Electric Transport Organizations Urge EU to Maintain Strict CO2 Emission Regulations

Advocates stress the importance of upholding 2025 CO2 targets for the auto industry / Reuters

European electric transport organizations are calling on the European Union to firmly reject the automotive industry's efforts to relax the 2025 CO2 emission regulations and associated penalties. In a letter addressed to European Commission President Ursula von der Leyen, two prominent groups emphasized the necessity of adhering to stringent emission targets, which are crucial for accelerating the transition to electric vehicles (EVs) across the continent. The letter, which has been reviewed by Reuters, highlights that any delays in implementing the emission targets or adjustments to the penalty structure could undermine the EU’s competitive stance in the global electric vehicle market.

The European car manufacturing sector has been vocal about its difficulties in competing with rising Chinese automakers and the potential impact of tariffs from the United States. As a result, they are advocating for a more lenient approach to the emission targets, suggesting that penalties for non-compliance could reach up to €15 billion ($15.7 billion) if they fail to meet the required CO2 limits by 2025. However, the electric transport groups, including E-Mobility Europe and ChargeUp Europe, argue that any flexibility in the emission regulations would further hinder Europe’s ability to catch up to China in the EV sector and could negatively impact investments in essential infrastructure, such as charging stations and battery production.

E-Mobility Europe, which comprises electric vehicle manufacturers, supply chain stakeholders, fleet operators, and infrastructure developers, alongside ChargeUp Europe, focused on the EV charging industry, asserts that the current 2025 CO2 targets are realistic and achievable. The organizations pointed to the introduction of 11 new vehicle models priced below €25,000 and a notable 40% increase in EV sales in January 2025 compared to the previous year as evidence of the sector's potential for growth.

Critics of the automotive industry's claims, such as Aurelien de Meaux, CEO of charging company Electra, argue that the narrative of inadequate demand due to insufficient charging infrastructure is misleading. He stated that EU charging stations are capable of accommodating five to seven times more electric vehicles without becoming overwhelmed, and his sector is actively investing billions into expanding this infrastructure.

Furthermore, de Meaux contested the €15 billion estimate for potential fines, asserting that this figure was based on sales data from the first half of 2024 and does not accurately reflect the market conditions. He estimated that the fines could realistically range from €4 billion to €6 billion, which could be significantly mitigated through credit trading among manufacturers.

The electric transport organizations are advocating for not only maintaining but also enhancing targets or incentives aimed at electrifying corporate fleets, which currently account for approximately 60% of new car sales in Europe. By keeping strict emission targets in place, the EU can foster a robust environment for electric vehicle adoption, ensuring that the region remains at the forefront of the automotive transition.