The European Parliament has approved a relaxation of car and van CO₂ emissions targets, giving automakers more time to comply and potentially avoid billions in fines, following concerns over their readiness to meet 2025 goals.

European carmakers will now have additional time to meet EU carbon emissions targets, after the European Parliament backed a proposal to soften the rules - potentially reducing fines estimated at up to €15 billion.

The move comes amid concerns that the original targets, which rely heavily on the rapid rollout of electric vehicles, would be difficult to meet given that many European automakers lag behind their Chinese and American competitors in EV sales.

In response to sustained lobbying from the industry, the European Commission proposed that carmakers be assessed on their average emissions over the 2025-2027 period, rather than solely in 2025. The Parliament voted 458 in favor, 101 against, with 14 abstentions.

European Commission President Ursula von der Leyen defended the decision, saying it would offer manufacturers “breathing space.” Despite the change, Volkswagen noted that the extended compliance window would still present a significant challenge in 2025.

However, critics argue that automakers have had ample time - seven years - to prepare for the targets, and claim the projected fines have been significantly overstated.

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