European Parliament accelerates vote on CO2 emission standards flexibility for automakers; new rules target 15% reduction by 2025 compared to 2021 levels

May 6, 2025 (press release) –

On Tuesday, MEPs agreed to use the urgent procedure for a targeted change to CO2 emission performance standards for new cars and vans.

The current rules set annual targets, covering five-year periods, for reducing average CO2 emissions from new cars and vans across the EU fleet. From 2025, an annual CO2 emission reduction target of 15% compared to 2021 values will be in application for the 2025-2029 period.

The proposed changeEUROPEAN COMMISSION Strasbourg, 1.4.2025 COM(2025) 136 final 2025/0070 (COD) Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) 2019/631 to include an additional flexibility as regards the calculation of manufacturers’ compliance with CO2 emission performance standards for new passenger cars and new light commercial vehicles for the calendar years 2025 to 2027 (Text with EEA relevance) EN EN EXPLANATORY MEMORANDUM 1. CONTEXT OF THE PROPOSAL • Reasons for and objectives of the proposal Regulation (EU) 2019/6311 sets CO2 emission performance standards for new passenger cars and light commercial vehicles. It is a key contribution to achieve the objectives set in the EU climate law, including the 2050 climate neutrality and the 2030 target to reduce economy- wide CO2 emissions by 55% compared to 1990. The automotive industry is of key importance for the EU economy and accounts for over 7% of the EU's GDP. It provides jobs - directly or indirectly, in manufacturing, sales, maintenance, construction and transport and transport services - to around 13 million Europeans. The automotive sector is undergoing a structural transformation including changes in clean and digital technologies, in particular the shift towards zero-emission vehicles. The CO2 standards provide long-term certainty and predictability for investors along the value chain, therefore enabling such sectoral transformation, while allowing sufficient lead time for a fair transition. The regulation requires that the annual EU fleet-wide average CO2 emissions from new cars and new vans are reduced in five-year intervals. In 2025, a target of 15% reduction of CO2 compared to 2021 values starts applying in each year for the 2025–2029 period. Each year, the average CO2 emissions and the specific CO2 emissions target for each manufacturer are established, based on the EU fleet-wide target, in order to evaluate the manufacturers’ performance in complying with their targets. Manufacturers exceeding their specific emissions target pay an excess emission premium of €95 per g/km for each new vehicle registered. In the context of the Strategic Dialogue on the Future of the Automotive Industry that took place in Q1 2025 and as announced in the Commission Automotive Action Plan of 5 March 2025, the proposal concerns a targeted change of the Regulation (EU) 2019/631 to provide manufacturers with an additional flexibility as regards their compliance obligations, by providing for a three-year compliance period for 2025, 2026 and 2027, instead of an annual period. The targeted amendment introduces such additional flexibility for manufacturers while maintaining the level of ambition of the emissions reduction target. To maintain regulatory certainty and predictability, it is essential that this one-off flexibility to allow compliance over a three-year compliance period is agreed between the European Parliament and Council swiftly and without delay. 1 Regulation (EU) 2019/631 of the European Parliament and of the Council of 17 April 2019 setting CO2 emission performance standards for new passenger cars and for new light commercial vehicles, and repealing Regulations (EC) No 443/2009 and (EU) No 510/2011 (OJ L 111 25.4.2019, p. 13). EN 1 EN • Consistency with existing policy provisions in the policy area This proposal does not amend the substantive rules of Regulation (EU) 2019/631 and it maintains the targets. The proposal responds to concerns expressed in the EU by the automotive sector, by providing an additional flexibility for manufacturers to comply with the objectives of the Regulation. • Consistency with other Union policies The European Climate Law Regulation2 establishes the framework for achieving climate neutrality within the EU by 2050. The regulation requires the reduction of net EU greenhouse- gas emissions by at least 55% (compared to 1990 levels) by 2030. It requires the Commission to propose a 2040 target. In line with the EU Climate Law reduction targets, Regulation (EU) 2019/631 sets emission reduction targets for cars and vans. The current proposal does not change the reduction targets and does not lower the overall CO2 emission standards ambitions. By introducing a one-off three-year compliance period for 2025, 2026 and 2027 instead of annual assessment, it allows an additional flexibility for vehicles manufacturers, while keeping the certainty and predictability for investors along the value chain. 2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY • Legal basis The legal basis for this proposal is Article 192 of the Treaty of the Functioning of the European Union (TFEU). In accordance with Article 191 and 192(1) TFEU, the European Union shall contribute to the pursuit, inter alia, of the following objectives: preserving, protecting and improving the quality of the environment; promoting measures at international level to deal with regional or worldwide environmental problems, and in particular combating climate change. Based on Article 192 of the TFEU, the Union has already adopted policies to address CO2 emissions from cars and light commercial vehicles beginning with Regulation (EC) 443/20093 and Regulation (EU) 510/20114. • Subsidiarity (for non-exclusive competence) This initiative is consistent with the principle of subsidiarity. Amendment of Regulation (EU) 2019/631 to provide this additional flexibility cannot be achieved by the Member States themselves. • Proportionality The proposal is consistent with the principle of proportionality, because it does not go beyond what is necessary in order to achieve the Union’s objectives of reducing greenhouse gas 2 Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1). 3 Regulation (EU) 2023/851 of the European Parliament and of the Council of 19 April 2023 amending Regulation (EU) 2019/631 as regards strengthening the CO2 emission performance standards for new passenger cars and new light commercial vehicles in line with the Union’s increased climate ambition (OJ L 110, 25.4.2023, p. 5). 4 Regulation (EU) No 510/2011 of the European Parliament and of the Council of 11 May 2011 setting emission performance standards for new light commercial vehicles as part of the Union's integrated approach to reduce CO 2 emissions from light-duty vehicles (OJ L 145, 31.5.2011, p. 1). EN 2 EN emissions in a cost-effective manner, while providing vehicles manufacturers with a one-off additional flexibility for their compliance while maintaining the level of ambition of the targets. • Choice of the instrument The proposal amends Regulation (EU) 2019/631 only as regards providing an additional flexibility on the compliance periods. Thus, it should follow the same form of act, i.e. a regulation. 3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS • Ex-post evaluations/fitness checks of existing legislation No evaluation is necessary for the proposal, since it only provides for a new and temporary flexibility for vehicles manufacturers to comply with the targets. • Stakeholder consultations The Commission held intense and extensive discussions with manufacturers and stakeholders from the automotive value chain in the context of the Strategic Dialogue on the Future of the Automotive Industry that took place in Q1 2025. • Collection and use of expertise The proposal has been elaborated following a process of internal scrutiny of existing obligations and is based on experience in implementing the related legislation, including the annual monitoring process of manufacturers’ CO2 compliance. • Impact assessment The proposal concerns targeted changes of Regulation (EU) 2019/631 to provide manufacturers with an additional flexibility as regards their compliance obligations. It does not change the level of ambition of the targets. • Regulatory fitness and simplification Compared to the current Regulation, the proposal is not expected to increase administrative costs. In addition, it is not increasing the complexity of the legal framework. • Fundamental rights The proposal respects the fundamental rights and observes the principles recognised in particular by the Charter of Fundamental Rights of the European Union5. In particular, it contributes to the objective of a high level of environmental protection in accordance with the principle of sustainable development as laid down in Article 37 of the Charter of Fundamental Rights of the European Union. 4. BUDGETARY IMPLICATIONS The legislative financial statement setting out the implications for budgetary, human and administrative resources was attached to the proposal which led to the adoption of Regulation (EU) 2019/631 and its latest revision by Regulation (EU) 2023/851. 5 Charter of Fundamental Rights of the European Union (OJ C 326, 26.10.2012, p. 391) EN 3 EN 5. OTHER ELEMENTS • Implementation plans and monitoring, evaluation and reporting arrangements This proposal does not change the substance of the rules, the implementation assessment remains the same as of the proposal which led to the adoption of Regulation (EU) 2019/631, as amended by Regulation (EU) 2023/851. • Detailed explanation of the specific provisions of the proposal Article 1(1) amends Article 4 in order to specify the three-year compliance period. Article 1(2) amends Article 6 to specify that the pooling agreements for 2025-2027 should be communicated to the Commission by end of 2027. Article 1(3) amends Article 8 to specify the rules on imposing the excess emissions premiums for the three-year compliance period 2025-2027. EN 4 EN 2025/0070 (COD) Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) 2019/631 to include an additional flexibility as regards the calculation of manufacturers’ compliance with CO2 emission performance standards for new passenger cars and new light commercial vehicles for the calendar years 2025 to 2027 (Text with EEA relevance) THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, and in particular Article 192(1) thereof, Having regard to the proposal from the European Commission, After transmission of the draft legislative act to the national parliaments, Having regard to the opinion of the European Economic and Social Committee6, Having regard to the opinion of the Committee of the Regions7, Acting in accordance with the ordinary legislative procedure, Whereas: (1) Regulation (EU) 2019/631 of the European Parliament and of the Council8 sets out the CO2 targets for new passenger cars and light commercial vehicles, that form a key part of the Union framework to reduce by 2030 net greenhouse gas emissions by at least 55 % below 1990 levels and reach economy-wide climate-neutrality by 2050. (2) In response to the request of stakeholders for an additional compliance flexibility on CO2 targets as regards the period 2025 to 2027, it is appropriate to urgently adopt an amendment to allow a one-off flexibility for those three years in the calculation of the compliance with the CO2 emission performance standards, while maintaining the targets for reducing CO2 emissions. (3) During the period 2025 to 2027, manufacturers should ensure that the average specific emissions of CO2 of their vehicles do not exceed an emissions target, calculated as the average of their annual specific emissions targets over the period. Compliance with the targets should be assessed at the end of the three-year period for each individual manufacturer. The excess emission premiums should be calculated accordingly. 6 OJ C , , p. . 7 OJ C , , p. . 8 Regulation (EU) 2019/631 of the European Parliament and of the Council of 17 April 2019 setting CO2 emission performance standards for new passenger cars and for new light commercial vehicles, and repealing Regulations (EC) No 443/2009 and (EU) No 510/2011 (OJ L 111, 25.4.2019, p. 13, ELI: http://data.europa.eu/eli/reg/2019/631/oj). EN 5 EN (4) In order to align the pooling provisions with the additional compliance flexibility in the years 2025 to 2027, it should be possible to enter into pooling agreements for each of those three years until the end of 2027. (5) Since the objective of this Regulation, namely to provide additional flexibility for the CO2 compliance in the period 2025 to 2027 while preserving the CO2 emissions reduction requirements for both new passenger cars and new light commercial vehicles, cannot be sufficiently achieved by the Member States, but can rather, by reason of their scale and effects, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective. (6) Regulation (EU) 2019/631 should therefore be amended accordingly, HAVE ADOPTED THIS REGULATION: Article 1 Regulation (EU) 2019/631 is amended as follows: (1) in Article 4, the following paragraph is added: ‘1a. By way of derogation from paragraph 1, for the three-year period comprising the calendar years 2025 to 2027, a manufacturer, including when it is a member of a pool, shall ensure that its average specific emissions of CO2 over that period do not exceed its specific emissions target over that period. Those average specific emissions of CO2 shall be calculated as the average over the three-year period of the annual average specific emissions of CO2 weighted according to the number of newly registered vehicles for the manufacturer in each calendar year. The specific emissions target shall be calculated as the average over the three-year period of the annual specific emissions targets determined in accordance with point 6.3 of Part A or Part B of Annex I or, where a manufacturer is granted a derogation under Article 10, in accordance with that derogation, weighted according to the number of newly registered vehicles for the manufacturer in each calendar year. For each calendar year when a manufacturer was included in a pool, the annual average specific emissions of CO2 and the annual specific emissions target to be used for those calculations shall be the values for that pool.’; (2) in Article 6, in paragraph 2, the following subparagraph is added: ‘By way of derogation from the first subparagraph, an agreement to form a pool covering the calendar years 2025 or 2026 may be entered into up to 31 December 2027.’; (3) in Article 8, in paragraph 1, the following subparagraph is added: ‘By way of derogation from the first subparagraph, with respect to the calendar years 2025 to 2027, the Commission shall impose an excess emissions premium on any manufacturer whose average specific emissions of CO2 over those three years exceed its specific emissions target over the period 2025 to 2027.’. EN 6 EN Article 2 This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Strasbourg, For the European Parliament For the Council The President The President EN 7 EN LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT 1. FRAMEWORK OF THE PROPOSAL/INITIATIVE ................................................. 3 1.1. Title of the proposal/initiative ...................................................................................... 3 1.2. Policy area(s) concerned .............................................................................................. 3 1.3. Objective(s) .................................................................................................................. 3 1.3.1. General objective(s) ..................................................................................................... 3 1.3.2. Specific objective(s) ..................................................................................................... 3 1.3.3. Expected result(s) and impact ...................................................................................... 3 1.3.4. Indicators of performance ............................................................................................ 3 1.4. The proposal/initiative relates to: ................................................................................. 4 1.5. Grounds for the proposal/initiative .............................................................................. 4 1.5.1. Requirement(s) to be met in the short or long term including a detailed timeline for roll-out of the implementation of the initiative ............................................................ 4 1.5.2. Added value of EU involvement (it may result from different factors, e.g. coordination gains, legal certainty, greater effectiveness or complementarities). For the purposes of this section 'added value of EU involvement' is the value resulting from EU action, that is additional to the value that would have been otherwise created by Member States alone. ................................................................................. 4 1.5.3. Lessons learned from similar experiences in the past .................................................. 4 1.5.4. Compatibility with the multiannual financial framework and possible synergies with other appropriate instruments ....................................................................................... 5 1.5.5. Assessment of the different available financing options, including scope for redeployment ................................................................................................................ 5 1.6. Duration of the proposal/initiative and of its financial impact .................................... 6 1.7. Method(s) of budget implementation planned ............................................................. 6 2. MANAGEMENT MEASURES................................................................................... 8 2.1. Monitoring and reporting rules .................................................................................... 8 2.2. Management and control system(s) ............................................................................. 8 2.2.1. Justification of the budget implementation method(s), the funding implementation mechanism(s), the payment modalities and the control strategy proposed .................. 8 2.2.2. Information concerning the risks identified and the internal control system(s) set up to mitigate them............................................................................................................ 8 2.2.3. Estimation and justification of the cost-effectiveness of the controls (ratio between the control costs and the value of the related funds managed), and assessment of the expected levels of risk of error (at payment & at closure) ........................................... 8 2.3. Measures to prevent fraud and irregularities ................................................................ 9 3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE ............ 10 3.1. Heading(s) of the multiannual financial framework and expenditure budget line(s) affected ....................................................................................................................... 10 EN 1 EN 3.2. Estimated financial impact of the proposal on appropriations ................................... 12 3.2.1. Summary of estimated impact on operational appropriations.................................... 12 3.2.1.1. Appropriations from voted budget ............................................................................. 12 3.2.1.2. Appropriations from external assigned revenues ....................................................... 17 3.2.2. Estimated output funded from operational appropriations......................................... 22 3.2.3. Summary of estimated impact on administrative appropriations ............................... 24 3.2.3.1. Appropriations from voted budget .............................................................................. 24 3.2.3.2. Appropriations from external assigned revenues ....................................................... 24 3.2.3.3. Total appropriations ................................................................................................... 24 3.2.4. Estimated requirements of human resources.............................................................. 25 3.2.4.1. Financed from voted budget....................................................................................... 25 3.2.4.2. Financed from external assigned revenues ................................................................ 26 3.2.4.3. Total requirements of human resources ..................................................................... 26 3.2.5. Overview of estimated impact on digital technology-related investments ................ 28 3.2.6. Compatibility with the current multiannual financial framework.............................. 28 3.2.7. Third-party contributions ........................................................................................... 28 3.3. Estimated impact on revenue ..................................................................................... 29 4. DIGITAL DIMENSIONS .......................................................................................... 29 4.1. Requirements of digital relevance .............................................................................. 30 4.2. Data ............................................................................................................................ 30 4.3. Digital solutions ......................................................................................................... 31 4.4. Interoperability assessment ........................................................................................ 31 4.5. Measures to support digital implementation .............................................................. 32 EN 2 EN 1. FRAMEWORK OF THE PROPOSAL/INITIATIVE 1.1. Title of the proposal/initiative Proposal for a Regulation of the European Parliament and of the Council amending Regulation (EU) 2019/631 to include an additional flexibility as regards the calculation of manufacturers’ compliance with CO2 emission performance standards for new passenger cars and new light commercial vehicles for the calendar years 2025 to 2027. 1.2. Policy area(s) concerned Climate policy 1.3. Objective(s) 1.3.1. General objective(s) The CO2 standards provide long-term certainty and predictability for investors along the automotive value chain, while allowing sufficient lead time for a fair transition. The amending proposal aims at providing additional flexibility for manufacturers to comply with the 2025 CO2 target, while leaving the level of ambition unchanged. 1.3.2. Specific objective(s) The proposal concerns targeted changes of the CO2 cars and vans Regulation to provide manufacturers with an additional flexibility: it provides for a three-year instead of an annual compliance period, for 2025, 2026 and 2027 combined. 1.3.3. Expected result(s) and impact Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. The amendment, if adopted, would determine that compliance is assessed over the years of 2025, 2026 and 2027 combined to allow car manufacturers to compensate an exceedance of the target in one or two of these years by overachievements in the other year(s). 1.3.4. Indicators of performance Specify the indicators for monitoring progress and achievements. Monitor the CO2 compliance of manufacturers over the three years period. 1.4. The proposal/initiative relates to:  a new action  a new action following a pilot project / preparatory action9  the extension of an existing action  a merger or redirection of one or more actions towards another/a new action 9 As referred to in Article 58(2), point (a) or (b) of the Financial Regulation. EN 3 EN 1.5. Grounds for the proposal/initiative 1.5.1. Requirement(s) to be met in the short or long term including a detailed timeline for roll-out of the implementation of the initiative The amending proposal aims at providing additional flexibility for manufacturers to comply with the CO2 targets, while maintaining overall ambition on the CO2 reduction targets over the period 2025-2029. 1.5.2. Added value of EU involvement (it may result from different factors, e.g. coordination gains, legal certainty, greater effectiveness or complementarities). For the purposes of this section 'added value of EU involvement' is the value resulting from EU action, that is additional to the value that would have been otherwise created by Member States alone. Climate change is a trans-boundary problem, which cannot be solved by national or local action alone. Coordination of climate action must be taken at European level and EU action is justified on grounds of subsidiarity. Given the need to modify Regulation (EU) 2019/631 by providing an additional flexibility as regards the compliance periods, the objectives of this initiative cannot be achieved by the Member States themselves. 1.5.3. Lessons learned from similar experiences in the past The proposal builds on existing legislation which has ensured continuous reductions in the CO2 emissions of the EU fleet of new cars and light commercial vehicles over the past decade. 1.5.4. Compatibility with the multiannual financial framework and possible synergies with other appropriate instruments No additional resources required. 1.5.5. Assessment of the different available financing options, including scope for redeployment No additional resources required. EN 4 EN 1.6. Duration of the proposal/initiative and of its financial impact  limited duration –  in effect from [DD/MM]YYYY to [DD/MM]YYYY –  financial impact from YYYY to YYYY for commitment appropriations and from YYYY to YYYY for payment appropriations.  unlimited duration – Implementation with a start-up period from YYYY to YYYY, – followed by full-scale operation. 1.7. Method(s) of budget implementation planned10  Direct management by the Commission –  by its departments, including by its staff in the Union delegations; –  by the executive agencies  Shared management with the Member States  Indirect management by entrusting budget implementation tasks to: –  third countries or the bodies they have designated –  international organisations and their agencies (to be specified) –  the European Investment Bank and the European Investment Fund –  bodies referred to in Articles 70 and 71 of the Financial Regulation –  public law bodies –  bodies governed by private law with a public service mission to the extent that they are provided with adequate financial guarantees –  bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that are provided with adequate financial guarantees –  bodies or persons entrusted with the implementation of specific actions in the common foreign and security policy pursuant to Title V of the Treaty on European Union, and identified in the relevant basic act – bodies established in a Member State, governed by the private law of a Member State or Union law and eligible to be entrusted, in accordance with sector-specific rules, with the implementation of Union funds or budgetary guarantees, to the extent that such bodies are controlled by public law bodies or by bodies governed by private law with a public service mission, and are provided with adequate financial guarantees in the form of joint and several liability by the controlling bodies or equivalent financial guarantees and which may be, for each action, limited to the maximum amount of the Union support. Comments 10 Details of budget implementation methods and references to the Financial Regulation may be found on the BUDGpedia site: https://myintracomm.ec.europa.eu/corp/budget/financial-rules/budget- implementation/Pages/implementation-methods.aspx. EN 5 EN No additional resources required. EN 6 EN 2. MANAGEMENT MEASURES 2.1. Monitoring and reporting rules No change to the monitoring and reporting rules is introduced, since the current system also allows to monitor the application of the proposed additional fexibility. 2.2. Management and control system(s) 2.2.1. Justification of the budget implementation method(s), the funding implementation mechanism(s), the payment modalities and the control strategy proposed The proposal is not implementing a financial programme but introducing an additional flexibility for 2025-2027 in terms of compliance by the light-duty vehicles manufacturers with CO2 emissions targets. Management mode, funding implementation mechanisms, payment modalities and control strategy in relation to error rates are not applicable. 2.2.2. Information concerning the risks identified and the internal control system(s) set up to mitigate them This proposal does not concern a spending programme. Efficient monitoring of vehicle registration data is essential for ensuring legal certainty in enforcing the legislation and for ensuring level playing field between different manufacturers. 2.2.3. Estimation and justification of the cost-effectiveness of the controls (ratio between the control costs and the value of the related funds managed), and assessment of the expected levels of risk of error (at payment & at closure) This initiative does not bring about new significant controls/risks that would not be covered be an existing internal control framework. No specific measures beyond the application of the Financial Regulation have been envisaged. 2.3. Measures to prevent fraud and irregularities In addition to the application of the Financial Regulation to prevent fraud and irregularities, the additional flexibility for compliance with the CO2 reduction requirements provided for in this proposal will be accompanied by monitoring and reporting of different datasets as provided for in Regulation (EU) 2019/631. EN 7 EN 3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 3.1. Heading(s) of the multiannual financial framework and expenditure budget line(s) affected No additional resources required. The current team will continue managing the initiative. • Existing budget lines In order of multiannual financial framework headings and budget lines. Type of Budget line expenditure Contribution Heading of from multiannual candidate from From financial Number countries Diff./Non- EFTA other other assigned framework diff.11 and countries third revenue 12 potential countries candidates 13 [XX.YY.YY.YY] Diff./Non YES/NO YES/NO YES/NO YES/NO -diff. [XX.YY.YY.YY] Diff./Non YES/NO YES/NO YES/NO YES/NO -diff. [XX.YY.YY.YY] Diff./Non YES/NO YES/NO YES/NO YES/NO -diff. • New budget lines requested In order of multiannual financial framework headings and budget lines. Type of Budget line expenditure Contribution Heading of from multiannual candidate from financial Number from Diff./Non- countries other other assigned framework EFT diff. A and third revenue countries potential countries candidates [XX.YY.YY.YY] Diff./Non YES/NO YES/NO YES/NO YES/NO -diff. [XX.YY.YY.YY] Diff./Non YES/NO YES/NO YES/NO YES/NO -diff. [XX.YY.YY.YY] Diff./Non YES/NO YES/NO YES/NO YES/NO -diff. 11 Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 12 EFTA: European Free Trade Association. 13 Candidate countries and, where applicable, potential candidates from the Western Balkans. EN 8 EN 3.2. Estimated financial impact of the proposal on appropriations 3.2.1. Summary of estimated impact on operational appropriations –  The proposal/initiative does not require the use of operational appropriations –  The proposal/initiative requires the use of operational appropriations, as explained below 3.2.1.1. Appropriations from voted budget EUR million (to three decimal places) Heading of multiannual financial framework Number Year Year Year Year TOTAL MFF DG: <…….> 2021-2027 2024 2025 2026 2027 Operational appropriations Commitments (1a) 0.000 Budget line Payments (2a) 0.000 Commitments (1b) 0.000 Budget line Payments (2b) 0.000 Appropriations of an administrative nature financed from the envelope of specific programmes14 Budget line (3) 0.000 TOTAL appropriations Commitments =1a+1b+3 0.000 0.000 0.000 0.000 0.000 for DG <…….> Payments =2a+2b+3 0.000 0.000 0.000 0.000 0.000 Year Year Year Year TOTAL MFF 2024 2025 2026 2027 2021-2027 14 Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. EN 9 EN Commitments (4) 0.000 0.000 0.000 0.000 0.000 T OTAL operational appropriations Payments (5) 0.000 0.000 0.000 0.000 0.000 TOTAL appropriations of an administrative nature financed (6) 0.000 0.000 0.000 0.000 0.000 from the envelope for specific programmes TOTAL appropriations under Commitments =4+6 0.000 0.000 0.000 0.000 0.000 HEADING <….> of the multiannual financial framework Payments =5+6 0.000 0.000 0.000 0.000 0.000 Heading of multiannual financial Number framework Year Year Year Year TOTAL MFF DG: <…….> 2024 2025 2026 2027 2021-2027 Operational appropriations Commitments (1a) 0.000 Budget line Payments (2a) 0.000 Commitments (1b) 0.000 Budget line Payments (2b) 0.000 Appropriations of an administrative nature financed from the envelope of specific programmes15 Budget line (3) 0.000 TOTAL appropriations Commitments =1a+1b +3 0.000 0.000 0.000 0.000 0.000 for DG <…….> Payments =2a+2b+3 0.000 0.000 0.000 0.000 0.000 15 Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. EN 10 EN Year Year Year Year TOTAL MFF DG: <…….> 2024 2025 2026 2027 2021-2027 Operational appropriations Commitments (1a) 0.000 Budget line Payments (2a) 0.000 Commitments (1b) 0.000 Budget line Payments (2b) 0.000 Appropriations of an administrative nature financed from the envelope of specific programmes16 Budget line (3) 0.000 TOTAL appropriations Commitments =1a+1b +3 0.000 0.000 0.000 0.000 0.000 for DG <…….> Payments =2a+2b+3 0.000 0.000 0.000 0.000 0.000 Year Year Year Year TOTAL MFF 2024 2025 2026 2027 2021-2027 Commitments (4) 0.000 0.000 0.000 0.000 0.000 T OTAL operational appropriations Payments (5) 0.000 0.000 0.000 0.000 0.000 TOTAL appropriations of an administrative nature financed (6) 0.000 0.000 0.000 0.000 0.000 from the envelope for specific programmes TOTAL appropriations under Commitments =4+6 0.000 0.000 0.000 0.000 0.000 HEADING <….> of the multiannual financial framework Payments =5+6 0.000 0.000 0.000 0.000 0.000 16 Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. EN 11 EN Year Year Year Year TOTAL MFF 2021-2027 2024 2025 2026 2027 • TOTAL operational appropriations (all Commitments (4) 0.000 0.000 0.000 0.000 0.000 operational headings) Payments (5) 0.000 0.000 0.000 0.000 0.000 • TOTAL appropriations of an administrative nature financed from the envelope for specific programmes (all operational (6) 0.000 0.000 0.000 0.000 0.000 headings) TOTAL appropriations Under Commitments =4+6 0.000 0.000 0.000 0.000 0.000 Heading 1 to 6 of the multiannual financial framework Payments =5+6 0.000 0.000 0.000 0.000 0.000 (Reference amount) Heading of multiannual financial framework 7 ‘Administrative expenditure’17 Year Year Year Year TOTAL DG: <…….> MFF 2021- 2024 2025 2026 2027 2027  Human resources 0.000 0.000 0.000 0.000 0.000  Other administrative expenditure 0.000 0.000 0.000 0.000 0.000 TOTAL DG <…….> Appropriations 0.000 0.000 0.000 0.000 0.000 Year Year Year Year TOTAL DG: <…….> MFF 2021- 2024 2025 2026 2027 2027  Human resources 0.000 0.000 0.000 0.000 0.000  Other administrative expenditure 0.000 0.000 0.000 0.000 0.000 TOTAL DG <…….> Appropriations 0.000 0.000 0.000 0.000 0.000 17 The necessary appropriations should be determined using the annual average cost figures available on the appropriate BUDGpedia webpage. EN 12 EN (Total TOTAL appropriations under HEADING 7 of the multiannual financial commitments 0.000 0.000 0.000 0.000 0.000 framework = Total payments) EUR million (to three decimal places) Year Year Year Year TOTAL MFF 2024 2025 2026 2027 2021-2027 TOTAL appropriations under HEADINGS 1 to 7 Commitments 0.000 0.000 0.000 0.000 0.000 of the multiannual financial framework Payments 0.000 0.000 0.000 0.000 0.000 Payments =2a+2b+3 0.000 0.000 0.000 0.000 0.000 Year Year Year Year TOTAL MFF 2024 2025 2026 2027 2021-2027 Commitments (4) 0.000 0.000 0.000 0.000 0.000 T OTAL operational appropriations Payments (5) 0.000 0.000 0.000 0.000 0.000 TOTAL appropriations of an administrative nature financed (6) 0.000 0.000 0.000 0.000 0.000 from the envelope for specific programmes TOTAL appropriations under Commitments =4+6 0.000 0.000 0.000 0.000 0.000 HEADING <….> of the multiannual financial framework Payments =5+6 0.000 0.000 0.000 0.000 0.000 Heading of multiannual financial framework Number EN 13 EN Year Year Year Year TOTAL MFF DG: <…….> 2021-2027 2024 2025 2026 2027 Operational appropriations Commitments (1a) 0.000 Budget line Payments (2a) 0.000 Commitments (1b) 0.000 Budget line Payments (2b) 0.000 Appropriations of an administrative nature financed from the envelope of specific programmes18 Budget line (3) 0.000 Commitments =1a+1b+3 0.000 0.000 0.000 0.000 0.000 TOTAL appropriations Payments =2a+2b+3 0.000 0.000 0.000 0.000 0.000 for DG <…….> Payments =2a+2b+3 0.000 0.000 0.000 0.000 0.000 Year Year Year Year TOTAL MFF 2024 2025 2026 2027 2021-2027 Commitments (4) 0.000 0.000 0.000 0.000 0.000 T OTAL operational appropriations Payments (5) 0.000 0.000 0.000 0.000 0.000 TOTAL appropriations of an administrative nature financed (6) 0.000 0.000 0.000 0.000 0.000 from the envelope for specific programmes TOTAL appropriations under Commitments =4+6 0.000 0.000 0.000 0.000 0.000 HEADING <….> of the multiannual financial framework Payments =5+6 0.000 0.000 0.000 0.000 0.000 18 Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. EN 14 EN Year Year Year Year TOTAL MFF 2021-2027 2024 2025 2026 2027 • TOTAL operational appropriations (all Commitments (4) 0.000 0.000 0.000 0.000 0.000 operational headings) Payments (5) 0.000 0.000 0.000 0.000 0.000 • TOTAL appropriations of an administrative nature financed from the envelope for specific programmes (all operational (6) 0.000 0.000 0.000 0.000 0.000 headings) TOTAL appropriations under Headings 1 Commitments =4+6 0.000 0.000 0.000 0.000 0.000 to 6 of the multiannual financial framework (Reference Payments =5+6 0.000 0.000 0.000 0.000 0.000 amount) Heading of multiannual financial framework 7 ‘Administrative expenditure’19 EUR million (to three decimal places) Year Year Year Year TOTAL DG: <…….> MFF 2021- 2024 2025 2026 2027 2027  Human resources 0.000 0.000 0.000 0.000 0.000  Other administrative expenditure 0.000 0.000 0.000 0.000 0.000 TOTAL DG <…….> Appropriations 0.000 0.000 0.000 0.000 0.000 Year Year Year Year TOTAL DG: <…….> MFF 2021- 2024 2025 2026 2027 2027  Human resources 0.000 0.000 0.000 0.000 0.000 19 The necessary appropriations should be determined using the annual average cost figures available on the appropriate BUDGpedia webpage. EN 15 EN  Other administrative expenditure 0.000 0.000 0.000 0.000 0.000 TOTAL DG <…….> Appropriations 0.000 0.000 0.000 0.000 0.000 (Total TOTAL appropriations under HEADING 7 of the multiannual commitments 0.000 0.000 0.000 0.000 0.000 financial framework = Total payments) EUR million (to three decimal places) Year Year Year Year TOTAL MFF 2024 2025 2026 2027 2021-2027 TOTAL appropriations under HEADINGS 1 to 7 Commitments 0.000 0.000 0.000 0.000 0.000 of the multiannual financial framework Payments 0.000 0.000 0.000 0.000 0.000 3.2.2. Estimated output funded from operational appropriations (not to be completed for decentralised agencies) Commitment appropriations in EUR million (to three decimal places) Year Year Year Year Enter as many years as necessary to show the TOTAL 2024 2025 2026 2027 duration of the impact (see Section1.6) Indicate objectives and OUTPUTS outputs Avera Type20 Total Total  ge Cost Cost Cost Cost Cost Cost Cost No cost cost SPECIFIC OBJECTIVE No 121… - Output 20 Outputs are products and services to be supplied (e.g. number of student exchanges financed, number of km of roads built, etc.). 21 As described in Section 1.3.2. ‘Specific objective(s)’ EN 16 EN No No No No No No No - Output - Output Subtotal for specific objective No 1 SPECIFIC OBJECTIVE No 2 ... - Output Subtotal for specific objective No 2 TOTALS EN 17 EN 3.2.3. Summary of estimated impact on administrative appropriations –  The proposal/initiative does not require the use of appropriations of an administrative nature –  The proposal/initiative requires the use of appropriations of an administrative nature, as explained below 3.2.3.1. Appropriations from voted budget Year Year Year Year TOTAL VOTED APPROPRIATIONS 2024 2025 2026 2027 2021 - 2027 HEADING 7 Human resources 0.000 0.000 0.000 0.000 0.000 Other administrative expenditure 0.000 0.000 0.000 0.000 0.000 Subtotal HEADING 7 0.000 0.000 0.000 0.000 0.000 Outside HEADING 7 Human resources 0.000 0.000 0.000 0.000 0.000 Other expenditure of an administrative nature 0.000 0.000 0.000 0.000 0.000 Subtotal outside HEADING 7 0.000 0.000 0.000 0.000 0.000 TOTAL 0.000 0.000 0.000 0.000 0.000 The appropriations required for human resources and other expenditure of an administrative nature will be met by appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the DG, together, if necessary, with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints. 3.2.4. Estimated requirements of human resources –  The proposal/initiative does not require the use of human resources –  The proposal/initiative requires the use of human resources, as explained below 3.2.4.1. Financed from voted budget Estimate to be expressed in full-time equivalent units (FTEs)22 Year Year Year Year VOTED APPROPRIATIONS 2024 2025 2026 2027  Establishment plan posts (officials and temporary staff) 20 01 02 01 (Headquarters and Commission’s Representation Offices) 0 0 0 0 20 01 02 03 (EU Delegations) 0 0 0 0 01 01 01 01 (Indirect research) 0 0 0 0 01 01 01 11 (Direct research) 0 0 0 0 Other budget lines (specify) 0 0 0 0 • External staff (inFTEs) 22 Please specify below the table how many FTEs within the number indicated are already assigned to the management of the action and/or can be redeployed within your DG and what are your net needs. EN 18 EN 20 02 01 (AC, END from the ‘global envelope’) 0 0 0 0 20 02 03 (AC, AL, END and JPD in the EU Delegations) 0 0 0 0 Admin. Support - at Headquarters 0 0 0 0 line [XX.01.YY.YY] - in EU Delegations 0 0 0 0 01 01 01 02 (AC, END - Indirect research) 0 0 0 0 01 01 01 12 (AC, END - Direct research) 0 0 0 0 Other budget lines (specify) - Heading 7 0 0 0 0 Other budget lines (specify) - Outside Heading 7 0 0 0 0 TOTAL 0 0 0 0 The staff required to implement the proposal (in FTEs): To be covered by Exceptional additional staff* current staff available in the Commission services To be financed To be financed To be financed under Heading 7 from BA line from fees or Research Establishment N/A plan posts External staff (CA, SNEs, INT) Description of tasks to be carried out by: Officials and temporary staff External staff 3.2.5. Overview of estimated impact on digital technology-related investments Compulsory: the best estimate of the digital technology-related investments entailed by the proposal/initiative should be included in the table below. Exceptionally, when required for the implementation of the proposal/initiative, the appropriations under Heading 7 should be presented in the designated line. The appropriations under Headings 1-6 should be reflected as “Policy IT expenditure on operational programmes”. This expenditure refers to the operational budget to be used to re-use/ buy/ develop IT platforms/ tools directly linked to the implementation of the initiative and their associated investments (e.g. licences, studies, data storage etc). The information provided in this table should be consistent with details presented under Section 4 “Digital dimensions”. Year Year Year Year TOTAL MFF TOTAL Digital and IT appropriations 2021 - 2024 2025 2026 2027 2027 EN 19 EN HEADING 7 IT expenditure (corporate) 0.000 0.000 0.000 0.000 0.000 Subtotal HEADING 7 0.000 0.000 0.000 0.000 0.000 Outside HEADING 7 Policy IT expenditure on operational 0.000 0.000 0.000 0.000 0.000 programmes Subtotal outside HEADING 7 0.000 0.000 0.000 0.000 0.000 TOTAL 0.000 0.000 0.000 0.000 0.000 3.2.6. Compatibility with the current multiannual financial framework The proposal/initiative: –  can be fully financed through redeployment within the relevant heading of the multiannual financial framework (MFF) No additional resources required. The current team will continue managing the initiative. –  requires use of the unallocated margin under the relevant heading of the MFF and/or use of the special instruments as defined in the MFF Regulation N/A –  requires a revision of the MFF N/A 3.2.7. Third-party contributions The proposal/initiative: –  does not provide for co-financing by third parties –  provides for the co-financing by third parties estimated below: Appropriations in EUR million (to three decimal places) Year Year Year Year Total 2024 2025 2026 2027 Specify the co-financing body TOTAL appropriations co- financed 3.3. Estimated impact on revenue –  The proposal/initiative has no financial impact on revenue. –  The proposal/initiative has the following financial impact: –  on own resources –  on other revenue –  please indicate, if the revenue is assigned to expenditure lines EUR million (to three decimal places) EN 20 EN Appropriations Impact of the proposal/initiative23 available for the Budget revenue line: current financial year Year 2024 Year 2025 Year 2026 Year 2027 Article …………. For assigned revenue, specify the budget expenditure line(s) affected. N/A Other remarks (e.g. method/formula used for calculating the impact on revenue or any other information). N/A 4. DIGITAL DIMENSIONS The proposal does not include any digital dimension. . 4.1. Requirements of digital relevance The proposal introduces a flexibility to allow manufacturers to comply with the CO2 emission targets over 2025, 2026 and 2027 combined. This means that there is no digital implications or implementation enhancement via digital tools. 4.2. Data N/A 4.3. Digital solutions N/A 4.4. Interoperability assessment N/A 4.5. Measures to support digital implementation N/A 23 As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. gross amounts after deduction of 20% for collection costs. EN 21 EN would offer manufacturers the possibility to comply with their obligations for the years 2025, 2026 and 2027 by averaging their performance over the three-year period, rather than each individual year. This approach would allow them to balance any excess annual emissions by outperforming the target in subsequent year(s).

Before MEPs voted, representatives of the political groups held a round of short interventions on the issue.

Next steps

Following the agreement to use the urgent procedure, Parliament is now expected to vote on the proposal on Thursday, 8 May.

Background

The proposal is part of the Commission's industrial action plan for the European automotive sector, announced on 5 March 2025. It followed the strategic dialogue on the future of the automotive industry launched by Commission President Ursula von der Leyen on 30 January 2025, which involved an open public consultation and discussions with both sides of industry and stakeholders to address the most pressing challenges facing the sector.