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EU climate penalties: von der Leyen wants more time for car manufacturers
In view of impending CO2 fines, EU Commission President Ursula von der Leyen wants to give car manufacturers more time to comply with EU requirements. She will propose a targeted amendment to the CO2 standards later this month, she said in Brussels. Instead of annual compliance with the limits, companies are to be given three years. A change also needs a majority among the EU states and in the European Parliament.
When it comes to clean mobility, it is also about fairness, emphasized the German top politician.
“We must adhere to the agreed targets.”
More details are to be announced today, Wednesday.
Penalties Threaten
The background to the impending penalties for the already struggling industry is the so-called fleet limits. These legal requirements have been tightened at the beginning of the year. An average of the CO2 emissions of the produced cars is measured.
This limit value must not be exceeded on average by all vehicles registered in the EU in a year. In 2024, it stood at 115.1 grams of CO2 per kilometer, per vehicle - measured using the so-called WLTP test procedure. For this year, it is 93.6 grams and is expected to drop to 49.5 grams by 2030.
Manufacturers must pay a penalty for too much emitted CO2. Since, for example, sales of electric vehicles have not developed as well as previously forecasted, automakers might exceed the limits.
Automotive Industry Wants More
The German Association of the Automotive Industry (VDA) considers it "absolutely necessary to relieve manufacturers in view of impending penalty payments." Association President Hildegard Müller also emphasized that further "flexibility" needs to be considered.
This includes that after 2035, so-called plug-in hybrids should be given more consideration, i.e., cars that have an internal combustion engine and a battery-powered electric motor. Actually, in the EU, only new cars that do not emit climate-damaging CO2 in operation should be registered from 2035 onwards.
"It is time to act now," said von der Leyen.
For example, an industrial alliance should be established to advance autonomous driving. Autonomous vehicles need to come to Europe's roads faster.
Dialogue with the Industry
Von der Leyen has been exchanging views with car manufacturers, union representatives, environmental organizations, and suppliers in a dialogue forum for several weeks. The results are to be presented in detail on Wednesday.
The European automotive industry is under pressure. It is facing increasing competition from China, and the US car manufacturer Tesla is also contesting market shares from European companies in the electric car market. For the economy in the EU, and especially in Germany, the automotive industry is of crucial importance.
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