The European Union is facing pressure from electric transport groups to reject the demands of European automakers seeking to weaken the 2025 CO2 emission targets and related fines, Reuters news report said.
Two organizations, E-Mobility Europe and ChargeUp Europe, sent a letter to European Commission President Ursula von der Leyen. They urged the EU to uphold existing regulations and not accommodate the car manufacturers’ requests for more lenient emission standards.
The letter emphasized that the EU should not allow a slower phase-in of emission targets or permit fines to be calculated based on a multi-year average. Instead, any penalties collected should be directed toward supporting the transition to electric vehicles within the bloc.
The value of the European automotive market is expected to reach nearly $29.55 billion by 2030 from $16.26 billion in 2023.
European carmakers, struggling to compete with Chinese manufacturers and bracing for potential tariffs from the United States, have been pushing for relief from fines they claim could reach 15 billion euros ($15.7 billion) if they fail to meet CO2 limits in 2025.
However, the electric transport groups argue that relaxing these regulations would further disadvantage Europe in the EV market compared to China and would discourage investment in key areas such as charging infrastructure, battery development, and manufacturing. They warn that any delay in implementing stricter CO2 targets could have long-term negative consequences for Europe’s electric vehicle industry.
E-Mobility Europe represents a broad coalition of stakeholders, including EV manufacturers, supply chain companies, fleet operators, and infrastructure providers, while ChargeUp Europe focuses specifically on the EV charging industry.
Notably, Tesla is a member of both organizations. One of the arguments made by EU automakers is that weak consumer demand, partly due to concerns about insufficient charging infrastructure, is hindering their ability to meet emissions targets.
However, Aurelien de Meaux, CEO of charging company Electra, has dismissed this claim as misleading. He asserts that existing charging stations across the EU have the capacity to handle five to seven times more vehicles than they currently do without reaching saturation. Furthermore, he highlighted the significant investments being made in charging infrastructure, which he argues counter the automakers’ narrative.
In their letter, the transport groups maintain that the 2025 CO2 targets are feasible, citing the introduction of 11 new EV models priced below 25,000 euros and a 40 percent year-on-year increase in EV sales as of January 2025.
They also dispute the automakers’ claim regarding the projected 15 billion euro fines, stating that the estimate is based on sales data from only the first six months of 2024 and is therefore inaccurate. According to de Meaux, a more realistic projection suggests fines of approximately 4-6 billion euros, which could be reduced by half through the trading of credits with other companies.
The letter further advocates for policies that would encourage corporate fleets to transition to electric vehicles, given that fleet purchases account for around 60 percent of new car sales. By maintaining stringent emissions targets and reinforcing incentives for electrification, the EU could strengthen its position in the EV sector and avoid falling behind global competitors.