In a decision that marks a pragmatic—though not ideological—shift in its environmental policy, the European Union gave its final approval this Tuesday, May 27, to the relaxation of CO₂ reduction targets for the automotive industry.
After months of pressure from manufacturers and amid a growing competitiveness gap with the United States and China, the EU-27 approved a targeted amendment to the emissions regulation, granting carmakers more time to meet increasingly challenging goals.
The agreement, ratified by the EU Council after passing through Parliament, grants car and van manufacturers an additional two years—until 2027—to achieve the 15% emissions reduction target relative to 2021 levels. From now on, compliance will be assessed based on the average over three years (2025–2027), rather than annually. This technical concession, however, reveals a deeper political acknowledgement: Brussels has, at least partially, awakened from the climate slumber in which it had been immersed.
Behind this turn lies the weight of market data and a structural loss of competitiveness that not even the most enthusiastic climate discourse can conceal. The automotive sector accounts for nearly 7% of the EU’s GDP and suffers from the double blow of weak internal demand and fierce external competition, particularly from China.
Figures from ACEA, the European Automobile Manufacturers Association, confirm this pressure. In April, battery electric vehicles (BEVs) reached a 15.3% market share, an improvement over the 12% recorded a year earlier, but still far from Brussels’ green targets. Meanwhile, hybrid-electric models—considered by many as a more realistic transition solution—remain the preferred choice, with a 35.3% share. In contrast, petrol and diesel vehicles continue their freefall, jointly representing just 38.2% of the market.
Cyclical signs also influenced the decision. New car sales in the EU rose by 1.3% in April, the first increase in 2025. This upturn, though modest, is interpreted as a sign of recovery after months of contraction. Spain (+7.1%) and Italy (+2.7%) showed positive figures, unlike France and Germany, where sales declined.
In the first four months of the year, pure electric vehicle sales rose by 26.4% (558,262 units), with notable increases in Germany (+42.8%), Belgium (+31.3%), and the Netherlands (+6.4%). In parallel, hybrid sales increased by 20.8%, driven by strong growth in France (+44.9%), Spain (+35.8%), Italy (+15%), and Germany (+11%). By brand, Tesla suffered a 46.1% drop, while China’s SAIC Motor grew by 52.4%, reflecting the shifting leadership in the sector.
Despite the breathing space provided by this flexibility, there is no indication that Brussels intends to abandon its green course. The Green Deal remains in place, as do the climate neutrality goals for 2050. This revision, therefore, should be seen more as a tactical pause than a strategic rethink. European bureaucrats continue to take no responsibility for the impact of their policies on the industry, nor for the miscalculations in the face of an increasingly hostile global environment.
