Summary
- Ola Kallenius is asking the EU to drop fines for automakers who don’t comply with new emissions regulations
- European automakers must ensure new models emit less than 95 grams of CO2 per kilometer to avoid fines
- There was a 6% decline in EV registrations in Europe in 2024
- Kallenius believes EV sales decline is not due to lack of options and is urging for a reality check on the European Green Deal
- Transport & Environment say automakers are unlikely to face penalties for non-compliance with CO2 targets in 2025
Article
The Call to Drop Fines for Automakers Who Do Not Comply with New Emissions Regulations
Ola Kallenius, the CEO of Mercedes-Benz and president of the European Automobile Manufacturers’ Association (ACEA), is requesting the European Union to eliminate fines for automakers who do not meet the new emissions standards. The regulations state that by 2025, new models must emit less than 95 grams of CO2 per kilometer on average. Failure to comply will result in fines being imposed on the manufacturers.
European Markets Experience Decline in EV Sales
Electric cars faced challenges in Europe last year, with a 6% decline in EV registrations compared to the previous year, despite the introduction of more affordable models. This decline contrasted with the increase in sales seen in the United States and China. European automakers now face fines if they do not meet the fleet-wide average carbon dioxide emissions limits, a part of the European Green Deal, aimed at reducing greenhouse gas emissions by 55% by 2030 and achieving net-zero emissions by 2050.
The Arguments Against Impending Fines for Non-Compliant Automakers
Kallenius argues that imposing fines on automakers who fail to comply with the updated CO2 emissions limits will be detrimental to the industry. He suggests that the funds could instead be utilized for research and development to make electric vehicles more affordable. The declining EV sales in the region are not due to a lack of options, according to Kallenius, who believes that the European Green Deal needs to be more flexible and incentivize EV sales through partnerships with energy companies and smart grid solutions.
The Shift Towards Zero-Emissions Transportation
Despite opposition to fines, Kallenius reaffirms the European automakers’ commitment to the goal of achieving zero-emissions transport and mobility by 2050. The industry is in favor of decarbonization but seeks a strategy that promotes economic growth and competitiveness. Transport & Environment, the organization advocating for the new emissions rules, believes that most automakers are equipped to meet the CO2 targets set for 2025 by introducing new hybrids, plug-in hybrids, and EV models.
Automakers’ Fleet-Wide CO2 Emission Targets
The upcoming regulations mandate that passenger vehicles must have fleet-wide CO2 emissions levels lower than 95 grams per kilometer, down from the previous 116 g/km, with light commercial vehicles below 147 g/km. Car manufacturers have specific targets based on the weight of their vehicles, with bonuses awarded for selling low or zero-emission vehicles. Failure to meet these targets could lead to fines of 95 euros per excess carbon dioxide g/km for each vehicle sold.
The Controversy Surrounding the European Green Deal
Opposition to the European Green Deal persists, particularly in countries like Austria, Bulgaria, Poland, and Italy, where calls have been made to drop the impending fines. However, analyzing EV sales data reveals that the decline in sales is not uniform across Europe, suggesting that the demand for electric vehicles remains strong in many regions. With projections indicating a significant increase in EV sales in Europe in the coming years, automakers are poised to navigate the transition towards greener mobility.
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