European Commission: auto sector given more time to meet CO2 targets

The European Commission wants to give carmakers more time to meet European standards on CO2 emissions. Commission President Ursula von der Leyen announced this on Monday after the second meeting of the Strategic Dialogue on the Automotive Sector, which the Commission launched at the end of January.

According to von der Leyen, there is a clear demand from the industry for more flexibility around CO2 emissions targets. “The key principle here is balance. On the one hand, we need predictability and fairness for those who have already done their homework. So we need to stick to the targets. On the other hand, we need to listen to stakeholders who demand more pragmatism in these difficult times, and technological neutrality,” von der Leyen said. “Especially when it comes to the 2025 targets and the corresponding penalties if they are not met.”

The German will therefore propose a targeted adjustment to the regulation around CO2 standards this month. “Instead of having to meet the standards every year, companies will get three years,” she said. “That means more breathing space for industry and more clarity, without adjusting the agreed targets.”
Von der Leyen hopes the European Parliament and member states will quickly approve the amendment.

Against fines

In late January, at the start of the strategic dialogue on the future of the European car industry, Commission Vice-President Stéphane Séjourné had already indicated that he does not want carmakers to be fined if they fail to meet their CO2 emissions targets (a fleet average of 93.6 grams of CO2 per kilometre) this year. Earlier, member states such as France and Italy expressed support for the industry in its opposition to any fines.

Von der Leyen also stated on Monday that development of technology for autonomous driving should be encouraged. Therefore, an alliance is going to be set up, in which companies can pool their resources to develop software, chips and technology together. It also promises to simplify testing and application rules and set up large-scale pilot projects for autonomous driving.

Cutting red tape

Finally, Europe’s automotive supply chains need to become more robust and resilient, especially when it comes to batteries. Accordingly, the Commission is going to see if it can directly support battery producers in the EU, and will gradually introduce European standards for battery cells and components. “And of course we will continue to cut red tape,” von der Leyen said.

The strategic dialogue with representatives of the automotive sector, trade unions and environmental organisations fits within a context of tough Chinese competition that the European sector is suffering. In doing so, the European Union must try to reconcile the industry’s calls for support with the climate targets adopted by member states and the European Parliament in recent years. An action plan for the sector will be presented on Wednesday, followed by a consultation with industry CEOs before the summer.

Unseen gift

The NGO Transport & Environment, called von der Leyen’s proposal “an unseen gift” for the European industry. “Easing the rules on clean cars rewards the laggards and does little to benefit the European car industry, except falling even further behind China in terms of electric cars,” said director William Todts, who took part in the dialogue. (Belga)

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