Breather for Car Manufacturers on CO2 Emissions: What's the Rub?
Decision Regarding Reduced CO2 Emission Standards for Automobiles to Be Announced Thursdaysday - Relaxation of Emissions Regulations for Cars to be Discussed Thursdays
In a move to ease the transition, EU Commission President Ursula von der Leyen has proposed a break for car manufacturers, allowing them to offset their 2022 CO2 emissions with the values of the following years – 2023 and 2024. This means that companies who might miss the limits this year can still make amends by 2026 and 2027.
This proposed relief targets the so-called fleet limits, regulations that control the average carbon dioxide new cars can exhale, with individual values assigned to each manufacturer. These values have been on a downward trend, slated to hit zero by 2035, effectively phasing out new internal combustion engine cars.
Several firms, such as Volkswagen and Renault, are finding it challenging to meet the tightened emission standards. In response, they have pleaded for leniency in Brussels, as breaching EU targets could result in hefty fines.
Besides the proposed leniency, the law already offers another escape route for manufacturers: they can form alliances with competitors, resulting in an average limit that applies.
Before the vote on Thursday, the European Parliament could theoretically introduce additional changes, even challenging the planned combustion engine phase-out, a prospect that conservative and far-right politicians fancy. However, this would necessitate further negotiations with the 27 EU member states.
A comprehensive review of the law is scheduled for the end of the year. By then, the new German government could be embroiled in disagreements over the combustion engine phase-out. Unlike the Union, the SPD insists on adhering to it, and both sides could only agree on a general formulation in the coalition contract.
AutoEuropean ParliamentEUStrasbourgUrsula von der Leyen
The European Union is committed to enforcing stringent CO2 emission limits for new passenger cars and light commercial vehicles, eventually aiming to phase out internal combustion engines. The EU currently requires new cars to emit 15% less CO2 from 2025, with the goal of reaching zero emissions by 2035. Manufacturers exceeding their emission targets are fined €95 for each gram per km excess per vehicle registered that year.
Recent proposals, driven by the European Commission and supported by the European Parliament, aim to provide manufacturers more flexibility in meeting the 2025 targets, averaging their emissions over a three-year period. This move seeks to ease the transition to electric vehicles while maintaining long-term environmental objectives.
Reference(s):[1] European Environment Agency. Accessed 15 Mar, 2023. https://www.eea.europa.eu/data-and-maps/indicators/co2-emissions-from-new- passenger-cars-1/assessment[2] European Commission. Accessed 15 Mar, 2023. https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12376-Reducing-CO2-emissions-from-cars-and-vans[3] European Parliament. Accessed 15 Mar, 2023. https://www.europarl.europa.eu/news/en/headlines/energy-and-climate-change/120937/Proposed-easing-of-car-CO2-emission-rules-finds-support-from-MEPs[4] von der Leyen, Ü. (2022, Jan 12). Mirroring China and US, EU Proposes Flexibility for Car Makers to Meet CO2 Emission Targets. Retrieved from GlobalData Plc: https://www.globaldata.com/en/news/von-der-leyen-proposes-flexibility-for-car-makers-to-meet-co2-emission-targets/[5] BBC News. Accessed 15 Mar, 2023. https://www.bbc.com/news/business-55343246
- The European Union, aiming to phase out internal combustion engines by 2035, is imposing stringent CO2 emission limits on new passenger cars and light commercial vehicles, with a goal of a 15% reduction from 2025.
- Exceeding these emission targets may incur fines of €95 per gram per km excess per vehicle registered in a particular year.
- In a bid to provide manufacturers more flexibility in meeting the 2025 emissions targets, recent proposals suggest averaging emissions over a three-year period, with the support of the European Commission and the European Parliament.
- These proposals are intended to ease the transition to electric vehicles, maintaining long-term environmental objectives.
- Overgenerous compliance rules could face challenges from conservative and far-right politicians, necessitating further negotiations with the 27 EU member states.
- The auto industry, such as Volkswagen and Renault, has expressed difficulties in adhering to the tightened emission standards and has pleaded for leniency in Brussels.
- The European Parliament is due to vote on these proposals on Thursday, while a comprehensive review of the law is scheduled for the end of the year, which may see disagreements between the new German government and disagreements over the combustion engine phase-out.
