How carmakers fought CO2 rules and won

illuminem summarises for you the essential news of the day. Read the full piece on POLITICO or enjoy below:

🗞️ Driving the news: European carmakers have successfully lobbied to weaken EU CO₂ emissions rules, securing a last-minute amendment approved by the European Parliament on Thursday
• Instead of facing 2025 emissions targets based solely on that year’s data, automakers can now average emissions over 2025–2027 — giving lagging manufacturers more leeway and significantly reducing potential fines

🔭 The context: The original regulation aimed to reduce passenger car emissions by 15% compared to 2021, with penalties of €95 per gram of CO₂ over the limit per non-compliant vehicle
• Facing rising EV transition costs, increased competition from Chinese manufacturers, and looming U.S. tariffs under the Trump administration, the industry warned of €15 billion in fines if the rules were enforced without flexibility
• The EU Commission ultimately backed the auto sector’s request, citing geopolitical and economic pressures

🌍 Why it matters for the planet: This regulatory retreat signals a weakening of Europe’s climate resolve at a time when transport emissions remain one of the continent’s biggest climate challenges
• Despite a 24% year-on-year rise in EV sales in early 2025, campaigners warn that this concession will delay investment in clean technologies and slow the phase-out of combustion vehicles, undermining the EU’s goal to ban new fossil-fuel car sales by 2035

⏭️ What's next: The amendment now enters EU law, but the fight over the broader 2035 combustion engine ban is intensifying
• The European Commission has advanced the review of the legislation to late 2025, facing demands from automakers and conservative politicians to further weaken or reverse it
• Meanwhile, lobbying has already resumed to reshape future regulations to reflect "market realities," raising questions about the durability of the EU’s climate policy in the auto sector

💬 One quote: “This delay will allow the industry to take the foot off the gas for the EV roll-out while also slowing down investments,” — Lucien Mathieu, Cars Director, Transport & Environment

📈 One stat: EV sales across the EU rose nearly 24% in Q1 2025 compared to the same period in 2024, defying claims that stricter rules would harm market demand

See on illuminem's Data Hub™ the sustainability performance of carmakers such as Renault and its peers Volkswagen, and Audi

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