EU's Flexible Fleet Emissions Plan: Automakers to Benefit

The European Commission plans to adjust fines for automakers that fail to meet 2025 CO2 targets, allowing them to comply based on fleet emissions over three years. The aim is to enhance EU car producers' ability to electrify their fleets and compete globally.

The European Commission is set to propose a revision to the planned fines imposed on automakers failing to meet the CO2 emission targets for 2025. The adjustment would allow compliance based on fleet emissions averaged over a three-year period, rather than the original one-year requirement.

During a news conference on Monday, European Commission President Ursula von der Leyen announced that while the targets themselves remain unchanged, the timeframe for achieving them will extend to three years. This shift is aimed at providing more flexibility to automakers as they work towards meeting these ambitious goals.

The European Union's executive branch will reveal its comprehensive automotive action plan on Wednesday. This initiative is designed to assist EU car manufacturers in transitioning to electric vehicle production and bolstering their competitiveness against more technologically advanced Chinese and U.S. companies.

(With inputs from agencies.)