According to Bloomberg, Renault Group's Chief Strategy Officer, Josep Maria Recasens, stated during a break at an event hosted by the Spanish Automobile Manufacturers Association in Madrid, Spain, that the European Union will eventually ease the stricter automotive emission standards initially set to take effect this year.
Josep Maria Recasens expressed his "100% confidence" that the EU will adjust its 2025 automotive carbon emission regulations, allowing automakers greater flexibility in meeting the targets. "This is not about abandoning or postponing the goal but about maintaining flexibility in how the goal is achieved. Otherwise, what alternative do automakers have? Paying fines or shutting down factories?" Recasens remarked.
Currently, the European Commission is in discussions with the EU automotive industry to address regulatory challenges and plans to announce an action plan on March 5. However, it is important to note that any proposal by the European Commission to exempt automakers from carbon emission fines must be approved by both EU member states and the European Parliament before it can take effect. In response to potential risks, some EU member states have begun discussions on introducing multi-year compliance periods, allowing automakers to accumulate or borrow CO₂ credits across different years.
For months, European automakers have warned that slowing demand for electric vehicles makes it difficult to meet the EU's 2025 carbon emission targets, putting them at risk of billions of euros in fines. At the same time, some manufacturers have shown interest in collaborating with EV makers to comply with the EU's stricter carbon regulations. For example, Stellantis, Toyota, and Ford plan to share emissions credits with Tesla, while Mercedes-Benz intends to collaborate with Volvo Cars and Polestar.
Starting in 2025, the average CO₂ emissions for passenger cars in Europe must be below 95 grams per kilometer, while emissions for light commercial vehicles must be under 147 grams per kilometer. Experts suggest that even if EV sales stagnate, automakers will still need to ensure at least 20% of their sales come from battery-electric vehicles. Manufacturers failing to meet EU carbon emission standards will face fines of €95 per vehicle for every gram of CO₂ emitted per kilometer over the limit.
