EU CO2 emissions targets: car makers get more time to reach 93.6 g/km over 2025–2027

Car makers will be given extra time to meet the European Union’s CO2 emissions targets for passenger cars and light commercial vehicles.

EU CO2 emissions target moves to a three-year average

Under the original timetable, the industry was expected to reach an average of 93.6 g/km of CO2 by the end of this year. The new rule instead measures a cumulative three-year average, running from the start of 2025 through to the end of 2027.

What this means for each manufacturer’s individual target

Each manufacturer has its own emissions target to achieve - and the combined average across all manufacturers produces the 93.6 g/km figure - but the practical effect is that they no longer need to hit that target this year. By the end of 2027, however, the average across the three years must be at or below the set target.

Penalties, expected fines and “emission pools” deadline

If a manufacturer fails to comply, it must pay 95 euros for every extra gram of CO2 above the limit, for each vehicle sold. Prior estimates suggested fines could have reached as much as 15 billion euros this year.

With this change, the European Commission says it aims to “provide more flexibility for manufacturers to meet the emissions targets”, according to the proposal.

Alongside this flexibility, manufacturers will also have until the end of 2027 - rather than the end of this year - to notify their emission pools.

The proposal was approved by a large majority in the European Parliament, with 458 votes in favour, 101 against and 14 abstentions.