Currently reading: Car makers back plan to relax EU CO2 rules – but Volvo 'flabbergasted'

Manufacturers' fleet average CO2 emissions are measured under European law, with fines given to any that miss targets

Car-making giants including the Volkswagen Group and Stellantis have backed the European Commission’s pledge to relax the EU’s CO2 targets, which were this year made much harder to hit.

But a “surprised and frustrated” Volvo has slammed the proposed law changes and criticised both the Commission and its contemporaries for lobbying to weaken the targets. 

Like with the UK’s zero-emission vehicle (ZEV) mandate, a car maker or group’s average fleet CO2 levels are measured under EU law, with fines dished out to any that miss objectives.

The EU targets were raised for 2025 - and will be every year going forward to 2035- as Europe, like the UK, moves to banning internal combustion from the new car market in 10 year's time.  

Commission president Ursula von der Leyen said that, in a bid for balance, the Commission will as part of its Future of the Automotive Industry bill ask EU lawmakers to adjust targets from an annual compliance to compliance over three years. 

It follows a number of European car makers backtracking on previous commitments to move electric-only line-ups within the decade as interest in EVs slows down on the continent. 

As part of the changes, the targets won't change and will still need to be fulfilled, either through borrowing or banking.

In response, Volkswagen Group, Stellantis and Renault told Autocar that they back the changes, calling them an “important step forward”.

The Volkswagen Group stated: “The EU’s proposal offers manufacturers the flexibility they need to achieve their targets. Not a gram of CO2 savings is lost for the protection of our climate.

"We also need a rapid reality check for the CO2 fleet targets in the area of heavy commercial vehicles."

Stellantis stated: “The flexibility introduced regarding CO2 targets, with an extended compliance period, is a meaningful first step in the right direction to preserve the competitiveness of our sector while remaining faithful to the targets and committed to electrification. 

“It is now important that the proposed targeted amendment be turned into law quickly.

"This initiative, together with further support to targeted purchase and fiscal incentives, cheaper (green) energy and investment into charging infrastructure, can be a real accelerator in the ramp up towards electrification.”

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Renault told Autocar that the change “sets a pragmatic and encouraging basis to go on building collectively an innovative European ecosystem to sustain the rise of the EV demand and to revive the European competitiveness and prosperity”.

In contrast, Volvo CEO Jim Rowan blasted the bid to relax the rules, saying it “astonishes and frustrates me”.

The Swedish firm recently committed to its target to be an electric-only seller by 2030, despite the weakening of demand for EVs.

In the past few years, it has bolstered its EV line-up, bringing to market the EX40, EX30 and EX90, with more on the way.

“I’m flabbergasted,” Rowan told Belgian publication De Tijd. “Volvo is a small company. If [we] can do it, the big guys can do it. But they chose not to do it and put their energy into lobbying to get the rules changed. That’s unheard of.

“But that’s not even my point. The bigger problem is that this undermines the trust between the European Commission and the industry in general. The next time the Commission focus industry to invest here or there, what will we believe?”

European lawmakers will now assess the Commission’s recommendations before deciding if it puts the changes into law. A date for when this could take place has not yet been disclosed.

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Will Rimell

Will Rimell Autocar
Title: News editor

Will is Autocar's news editor.​ His focus is on setting Autocar's news agenda, interviewing top executives, reporting from car launches, and unearthing exclusives.

As part of his role, he also manages Autocar Business – the brand's B2B platform – and Haymarket's aftermarket publication CAT.

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