The Council of the European Union on Tuesday gave final approval to a regulatory amendment that will allow car manufacturers to average their carbon dioxide emissions over three years, granting them greater flexibility in meeting emissions targets through 2027.
Under the amended regulation, compliance with emissions limits for new passenger cars and vans will now be assessed based on the average performance over 2025, 2026 and 2027 — rather than on an annual basis.
The Council’s adoption of the measure marks the final step in the EU’s legislative process, following the European Parliament’s earlier endorsement of the unamended Commission proposal.
Industry Support and Policy Background
The change is part of a broader Industrial Action Plan for the European automotive sector unveiled by the European Commission on March 5, 2025.
The Commission emphasized the urgency of the amendment to provide legal certainty for manufacturers as they prepare for the 2025 CO2 targets.
By aligning with the Commission’s original proposal without modifications, the Council’s approval reflects widespread institutional consensus on the need for regulatory flexibility amid ongoing industry transition efforts.
Legislative Milestones
The Council had previously adopted its negotiating mandate on May 7, formally supporting the Commission’s proposal. The European Parliament then adopted the measure without changes on May 8, allowing for swift passage of the legislation.
The regulation now enters into force following legal and linguistic verification by both institutions.
According to the European Automobile Manufacturers’ Association, the proposal for a three-year averaging is a step in the right direction, aligning decarbonization goals with real-world market and geopolitical challenges.
However, this must be complemented by meaningful demand incentives and the widespread deployment of charging infrastructure to address the fundamental hurdles to the transformation.
“The next important step is then to thoroughly assess the transformation’s overall progress, with a focus on refining the approach – not the end goal – where necessary,” said EAMA Director-General Sigrid de Vries.
She added: “This is no less important for the commercial vehicles sector: with zero-emission trucks accounting for only 2 percent of all new registrations, this vehicle segment urgently needs an acceleration of the review of its CO2 standards to 2025, too.”
