The European Commission has published the long-awaited proposal to give automobile manufacturers more flexibility in complying with the bloc's CO2 reduction targets for cars and passenger vehicles in 2025, 2026 and 2027. Those three years would be assessed jointly, rather than annually, averaging out fleet emission performance.
EU climate commissioner Wopke Hoekstra said the additional compliance flexibility shows that the commission has "listened" but the EU is still maintaining its zero-emission targets [for new vehicles from 2035]. "Predictability in the sector is crucial for long-term investments," said Hoekstra. The commission urged the European Parliament and EU member states to reach agreement on the targeted amendment "without delay".
German centre-right member Jens Gieseke said there is a "broad majority" in parliament to fast-track approval for May. He noted that the car industry faces over €15bn ($16bn) in penalties for non-compliance with the CO2 standards. A member of parliament's largest EPP group, Gieseke also called for the commission to go further towards technological neutrality.
"We need different kinds of fuels, e-fuels, biofuels, every fuel which could help to reduce CO2 should be recognized," he added. This second step, withdrawing the phase-out of internal combustion engines (ICE) from 2035 onwards, Gieseke noted, should come in the last quarter of 2025.
German Green MEP Michael Bloss disputed the figure of €15bn in potential fines put forward by automotive industry association ACEA. "Even in the worst-case scenario, the total fines for all car manufacturers would not exceed €1bn," said Bloss. "Car manufacturers have had enough time to adjust their production planning. Many have done so," Bloss said, pointing to Automaker Volvo.
Under the current 2019 regulation, fines should be imposed on manufacturers for each year in 2025–2029 when they do not reach their specific fleet-wide target CO2 reductions, compared to 2021 values. But manufacturers have the option to form compliance pools with other firms.
"European car manufacturers are already talking to Tesla or Chinese manufacturers about so-called pooling, which must be stopped quickly," said EPP climate and environment spokesman Peter Liese. "We want to maintain climate targets, but not make Elon Musk richer through European legislation," said Liese.
