Prague – Czechia has made a proposal to the European Commission aimed at relaxing the emission reduction requirements for newly manufactured vehicles. According to the plan, car manufacturers will be allowed to demonstrate compliance with emission limits over a stretch of five years instead of on an annual basis. Additionally, any penalties for failing to meet these targets would be evaluated only after this five-year period, which concludes in 2029. During this timeframe, emissions are expected to decrease by 15 percent. This information was shared by Minister of Transport Martin Kupka (ODS) at a press conference today.
Prime Minister Petr Fiala (ODS) expressed concerns that steep penalties linked to this year’s emission targets could jeopardize the competitiveness and sustainability of the European automotive sector. He insisted that the European Commission reassess its stringent requirements, as they could lead to a reduced availability of European cars and threaten jobs within the automotive industry. “We suggested eliminating penalties, but establishing a five-year average reference period from 2025 to 2029 for a 15 percent emission reduction appears to be a reasonable compromise. This framework would enable manufacturers to demonstrate compliance over several years instead of annually, while still upholding the original targets for CO2 reduction and the overall increase of electric vehicles in the EU market,” Kupka stated.
Kupka further emphasized the need for changes in the current conditions that hinder European car manufacturers from matching the technological advancements of their competitors. He highlighted the importance of ensuring that European cars remain affordable for consumers and of preserving thousands of jobs within the automotive sector. He noted that high penalties for failing to meet emissions targets could deter manufacturers from investing in future innovations and could escalate production costs. For instance, he mentioned that the cost of producing electric vehicles in Europe is about 30 percent higher than in China.
Emphasizing the necessity of maintaining a competitive and sustainable industry, Kupka asserted that addressing potential high fines for not meeting climate targets is crucial. He also called for an expedited review of the planned ban on combustion engines set for 2035. France and Germany have joined Czechia and Italy in this initiative. Kupka believes it’s possible to revise the combustion engine ban sooner than 2026, as initially proposed.
The European automotive industry is a vital sector, contributing approximately seven percent to the EU’s GDP and employing around 13 million individuals across Europe. In Czechia, the automotive sector accounts for nine percent of GDP, 34 percent of the manufacturing industry, and 24 percent of exports, directly or indirectly supporting 500,000 jobs.
This initiative in the automotive sector is part of Czechia’s broader strategy to establish the so-called Alliance for Competitiveness, where it collaborates with other nations to advance specific objectives aimed at sustaining Europe’s competitive edge.
Leave a Reply