Banca March || The European automotive industry breathes a sigh of relief: the President of the European Commission proposes flexibility in emissions regulations. By the end of 2025, car manufacturers were required to reduce the average emissions of vehicles sold in the EU by -15% (from 110.1 g of CO2/km in 2021 to 93.6). Under Ursula von der Leyen's proposal at the meeting with the European Automobile Manufacturers Association (ACEA), compliance will now be based on average emissions during the period 2025-2027, rather than strictly imposing the target by the end of 2025. Despite this change, the targets to reduce emissions by 55% by 2030 and 100% by 2035 remain in place.
The demand for electric vehicles has grown at a slower pace than expected, and adapting to the regulatory limits has become a significant challenge for the automotive industry. In fact, Volvo is the only manufacturer on track to meet the original requirements. ACEA had estimated that not relaxing the penalties for 2025 could result in total losses of up to 16 billion euros. Von der Leyen's initiative still requires approval from the governments and the European Parliament, but it has already been received with enthusiasm by representatives from some member countries, such as the Italian Minister of Industry, and by senior executives in the automotive sector.