Some are happy, some are worried! Stellantis supports the EU's loosening of carbon emission rules for car companies, while Volvo and environmental organizations criticize "rewarding laggards"

Based on the current situation and pressure from European car manufacturers, the EU has decided to relax the regulations on car carbon dioxide emissions, giving car companies more time to achieve emission reduction targets. On Monday local time, European Commission President von der Leyen stated that the EU will give car manufacturers three years (instead of the previously stipulated one year) to meet carbon dioxide emission targets. Von der Leyen stated that a revised proposal for regulations on car carbon dioxide emissions standards will be submitted this month, providing European car companies with more flexible compliance options. She added, "The overall emission targets remain unchanged, companies must still achieve emission reduction targets, but this decision will provide the industry with more flexibility." It is worth noting that this amendment needs approval from EU member states and the European Parliament. Following von der Leyen's remarks, European car manufacturers including Volkswagen, Renault, BMW, and Mercedes-Benz all saw an increase in their stock prices on Monday. The EU's latest decision means that car companies do not have to immediately meet stringent emission standards this year, but only need to achieve additional emission reductions over the next two years. According to previous EU regulations, starting from January 1, 2025, the average carbon dioxide emissions per new car sold should not exceed 93.6 grams per kilometer, significantly reducing the carbon dioxide emissions limit for cars. This means that at least one-fifth of the total sales volume of most car manufacturers must be electric vehicles to avoid hefty fines. If car manufacturers fail to meet the EU's emission targets, they may have to pay billions of euros in fines. In response to this, European car manufacturer Stellantis welcomed the EU Commission's proposal to relax the car carbon dioxide emission targets on Tuesday. Stellantis stated in a press release, "Stellantis welcomes the statement made yesterday by EU Commission President von der Leyen." The company said that the extension of the compliance period for car carbon dioxide emission targets is "a meaningful step in the right direction," helping to maintain the competitiveness of the automotive industry, while the company will continue to work towards achieving the relevant goals and promoting electrification. Stellantis stated, "This, along with further support for targeted purchasing and fiscal incentives, cheaper green energy, and investments in charging infrastructure, can truly accelerate the electrification process." However, the EU's decision has also sparked controversy and criticism. For example, Volvo has called on the EU Commission to stick to its targets, provide regulatory certainty to companies that have already invested heavily in new technologies, and stated that adjustments to emission rules may delay the transition to electric vehicles. Volvo CEO Jim Rowan stated in a statement that the EU standards set a few years ago gave the automotive industry ample time to prepare and provided mechanisms for compliance. Jim Rowan added, "Volvo has already made extensive investments for 2025", and "companies like ours should not be disadvantaged by any last-minute legislative changes." Environmental organizations have also criticized this additional flexibility, stating that it may further weaken the competitiveness of European car manufacturers during the transition. Advocacy organization T&E described this change as an unprecedented "gift" to the automotive industry. T&E Executive Director William Todts stated, "Weakening the EU's emission regulations will only reward laggards, it will not benefit the European car industry, only further falling behind China."