Germany's chancellor said the EU should refrain from “punitive” fines for carmakers that fail to meet emissions standards, heating up debate over the future of Europe's key industry.
Olaf Scholz, who is running for election in February, will meet EU leaders in Brussels as Germany's largest carmaker, Volkswagen, plans unprecedented factory closures in its home market. He made this comment after the meeting.
His intervention comes just days before the industry faces tougher standards for reducing carbon emissions in new cars. To put the industry on track to phase out petrol and diesel cars from 2035, the average new car in Europe must emit less than 93.6 grams of CO2 per kilometer between 2025 and 2029. be.
Car manufacturers that fail to meet these targets, measured on vehicle averages, will be fined €95 (£75) for every gram of CO2 they exceed.
Industry lobby group the European Automobile Manufacturers Association said carmakers risked “billions of euros in fines” that could be invested in switching to electric and zero-emission vehicles.
The industry is arguing for a rethink as electric car sales slump in Europe, while facing stiff EV competition from subsidized Chinese rivals.
The European Commission announced on Thursday that a “strategic dialogue” on the future of the European car industry will be launched in January “with the aim of rapidly proposing and implementing measures that the industry urgently needs”. “We need to support our industry in the profound and disruptive transition ahead,” said Ursula von der Leyen, the company's president.
The 2025 target was set by EU legislators in 2019 following a proposal in 2017. Activists say the industry has had enough time to prepare, but car sales in Europe remain below pre-pandemic levels and automakers say there is a major shift in the economic landscape. claims.
Alex Keynes, automotive policy manager at Transport and Environment think tank, said: “Car CO2 regulations are one of the most important and effective climate laws enacted by the EU; This is partly due to deterrent fines.” It's built into the regulations. ”
After newsletter promotion
Eliminating fines for violations “essentially renders regulation toothless,” he added. “So without fines, there is essentially no goal.”
According to the Ministry of Transport and Environment the study Despite concerns about fines so far, nearly all car manufacturers either met their 2020/21 targets or fell short by a narrow margin.
