How delayed CO2 rules for automakers undermine cities’ clean air plans

Eurocities Head of Advocacy, Thomas Lymes, explains how delayed CO₂ rules for automakers are undermining cities’ clean air plans

Cities are at the forefront of delivering the EU’s climate and air quality goals. However, by relaxing emissions deadlines for automakers, the European Commission creates regulatory uncertainty, making it harder for cities to plan and enforce Low and Zero Emission Zones (LEZs and ZEZs). The result: stalled local action and slower progress towards the EU’s own climate and public health objectives.

Relaxed rules raise doubts over Europe’s zero-emission transition

Earlier this year, the European Commission released its Automotive Industrial Action Plan. The plan outlines measures to support the transition of the automotive industry to 2035. While it includes some welcome proposals, it weakens short-term CO₂ reduction targets.

Under the previous framework, carmakers were required to cut emissions by 15% by 2025, based on 2021 levels. The newly revised approach effectively postpones compliance by averaging those reductions from 2025 to 2027 instead. This change has raised concerns about the pace of Europe’s shift to zero-emission mobility.

The revision sends a contradictory message. The same EU institutions that set air quality and climate targets are now easing the regulations required to achieve them. The consequence is a growing gap between ambition and implementation, undermining local efforts and eroding trust in the EU’s commitment to its own goals.

Planning LEZs requires foresight and regulatory certainty

LEZs and ZEZs are not only designed to reduce CO₂ emissions. They also protect citizens from the harmful effects of air pollution. According to the European Environment Agency’s 4th Clean Air Outlook, poor air quality remains responsible for thousands of premature deaths annually. Data shows that in 2022, citizens in the EU were exposed to air pollutant concentrations well above the levels recommended by the World Health Organization. Meeting these guidelines could prevent an estimated 239,000 deaths in the EU from exposure to fine particulate matter (PM2.5), 70,000 from ozone (O3), and 48,000 from nitrogen dioxide (NO2).

Planning these zones requires long-term foresight. Delays in EU regulation have serious knock-on effects that complicate planning and enforcement. Policymakers depend on reliable emission projections and vehicle fleet forecasts to define zone boundaries, timelines, and enforcement mechanisms. Public consultation infrastructure upgrades, and phased implementation are all part of the process carefully aligned with expected trends in the EV market.

Stable market conditions are necessary to gauge the availability and affordability of EVs that consumers need to make the switch. Slower EV rollout and a weakened second-hand market hit vulnerable groups hardest, limiting access to clean mobility.

Policy uncertainty is bad for cities and worse for Europe’s EV leadership

While the rationale for relaxing CO₂ targets is to support a struggling automotive industry, it raises an important question: does lowering ambition help in the long term? Weak rules don’t just hold cities back. They also disincentivise investment in clean technologies across the automotive sector.

Mixed signals from the EU risk undermining Europe’s position in the global race for EV innovation and production. Easing regulatory pressure may provide short-term relief, but it delays the shift to zero-emission manufacturing, leaving European carmakers less prepared to compete internationally.

Cities are taking action despite regulatory delays

Strong CCO₂ targets are not a burden. They are a driver of innovation, encouraging faster development, scaling of production, and long-term competitiveness. Initiatives like the forthcoming Greening Corporate Fleets proposal prove that climate policy and industrial growth can go hand in hand. The Greening Corporate Fleets initiative will potentially set purchase quotas of zero-emission vehicles for large fleet operators. Such an initiative complements cities’ work with businesses on zero-emission mobility, rather than working against cities.

The Brussels-Capital Region’s Urban Logistics Green Deal is a strong local example of how clear regulations can drive meaningful progress. The Region aims to achieve zero-emission mobility by 2035, at which point only vehicles powered by zero-emission fuels will be allowed to operate within its territory. As part of its “Shifting Economy” strategy and “Good Move” mobility plan, the Brussels-Capital Region launched this public-private partnership to accelerate the shift to low-emission logistics. Now in its second cycle, the initiative has already brought together over 60 companies, each committing to concrete actions such as fleet electrification, multimodal transport, and last-mile delivery by cargo bike. By offering clear expectations and support, the Region creates the certainty needed for businesses to plan and invest in clean urban freight solutions – something that EU-wide CO₂ rules should also be enabling.

Stockholm offers another model of best practice. The city has implemented a tiered approach to LEZs and ZEZs, supported by robust stakeholder engagement and clear regulatory planning. The upcoming ZEZ, backed by the European Commission and set for full implementation in 2026, was developed through extensive consultation with businesses, residents, and transport operators. This included matching affected companies with ZEZ-compliant transport providers and conducting citizen panel surveys to gauge support. Thanks to early dialogue and adaptive solutions, the city secured strong buy-in, especially from those who had already invested in clean vehicles and wanted a fair, competitive environment. Stockholm shows how early, inclusive planning builds trust and delivers cleaner air without leaving key groups behind.

Aligning ambition with action at all levels of government

Europe cannot afford to blur the roadmap to zero-emission mobility. A strong and enforceable CO₂ framework is essential to meet climate goals and ensure cities can deliver on the ground. The future of clean air and sustainable transport depends on regulatory ambition that is clear, timely, and consistent.

Policymakers must strike a careful balance between supporting industry, protecting the environment, and empowering cities. Delaying CO₂ targets risks disrupting that balance, creating uncertainty for manufacturers and slowing progress at a time when every year counts. At a time when the EU is looking for a solution to the green and competitiveness equation, cities can offer food for thought.

The EU must reaffirm its commitment to fully decarbonise the road transport sector by 2035 and align industrial policy with its climate and air quality commitments to restore momentum. This requires a stable and predictable regulatory pathway through to 2030 that cities, industry, and citizens can trust. Above all, it requires recognising that ambition is not an obstacle but a driver of innovation, investment, and equity.

Cities are ready to deliver. Now, the EU must do the same.