The EU Commission’s recent relaxation of CO₂ targets saved the automotive industry up to €4.2 billion in fines, according to calculations by the magazine “Spiegel” based on data from the environmental NGO ICCT.
Originally, manufacturers in the EU were supposed to reduce the CO₂ emissions of all new cars sold starting in 2025 by 15 percent relative to 2021 levels. In June the Commission granted automakers an extension until 2027, allowing them to offset years with high fleet‑average emissions by aligning them with other years.
Under the new arrangement, a company must now pay €95 for every gram of CO₂ excess per vehicle over the target average for the 2025‑2027 period.
Volkswagen stands to benefit most from the deferment, saving up to €2 billion in penalties that would have been payable under the original rules. Mercedes-Benz, by contrast, only met its target when combined with partners such as Smart and Volvo. Those brands have lower‑emission new‑vehicle fleets, enabling them to sell unused pollution permits to Stuttgart.
Among the traditional German automakers, only BMW achieved its 2025 target, thanks to a 27 percent share of electric vehicles in its sales mix.
