PARIS (Reuters) – Europe’s car industry could face fines of up to 15 billion euros ($17.4 billion) over carbon emissions as demand for electric vehicles slows. Renault “The EPA’s chief executive, Luca de Meo, said on Saturday:
Carmakers face tougher EU CO2 emissions targets in 2025 with the cap on average emissions from new vehicle sales set to fall to 94g/km from 116g/km in 2024.
“If electric cars remain at their current level, the European industry could have to pay fines of 15 billion euros or give up production of more than 2.5 million cars,” De Meo told France Inter radio.
“The speed of electrification is half of what we need to achieve the targets that will allow us not to pay fines,” said De Meo, who is also president of the European Automobile Manufacturers Association (ACEA).
Exceeding the CO2 limits may result in fines of up to €95 per excess gram of CO2/km multiplied by the number of vehicles sold.
This could result in penalties of hundreds of millions of euros for major car manufacturers.
“Everyone is talking about 2035, which is ten years away, but we should be talking about 2025 because we are already struggling,” he added.
“We need to be flexible. Setting deadlines and fines without being able to make them more flexible is very dangerous.”