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EU car industry calls for withdrawal of fines for excess CO2 emissions in 2025

12 February 2025
General Interest
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The European car industry believes that the transition to green vehicles is irreversible, but is asking the European Executive for more flexibility and the withdrawal of fines for excess CO2 emissions, set for 2025, in order to stay on track without affecting the sector’s competitiveness, reports the EFE agency.

 

“It’s not about changing the destination, but about adjusting the way we get there,” said the director general of the European Automobile Manufacturers’ Association (ACEA) at a press conference on Tuesday, according to Agerpres.

Car manufacturers are in full negotiation with the European Executive to adapt climate requirements to a less optimistic reality for electric vehicles than when the objectives were approved, being in a ‘strategic dialogue’ that will clarify an action plan for the auto industry, which the European Commission will present on March 5.

This roadmap review exercise is being overseen directly by Commission President Ursula von der Leyen, and in this context, manufacturers will meet with Climate Commissioner Wopke Hoekstra on Wednesday, with Vice-President for Jobs Roxana Mînzatu on Thursday, and with their counterpart for technological sovereignty Henna Virkkunen next week.

The aim of this dialogue is to restore the competitiveness of European manufacturers, in a context where the electrification of the car fleet is progressing at a slower pace than expected and in 2024, sales of electric cars in the EU fell by 5.9% compared to the previous year.

The industry complains that the ecosystem needed to boost battery production in the EU has not been developed, that there are not enough charging points, no tax incentives for the purchase of clean cars and no clear price advantage for charging with self-generated electricity instead of buying petrol.

Manufacturers say electrification must stay, but they are calling for plans to be adjusted to make this transformation work.

EU legislation requires that fleets sold in 2025 emit 15% less CO2 than in 2021, a target that will reach 55% in 2030 and 100% in 2035, which is why the most pressing issue for manufacturers is the fines they will have to pay if they do not meet the target in 2025.

Car manufacturers are not yet attacking the key date of 2035, because they understand that it can be addressed later, if necessary, but for now they are limiting themselves to asking for realistic plans in the short, medium and long term.

These fines would be around 15 billion euros, according to manufacturers, and, if there is no short-term exemption for both cars and vans, these resources will be diverted from investments in clean technologies.

They also suggest that, in addition to solutions such as paying fines or reducing production (which will also imply lower incomes and fewer jobs), other formulas should be sought, such as those applied by the United Kingdom or Korea, which set targets per year, but allow them to be achieved in three-year periods, instead of annually.

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