Brussels resists industry push to delay 2025 CO2 reduction targets

The European Commission has pushed back against car makers' calls to delay the upcoming 2025 CO2 reduction targets, asserting that the industry has had ample time to prepare for the changes.

Under current EU regulations, manufacturers must reduce average CO2 emissions of their vehicles by 15% by next year, compared to 2021 levels.

However, a leaked industry paper, reportedly spearheaded by Renault and its CEO Luca de Meo, who also heads the European Automobile Manufacturers' Association (ACEA), had suggested a two-year delay. The paper warns that carmakers face potential fines of up to €16 billion if they fail to meet the target.

Tim McPhie, a spokesperson for the Commission on climate action, dismissed the call for postponement, stating: “The 2025 target requires – and enables – manufacturers to develop a comprehensive compliance strategy.”

He went on to note that the target had not been revised in recent years and was adopted by lawmakers in 2019, giving the industry “quite some time to prepare”.

The delay request stems from concerns that the market share of electric vehicles (EVs) is stagnating below 15%, while a 20-22% share is needed to meet the 2025 CO2 reduction goals.

ACEA has highlighted a lack of charging infrastructure, affordable green energy, and other incentives as major barriers to achieving widespread EV adoption.

In a statement, ACEA called for a “substantive and holistic review” of the CO2 regulations. They argue that without addressing these issues, carmakers will struggle to meet the required targets.

Environmental groups have branded the proposal “cynical and absurd,” pointing to the significant profits made by carmakers in recent years.

Expert Ferdinand Dudenhöffer from the Centre for Automotive Research in Germany supported the industry position, citing German political decisions as a major factor in the slowdown of EV sales.

He blamed the German government’s sudden withdrawal of its electric car bonus for hampering EV growth, stating:“Why the numbers are falling in Europe is entirely down to Germany.”

As the debate continues, ACEA is expected to discuss the proposal imminently. In spite of concern about the looming financial penalties some manufacturers such asStellantis back the current regime.