The European Commission will not ease its climate policies on car CO2 emissions despite mounting pressure from automakers, national governments, and the European People’s Party (EPP), the bloc’s largest political group. EU climate policy chief Wopke Hoekstra confirmed the stance in an interview with Reuters on Thursday.
“No. The answer is no,” Hoekstra said when asked if the Commission would consider changing the regulations during an industry event in Brussels.
The EPP, which includes European Commission President Ursula von der Leyen, launched a campaign this week to weaken the rules, arguing that the auto industry needs relief to weather declining demand, rising Chinese competition, and underwhelming electric vehicle (EV) sales. However, the European Commission maintains that the rules are critical to meeting legally binding emissions targets and providing stability for investment.
EPP’s Proposal and Industry Concerns
The EPP has proposed easing 2025 CO2 limits for automakers, suggesting the use of a three-year average to assess compliance. This would allow automakers to miss next year’s targets without incurring fines, provided they catch up in 2026 and 2027.
The European Automobile Manufacturers’ Association (ACEA) has warned that failing to meet the 2025 limits could result in €15 billion ($15.8 billion) in fines, diverting funds from crucial investments in EV development and infrastructure.
Europe’s car industry faces significant challenges, with thousands of jobs at stake amid falling demand and stiff competition from Chinese EV makers. Nonetheless, Hoekstra dismissed the urgency of the EPP’s proposal, pointing out that fines for missing 2020 EU emissions targets were far lower than initially feared. For example, Volkswagen incurred penalties exceeding €100 million.
Balancing Climate Goals and Economic Pressures
The Commission argues that weakening emissions standards would undermine Europe’s climate objectives. Brussels views the regulations as essential to achieving the EU’s legally binding net-zero commitments and fostering a predictable environment for businesses to invest in greener technologies.
As the debate intensifies, the Commission’s firm stance signals its commitment to balancing climate action with economic pressures, ensuring the automotive sector adapts to a low-carbon future without compromising Europe’s environmental goals.
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