EU Officially Eases Carbon Regulations Following Auto Industry Complaints

Three-Year Grace Period for Excess Emission Fines

The European Union (EU) has officially announced a relaxation of automobile carbon emission regulations. This appears to reflect the industry's concerns that most manufacturers would face massive fines if the regulations were strictly enforced.

Ursula von der Leyen, President of the European Commission, is holding a press conference after concluding the 2nd meeting of the 'Automotive Industry Strategy Dialogue' on the 3rd (local time) in Brussels, Belgium. Photo by AP Yonhap News

On the 3rd (local time), Ursula von der Leyen, President of the European Commission, announced after the second meeting of the 'Automotive Industry Strategic Dialogue' held in Brussels, Belgium, that a revision of the carbon dioxide standards would be prepared within this month.

Originally, the EU planned to lower the average carbon dioxide emission limit for new cars by 15% compared to 2021 starting this year, and impose fines of 95 euros per gram (g) for exceeding the standard emissions. However, through the revision, a three-year grace period will be granted to companies.

So far, the automotive industry has expressed dissatisfaction, stating that due to sluggish electric vehicle sales in Europe, most manufacturers could face huge fines if the original plan were applied. If the revision passes, manufacturers can avoid fines even if they do not reduce emissions this year, as long as they meet the reduction targets within three years. This reflects the industry's demands.

The revision must be voted on by the 27 EU member states and the European Parliament. Major member countries such as France, Germany, and Italy are requesting a postponement or withdrawal of the enforcement, so it is expected to be approved unless there is a major surprise. Since the existing regulations apply to all manufacturers selling cars in Europe, the confirmation of the revision is expected to have a positive effect on Hyundai Motor and Kia as well.

President von der Leyen explained, "This means providing the industry with breathing room and clarity while not changing the agreed targets."

Stefan Sejurne, EU Executive Vice President for Prosperity and Industrial Strategy, also said, "The exemplary manufacturers (those prepared for the regulations) can leverage their efforts advantageously, and those who are still behind will have more time to prepare."

However, some environmental groups strongly criticized the Commission's move. T&E, a European clean transport and energy advocacy group, pointed out, "Relaxing the EU clean car regulations only benefits manufacturers who are lagging in carbon reduction and will cause the European automotive industry to fall further behind Chinese electric vehicles, providing no help at all."

On the same day, President von der Leyen also introduced plans to secure the competitiveness of European car manufacturers and stabilize supply chains. In particular, she announced the gradual introduction of 'European-made' requirements for battery cells and components.

She also acknowledged the challenge that imported batteries are cheaper compared to European-made ones and said, "We will seek direct support for EU battery producers." She added that an 'action plan' to revive the regional automotive industry, including these measures, will be released on the 5th.

This content was produced with the assistance of AI translation services.