As the end of 2024 approaches, stakeholders in the automotive sector continue to call for the postponement of the European Union’s (EU) CO2 reduction targets set for 2025.
Current regulations require manufacturers to limit the average emissions of their fleets to 80 grams of CO2 per kilometre (g/km), a goal aimed at promoting the region’s climate neutrality by 2050.
However, the tension between environmental demands and the economic difficulties faced by the sector has led to conflicting positions within the industry.
Till Eichler, Policy Officer at Transport&Environment (T&E), tells Mobility Portal Europe: “We are confident that the targets will be met by most manufacturers.”
What is the reasoning behind this?
According to the expert, the growth of the electric vehicle (EV) market does not follow a linear trajectory but is closely linked to CO2 targets.
In this regard, he explains that if a producer must meet new emission targets starting next year, these will be calculated based on all the cars sold.
“If, starting in 2025, manufacturers must comply with stricter standards, they will have an incentive to delay selling new cars until that year arrives, as they can then use those EVs to offset the emissions of higher-polluting cars,” he details.
A second point raised by the T&E representative concerns the flexibility already present in the system.
“If a company fails to meet the objective, it can partner with another that has exceeded the standards, so they can offset the difference between them,” he explains.
He underscores: “That is why we believe it is crucial to maintain the regulatory framework and not make exceptions, as this would also harm companies that have made efforts to meet the goals.“
Meanwhile, there are concerns within the industry regarding global competitiveness.
Raúl Morales García, communications director at Faconauto, criticises the fines associated with non-compliance with the targets.
“We have asked the EU not to impose these sanctions, as they undermine the competitiveness of the European industry, which is already facing plant closures, such as those announced by Volkswagen in Germany,” he tells Mobility Portal Europe.
A formal review of the regulation’s effectiveness is scheduled for 2026.
In this context, he suggests bringing forward the review to 2025 to adjust the regulations according to actual progress.
A polarised landscape
Volkswagen’s case has been central to the debate.
According to Till Eichler, the situation with the German automaker is due to specific strategic decisions, such as its dependence on the Chinese market and focus on luxury vehicles, segments more affected by regulatory changes.
Stefan Di Bitonto, Deputy Director of Mechanical and Electronic Technologies at Germany Trade & Invest, notes that countries like Germany have expressed concerns about the EU’s timeline.
“Nations with strong automotive industries emphasise the need for more robust infrastructure and a market prepared for EVs,” he argues.
Countries such as Italy and the Czech Republic also insist on a more gradual approach.
“We want solutions that balance decarbonisation goals with the stability of our industries,” declares Martin Kupka, Minister of Transport of the Czech Republic, during a conference.
The central argument from manufacturers focuses on the costs associated with the transition to clean technologies.
According to Oliver Blume, CEO of VW, meeting the targets without adjustments could jeopardise crucial investments in EV research and development.
Similarly, Carlos Tavares, ex CEO of Stellantis, highlights that competition with Chinese manufacturers, benefiting from lower production costs and government subsidies, puts European automakers at a disadvantage.
However, he asserts that the European Commission has insisted on maintaining the targets due to their role in achieving the bloc’s climate neutrality by 2050.
As Wopke Hoekstra, EU Climate Commissioner, puts it, the targets are necessary to provide predictability for the industry and accelerate the transition.
“Many of the CEOs of automotive companies I have spoken to have said they can meet the targets,” he states.
This position has been supported by the European Parliament, where figures like Pascal Canfin, President of the Environment Committee, emphasise that relaxing the regulations would jeopardise the continent’s climate commitments.
“Backtracking would mean losing this achievement and harming companies that have worked to comply with the regulations,” Till Eichler concludes.
