On May 8, the key institutions of the European Union (EU) announced a two-year extension for European carmakers to adhere to emission reduction targets. Consequently, these manufacturers will avoid potentially billions of euros in fines for not meeting the 2025 emission benchmarks. An amendment, endorsed by the European Parliament, permits manufacturers who miss their 2025 emission reduction obligations to expedite reductions over the subsequent two years to compensate for the deficit. This decision offers a reprieve to the automotive industry, which has been advocating for regulatory adjustments due to the difficulties in implementing regulations amidst a steep decline in electric vehicle sales last year. Nonetheless, the relaxation of short-term targets has sparked discussions regarding the feasibility of the EU's ambitious 2035 target for all new cars to be zero-emission.