The European Union, under one of its transport sector regulations, had set a binding target to reduce average CO₂ emissions from new cars by 55 percent by 2030 compared to 2021 levels. However, the same regulation also included a specific interim target for 2025, aimed at reducing CO₂ emissions from new passenger cars and light commercial vehicles. This 2025 target has recently been revised in light of mounting pressure from the automotive industry.
Weakened 2025 Targets
In early March 2025, the European Commission announced a decision to relax the emission reduction targets for 2025 concerning new passenger cars and light commercial vehicles. The new approach introduces a more flexible emissions monitoring mechanism. Rather than requiring manufacturers to strictly meet the 2025 target within that calendar year, they are now allowed to achieve the goal based on a three-year average of emissions—covering the period of 2025, 2026, and 2027. This means that if a manufacturer fails to meet the prescribed limits in 2025, it will have two more years to make up for the shortfall, provided that the average emissions across the three years remain within the limits originally set for 2025.
This decision, part of the broader Automotive Industry Action Plan, follows intense lobbying from car manufacturers who have warned of the challenges in meeting stringent environmental standards, particularly in light of the recent slowdown in electric vehicle sales. The situation has also led to factory closures and job losses among traditional car and parts manufacturers across Europe.
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Nevertheless, the long-term goals for 2030 and 2035 remain unchanged, including the plan to reach zero-emission new vehicles by 2035. The short-term relaxation has sparked mixed reactions. While some believe that the additional time will give the industry space to adapt and invest in emission-reduction technologies—rather than paying penalties—others warn it could delay the shift to electric mobility.
The organization E-Mobility Europe has voiced concerns that the revised targets may weaken demand for electric vehicles, reduce investment predictability, and undermine the competitiveness of manufacturers who have already committed to decarbonization.
The decision is seen as the result of several converging factors, with one of the most significant being pressure from carmakers—particularly those that have not yet made substantial investments in electric mobility. Other contributing factors include inflation, rising energy costs, and geopolitical instability, all of which have prompted lawmakers to take a more cautious approach. Also critical are the disparities in infrastructure development and purchasing power among EU member states, which led to the conclusion that uniform application of targets across the European market may not be fair or feasible.
The question remains whether similar challenges will arise with each upcoming milestone.
Milica Vučković
