The European Commission has given automakers a three-year reprieve from its zero-emission target, allowing them to buy fewer emission credits from Tesla and other electric vehicle manufacturers. The decision is aimed at reducing pressure on local automakers while sending more money to American company Tesla.
In Europe, new cars are mandated to transition to zero-emission vehicles, with increasing requirements each year until 2035. However, some European automakers have pressured the Commission to slow down the transition due to fines imposed for non-compliance.
Commission President Ursula von der Leyen announced that the Commission will give automakers more time to deploy electric vehicles by basing compliance on average emissions from 2025-2027. This change provides automakers with more breathing room, but has sparked mixed reactions. Some environmentalists and EV advocates are disappointed, while others welcome the additional time.
The proposal still needs EU government approval, but European automakers such as Volkswagen, Renault, BMW, and Mercedes-Benz have seen their stock prices rise in response to the news.
Source: https://electrek.co/2025/03/03/eu-gives-automakers-breathing-room-slashes-teslas-emission-credit-revenue