European car manufacturers have been granted an additional two years to meet their CO2 emission reduction targets. European Commission President Ursula von der Leyen confirmed the proposal, extending the deadline from one to three years. Companies are still required to reduce their CO2 emissions, and previously announced fines will remain in place if models continue to exceed emission limits from 2027.
Von der Leyen stated, “Companies must meet the targets, but this provides more breathing room for the industry.” She also emphasized the need for “predictability and fairness for the pioneers who have successfully done their homework.” According to the Commission President, Europe needs more robust and resilient supply chains for the automotive industry, particularly for batteries. Von der Leyen acknowledged the challenge, noting that while European production is ramping up, imported batteries remain significantly cheaper.
The European Commission is considering additional support for European battery producers, though Von der Leyen did not specify the nature of this support. The Commission will also introduce new quality standards for battery cells and other components.