EU carbon emission deregulation decision confirmed introduction of three-year average

*This content was translated by AI.

On the 14th local time, the European Union (EU) revised its regulatory application method to prevent a "carbon fine bomb" worth trillions of won that was scheduled to be imposed on automakers. The European Commission and the Council have decided to ease their existing annual carbon dioxide (CO₂) reduction targets and measure the average by summing up emissions over the three years from 2025 to 2027.

In fact, it has become an environment where all existing plans can be discarded to emit more carbon, and premium car makers such as Mercedes Benz have avoided fines from national car makers such as Volkswagen, Renault, and Stellantis. Looking a little more closely, initially manufacturers had to align their average CO₂ emissions for new cars from 2025 to 93.6g/km (differentiated by manufacturers), a 15% reduction compared to 2021, which would result in a fine of 95 euros per gram.

However, with the introduction of a "three-year average," manufacturers can afford to sell more electric vehicles in 2026 and 2027, offsetting them by excesses, even if they don't meet their targets in 2025. According to industry analysis, if there was no deregulation, only one Volkswagen group would have to pay up to 2.2 billion euros (about 3.2 trillion won) in fines, but was suspended.

Mercedes-Benz and Stellantis are also considered beneficiaries of the move. They have been struggling to comply with regulations due to the high proportion of internal combustion engines, but now have the opportunity to adjust their portfolios over the course of three years. BMW, on the other hand, has already achieved its 2025 target early with its technology alone and has been considered an exemplary case, but some point out that the easing has created a favorable environment for latecomers who have neglected to prepare for regulations.

On the other hand, powerful European environmental groups immediately issued a statement of criticism. That the principles set in response to the climate crisis have retreated due to industry lobbying and short-term deterioration in performance. In particular, there are concerns that the suspension could lead to a "moral hazard" that makes manufacturers complacent with profits from sales of existing internal combustion locomotives rather than lowering electric vehicle prices or focusing on technological innovation.

Nevertheless, experts say the move was an inevitable option to prevent the collapse of the European auto industry. This is because there were loud voices that European companies, which are beleaguered with the offensive of low-cost electric vehicles from China and rising energy costs, should be given time to build self-sustainability. EU Commission President von der Leyen stressed the legitimacy of the policy, saying, "The long-term goal of banning the sale of internal combustion engines in 2035 remains unchanged, but flexibility in the transition process is essential to maintaining industrial competitiveness."

<© STARNEWS. All rights reserved. No reproduction or redistribution allowed.>

*This content was translated by AI.