European Commission Gives Automakers More Time to Adapt to Zero-Emission Policy, Dealing a Blow to Tesla As Well

European Commission Gives Automakers More Time to Adapt to Zero-Emission Policy, Dealing a Blow to Tesla As Well
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The European Commission has decided to give automakers more time to meet their zero-emission goals. The move is expected to reduce the pressure on carmakers who have struggled to meet CO2 emission targets.

The change will allow them to buy fewer emission credits from companies like Tesla, which have a surplus of zero-emission vehicles.

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Car manufacturers in Europe are required to sell more electric vehicles each year to meet rising targets. If they fail, they face fines or can buy credits from companies with more electric car sales. The goal is to have all new cars be zero-emission by 2035.

However, automakers have been pushing for more time, arguing that the current rules hurt local businesses and end up benefiting Tesla. Their efforts have worked.

Commission President Ursula von der Leyen announced that carmakers will now have three years, instead of just one, to meet the new CO2 targets. This shift means that compliance will be based on average emissions from 2025 to 2027, giving companies extra time to ramp up their electric vehicle offerings.

While the change gives automakers more room to meet the targets, the rules themselves won’t change. Automakers like Volkswagen, Renault, BMW, and Mercedes-Benz saw their stock rise after the announcement.

The new rule still needs to be approved by the EU government, and the response has been mixed. While automaker groups are asking for even more time, environmentalists and supporters of electric vehicles are disappointed.

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