Feb 21, 2025
Electric transportation organizations are urging the EU to maintain strict CO2 emission regulations.
Two European electric transport organizations wrote a letter to European Commission President Ursula von der Leyen on Friday, urging the European Union to reject the push from European automakers to relax the CO2 car emission targets for 2025 and the associated penalties.
According to the letter, which was reviewed by Reuters, the EU executive should not allow a delayed implementation of the emission targets or calculate fines based on a multi-year average. Instead, the letter calls for any penalties to be used to support the transition to electric vehicles (EVs) across the bloc.
European car manufacturers are finding it challenging to compete with Chinese competitors and are preparing for potential U.S. tariffs. They are asking the Commission for leniency from fines that they claim could escalate to 15 billion euros ($15.7 billion) if their fleets fail to comply with the CO2 emission standards by 2025.
The letter from E-Mobility Europe and ChargeUp Europe warned that allowing any leniency that delays the 2025 CO2 targets would only widen the gap between Europe and China in the EV market and negatively impact investment plans within the EU for charging infrastructure, battery innovation, and manufacturing.
E-Mobility Europe represents various stakeholders in the EV industry, including manufacturers, supply chain companies, fleet operators, and infrastructure providers, while ChargeUp Europe specializes in the EV charging sector. Tesla (TSLA.O) is a member of both associations.
The European automakers claim that their main issue is a lack of consumer demand, partly due to concerns over insufficient charging infrastructure. However, Aurelien de Meaux, CEO of charging company Electra, countered that this is a misleading claim, stating that EU charging stations could accommodate five to seven times more vehicles without reaching capacity and that his sector is investing billions of euros in expanding infrastructure.
"It would be disastrous to reverse such policies," he said.
The letter emphasized the feasibility of the 2025 CO2 targets, highlighting the introduction of 11 new models priced below 25,000 euros and a 40% year-on-year increase in EV sales as of January 2025.
De Meaux also pointed out that the estimate of potential fines reaching 15 billion euros was based on sales data from the first half of 2024 and was therefore inaccurate. He mentioned that projections indicate fines may only range between 4 to 6 billion euros, which could be reduced by trading credits with other companies.
The groups are in favor of setting targets or incentives for corporate fleets to transition to electric vehicles, as they account for around 60% of new car sales.
According to the letter, which was reviewed by Reuters, the EU executive should not allow a delayed implementation of the emission targets or calculate fines based on a multi-year average. Instead, the letter calls for any penalties to be used to support the transition to electric vehicles (EVs) across the bloc.
European car manufacturers are finding it challenging to compete with Chinese competitors and are preparing for potential U.S. tariffs. They are asking the Commission for leniency from fines that they claim could escalate to 15 billion euros ($15.7 billion) if their fleets fail to comply with the CO2 emission standards by 2025.
The letter from E-Mobility Europe and ChargeUp Europe warned that allowing any leniency that delays the 2025 CO2 targets would only widen the gap between Europe and China in the EV market and negatively impact investment plans within the EU for charging infrastructure, battery innovation, and manufacturing.
E-Mobility Europe represents various stakeholders in the EV industry, including manufacturers, supply chain companies, fleet operators, and infrastructure providers, while ChargeUp Europe specializes in the EV charging sector. Tesla (TSLA.O) is a member of both associations.
The European automakers claim that their main issue is a lack of consumer demand, partly due to concerns over insufficient charging infrastructure. However, Aurelien de Meaux, CEO of charging company Electra, countered that this is a misleading claim, stating that EU charging stations could accommodate five to seven times more vehicles without reaching capacity and that his sector is investing billions of euros in expanding infrastructure.
"It would be disastrous to reverse such policies," he said.
The letter emphasized the feasibility of the 2025 CO2 targets, highlighting the introduction of 11 new models priced below 25,000 euros and a 40% year-on-year increase in EV sales as of January 2025.
De Meaux also pointed out that the estimate of potential fines reaching 15 billion euros was based on sales data from the first half of 2024 and was therefore inaccurate. He mentioned that projections indicate fines may only range between 4 to 6 billion euros, which could be reduced by trading credits with other companies.
The groups are in favor of setting targets or incentives for corporate fleets to transition to electric vehicles, as they account for around 60% of new car sales.