The European Commission on Tuesday proposed easing carbon emission compliance rules for carmakers, allowing them to average their emissions over a three-year period from 2025 to 2027 instead of meeting annual targets.

The proposal comes as European automakers face mounting pressure to decarbonize amid intensifying global competition and the European Union's long-term goal of achieving zero-emission road transport by 2050.

Under the plan, car manufacturers would be permitted to offset higher emissions in one or two years by exceeding reduction targets in other years within the 2025-2027 compliance window. The Commission said the added flexibility is intended to support the industry's ability to invest in the clean energy transition.

Currently, the legal framework that took effect on Jan. 1 sets new caps on average emissions, with carmakers assessed annually and subject to steep fines for failing to meet their yearly targets.

Luca de Meo, CEO of French carmaker Renault Group, has previously warned that the European auto industry could face up to 15 billion euros (about 16.18 billion U.S. dollars) in carbon dioxide-related penalties in 2025.

The Commission has called on EU lawmakers to adopt the amendment without delay to provide regulatory certainty for the sector. (1 euro = 1.08 U.S. dollar)