The current regulations in the European Union (EU) set CO2 emission reduction targets within the automotive sector to contribute to carbon neutrality objectives by 2050.
These targets include a significant reduction for 2025, a year in which manufacturers must achieve an average emission level of 80 grams per kilometre (g/km) of CO2 in car production.
This threshold demands rapid advancements in clean technology, such as electric vehicles and low-emission alternatives—a transition European businesses consider both complex and costly.
Within this framework, key figures in the political and corporate spheres have voiced opposition to imposing penalties on producers who fail to meet these stringent emission limits.
This stance reveals a growing tension between climate objectives and economic and competitiveness concerns in a sector undergoing transition.
Lawmakers highlight that these targets are fundamental for reducing the sector’s carbon footprint and promoting the development of sustainable technologies.
Meanwhile, the opposing side argues that the market and charging infrastructure are not yet prepared to support such a drastic shift, particularly in the post-COVID-19 and current European energy crisis context.
Which countries seek to ease the emissions targets?
Germany, Italy, and France, home to the EU’s leading car manufacturers, are at the forefront of the initiative to avoid penalties in 2025.
Germany, home to Volkswagen, BMW, and Mercedes-Benz, argues that imposing sanctions could harm the global competitiveness of its companies, which already face additional costs due to the shift towards electric vehicles.
Specifically, Bernhard Kluttig, the designated State Secretary for the Economy, stated that he is “open to a review” of European penalties.
“We want to maintain our decarbonisation objectives, but we also need solutions for our automotive industry,” he said during a press conference alongside French Industry Minister Marc Ferracci.
In a similar context, France, the base for Renault and Stellantis, advocates for an approach that considers social and labour impacts.
Meanwhile, Italy, where Fiat has a strong presence, argues that the transition should be gradual to mitigate the economic impacts on employment and local production.
The Czech Republic recently joined this stance, aligning with the country led by Giorgia Meloni to urge the 27 EU members not to impose sanctions.
This was reported by Transport Minister Martin Kupka in statements to Czech media.
Arguments from European manufacturers and politicians
Oliver Blume, CEO of VW, indicates that while the company supports sustainability goals, meeting them without flexibility would put crucial investments in electric vehicle research and development at risk.
This viewpoint is shared by Carlos Tavares, CEO of Stellantis.
He emphasises: “Manufacturers need more favourable market conditions and public policies that support charging infrastructure.”
This aims to meet the 2025 standards without jeopardising their financial stability.
The core argument from these business leaders is the lack of sufficient “refuelling” points across Europe.
Adding to this challenge is the increase in production costs due to rising raw material prices, particularly lithium batteries and other critical components.
Furthermore, they believe that competing with Chinese manufacturers, who benefit from lower production costs and government support, leaves European brands at a disadvantage.
Diverging positions in the European Parliament and the European Commission
Within the European Parliament, opinions are divided between those advocating for easing the targets and those who view these strict regulations as an opportunity to advance the green transition.
Pascal Canfin, Chair of the European Parliament’s Committee on Environment, Public Health and Food Safety, is among the proponents of maintaining the targets without exceptions.
He argues that waiving the penalties could weaken the continent’s climate commitments.
Recently, the EU Commissioner for Climate joined in, reaffirming the bloc’s plans to end sales of CO2-emitting cars by 2035 and tighten CO2 limits next year.
In this regard, Wopke Hoekstra stated that climate rules provided a predictable investment environment.
The European Commission will engage with the industry “to essentially articulate how we can shape this bright future, how we can meet the goals, how we can provide predictability,” he said at a hearing in the European Parliament.
He adds: “Many of the car company CEOs I talk to have said that they can deliver on the targets.”
In this context, he noted that the industry is calling for increased public investment in electric vehicle charging infrastructure, and that “this is fair.”
In contrast, some legislators from countries with a strong automotive industrial base have requested that targets be adjusted in line with current economic and social conditions.
German MEP Markus Ferber urges the European Commission (EC) to adopt a “more realistic” approach and emphasises that rigid penalties could be counterproductive, hindering companies from reinvesting in innovation and affecting employment.
The EC, for its part, adopts an intermediate position.
While it reiterates the importance of meeting climate commitments, it states that it will assess the industry’s progress as the penalty deadline approaches.
It will also consider adjustments should insurmountable barriers for manufacturers be demonstrated.
As the 2025 deadline approaches, pressure is mounting on lawmakers and industry players to find a viable solution.
