Czech Skoda warns EU car emission targets will not be met, calls for policy rethink

Czech Skoda warns EU car emission targets will not be met, calls for policy rethink | INFBusiness.com

EU car emission targets for 2025 are unattainable for the industry, Martin Jahn, Skoda Auto board member and vice-president of the Czech Industry Confederation, said on Sunday.

Speaking on Czech television, Jahn stressed that the predicted increase in demand for electric vehicles has not materialised, making it increasingly clear that the industry will struggle to meet stringent CO2 emission limits. The calculated EU fleet-wide target for 2025 is 93.6 g/km for passenger cars.

“At the moment, it is becoming apparent that it will be impossible to meet those targets. The interest in electric cars firstly increased from 14% to 16%, but then fell back to 14%, while we were expecting 20% on average,” Jahn explained. He also noted that the situation is unlikely to improve in the near future, with natural demand for electric vehicles expected to remain flat next year.

Jahn also expressed concern about the financial consequences for European carmakers if the policy remains unchanged.

“Unless the policy is rethought, the next few years will be quite painful. We will have to pay fines or buy credits from other car companies – those that only make electric cars – like China,” he said.

This would create a paradox where European companies would be penalised while relying on Chinese companies to comply, he added.

The challenges in the automotive sector come at a critical time as manufacturers, including Škoda, are already investing heavily in the transition to electric vehicles. Jahn warned that the current regulatory framework could significantly hamper profitability, which is crucial for funding innovation and development.

“The system will fundamentally undermine our profitability, which we need in the innovation phase,” he explained.

The Czech government is responding to the industry’s concerns. As previously reported by Euractiv, Czech Prime Minister Petr Fiala and Transport Minister Martin Kupka (both ODS, ECR) said that the Czech Republic would push for changes to EU car emission rules.

“Some of the Green Deal targets have proven unrealistic, and we will try to adjust them. Without changes, we risk the future of the European automotive industry,” said Fiala.

Czechia, along with Germany and Italy, is working to build a coalition of like-minded nations to lobby for a review of the car emission limits set for 2025 and beyond.

(Aneta Zachová | Euractiv.cz)

Source: euractiv.com

Leave a Reply

Your email address will not be published. Required fields are marked *