EU Stands Firm on Car CO2 Regulations, Climate Chief Affirms

EU Stands Firm on Car CO2 Regulations, Climate Chief Affirms

Brussels: The European Commission has no plans to alter its policies on reducing CO2 emissions from cars, despite a campaign by the EU's largest political group, the European People’s Party (EPP), to soften the regulations, EU climate policy chief Wopke Hoekstra stated on Thursday. Speaking to Reuters at an industry event in Brussels, Hoekstra firmly dismissed the idea of revising the car emissions rules. "No. The answer is no," he said.

The EPP, a center-right coalition and the European Parliament's largest political group, launched an initiative this week urging a relaxation of climate regulations. This comes amid mounting pressure from automakers and national governments, who are seeking urgent support for Europe’s struggling automotive industry. Challenges include weak market demand, intensified competition from Chinese manufacturers, and slower-than-expected adoption of electric vehicles, putting thousands of jobs at risk.

The EPP’s primary request is to provide automakers with leeway on the 2025 CO2 emissions limits, which many fear will be unattainable. Industry group ACEA has warned that automakers could face fines totaling €15 billion ($15.8 billion) for missing these targets, arguing that such penalties would divert funds from critical investments in the sector.

Hoekstra, a member of the EPP political group alongside European Commission President Ursula von der Leyen, has previously dismissed concerns over the fines, citing the relatively modest penalties faced by carmakers for missing the EU's 2020 emissions targets. For instance, Volkswagen incurred fines exceeding €100 million at that time.

The EPP has proposed a compromise: using a three-year average to assess compliance with the 2025 limits. This would allow automakers to fall short of next year’s targets without immediate fines, provided they make up for the deficit by 2026 or 2027. However, Brussels maintains that the emissions rules are essential to meet Europe’s binding climate goals and create a stable investment framework for the industry.

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