European Automakers Win Unexpected Ally in Push Against CO2 Rules
European Parliament’s Biggest Party Seeks to Rewind Emission Targets
European legacy automakers have found an unlikely champion in their fight to weaken the proposed European Union CO2 emission targets — the bloc’s largest political party.
The center-right European People’s Party (EPP), which holds a majority in both the European Parliament and the European Commission, including President Ursula von der Leyen, is spearheading a campaign to help automakers avoid potentially substantial fines for missing mandated targets.
The EPP’s demands, set to be officially released this week, come as automakers face mounting pressure to significantly reduce their carbon footprint, often with significant costs.
Numerous automakers have warned that they will struggle to meet these targets due to the current slower-than-expected adoption of their electric-alternative vehicles due to their high costs and lack of charging infrastructure. Many companies are bracing themselves for potentially billions of euros in penalties when the new rules come into effect next year.
Adding to the pressure for the automakers is the challenge posed by heavily subsidized Chinese automakers. The Chinese government provides its automakers with up to nine times the support that European companies receive from their respective governments.
The EPP’s draft proposal goes further by calling for a reversal of the EU’s proposed ban on sales of new gasoline-powered vehicles by 2035. This aligns with an existing proposal – yet to be ratified – that would allow those utilizing carbon-neutral fuels, such as biofuels, synthetics, and hydrogen, beyond 2035.
The party suggests that plug-in hybrid cars should also be excluded from the ban and urges Brussels to undertake early review of the 2035 policy next year to implement these changes.
A Headwind for Automakers Amidst Growing Concern
The EPP’s stance marks a significant shift from EU legislators’ previous stance. The **European Automobile Manufacturers Assn. (ACEA)**, has already voiced concerns and is calling for easing next year’s emission targets due to the challenges of hitting projected 2025 emissions reduction targets.
A key argument from both the EPP and the ACEA department is the reliance on outdated measurements. Current mandates do not consider the full life-cycle CO2 emissions of vehicles. While electric vehicles have significantly fewer “tailpipe” emissions, their overall environmental impact depends heavily on how their electricity is generated, with countries reliant on fossil fuel-powered electricity generation experiencing higher emissions.
This is not the first instance where the EPP has interfered in anti-pollution measures. Last month, the EU postponed its landmark anti-deforestation legislation by a year. This caused by pushback not only from industry but also governments, both EU member states and international dishes,” including Brazil and the US.
This latest development signifies the shifting landscape in which automotive regulations are crafted. It suggests that industry lobbying, in this case from the heart of the EU’s largest political party, may see car makers’ demands increasingly taken into account in the future.
