According to Bloomberg and Reuters, a document published on the Austrian Parliament website reveals that Austria, Bulgaria, Poland, Romania, and Slovakia have joined the Czech Republic and Italy in urging the EU to find a solution to avoid fines for automakers that fail to meet the EU's new carbon emissions targets for 2025.
Starting in 2025, the EU will reduce the average carbon emissions cap for newly sold vehicles from 116 grams per kilometer to 94 grams per kilometer. Automakers will face a fine of 95 euros (approximately $103) per vehicle for every gram of carbon dioxide emissions per kilometer above the limit. The total fine will be multiplied by the number of models sold.
As part of the European Green Deal, the EU's stricter carbon emission limits next year are seen as an important step towards a broader plan to ban the sale of new fuel-engine vehicles by 2035. The EU Green Deal aims to combat climate change and reduce pollution, but the policy has faced opposition from some EU countries.
The seven EU countries have expressed their concerns in a joint proposal: "At present, the European automotive industry is at a critical juncture, facing major challenges related to production, employment, and global competition, which require urgent action from the EU. The next five-year legislative cycle presents an opportunity to better align automotive industry policies with the EU's broader decarbonization and competitiveness goals."
The joint proposal also states: "The EU is scheduled to implement new carbon emission targets for passenger cars in 2025. However, due to the slowdown in the sales of pure electric vehicles, automakers that fail to meet these strict requirements may face significant fines. Such penalties could severely limit the ability of the automotive industry to reinvest in innovation and development, thereby undermining the competitiveness of European manufacturers on the global stage."
The seven EU countries have also called for the EU to take appropriate measures, including potential short-term financial packages, to ensure that the competitiveness of the European automotive industry is not further compromised, and to promote the transformation of the sector.
Additionally, in their joint proposal, the seven countries urged the EU to evaluate the carbon emission standards for new passenger cars and vans. They also stressed the need for the EU to regulate the outflow of investments in the research and development of clean energy technologies. The proposal further suggests that the EU may need to evaluate other related measures, such as laws concerning renewable energy, alternative fuel infrastructure, and the EU emissions trading system.
One of the main priorities of European Commission President Ursula von der Leyen during her second term is to promote the position of European car manufacturers on the global stage. On November 27, when the European Parliament voted to approve the new European Commission, Ursula von der Leyen told lawmakers that the European automotive industry is the pride of Europe and pledged to secure the future of European cars.