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Czech Republic joining Italy to fight carmakers’ CO2 fines

Czech Republic joining Italy to fight carmakers’ CO2 fines

Automotive News Europe — 2024-11-04

Automotive Industry

The Czech Republic will join Italy in seeking to prevent carmakers from facing heavy penalties from next year when tougher CO2 emission rules take effect in the European Union, Czech Transport Minister Martin Kupka said.

Kupka said carmakers will face problems meeting new targets due to falling demand for electric vehicles in Europe, adding that the two countries had agreed on 1 November to present their joint stance this week when EU leaders meet in Budapest.

Starting in 2025, the EU will lower a cap on average emissions from new vehicle sales to 94 grams/km from 116g/km. Exceeding that cap could lead to fines of €95 ($103) per excess CO2 g/km multiplied by the number of vehicles sold.

Carmakers face trouble adjusting their ranges to meet those targets, Kupka said.

They cannot do it because interest in electric cars is falling in all of Europe,” Kupka told a Sunday debate (3 November 2024) show on broadcaster CNN Prima News. He said carmakers would lack money to finance research and development if they are forced to pay fines.

Czech Republic among the EU members opposing the Green Deal

The Czech Republic is among a group of EU countries pushing back against the bloc’s so-called Green Deal to tackle climate change and curb pollution. The tougher limits next year are a step towards plans to ban sales of new combustion-engine vehicles in 2035.

The car industry contributes around 9% of GDP in the Czech Republic, a country of 10.9 m which made 1.4 m cars in 2023, making it one of Europe’s biggest per-capita producers.

Three carmakers operate in the country – Volkswagen Group’s Skoda, Hyundai and Toyota.


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