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Prague – Czechia has proposed to the European Commission to ease emission reduction requirements for newly manufactured cars. Car manufacturers should report compliance with emission limits over a five-year period, rather than each year. Potential penalties for not meeting targets would also be assessed only after five years, i.e., after 2029. Emissions should be reduced by 15 percent within this five-year period. This was stated at today’s press conference by the Minister of Transport Martin Kupka (ODS).
According to Prime Minister Petr Fiala (ODS), high penalties for not meeting emission targets set for this year threaten the competitiveness and viability of the European automotive industry. Therefore, the European Commission must reconsider its unrealistic requirements, which may result in worse availability of European vehicles and threaten jobs in the automotive industry. “We proposed the abolition of penalties, but a five-year average reference framework from 2025 to 2029 for a 15 percent emission reduction seems to be an acceptable compromise. This proposal allows manufacturers to demonstrate compliance on a multi-year basis, not annually. At the same time, it does not limit the existing target of reducing CO2 emissions and does not reduce the total number of electric vehicles introduced in the EU market in the coming years,” Kupka said.
“It is necessary to change the conditions that currently prevent European car manufacturers from catching up with the technological lead of the competition. We need to ensure affordable European cars for citizens and preserve thousands of jobs in the automotive industry,” Kupka added. According to him, penalties for not meeting emissions would limit manufacturers’ investments in further innovations and increase their production costs. For example, electric vehicle production in Europe is, according to him, 30 percent more expensive than in China.
Successful fighting against climate change cannot be conducted without competitive and viable industry, according to the Minister of Transport. According to Kupka, it is necessary not only to prevent looming high fines for not meeting climate targets but also to expedite the revision of the combustion engine ban in 2035. France and Germany have joined the Czech Republic and Italy in the initiative. According to Kupka, the combustion engine ban could be revised in the second half of this year instead of 2026, as originally planned.
The European automotive industry is a key sector, forming seven percent of the EU’s GDP. It currently employs 13 million people across the EU. In Czechia, it contributes nine percent to GDP, constitutes 34 percent of the manufacturing industry, and 24 percent of exports. It directly or indirectly employs 500,000 people.
The initiative in the automotive industry is another effort by Czechia in creating the so-called Alliance for Competitiveness, through which it joins forces with other countries to promote specific goals for maintaining Europe’s competitiveness. (February 21)