limit values ​​that allow an average value of CO2 emissions per car. At the beginning of the year, these legal requirements tightened. In 2024, the limit was 115.1 grams CO2 per kilometer, per vehicle – measured based on the so -called WLTP test procedure. For this year it is 93.6 grams and is expected to drop to 49.5 grams in 2030.

On average of all vehicles approved in the EU in one year, this limit must not be exceeded. The manufacturers have to pay punishment for too much CO2. Because, among other things, sales for electric cars have not developed as well as forecasting it before, car manufacturers could significantly exceed the limit values.

Auto industry under pressure

The industry, which is particularly important for the German economy, is under pressure. Manufacturers from China and the USA are increasingly competing with the manufacturers. There, companies have managed to switch to e-mobility faster.

In addition, the car manufacturers are currently heavily affected by the trade conflict with the United States. The tariffs and automotive parts of 25 percent pronounced by US President Donald Trump came into force at the beginning of April.

The United States are one of the most important trading partners for the German automotive industry: According to the figures from the Federal Statistical Office, the USA decreased as many cars with 13.1 percent of exports as no other country. Almost every third Porsche and every sixth BMW was sold in North America in 2024, and the proportion was 12 to 15 percent at VW, Audi and Mercedes-Benz.

The situation is also tense on the German market. According to the Federal Motor Transport Authority, around 2.8 million cars in Germany were re-registered last year. That was about one percent less than in the previous year and around a quarter less than in 2019, the last year before Corona pandemic.

Traffic is a problem child in climate protection

So far, there has been significantly less progress in climate protection compared to other areas in the traffic sector. According to the Agora Energy transition, the emissions in traffic in Germany fell by two million tons compared to the previous year. However, this is due, for example, to lower truck traffic because of the economic flaut.

“The CO2 fleet limit is the most important instrument of climate protection in the traffic sector and proves to be effective,” said Felix Creutzig from the Potsdam Institute for Climate Impact Research. This is primarily evident in the fact that car manufacturers grow and discount on electric cars in order to achieve values. Flexibility means that more CO2 is being expelled. Creutzig was a member of the expert advisory board climate protection of ex-transport minister Volker Wissing and is a member of the sustainability advisory board of Mercedes.

MEPs from CDU/CSU, SPD and FDP welcome the relaxation. They see this a necessary support from industry. Vehement criticism comes from Greens and Greenpeace: “The EU Parliament of the stumbling European auto industry cannot make a worse announcement,” criticized Lena Donat, traffic expert at Greenpeace. The decision will further increase the background of European car manufacturers at the electric car market.