Already from 1 January 2025, the EU will penalize car brands whose production does not stay below a new C02 limit. But now Germany wants to exempt the companies from the same stalls.
Germany is working to exempt car manufacturers from the EU's emissions booths. The politicians want producers who do not meet the set emission requirements to escape the economic sanctions that the EU has otherwise determined.
From next year, the EU's emission rules will be tightened. If the car manufacturers do not meet the set targets, they will have to pay fines that can run into billions of euros.
At the same time, analyzes indicate that many consumers still prefer cars with internal combustion engines over electric cars, which puts pressure on the car industry. To meet the challenge, the German government proposes a more flexible approach.
Chancellor Olaf Scholz from the German Social Democrats and Business Minister Robert Habeck from De Gronne have approached the EU Commission with a proposal to avoid sanctions for car manufacturers who later meet the targets.
According to the government, a transitional arrangement should be created, where car manufacturers who in 2026 and 2027 exceed the expected sales figures for electric cars, are exempted from stalls.
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– I believe that there should be no sanctions for German and European car companies that do not fully meet their carbon dioxide targets. The money must stay in the companies to modernize the industry, says the chancellor, according to N-TV .
The figures show that several car manufacturers are challenged. Among them, Volkswagen and Ford are particularly under pressure in relation to their current emission quotas. One option to avoid stalls is to form emission pools with other companies, a strategy that several have already adopted.
The background for the initiative is partly political. With the prospect of elections in February, there is a need to gather support from the voters. The government has also been characterized by internal unrest, including a government crisis in November, when the chancellor dismissed the finance minister. In this light, the politicians are trying to find solutions that both satisfy the industry and the voters.