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News from Brussels
Under the new regulation, automakers will be able to average their fleet-wide CO2 emissions over the years 2025, 2026, and 2027 as slow demand for battery electric light duty vehicles has created a risk of disproportionate compliance costs for European manufacturers. This new approach acknowledges ongoing challenges, including fluctuating demand and supply chain disruptions.
“The introduction of a three-year averaging mechanism is a step in the right direction that acknowledges the complexities of this transformation and the ongoing difficulties that the automotive industry is facing due to a slow than expected market uptake.” Said Sigrid de Vries, Director General of the European Automobile Manufacturers’ Association (ACEA). “However, while this measure provides some necessary flexibility for manufacturers in the short term, this does not eliminate the need for a reality check for the long-term decarbonisation strategy to ensure that the industry remains competitive and resilient whilst investing in emission reduction technologies. There is clearly still need to double down on enabling conditions for passenger cars and vans to boost the market, including includes more charging and refuelling stations, purchase and tax incentives, fairer energy prices, and ensuring that our sector can be the competitive powerhouse that we know it can be.”