The European parliament will this week debate a "crisis" facing the EU's automotive industry which could lead to "potential" plant closures, putting discussions on already-decided CO2 standards for vehicles on the forefront.
Members have faced increased efforts by industry arguing for or against speedy review of the EU's regulation on CO2 emission standards for cars and vans. The regulation sets a 2035 phase-out target for new fossil fuel cars.
The European commission is expected to give a statement to parliament, but a spokesperson told Argus that any change to the EU CO2 standards for cars and light vehicles would require a legal proposal by the commission to both parliament and EU member states.
The priority, the spokesperson said, is on meeting 2025 targets for fleet CO2 reductions, agreed in 2019, but the commission is aware of "different opinions" in industry.
Automakers association Acea has been calling for a "substantive and holistic" review of the CO2 regulation. The transition to zero-emission vehicles must be made "more manageable", assessing real-world progress against the ambition level. On the other hand, European power industry association Eurelectric today told members of parliament that bringing forward a review of the EU's regulation on CO2 standards for cars and vans to the start of 2025 would only encourage carmakers to hold off on making lower-priced and smaller electric vehicles (EV).
The next CO2 target for car fleets is set to take effect in 2025. It requires a 15pc cut in emissions for newly registered cars. Some member states view the CO2 target cuts, and phase-out of the internal combustion engine (ICE) by 2035, as contentious. The regulation was only approved after a delay to normally formal approval. And parliament's largest centre-right EPP group is calling for a revision of CO2 standards for new cars to allow for alternative zero-emission fuels beyond 2035.
As a counterweight to such pressure, Austrian, Belgian, Dutch and Irish ministers today called on commission president Ursula von der Leyen to step up EU action to push decarbonisation of company vehicles, notably light duty vehicles. "We need to consider action on the demand side in order to push zero-emission vehicles sales. Corporate fleets are the EU's most important market segment," the four ministers told von der Leyen.
