On November 3, Czech Transport Minister Martin Kupka stated that when the EU's stricter carbon dioxide emissions rules come into effect next year, the Czech Republic will join Italy in seeking to prevent automakers from facing heavy fines for failing to meet emissions standards, according to Reuters.
Kupka noted that due to declining demand for electric vehicles in Europe, automakers will face significant challenges in meeting the new carbon emission targets. He added that the Czech Republic and Italy have reached an agreement to present a unified position at the EU leaders' meeting in Budapest, Hungary, this week.
Starting in 2025, the EU will lower the average carbon emission limit for newly sold vehicles from 116 grams per kilometer to 94 grams per kilometer. For each gram of carbon dioxide per kilometer above the limit, automakers will face a fine of 95 euros (about 103 US dollars) per vehicle, with the total fine multiplied by the number of units sold.
Kupka emphasized that automakers are also struggling to adjust their product lineups to meet EU carbon emission regulations. "Carmakers are unable to comply because interest in electric vehicles is falling across Europe," he said. "If carmakers are forced to pay fines, they will lack funding for future research and development."
The European Green Deal, implemented by the EU to address climate change and reduce pollution, has faced opposition from some EU countries, including the Czech Republic. Notably, the EU's stricter carbon emission limits next year represent a key step toward the planned ban on new fuel-engine vehicle sales in 2035.
The Czech Republic, with a population of 10.9 million, has an automotive industry that contributes about 9% of its GDP. Last year, the country produced 1.4 million vehicles, making it one of the highest per capita car producers in Europe. Currently, three automakers operate in the Czech Republic: Skoda Auto (part of Volkswagen Group), Hyundai Motor, and Toyota Motor.