The automotive sector has saved up to €4.2 billion in penalties thanks to the EU Commission’s relaxation of CO2 regulations last year, the Spiegel reported using data from the environmental group ICCT.
Under the original target, manufacturers in the EU were supposed to cut the CO2 emissions of new cars sold by 15 % relative to 2021 levels by 2025. In June, the EU granted a grace period until 2027, allowing automakers to offset high fleet averages in one year with better results in another. From the end of 2027, a manufacturer must pay €95 for each gram per vehicle, on average, that it exceeds its target over the 2025‑2027 period.
Volkswagen stands out as the biggest beneficiary, saving up to €2 billion in penalties that would otherwise have been due. Mercedes only met its target by pooling with partners such as Smart and Volvo-brands whose new‑vehicle fleets emit far less CO2 than permitted and can therefore sell emission allowances to Stuttgart, the magazine notes.
Among the traditional German makers, only BMW hit its target by 2025, thanks to a 27 % share of electric vehicles.