New EU Emission Rules May Impact EV Market Growth

EU carmakers will sell about 2 million fewer electric vehicles than previously expected, due to the more flexible EU regulations on emission standards for 2025, green group Transport & Environment said in new research on Monday.  

Earlier this year, under pressure from Europe’s automotive industry, the European Union adopted amendments to the regulation on CO2 standards for new passenger cars and vans, which aims to provide car manufacturers with flexibility to meet their emissions targets for 2025. The changes say that compliance with the car manufacturers’ specific emissions targets for 2025, 2026, and 2027 will be assessed based on an average of the performance of each manufacturer over these three years instead of annually. 

“It means more breathing space for industry and more clarity, and without changing the agreed targets,” European Commission President Ursula von der Leyen said early this year, when she proposed the amendments.

Now the Transport & Environment (T&E) research found that European carmakers sold 38% more electric cars in the first seven months of the year, ensuring that all but Mercedes-Benz are on track to comply with the EU’s 2025-27 emission targets. 

But the more flexible targets “allowed carmakers to take the foot off the gas and will lead to 2 million fewer electric cars being sold between 2025 and 2027 than under the original deadline,” the environmental group said. 

T&E also called on the EU Commission to stand firm over the 2030 and 2035 targets when it hosts a strategic dialogue on the future of the automotive industry later this week. 

“OEMs are painting a terrible picture because they want their targets weakened,” Lucien Mathieu, T&E cars director, said in a statement. 

“By sticking to the agreed rules, Europe can give its automotive industry a fighting chance in the global EV race,” Mathieu added. 

“But weakening the targets could see other manufacturers go the way of Mercedes which is falling behind on electrification and must buy credits from its competitors.”  

By Tsvetana Paraskova for Oilprice.com

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