• Regulatory Flexibility: Carmakers can now average emissions over 2025–2027 instead of meeting annual CO₂ targets.
• Industry Relief: Move aims to provide regulatory certainty amid growing pressure to decarbonize.
• Legislative Finalization: Amendment will enter into force 20 days after its publication in the Official Journal.

The European Union has officially approved a regulatory amendment that gives car manufacturers additional leeway to meet their CO₂ emissions targets. The Council of the European Union adopted the final legislative step, allowing automakers to assess compliance with fleet-wide emissions targets over a three-year average (2025–2027) rather than annually.

This targeted change, part of the broader Industrial Action Plan for the automotive sector unveiled by the European Commission on March 5, 2025, is designed to offer “regulatory certainty in the face of increasing pressure to decarbonise,” the Commission said.

“This amendment is about giving manufacturers a predictable framework as they scale up low-emission technologies,” a Commission spokesperson stated.

The change reflects an urgent push to support the automotive sector’s transition while maintaining the EU’s ambitious climate goals. By smoothing out annual fluctuations, manufacturers can manage emissions more strategically during a critical phase of the shift to electric vehicles and cleaner mobility.

RELATED ARTICLE: EU Council Backs 3-Year Averaging Rule to Ease 2025 Car CO₂ Targets for Automakers

The amended regulation will take effect 20 days after its publication in the Official Journal of the European Union, making it officially binding across all member states.

“It’s a pragmatic step that balances ambition with operational realities in a transforming industry,” an EU Council representative noted following the vote.

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