On May 8, 2025, the European Parliament approved a proposal to extend the European Union’s 2025 CO₂ emissions reduction targets for automobile manufacturers to 2027. This decision comes amidst rising competition from China in the electric vehicle (EV) market and significant growth in EV sales across Europe.
European carmakers experienced a 45% increase in battery electric vehicle sales during the first quarter of the year compared to the same period in 2024. Despite this surge, the European Commission, responding to pressures from the automotive industry, proposed the long-term compliance period for the existing emissions targets. This extension allows automakers until 2027 to meet the originally set 2025 goals.
Green advocacy group Transport & Environment (T&E) criticized the delay, arguing that it provides undue leniency to the automotive sector at a time when EV adoption is accelerating. T&E contends that postponing the targets could hinder the transition to electric mobility and create uncertainty for investments in European manufacturing.
Lucien Mathieu, Cars Director at T&E, highlighted the irony of delaying emissions targets amid a boom in EV sales. He noted that the increase in EV adoption is largely due to the introduction of more affordable models by car manufacturers aimed at meeting the initial EU targets. Mathieu expressed concerns that the extension might reduce the industry’s momentum in expanding EV offerings and slow down necessary investments.
The decision to delay was supported not only by T&E but also by ambassadors from EU member states. T&E emphasized the importance of maintaining stringent CO₂ targets to ensure that Europe remains competitive with global leaders like China in the EV market. The organization called on the EU to uphold its emissions reduction commitments to avoid further delays in achieving climate goals and to reinforce investment confidence within the European automotive sector.
The extension of the emissions targets reflects the ongoing tension between regulatory bodies and the automotive industry over the pace of transition to greener technologies. As European car manufacturers continue to increase their EV offerings, the impact of this delay on long-term sustainability and market dynamics remains to be seen.
Source: Transport & Environment
