EMISSIONS: EU, Automakers Debate EV Shift, €15bn CO2 Fines & Policy Relief

The EC met auto industry leaders to discuss EV adoption and competitiveness amid job cuts, factory closures, and looming CO2 fines, with the sector pushing for regulatory relief and policy support to stay competitive in the global market, according to the EC, cited by Reuters.

• The EU's 'strategic dialogue' brought together 22 industry leaders, including BMW, Mercedes-Benz, Renault, Bosch, and Forvia, to contribute to the auto industry plan due on 5 March.
• Automakers seek relief from potential CO2 fines, which could reach €15bn if electric vehicles fail to exceed a 20% market share
• To meet emission targets, automakers may either cut petrol and diesel production or buy carbon credits from Tesla and Chinese competitors.
• And Industry leaders from Germany, Italy, and the Czech Republic have urged the EU to waive or extend penalty calculations, but the Commission has largely resisted.
• Environmental think tank T&E argues the industry has had since 2017 to prepare, new affordable EV models are emerging, and 2025 targets remain achievable through increased EV/hybrid sales and credit buying.